For and on behalf of

HLH GROUP LIMITE

It expects its venture into the agri-sector to contribute 60-70% of earnings within the next three years. CEO Lam Yue Pak said agriculture is HLH's new focus though the company will continue its current business of property development on a smaller scale.

HLH is investing about US$50m to grow corn on 40,000 ha of land in North Sumatra, Indonesia. HLH expects agriculture - both corn and trading-related agri-businesses - to account for as much as 60-70% of total earnings within the next three years.

In the first phase of HLH's pilot corn farming exercise, yield across the three hectares farmed was more than seven tonnes per hectare. In 2008, HLH hopes to farm 5,000 to 10,000 hectares of land for its first commercial harvests.

With plans for two harvests a year, and an expected yield of 8 tonnes per hectare, this could mean 80,000 to 160,000 tonnes of corn. And if corn prices stay above US$4 a bushel, or about $240 a tonne, HLH could be looking at $19.2m to $38.4m in revenue for FY08.

The two-phased pilot farming exercise is carried out within the 40,000 hectares land parcel in Toba Samosir. HLH has previously entered into a co-operation agreement with the Regency Government of Toba Samosir in Sumatra, Indonesia for the proposed development of corn plantations to promote and market hybrid corn seeds.

"We are pleased with the positive results achieved in the first phase of our pilot farming exercise, which has exceeded the industry average in Indonesia. Having assembled an experienced agricultural team including professors from renowned institutions, the desired output was underpinned by our good production techniques and practices. More importantly, we are confident to begin commercial corn planting by the start of 2008." SGX Mainboard-listed HLH Group Limited1 ("HLH" or the "Group") today unveiled the results achieved during the first phase of its five-month long corn planting pilot exercise in Toba Samosir, Sumatra, Indonesia. Culminated in end May on a one-hectare piece of land, the Group cultivated hybrid corn seeds with an average yield2 of more than 7 metric tons per hectare. This has exceeded Indonesia?s farming industry average yield of 3.5 - 4.5 metric tonnes per hectare.