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GMG raising $100m through rights issue

MEDIA RELEASE – FOR IMMEDIATE RELEASE

GMG aiming to garner significant financial

muscle to pursue strategic acquisition

opportunities as and when they arise

approximately S$100 millionGroup proposes Rights Issue to raise gross proceeds of

ratio of 9 Rights Shares for every 10 existing ordinary sharesIssue price of S$0.55 per Rights Share will be offered at the

Group maintains healthy balance sheet with net cash positionWith robust operating cash flow of S$7.6 million for HY2009,

SINGAPORE – 27 July 2009 – GMG Global Limited

Singapore listed integrated producer of natural rubber engaged in the planting, growing,

tapping, processing, marketing and exporting of natural rubber; today announced that it

proposes to undertake a fully-underwritten renounceable Rights Issue to raise an

approximate gross amount of S$100 million.

The Rights Shares will be offered at an issue price of S$0.55 (that represents a discount

of approximately 56% to the closing price of S$0.125 per share on 24 July 2009) and at

the ratio of nine Rights Shares for every ten existing ordinary shares in the capital of

GMG.

DBS Bank Ltd. (“DBS” or “Manager”) has been appointed by GMG as its manager and

underwriter in respect of the Rights Issue.

The controlling shareholder of GMG, Sinochem International (Overseas) Pte Ltd

(“Sinochem”), in order to demonstrate its commitment to and support for GMG’s fundraising

exercise has irrevocably undertaken to GMG and the Manager that it will

subscribe and pay for its entire pro-rata entitlement of Rights Shares in full. Sinochem

has also entered into a sub-underwriting agreement with the Manager, pursuant to which

Sinochem will sub-underwrite 100% of the Rights Shares and subscribe for all and any

Rights Shares not otherwise subscribed for by Shareholders pursuant to the Rights

Issue.

The Group is not undertaking the Rights Issue to refinance any existing debt, but to

proactively build up a significant capital base to pursue strategic acquisition opportunities

as and when they arise. This will also strengthen GMG’s balance sheet that will

differentiate the Group from competitors in the current environment of credit constraints.(“GMG” or “the Group”), the only

GMG Global Limited

55 Market Street

#03-01

Singapore 048941

GMG also announced the Group’s set of results for the period of three/six months that

ended 30 June 2009 (“2Q2009”/”HY2009”).

Financial Highlights

2Q2009 2Q2008 chg HY2009 HY2008 chg

S$'000 S$'000 % S$'000 S$'000 %

Revenue 38,533 53,982 (28.6) 67,685 113,192 (40.2)

Gross Profit 5,682 16,683 (65.9) 14,504 38,599 (62.4)

Gross Profit Margin 14.7% 30.9% - 21.4% 34.1% -

Operating Expenses 6,143 5,880 4.5 11,649 12,416 (6.2)

Net Profit Attributable to

Shareholders (3,847) 4,937 N.M. 102 13,256 (99.2)

Net Profit Margin N.M. 9.1% - 0.2% 11.7% -

The Group’s turnover decreased by 40% to S$67.7 million in HY2009 mainly due to

lower rubber prices prevalent in majority part of the period. The tonnage sold in HY2009

was 30,160 tons as compared with 30,807 tons in HY2008. However, the average

selling price for HY2009 was S$2,244 per ton as compared with S$3,674 in HY2008.

Consequently, against the backdrop of lower rubber prices, the net profit attributable to

equity holders decreased from S$13.3 million in HY2008 to S$0.1 million in HY2009.

With a healthy operating cash flow of S$7.6 million for HY2009, the Group maintained a

net cash position with cash and cash equivalents of S$70.8 million as at 30 June 2009.

Balance Sheet (S$'000) 30-Jun-09 31-Dec-08

Plantation Assets 253,674 252,889

Total Debt 50,081 43,501

Cash & Cash Equivalents 70,823 72,562

Total Equity 335,909 343,569

Gross Gearing (x) 0.15 0.13

Net Gearing (x) Net Cash Net Cash

The demand for rubber particularly in the United States and Europe is quite uncertain

with the auto industry being hit hard due to the global financial crisis. Even though the

demand for natural rubber in Asia, particularly in China is expected to increase in the

medium to long term, yet there is no certainty that the anticipated increase in demand in

China will be sufficient to offset the decrease in demand from Europe and the United

States.

The following chart shows a better picture of the rubber prices since the start of 2009:

Source: Bloomberg

--The End--

ABOUT GMG GLOBAL LIMITED (Bloomberg Ticker: GGL SP)

GMG Global Limited (“GMG”) a Singapore-based plantation group dedicated to long-term

investments in Central, West Africa, and Indonesia, is an integrated producer of natural rubber

engaged in the planting, growing, tapping, processing, marketing and exporting of natural rubber.

The Group's emphasis is on producing premium rubber products for Europe, US and Asia

markets.

GMG focuses on centrifuged latex and tyre-grade rubber; in addition to two supplementary

products: block rubbers of latex and skim; “centrifuged latex grade rubber” used in gloves and

condoms industry and “tyre grade rubber” used in the manufacture of tyres (for cars, commercial

trucks, machineries, etc).

Last year, there was a shift in the shareholding structure of GMG with Sinochem International

Corporation acquiring 51% of the GMG shareholding. Sinochem is publicly listed on the Shanghai

Stock Exchange, and comprises a diversified international group specializing in the trading,

manufacturing and transportation of chemicals, plastics, and rubber and metallurgy products. In

the field of rubber business, Sinochem is placed at the top in the PRC in terms of natural rubber

sales.

For more information please visit the website at: http://ir.asiaone.com/gmg/

Issued for and on behalf of GMG Global Limited

By Financial PR Pte Ltd

For more information, please contact:

Kathy ZHANG, kathy@financialpr.com.sg

Romil SINGH, romil@financialpr.com.sg

Tel: (65) 6438 2990

Fax: (65) 6438 0064