Highest Dividend Payout for the 4th

Consecutive Year

· Pre-tax profit up by 29.9%

· Proposed dividend of 0.25 cent per share (net)

· Strong balance sheet set to drive future growth

Singapore 28June 2007:

Group?) has improved its performance across all business segments. Pre-tax profit

was up by 29.9% to $16.9 million and operating revenues grew by 19.4% to $126.3

million.

All business segments of the Group showed increased revenues, boosted by a

recovering global economy and increasing international trade. In particular, the Group

has increased its revenue growth in ASEAN, North Asia and North America markets.

Its strong revenues contributions came from its freight forwarding and chemical

logistics divisions.

With the good performance by the Group, the board is happy to recognize the support

of the shareholders with a higher dividend. Hence, FLEH has proposed a first and

final dividend of 0.25 cent per share (tax exempt one-tier), an increase of 56% as

compared with 0.16 cent per share (net of tax) paid in the previous financial year. This

is the highest dividend payout since FY 2004.

The chemical industry is expected to grow significantly in the next few years in

tandem with overall buoyant economic growth in Singapore. This impending growth

will have a positive impact on the demand for warehousing and logistics services.

With the timely completion of the Group new chemical warehouse in the 3

this year, it will be able to cater to this tremendous growth in the chemical logistics

sector. In addition, the Group is also completing the warehouse complex at Tuas

Avenue 1/10 with a total warehouse space of 341,488 sq ft to meet the increasing

demand for general warehousing services.

FLEH recent overseas investments of $47.8 million have positioned the Group to take

advantage of the booming intra-Asia trade in the years ahead. We are still on the

expansionary path to develop, build and strengthen its integrated supply chain

capabilities, infrastructure and logistics network spanning Singapore, Malaysia,

Thailand, Indochina and China.

Commenting on the Group?s performance, Mr Khua said: ?We are pleased to see both

revenue and profit growth strengthening our market position?. Expanding on the

future plans of the Group he added ?even with our recent acquisitions, we still have a

net gearing ratio of 0.61 times. We are in the good position to actively seek

Circumventing complexity to expose deep value

Logistics stocks are often burdened with mounting complexity, which has turned away

investors who seek earnings clarity. FL?s ongoing efforts to optimise its balance sheet

and de-link its logistics earnings from rental income warrant a re-rating. We initiate