Earnings per Share calculated based on issued share base of 662,215,616 shares.

 

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 Proposes final dividend of 0.54 SG cents per ordinary share ex-rights or 1.08 SG cents per share pre-rights, on top of 1.30 SG cents interim dividend paid out; total payout at consistent level with previous years

 

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 To raise effective stake in China Fishery from 28.8% to 63.9%

 

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 Management is confident of better FY2008 performance

SINGAPORE ? 30 May 2007 ?

In FY2007, the Group achieved a 48.9% year-on-year increase in revenue to HK$5,292.6 million, from HK$3,554.7 million a year ago. Profit after tax for the year surged 72.2% to HK$962.8 million on improving economies of scale, as well as an exceptional gain booked by PAH on the dilution of its interest in China Fishery Group Limited ("China Fishery") through a new share placement. Singapore Exchange ("SGX-ST") Mainboard-listed Pacific Andes (Holdings) Limited ("PAH" or the "Group"), a leading global frozen fish supplier with an integrated supply chain encompassing industrial fishing, global sourcing and transportation, announced today a strong set of results for the financial year ended 31 March 2007 ("FY2007").

PACIFIC ANDES ACHIEVES 49.7% FY2007 NET PROFIT INCREASE Page 1 of 4

Down the line, the Group posted a 49.7% increase in net profit attributable to shareholders to HK$385.4 million. Comparing year on year when excluding exceptional gains recorded in both FY2006 and FY2007, net profit attributable increased 38.1% to HK$243.2 million.

Building on the momentum gained in recent years since PAH first invested in China Fishery, the Group enjoyed continued financial growth. Amidst increasing global consumption of fish, significantly increased contribution from the fishing division, supplemented by sustained growth in its frozen fish supply chain management ("SCM") division, provided the key growth drivers for the Group in FY2007.

In particular, the Group?s fishing division benefited from a series of strategic expansion plans that were executed over FY2007. In January 2007, the fishing division entered into its 3rd and 4th Vessel Operating Agreements ("VOAs"), which increased its trawling fleet size to 23. It also established fishmeal operations in Peru through a series of acquisitions, where it now has 4 fishmeal processing plants and 26 purse seine fishing vessels, and ranks as one of Peru?s leading operators.

Along with these expansions, the Group enlarged its balance sheet considerably. Total assets grew from HK$3,771.9 million as at 31 March 2006 to HK$7,180.5 million as at 31 March 2007, of which HK$185.7 million were in cash and equivalents. Total borrowings increased from HK$1,813.6 million to HK$3,578.2 million, attributed mainly to the issuance of US$225 million in senior notes due 2013 by a China Fishery subsidiary to fund the Peruvian acquisitions.

By businesses, the frozen fish SCM division accounted for 66.1% of FY2007 revenue, while the fishing division accounted for 33.8%, as compared to 17.4% in the previous year. By markets, the People?s Republic of China ("PRC") remained as the Group?s most significant market, accounting for 76.1% of FY2007 revenue. Japan and Korea, the Group?s second largest market and most important consumer of high-value premium fish products, accounted for 14.5%. With the establishment of fishmeal operations in Peru, the Group also diversified its sales to other markets of the world, including Europe, the Americas and various Asian countries. These markets accounted for the balance 9.4% of FY2007 revenue.

"Our upstream fishing operations have now evolved a step further to include Peruvian fishmeal processing. Such an enriched operating profile allows us to capture the various market opportunities emerging from global fish consumption and supply trends more effectively. In the

PACIFIC ANDES ACHIEVES 49.7% FY2007 NET PROFIT INCREASE Page 2 of 4

year ahead, the Group will continue to seek enhancements in its earning capabilities, with particular focus in the upstream fishing division, which remains as PAH?s fastest growing business segment," commented Mr Ng Joo Siang, Chairman of PAH.

Currently, the Group is in negotiations to restructure the terms of the 4th VOA from a daily charter hire basis to a long-term prepaid charter hire basis. If concluded, this would enhance profit margins under the 4th VOA significantly. The Group will also continue to increase the capacity of its purse seine fishing fleet in Peru, so as to drive cost and yield improvements in its fishmeal operations.

In March 2007, PAH also announced a proposed increase of its effective stake in China Fishery from 28.8% to 63.9%. While PAH already has a controlling stake in China Fishery, this is aimed at enhancing the proportion of China Fishery?s earnings attributable to PAH through enlarging its stake at an attractive purchase consideration.

To finance this stake increase, PAH has in April 2007 completed the issue of US$93 million in 4% convertible bonds due 2012. It also intends to raise approximately US$226 million in a 1-for-1 rights issue, which is subject to shareholders? approval in June 2007. These financing methods were selected so as to defer and minimise equity dilution to PAH?s existing shareholders, as well as enlarge the Group?s capital base significantly in preparation for future growth. Following the proposed rights issue, PAH?s share base will be doubled to 1,324,431,232 shares.

"Be it acquisitive or financing in nature, we see every corporate exercise as an opportunity to generate more good quality long-term value for our shareholders. In view of the buoyant environment, and given our sound fundamentals, the management maintains a very positive outlook on our Group?s performance in FY2008 and beyond," concluded Mr Ng.

In view of the strong corporate performance, and taking into consideration the Group?s forward capital requirements as it continues to pursue acquisitive growth, the board of directors is proposing a final dividend of 0.54 SG cents per ordinary share held based on the ex-rights enlarged share capital of 1,324,431,232 shares. In the event that the proposed rights issue is not carried out, the final dividend per share will be revised to 1.08 SG cents, based on the existing issued share capital of 662,215,616 shares. This is on top of an interim dividend of 1.30 SG cents per share already paid out. Total dividend payout for FY2007 remains at consistent levels with previous years.