AQUA-TERRA REPORTS 55% RISE IN NET PROFIT

? Revenue rose 49% to $ 231million

? Net profit after tax rose 55% to $12.4 million

? Group?s order book exceeds $100 million at end of January 2008

? Proposed final dividend of 0.5 cents per ordinary share

SINGAPORE, 27 February 2008

Limited (?Aqua-Terra? or ?ATS? or the ?Group), today announced that its net profit

after tax for the full year ended 31 December 2007, rose from $8.0 million (FY2006)

to $12.4 million, representing an increase of 55%.

For the financial year ended 31 December 2007, the Board recommends a dividend of

0.5 cents per ordinary share, subject to the approval of the shareholders at the

forthcoming Annual General Meeting.

Aqua-Terra?s strong performance this year is attributable to the growing demand in

the region?s oil and gas industry, higher share of profit from its associate company -

SSH Corporation and contributions from its newly acquired subsidiaries.

Revenues for FY2007 rose 49% from $156 million (FY2006) to $231million. The

higher revenue is attributable to contributions from the newly acquired subsidiaries,

namely, Raymonds Supply Co., Ltd (?RSC?) and Fischer Engineering Pte Ltd

(?FEPL?).

By business segment, contribution from the oil and gas business accounted for about

55% of the Group?s total revenue reflecting the vibrant demand in this industry.

Contribution from the marine business was about 41% and the balance comprises

contribution from the mining and general hardware business.

2

Operating expenses were higher this year, due primarily to the increased business

activities and the consolidation of the expenses of RSC and FEPL. Total operating

expenses in FY2007 rose 33% to $28.8 million (FY2006: $21.6 million). Financing

expenses rose from $1.3 million (FY2006) to $1.8 million due to the increase in bills

payables.

The Group?s net gearing at the close of FY2007 stood at 0.2 times (FY2006: 1.0

time). Trade debtors and inventory turnovers stood at 96 days (FY2006: 80 days) and

80 days (FY2006: 72 days) respectively.

Net increase in cash during the year amounted to $6.0 million compared to a net

decrease of $2.9 million in the previous financial year. Cash and cash equivalents

stood at $14.1 million as at end 31 December 2007 compared to 8.1 million at the

close of FY2006.

Commenting on the outlook for Aqua-Terra in FY2008:

?The increased oil exploration and production activities that we are witnessing across

Asia will create new opportunities for us,? said Mr.Kris Wiluan, Chairman and CEO,