SINGAPORE – 24 May 2010 – Yangzijiang Shipbuilding (Holdings) Limited

The Board believes that the proposed TDR issue would be in the best interests of the Group for the following reasons:

1. The proposed TDR issuance offers an alternative listing platform for Yangzijiang to broaden and diversify its shareholder base.

1. TSE is amongst the leading stock exchanges in Asia and reportedly has high daily turnover of trade. The proposed TDR issue on TSE may help to induce better valuation and improve liquidity.

Yangzijiang Shipbuilding (Holdings) Ltd

4 Robinson Road

#04-01 House of Eden

Singapore 048543

(Co. Reg. No. 200517636Z)

1. Additional funds raised will help to boost Yangzijiang’s war-chest to pursue potential earning-accretive merger & acquisition activities, strategic investments and strengthen its working capital position.

1. Issuance of TDR will promote the corporate profile of Yangzijiang to overseas investors and will also help to strengthen and increase the Group’s client base in Taiwan;

In relation to the proposed TDR issue, Yangzijiang has appointed SinoPac Securities Corp to provide advice on the proposed TDR issue, to advise the Group in relation to the TDRs issuance, to handle related pre-issuance matters as well as to act as lead underwriter to the proposed TDR issue.

Yangzijiang will undertake the preparation of the necessary documentation for the submission of an application to the TSE and the Taiwan Central Bank ("TCB") for the offering and listing of the TDRs representing the TDR Shares on the TSE. The Group will comply with the Listing Rules of the Singapore Exchange Securities Trading Limited ("SGX-ST") with respect to the issue and allotment of the TDR Shares.

Shareholders should note that the proposed TDR issue is conditional,