construction industry

?

construction sectorApproximately 50% of 1H FY2007 revenue was derived from

?

revenue driver in 2008/09Robust demand from construction sector to become major

?

from FY2003 to FY2006Solid track record of a 32.4% CAGR in Shareholders? Equity

Singapore, 06 July 2007

?The Group?), one of the largest steel stockists in Singapore and Southeast Asia, is expected to

ride on the booming construction industry in Singapore.

Over the past months, HG Metal has announced a number of expansion plans in line with its

projected expansion of business. The Group has already started construction of new warehouses

at its existing warehouse at 30 Jalan Buroh while construction at its new 300,000 sq ft Jurong

Port Road facility is likely to start in Sep or Oct 2007. These new warehouse facilities are

expected to add warehousing capacity of another 50,000 tonnes when fully completed.

The Group is contemplating the acquisition of more facilities to cater to the growing demand for

its products and services.

.? Mainboard-listed HG Metal Manufacturing Limited (?HG Metal? or

? The Group is in an exciting phase of growth where we are experiencing strong demand

for our products from the booming local construction industry. We received numerous

enquiries for our steel products such as deformed bars and lip channels, which are widely

used in the construction industry. The Singapore construction industry will be a strong

revenue contributor to the Group in 2008/09 with more than S$9 billion Foreign Direct

Investments expected for the two Integrated Resorts (?IR?).?

Mr Wee Piew, Chief Executive Officer

HG Metal has previously announced that the Group has acquired 5 plots of land at Nusajaya

Industrial Park (?NIP?) in Nusajaya, Johor Bahru, Malaysia (?Nusajaya Land?), at a purchase

consideration of RM 23,948,417 (about S$10.5 million). The Group will utilize the Nusajaya Land

area totaling 26.18 acres, for the manufacturing, processing and storage of steel products in three

factories, warehouses and an administration building. Carried out in 3 phases, this will allow the

Group to upgrade operational efficiency, add value to market requirements and adapt to changes

in customer demands, which is consistent with the HG Metal?s plans to provide an increasingly

diverse range of products and services to the steel industry.

The Group has achieved a solid track record in enhancing shareholders? values since its listing in

2002. From FY2003 to FY2006, HG Metal has achieved a Compounded Annual Growth Rate

(?CAGR?) of 32.4% for its Shareholders? Equity from S$24.9 million in FY2003 to S$58 million in

FY2006.

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