Independent Power Producers (?IPPs?) in electricity generation



emerging power boomAsiatic as one of the leading IPPs in Cambodia poised to leverage on the

Singapore, 15 January 2008

the ?

additional power supply contract worth approximately S$14 million through its wholly-owned

subsidiary Colben System Pte Ltd (?

The additional power supply agreement will involve increasing the existing 15MW contracted

capacity by 5MW and is on top of the existing 10-year power purchase agreement (?

entered into with Electricite Du Cambodge (?

of generating, transmitting and distributing electricity throughout Cambodia) on 1

2005. The increased 5MW capacity to be added on to the Group?s existing power plant at

Sihanoukville, Cambodia shall have a supply period for the balance of the duration of the

PPA, and shall enjoy the minimum off-take purchase of electricity based on 80% of its

capacity. The additional agreement comprised a fuel component and a non-fuel component.

The value of the non-fuel component is estimated to be worth about S$14 million over the

balance of the duration of the existing PPA while the fuel component is passed on to EDC.? Asiatic Group (Holdings) Limited, (?Asiatic?, ?亚洲集团? orGroup?), an emerging player in the regional energy and power industry, has secured anColben?).PPA?)EDC?, a wholly state-owned company in chargest June

Asiatic Group (Holdings) Limited

65 Joo Koon Circle

Singapore 629078

Tel: (65) 6863 0188 Fax: (65) 6897 9200

The additional investment cost for the 5MW increase in capacity is about S$6 million, which

will be funded through a combination of internal resources and project financing. The new

capacity is scheduled to commence commercial operations in about 6 months? time and is

not expected to have a material impact on the Group?s earnings for the financial year ending

31st March 2008.

?We are pleased to build on our existing success in Cambodia to further enhance our

presence in the regional power industry. The contract for additional capacity is a

testament to our capabilities as an Independent Power Producer and our expertise in

power projects management. With the increased economy of scale reaped from the

additional capacity, we will be able to operate on a more competitive structure and

further capitalise on the rising electricity demand in Cambodia.?

Mr George Tan

Managing Director, Asiatic Group

Cambodia is currently facing a shortage of energy with less than half of the households

having access to electricity. According to the Power Development Plan of Cambodia,

electricity generation is projected to grow from 329MW and 1,548 GWh in 2006 to 1,539 MW

and 8,176 GWh in year 2020 to meet the rising demand.

will involve attracting private sector investment or Independent Power Producers (?

well as importing energy from neighbouring countries such as Vietnam. The recent years

have also seen IPPs taking on an increasingly important role in the power generation

industry in Cambodia with their share of power generated rising from 55% in 2004 to 67% in

2005.

emerging energy boom in the region.1 The growth in electricity generationIPPs?) as1 Being one of the leading IPPs in Cambodia, Asiatic is poised to capitalise on the

About Asiatic Group (Holdings) Limited

An engineering management specialist, Asiatic Group plays a pivotal role in the development of

Energy, Controlled Power and Fire Protection Systems. Today, Asiatic Group operates in the niche

areas of:

1) Energy

(operation and maintenance) contractor, provides Planning and Development services and

participates as an Equity Investor in niche power plant projects in the region. The Group

currently operates power plants in Sihanoukville and Phnom Penh, in Cambodia and is in the

process of building another power plant at the Phnom Penh Special Economic Zone., where it operates as an EPC (engineering, procurement and construction) and O&M

2) Controlled Power Solutions

safeguard vital data and processes in their operations and to ensure business continuity., where it supports the power requirements of industries to

3) Fire Protection

Employing over 100 people, Asiatic Group has operations in Singapore, Malaysia, Thailand,

Cambodia and the People?s Republic of China., where it provides total fire protection solutions.