1. (a) US$500,000 at the end of the first 6 months of operation of PTBJ; and



2. (b) the balance US$500,000 at the end of the first 12 months of operation of PTBJ.

As long as GMG holds an equity stake of more than 50% in PTBJ, PTBJ shall pay GMG marketing and sales fees equivalent to 3% of the value of the Products sold.

The Proposed Transaction is subject to, amongst other things, completion and satisfactory outcome of all financial and legal due diligence investigations by GMG, negotiation and execution of a definitive joint venture agreement and all other transaction related documentation, no material adverse change in the financial condition, operations, business, assets, properties or prospects of PTBJ and all necessary approvals and consents from all governmental authorities and third parties (including pre-emption) being obtained.

GMG?s proposed investment in PTBJ is part of its growth strategy in the natural rubber industry and falls within its philosophy to invest in and operate processing plants in near-to-supply source areas which is conducive to smallholders and middlemen, as well as in an area having growth potential in future supplies. This investment will serve as its first step towards its growth strategy to increase and diversify the Group?s production and sales, as well as paving the way for its geographical expansion plan. GMG will continue to look at other strategic opportunities.

As there is no certainty whether GMG will proceed with the Proposed Transaction, GMG?s shareholders and investors are advised to exercise caution when dealing in GMG?s shares. Persons who are in doubt as to the action they should take should consult their stockbroker, bank manager, solicitor, accountant or other professional advisers.

GMG will make such further announcements relating to the Proposed Transaction when appropriate.

The Proposed Transaction is not expected to have any material impact on the earnings per share or the consolidated net tangible assets per share of the Group for the financial year ending 31 December 2006.

None of the Directors or substantial shareholders of GMG has any direct or indirect interest, other than their shareholdings in GMG, in the Proposed Transaction.

By Order of the Board