Yongnam Secures $60 Million Civil And Structural Steelworks Contract In Dubai

Yongnam Holdings Limited ("Yongnam" or the "Group"), through its wholly owned subsidiary, Yongnam Engineering & Construction (Private) Limited, has been awarded a contract for civil and structural steelworks to 11 over-ground stations by Obayashi Corporation representing JT Metro Joint Venture for the US$1.6 billion (S$2.4 billion) Dubai Metro project - Red Line . The contract value is approximately AED145 million (approximately S$60 million).

The Dubai Metro project will link Rashidiya to Jebel Ali. This is a significant major contract secured since the Group started to explore business opportunities in the Middle East in 2005. Last year, Yongnam secured structural steelworks and specialist civil engineering projects in Dubai with total contract value amounting to approximately S$13 million. This significant Dubai Metro contract is further testimony that the Group core competencies in structural steelworks and specialist civil engineering and strong track record are well-recognised and its business development efforts are well-anchored in the Middle East.

Construction work is scheduled to be completed by mid-2008. As such, it is expected to contribute positively to the Group's revenue and profit as well as consolidated net tangible assets and earnings per share for the current financial year and FY2008.

None of the Directors and, to the best of knowledge of the Directors, none of the substantial shareholders or controlling shareholders of the Group, has any direct or indirect interest in this transaction.

Submitted by Seow Soon Yong, Chief Executive Officer on 9 May 2007