BOUSTEAD TO RAISE RM729 MILLION

KUALA LUMPUR, May 29, 2009 - Boustead Holdings Berhad (Boustead) has once again showcased its commitment to strengthen its financial position by expecting to raise up to RM729 million via a rights issue on the basis of two (2) rights shares for every five (5) existing ordinary shares.

The rights issue price has been fixed at RM2.80 per rights share, which was determined based on a discount to the theoretical ex-rights price of RM3.84 based on Boustead's weighted average market price of RM4.25 for the five days ended 27 May 2009. This exercise will provide shareholders with the opportunity to increase their equity in the Group as they will be able to subscribe to additional shares at an attractive 27% discount to the theoretical ex-rights price.

YBhg Tan Sri Dato' Lodin Wok Kamarrudin, Group Managing Director, Boustead Holdings Berhad commented, "Given the Group's long-term potential and our level of confidence, we believe that this is the best time to undertake a rights issue. In addition to utilising the proceeds to pare down our gearing, we will be building our reserves to be used for working capital. While the savings from interest cost will be significant, equally important we will be in a position to seize the many opportunities that will arise during the current economic conditions."

"However, we do not expect the rights issue to have a material effect on the Group's dividend as we need to take into consideration our performance, cashflow position and financing requirements prior to determining our dividend."

The Group will obtain a written irrevocable undertaking from its substantial shareholder, Lembaga Tabung Angkatan Tentera to subscribe all its shares for the rights issue. As the rights issue is on a minimum subscription level basis, shares that are not subscribed will not be underwritten.

"This rights issue will strengthen our balance sheet and will not only increase the liquidity of the Group's shares but serve as a foundation to position the Group for future growth and greater market leadership."

"Towards this end, we would like to assure our shareholders that the Group is strong financially and we will continue to make sound decisions that will enable us to move forward in the right direction."

Since its inception as a modest trading entity more than 180 years ago, the Boustead Group has grown by leaps and bounds to comprise more than 80 subsidiary and associate companies, and has substantial interests in various sectors of the Malaysian economy. The Boustead Group's operations are focused in six key areas; plantation, heavy industries, property, finance & investment, trading and manufacturing & services. As at 31 December 2008, Boustead Holdings Berhad's paid-up capital is RM326 million, while its shareholders' funds stand at RM2.9 billion.

Forward looking statements

This release may contain certain forward-looking statements with respect to the financial conditions, results of operations and business of the Group and certain plans and objectives of Boustead Holdings Berhad with respect to these items. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future and there are many factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements.

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Issued on behalf of: Boustead Holdings Berhad-------- By: acorn communications sdn bhd For further information, please call: Reshvinder Kaur at 017 2757 985 or Ng Siew Yen at 03 7958 8348 Or email to: acorncommunications@acornco.com.my