POISED FOR FURTHER GROWTH

KUALA LUMPUR, March 31, 2009 - Boustead Heavy Industries Corporation Berhad (BHIC) has clearly proven it is on track to expand its horizons with a turnover of RM496 million, a significant 324% compared with RM117 registered last year. This commendable four-fold increase in revenue was mainly due to lower progress billings from its shipbuilding contracts. This was further driven by income from existing and new projects.

The results were further solidified with a profit before tax and exceptional item of RM135 million, an increase of 64% from RM82 million last year, not including the debt waiver. Shareholders' fund grew to RM320 million compared with RM209 million recorded last year. Net asset per share stood at RM1.29 compared with RM0.84 a year ago.

As a result of this performance, the Board of BHIC is proposing a single tier final dividend of 5.5% subject to the shareholders’ approval at its Annual General Meeting.

YBhg. Laksamana Madya (B) Dato' Seri Ahmad Ramli Haji Mohd Nor, Executive Deputy Chairman of BHIC, said, "It was a tough year and we are fortunate to be in a sector that is still generating revenue and positive profit. Our orderbook particularly from commercial projects excluding out associate Boustead Naval Shipyard Sdn Bhd (BN Shipyard) is currently RM608 million, a significantly higher jump compared with an orderbook of RM195 million in 2007."

"Our energies are focused on building the non-naval business while providing necessary complimentary maintenance work to our associate BN Shipyard. This will see us through during these tough economic conditions."

The Group's vision to obtain orders from non-naval clients is well underway with a contract for engineering, procurement, construction and onshore commissioning of Muda Living quarters building from Carigali-PTTEPI Operating Company Sdn Bhd which is currently under construction in its Jerejak Yard in Penang.

Orders have also been secured by the Group for the construction of several marine vessels including three units of chemical tankers and a well testing and servicing vessel from commercial owners and operators.

Additionally, the Group also secured two contracts from Swire Pacific Offshore Operations Pte Ltd to build two separate 111 metre-long accommodation work barges worth RM214 million.

"With these contracts in place, this will enable us to strengthen our earnings potential and we are certain BHIC will build on its competitive edge to improve our productivity and harness our human capital abilities to achieve our goals both in the domestic and international arena."

"Moving forward, we will continue our efforts to grow our order book and explore the opportunities inherent in the maritime sector which includes naval and commercial ships, oil & gas and luxury yachts," he conclude.

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Issued on behalf of: Boustead Heavy Industries Corp. Bhd By: acorn communications sdn bhd
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