BOUSTEAD HEAVY INDUSTRIES ACHIEVES HALF YEAR PROFIT OF RM66.8 MILLION

KUALA LUMPUR, August 12, 2008 – Boustead Heavy Industries Corporation Berhad (BHIC) continues to deliver significantly improved performance in its current financial year.

For the second quarter ended June 30, 2008, the Group recorded a profit after tax of RM35.4 million on the back of a turnover of RM111.4 million. This marks an increase of 12% compared with the profit after tax of RM31.4 million achieved on the back of a turnover RM101.0 million recorded in the first three months of 2008

On a cumulative basis, the first six month of the current financial year saw the Group eliminating its accumulated losses and registering a profit after tax of RM66.8 million, a notable increase compared with a profit after tax of RM1.5 million registered in the first half of last year.

The Group's cumulative earnings per share for the sin-month period ended June 30, 2008 is 26.40 sen compared with 0.68 sen for the same period last year.

The improved performance of BHIC was mainly attributed to the increase in revenue from its shipbuilding activities as well as positive progress of the construction of patrol vessels for the Royal Malaysian Navy.

YBhg. Laksamana Madya (B) Dato’ Seri Ahmad Ramli Haji Mohd Nor, Executive Deputy Chairman of BHIC, said, “We remain focused in ensuring sustainable growth of the BHIC Group. We shall continue to focus on our core competencies in the maritime, heavy engineering and defence-related industries. We have begun expanding our markets internationally, not confining ourselves to the domestic market.”

During the quarter under review, BHIC secured two contracts from Swire Pacific Offshore Operations Pte. Ltd, to build two 111 meter-long accommodation barges worth a total of RM214 million. With the new contract from Swire Pacific Offshore Operations Pte. Ltd, BHIC has an order book of RM700 million as at 30 June 2008.

Dato’ Seri Ramli added, “The success of our wholly-owned subsidiary, Boustead Penang Shipyard Sdn Bhd, in renewing its Petronas (Petroliam Nasional Berhad) licence is a positive development as this well open up new opportunities for us to bid for more oil and gas contracts.

“There are many growth opportunities for the BHIC Group. It is important for us to stay focused as we transform ourselves to being the top players in our market segments,” he concluded.

-ends-

Issued on behalf of: BHIC----- By: acorn communications sdn bhd
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