BOUSTEAD DELIVERS RECORD PROFIT

KUALA LUMPUR , April 3, 2008 – With strong contributions from Boustead Holdings Berhad’s Plantation and Heavy Industries Divisions, the Group achieved record-breaking profits for its financial year ended December 31, 2007.

Given its track record and constantly surpassing expectations, the Group once again outperformed its targets for the year. Boustead marked an 115% increase in profit before tax achieving RM829 million on the back of a turnover of RM5.7 billion. The Group also recorded higher earnings per share at 79 sen (2006: 35 sen), while net assets per share was RM3.75 (2006: RM3.22). Healthy contributions were also derived from the Group’s other Divisions mainly Property, Finance and Investment as well as Manufacturing and Services.

YBhg Tan Sri Dato’ Lodin Wok Kamaruddin, Group Managing Director, Boustead Holdings Berhad, said, “We have marked a milestone with our record profits. This has been achieved primarily due to organic growth from our current businesses while also expanding into new sectors. With these results we have increased shareholders value enormously and on this basis we are declaring subject to shareholder approval, a final dividend of 16% coupled with a bonus dividend of 20% for the financial year”

“Once again we have scored a first by paying out our highest dividend todate which amounts to 60% or 30 sen per share (2006: 37% or 18.5 sen). Our shareholders are our priority stakeholders and we trust they will be encouraged by our dividend policy for the just concluded financial year.” The Group’s single largest contributor has been our latest Division which is at the forefront of the maritime sector. The Heavy Industries Division holds much potential for us as we embark on new areas of growth such as the oil and gas segment while strengthening our foothold for naval and commercial ships as well as luxury yachts.

“Additionally, our Plantation Division delivered substantial profits as a result of steady crude palm oil (CPO) prices. Moving forward, for the financial year 2008, we are confident that CPO prices will remain bullish and will continue its uptrend which will have an equally strong impact on this part of our business.

”The Property Division also maintained its role as a key contributor by surpassing its targets for the year. With a profit increase of 77% or RM85 million the Division achieved a strong growth. Its existing townships in Selangor and Johor as well as niche high end properties in the Kuala Lumpur City Centre are expected to contribute positively to the current year’s earnings. YBhg Tan Sri Dato’ Lodin also said, “It is our commitment to improve our position by enhancing our profits from the Divisons. This can only be done via a strong strategy in place and a philosophy of excellence that exist Group wide. We have placed much emphasis on human capital development and we will continue to do so, as we need to build our second and third line of leaders in order to maintain the Group’s positive track record.”

“In financial year 2007 we undertook a series of corporate initiatives that improved our balance sheet and strengthened our businesses. We will continue to do so when and if necessary in the coming financial year, while we look for new ways to increase our bottom line,” concluded YBhg Tan Sri Dato’ Lodin

The Group also surpassed its key performance indicators for 2007 achieving 22.3% for return on equity and return on asset was 13.8% versus the target of 7.2% and 7.0% respectively. Dividend achieved for the year was 60% compared with target of 32%. Since its inception as a modest trading entity for more than 180 years, 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, finance & investment, property, manufacturing and services, trading and heavy industries. As at 31 December 2007, Boustead Holdings Berhad combined paid-up capital is RM315 million, while its shareholders’ funds stands at RM2.4 billion. Market capitalisation currently is in excess of RM3 billion.

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Issued on behalf of: Boustead Holdings Berhad----- By: acorn communications sdn bhd
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