SINGAPORE -- 15 October 2003 – SESDAQ-listed marine supply and logistics provider Sinwa KS Limited ("Sinwa KS") today announced the incorporation of a wholly-owned subsidiary, Sinwa Offshore Pte. Ltd. ("Sinwa Offshore") to tap business opportunities in the oil and gas sector in the region.

With an authorised share capital of S$1,000,000, Sinwa Offshore's principal activity is to provide project management and support services to the offshore drilling industry.

Said Mr Mike Sim, Executive Chairman and CEO of Sinwa KS, "Sinwa Offshore's main focus will be to provide skilled and technical support to mobile offshore drilling units and rigs that are being constructed or upgraded in South East Asia and the PRC, and to provide these customers with our core marine supply and logistics services."

Sinwa Offshore will be providing project support to offshore platform hook-ups and start-up supports such as technical, logistics, equipment and skilled labour, as well as pursue new construction and repair projects such as project planning, development and management for its clients in the oil and gas sector.



In addition, Sinwa Offshore will target rig owners, operators and ship-owners for the supply, installation and commissioning of tank and water monitoring systems, as well as the supply of specialized rigging, deck fittings and mooring equipment.

"Combining the existing Sinwa infrastructure and our offshore experience, we are able to provide our customers a range of services from logistics to project assistance in the local shipyards as well as the offshore environment," he added.

Sinwa Offshore will be headed by Mr Luis Tovar, who has more than 20 years experience in the oil industry, having been involved in various drilling projects, including offshore construction and hook-up activities in South East Asia, Latin America and the United States.

The investment by the Company is not expected to have any material effect on the earnings per share or net tangible assets per share of the Group for the year ending 31 December 2003.

About Sinwa KS Limited

With a history that dates back to the 1960s, Sinwa KS, a winner of EDB/Business Time's Enterprise 50 Awards in 1998, is today an established ISO 9001:2000-certified marine supply and logistics company servicing the oil and gas industry and sea-going vessels in Singapore, UAE, the PRC and Timor Leste.

Sinwa KS's core business is supplying a wide range of ships' stores, provisions and equipment to ships and oil rigs, as well as providing their operators and owners with shipping agency and related services.

Since 1999, the Group has also expanded its capabilities to include the supply, fabrication and installation of thermal insulation materials on gas and chemical vessels. This, together with its marine supply management, consultancy and contract labour supply to oil rigs, has helped the Group to further diversify its business and geographical reach.

The Group's acquisition of KS Seafirst, a wholly-owned subsidiary of Mainboard-listed KS Tech Limited, in 2002, has enabled the Group to access and increase its reach in the oil and gas industry. Through KS Seafirst's representative office in Timor Leste, Sinwa KS also provides contract labour to the oil and gas industry there.