The Board of Directors of Sinwa Limited (the "Company") wishes to announce that the Company has subscribed for 49,998 ordinary shares of SGD 1.00 each at par in the share capital of Sinwa Offshore Pte Ltd ("Sinwa Offshore"), a wholly-owned subsidiary of the Company for cash consideration. The said subscription is funded from internal sources of the Company.

The aforesaid transaction is not expected to have any material effect on the earnings, group net tangible assets per share or earnings per share of the Sinwa Group for the financial year ended 31 December 2003.

None of the directors or substantial shareholders of the Company has any interest direct or indirect, in the above transaction.