SINGAPORE – 13 September 2004 – SESDAQ-listed Sinwa Limited ("Sinwa"), a regional marine supply and logistics provider, today announced that it has incorporated three wholly-owned subsidiaries in Australia as vehicles to establish strategic alliances with three Australian companies engaged in marine supply and logistics activities who have markets and customer bases in key ports of Sydney, Melbourne, Fremantle, Port Hedland and Darwin.

The paid-up capital of the three wholly-owned subsidiaries -- Sinwa AIMS Pty Ltd, Sinwa TMSS Pty Ltd and Sinwa IMES Pty Ltd – will be funded from internal resources.

Explaining the rationale for incorporating these subsidiaries, Mr Mike Sim, Sinwa's Executive Chairman and CEO, said: "Australia is an important marine logistics market in the Asia-Pacific, largely because of the heavy bulk carrier traffic involved in the transportation of coal, livestock and other commodities within and outside Australia. In addition, the country has a sizeable cruise ship industry."

"This creates a critical mass which makes sense for serious marine supply and logistics providers such as Sinwa to have a strategic presence in major Australian ports, thereby further increasing our regional reach and strengthening our market position," Mr Sim said.

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

About Sinwa Limited
With a history that dates back to the 1960s, Sinwa, 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's core business is in the supply of 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, such as supply, fabrication and installation of thermal insulations to LNG and chemical tankers, heating, ventilation and air-conditioning (HVAC), contract labour supply to oil-rigs and other projects.

Financial Highlights
For the first six months of FY2004, Sinwa posted a 10.6% rise in net earnings to $2.9 million on the back of a 24.5% surge in revenue to $33.0 million, mainly driven by the strong contribution from its Supply business and initial supplies to newbuildings in South Korea, China and Japan, which were brought about by the strong growth momentum in the general shipping market; contributions from its Shell tanker contract, its China operations in Guangzhou, Dalian and Shanghai, and the sales of deck fittings and mooring equipment from our subsidiary Sinwa Offshore.