NEWS RELEASE. * As at August 3, 2009 Page 1 of 5

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Bethanie Malone
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NEWS RELEASE AIF CAPITAL INVESTS S$65 MILLION IN TAT HONG - Issuance of 65 million convertible redeemable preference shares, representing approximately 11.

1 NEWS RELEASE AIF CAPITAL INVESTS S$65 MILLION IN TAT HONG - Issuance of 65 million convertible redeemable preference shares, representing approximately 11.41% of Tat Hong s enlarged and issued paidup capital*; - Net proceeds to be used mainly for the expansion of Tat Hong s business operations in Australia and China; - Issuance of preference shares would have increased net tangible asset per share of Tat Hong to S$0.72 as at the end of March 2009 Singapore, August 3, 2009 Mainboard-listed Tat Hong Holdings Ltd ( Tat Hong or the Group ), one of the world s largest crane companies, today announced that it has entered into an investment agreement with a strategic investor, AIF Capital III Shipping & Logistics Limited ( AIF Capital ), a company controlled by AIF Capital Asia III, L.P., in relation to the issuance of 65 million convertible redeemable preference shares ( CRPS ) at an issue price ( Issue Price ) of S$1.00 per CRPS. AIF Capital Asia III, L.P. is a pan-asian private equity fund that focuses primarily on providing capital for the expansion, buy-out or recapitalisation of both listed and private companies. With offices in Hong Kong, Beijing, China and New Delhi, India, its management oversees a broad-based portfolio of investments in sectors ranging from supply chain management, financial services, manufacturing, specialty steels and engineering services, to power generation, telecommunications and transportation. AIF Capital has also invested into locally-listed companies such as Olam International Limited and Oceanus Group Limited. * As at August 3, 2009 Page 1 of 5

2 Commented Mr Roland Ng, President and Group Chief Executive Officer of Tat Hong: AIF Capital is a well-regarded independent private equity firm in the region with a focus on companies riding the wave of Asia s growing domestic consumption and the growth of the middle class. We are truly delighted to welcome AIF Capital as a strategic investor to participate in the Group s future growth. This is a positive affirmation of Tat Hong s established track record in the region and a vote of confidence in the Group s long-term prospects. Having secured a strong foothold in our two key markets Australia and China, through strategic partnerships and acquisitions, we are looking to further expand our presence in these markets to capture value-accretive opportunities arising from both governments committed budgets for infrastructural and resource projects. We see AIF Capital as a strategic partner and believe that its experience will be an asset to the Group as we expand our business operations in Asia. Principal Terms of the CRPS Issue Each CRPS is convertible into one ordinary share ( Ordinary Share ) in the share capital of Tat Hong at any time after its issuance and this will represent 11.41% of the enlarged issued and paid-up share capital of Tat Hong as at August 3, 2009 (excluding treasury shares and assuming the CRPS are fully converted). Under the terms of the CRPS issue, the CRPS holders shall be entitled to a dividend payment for each financial year from the issuance of the CRPS of such amount per outstanding CRPS as shall be declared by Tat Hong in respect of any ordinary dividends payable per Ordinary Share to the ordinary shareholders of Tat Hong. In addition, from the financial year after March 31, 2014, if the Group has not exercised its right of redemption before the declaration of any Preference Dividend for that financial year, upon any declaration of ordinary dividends payable per Ordinary Page 2 of 5

3 Share, then the amount of Preference Dividend payable shall be an amount equal to 25% of the Issue Price. In connection with the CRPS issue, Chwee Cheng & Sons Pte. Ltd., Mr Ng Sun Ho, Mr Ng San Tiong, Mr Ng San Wee and Mr Ng Sang Kuey have collectively entered into undertakings in favour of AIF Capital. Use of Proceeds The CRPS issue will raise net proceeds of approximately S$63.5 million, of which approximately 80% will be utilised to fund the Group s expansion plans in Australia and China, and the remaining shall be used for the Group s general corporate and working capital purposes. Financial Impact The CRPS will increase the existing issued share capital of Tat Hong from approximately S$187 million (excluding consideration paid for treasury shares) comprising 504,665,723 Ordinary Shares (excluding treasury shares), to about S$251 million comprising 504,665,723 Ordinary Shares and 65 million CRPS. Based on the audited financial statements of the Group for the financial year ended March 31, 2009, the issue of the CRPS would have increased the net tangible asset per share (excluding treasury shares and assuming full conversion of the CRPS) of the Group from S$0.68 to S$0.72 as at March 31, The CRPS will be issued pursuant to a specific shareholders mandate to be obtained from the shareholders of Tat Hong by way of an extraordinary resolution at an extraordinary general meeting of Tat Hong to be convened at a time, date and place to be approved by Tat Hong s board of directors. Page 3 of 5

4 NB: This news release should be read in conjunction with the Group s announcement made today in relation to the proposed issuance of convertible redeemable preference shares. About Tat Hong Holdings Ltd Tat Hong Holdings Ltd is one of the largest crane companies in the world - # 2 in terms of fleet size of crawler cranes and # 7 in terms of aggregate tonnage. In the Asia-Pacific region, it is arguably the largest crane company, with its fleet size ranging from 80-1,000 ton cranes. Established in Singapore in the 1970s, Tat Hong is principally engaged in five core business activities rental of cranes, rental of towercranes, rental of general equipment, sale of cranes and other heavy equipment, and sale of spare parts for such heavy equipment. It serves diversified industries, including infrastructure, oil & gas, mining, construction and engineering sectors, across Australia, Singapore, Southeast Asia, Indo-China, India, Middle East and China. Tat Hong currently has a combined rental and sales inventory fleet of over 600 mobile crawler cranes. The Group enjoys a number of exclusive distributorship agreements for cranes and other heavy equipment with companies such as Hitachi- Sumitomo, Sumitomo, Yanmar, Bomag, Kato, Mustang, Kawasaki, Mitsubishi and Linkbelt. Following the listing of its Australian subsidiary, Tutt Bryant Group Limited ( Tutt Bryant ), on the Australian Stock Exchange in December 2005, Tat Hong had actively acquired, through Tutt Bryant, a number of companies, including Kingston Industries, Bay Hire, Muswellbrook, North Sheridan and the rental business of Bradshaw Ultra Heavy Haulage, extending its presence and increasing its market share in its crane and equipment rental businesses in Australia. Page 4 of 5

5 The Group has aggressively expanded its presence in China, building on its interest in Yongmao Holdings Limited, a towercrane manufacturer listed in Singapore, and its foreign-sino joint-venture company, Shanghai Tat Hong Equipment Rental Co. Ltd. In January 2007, Tat Hong entered into a joint venture with China s largest towercrane rental company, Beijing ZhongJian Zhenghe Construction Machinery, followed by the acquisition of China Nuclear Huaxing Tat Hong Machinery Construction Co., Ltd in April In February 2008, Yongmao Holdings Limited, the Group s 20%-owned associated company, was successfully listed on the Mainboard of the Singapore Exchange Securities Trading Limited ( SGX-ST ). ISSUED ON BEHALF OF : Tat Hong Holdings Ltd BY : Citigate Dewe Rogerson, i.mage Pte Ltd 1 Raffles Place #26-02 OUB Centre SINGAPORE CONTACT : Mrs Elaine Lim / Ms Dolores Phua at telephone DURING OFFICE HOURS : (Office) AFTER OFFICE HOURS : / (Handphone) elaine.lim@citigatedrimage.com dolores.phua@citigatedrimage.com 089/09/003/THH August 3, 2009 Page 5 of 5

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