31 AUG 2009

Koh Brothers awarded S$$144.6 million HDB contract for Punggol Waterway

NEWS RELEASE

KOH BROTHERS WINS HDB CONTRACT WORTH S$58.9 MILLION FOR PUNGGOL WATERWAY (PART TWO)
- Together with Punggol Waterway (Part One), S$203.5 million worth of contracts from HDB
- Current Order Book stands at over S$579 million

Singapore, August 31, 2009 - Koh Brothers Group Limited ("Koh Brothers" or the "Group"), a well-established construction, property development and specialist engineering solutions provider, today announced that it has secured a S$58.9 million contract for Part Two of the Punggol Waterway in Punggol Town from the Housing Development Board ("HDB").

In January 2009, the Group clinched a S$144.6 million contract from HDB for the construction of Part One of the Punggol Waterway. This brings the total contract awarded in 2009 by HDB to S$203.5 million.

With this contract, the Group has total order book of over S$579 million.

Works on the project will commence in September 2009 and is expected to be completed by end 2010. Other ancillary works are expected to be completed by fourth quarter 2011.

Works on the project will commence in February 2009 and is expected to be completed by fourth quarter 2010.

Koh Brothers does not expect a positive material impact on the Group"s financial performance for the year ending December 31, 2009.

About Koh Brothers Group Limited
Listed on SGX Mainboard in August 1984, Koh Brothers is a well-established construction, property development and specialist engineering solutions provider, which was started as a sole proprietorship in 1960 by Mr Koh Tiat Meng. Today, the Group has more than 40 subsidiaries, JV and associated companies spread over Singapore, PRC, Indonesia, Malaysia and Vietnam.

Over the years, the Group has undertaken numerous construction and infrastructure projects with its A1 grading by the Building and Construction Authority ("BCA"). It is currently the highest grade for contractors" registration in this category, and allows the Group to tender for public sector construction projects of unlimited value. In addition, the Group has developed a name for itself as a niche real estate developer, with an established reputation for quality and innovation.

Koh Brothers' diversified businesses present them with multiple revenue streams, with operating synergies arising from its three core areas of expertise:
- Real Estate;
- Construction and Building Materials; and
- Leisure & Hospitality.

Real Estate
The Group's Real Estate division provides quality property developments with specialised themes at choice locations. Koh Brothers Development Pte Ltd ("KBD"), established in 1993, a wholly-owned subsidiary of Koh Brothers Group, is our flagship company for the Group's Real Estate division.

KBD is noted for its "lifestyle-and-theme" developments. For example, its Starville project was the first to introduce a star-gazing observatory, complete with an astronomy theme. Launched in June 2003, this project is a joint venture between KBD and AIG Lengkong Investment Limited, a member of American International Group Inc. Earlier projects include The Montana, in which KBD became the first developer to introduce state-of-the-art home automation features, broadband cable and an infinity pool. The Montana, launched in November 1999, is a 108-unit luxury freehold apartment located off River Valley Road. In October 2006, it also launched its four-units-only luxurious, freehold bungalow project, "Bungalows @ Caldecott", uniquely designed with a number of firsts in Singapore such as bathrooms studded with Swarovski wall crystals, Avant-Garde sanitary fittings incorporating luxury brand names like Visentin, and a specially-designed Water Conservation System.

In April 2006, it announced the acquisition of Hilton Tower, located in the prime freehold Leonie Hill area, for S$79.2 million together with Heeton Land Pte Ltd. It is now the site for the premium condominium, The Lumos.

In June 2007, Koh Brothers Group Limited, Heeton Holdings Ltd, KSH Holdings Ltd and Lian Beng Group Ltd formed a consortium with equal shares each and were successfully awarded the prime Lincoln Lodge site at 1/3 Khiang Guan Avenue, off Newton Road in District 11. The site has been earmarked for another luxurious condominium project.

Other completed projects include:
- The highly successful Sun Plaza, located next to Sembawang MRT station, which introduced a sun flower theme. The residential block in Sun Plaza has been fully sold and the retail mall is currently held as an investment with high occupancy;
- The Capri, an 18-unit residential development, is situated along the prime Stevens Road;
- The Sierra, an 18-storey residential development comprising 60 units located in the established and popular enclave of Mount Sinai.

Construction and Building Materials
This division leads in providing a complete and diverse range of infrastructure project management, products, services and solutions for the construction industry. Current projects include the Downtown Line 1 Bugis Station, Punggol Waterway and Common Service Tunnel at the Business Financial Centre.

The iconic Marina Barrage was successfully completed in October 2008.

The Building Materials division provides total ready-mix concrete solutions to the construction industry. The supply chain includes cement, ready-mix concrete, equipment rental and various types of products such as pre-cast elements and interlocking concrete blocks.

Leisure & Hospitality
This division provides "no-frills" hospitality services through its Oxford Hotel brand name with more than 130 hotel rooms.

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