METAX ENGINEERING CORPORATION LIMITED (THE “COMPANY”)

(Incorporated in the Republic of Singapore under Registration Number 197500111H)

MEMORANDUM OF UNDERSTANDING WITH PT JIMBARAN HIJAU TO DESIGN AND BUILD WATER AND WASTEWATER TREATMENT PLANTS FOR THE BALI INTERNATIONAL PARK

The Board of Directors of the Company wishes to announce that the Company’s wholly-owned subsidiary, Metax Eco Solutions Pte. Ltd. (“MES”), has entered into a legally binding Memorandum of Understanding (the “MOU”) with PT Jimbaran Hijau (the “Developer”), effective from 29 April 2011, to design and build water and wastewater treatment plants for the Bali International Park (the “BIP”) which will be the venue for the Asia-Pacific Economic Cooperation (“APEC”) meeting in 2013.

The Developer has been decreed by the President of Indonesia to develop the BIP, which consists of 250 hectares of land located at Jimbaran, Bali. As part of its appointment, the Developer will design, build and operate a convention and exhibition centre, a convention hotel and a heads of state estate on BIP for the APEC meeting.

Under the terms of the MOU, MES:

i) will be engaged as the exclusive contractor to design and build the water and wastewater treatment plants on a turnkey agreement in phases for the whole of 250 hectares of land allocated for the BIP; and

ii) intends to set up a joint venture company with the Developer for the purpose of the Developer granting an exclusive concession to the said joint venture company to operate and maintain water and wastewater treatment plants for the entire BIP for a period of 25 years commencing from May 2013.

The Company will make a further announcement upon the execution of a definitive agreement in relation to the said joint venture company.

None of the directors or substantial shareholders of the Company has any interest, direct or indirect, in the foregoing, save through his/her interests in the Company.

By Order of the Board

Tan Tze Wen

Managing Director

23 June 2011

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This announcement has been prepared by the Company and its contents have been reviewed by the Company’s sponsor, Stamford Corporate Services Pte Ltd (the “Sponsor”), for compliance with the relevant rules of the SGX-ST. The Sponsor has not independently verified the contents of this announcement.

This announcement has not been examined or approved by the SGX-ST and the SGX-ST assumes no responsibility for the contents of this announcement including the correctness of any of the statements or opinions made or reports contained in this announcement.

The contact person for the Sponsor is Mr. Ng Joo Khin.

Telephone number: 6389 3000 Email: jookhin.ng@stamfordlaw.com.sg