DEBAO PROPERTY DEVELOPMENT LTD. (Incorporated in Singapore on 16 August 2007) (Registration Number: 200715053Z)ESTABLISHMENT OF WHOLLY-OWNED SUBSIDIARIES

The Board of Directors of Debao Property Development Ltd. (the “Company”) is pleased to announce that the Company’s wholly-owned subsidiary, Foshan Nanhai Yitian Procurement and Trading Co., Ltd ( ), has established two wholly-owned subsidiaries, Foshan Nanhai Yuzhi Landscaping Services Co., Ltd ( ) (“Yu Zhi”) and Foshan Fangao Renovation Services Co., Ltd ( ) (“Fan Gao”), in the People’s Republic of China.

Yu Zhi has a registered and paid-up capital of RMB1.2 million, and Fan Gao has a registered and paid-up capital of RMB1.5 million. The principal activities of Yu Zhi will be the provision of landscaping services and works, while Fan Gao will be in the business of renovation and sub-contracting works.

The establishment of Yu Zhi and Fan Gao (collectively, the “Subsidiaries”) was funded through the Company's internal resources and is not expected to have any material impact on the earnings per share and the net tangible assets per share of the Company for the current financial year ending 31 December 2011.

To the best of the knowledge of the directors of the Company ("Directors"), none of the Directors, controlling shareholders or substantial shareholders of the Company has an interest, direct or indirect, in the establishment of the Subsidiaries.

By order of the Board

Yuan Le Sheng

Executive Chairman and CEO

17 June 2011

Kim Eng Corporate Finance Pte. Ltd. was the issue manager ("Issue Manager") for the Company’s initial public offering. The Issue Manager assumes no responsibility for the contents of this announcement.