SembCorp rationalises its Riau Investments

March 31, 2006

SembCorp Industries Ltd (“SembCorp”) announces that it is rationalising its industrial park and leisure investments on the Indonesian Riau Islands through the consolidation of these investments (the “Consolidation”) under a Singapore incorporated company, Gallant Venture Pte. Ltd. (“GV”). GV has obtained a letter of eligibility from the Singapore Exchange Securities Trading Limited (“SGX”) for the listing and quotation of all its issued shares on the SGX-ST Dealing and Automated Quotation System (“Listing”) and has today lodged its listing prospectus
with the Monetary Authority of Singapore.

The investments consist of industrial parks in Bintan and Batam and leisure assets in Bintan. The Consolidation is aimed at streamlining these investments within SembCorp, and increasing the liquidity of these assets.

To this end, several of SembCorp’s subsidiaries have today entered into a conditional sale and purchase agreement (“GV Sale & Purchase Agreement”) with GV for the injection of their respective shareholdings in the various assets into GV. Simultaneously, SembCorp Parks Holdings Ltd (“SPH”), SembCorp’s wholly-owned subsidiary, has entered into a conditional subscription agreement (“Subscription Agreement”) with GV under which GV will allot and issue and SPH will subscribe for shares in GV. SPH will also obtain shares in GV through two other agreements executed today - an option agreement (“Option Agreement”) entered into with Parallax Venture Partners XXX Limited (“PVP”) and a conditional sale and purchase agreement (“Richbroad Sale & Purchase Agreement”) entered into between its subsidiary Singapore Technologies Industrial Corporation Ltd (“STIC”) and Richbroad Investments Limited (“Richbroad”) subject to the terms thereof.

SPH has also today entered into a conditional sale and purchase agreement with Anthoni Salim (Salim Sale & Purchase Agreement”) to, immediately upon obtaining its shares in GV under the Subscription Agreement, sell some of these shares to Anthoni Salim or his nominee (the “Salim group”).

Upon the completion of the GV Sale & Purchase Agreement, Subscription Agreement, the Option Agreement, the Richbroad Sale & Purchase Agreement, the Salim Sale & Purchase Agreement and the Listing, SembCorp will own, through SPH, an aggregate of 647,057,166 shares in GV, representing approximately 26.84% of GV’s issued share capital.