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(Hong Kong, 28th April, 1999) -- Singamas Container Holdings Limited ("Singamas"), one of the world's leading container manufacturers, container depot/ terminal and mid-stream operators, today announced its annual results for the year ended 31st December, 1998.

Sales for the year reached US$147,597,000, representing a fall of 5% against the previous year. Despite the decline in sales, total consolidated net profit for the period rose to US$1,548,000, which was 137% higher than last year's figure of US$653,000.

Earnings per share were US 0.34 cent as compared to US 0.14 cent last year.

Mr. Chang Yun Chung, Chairman of Singamas said, "We are glad to see the substantial growth in profit despite the unfavorable economic environment. This encouraging result was mainly attributable to the prudent operating approach adopted by the management to maintain a healthy financial position, together with the implementation of effective operating strategies which have improved the Group's overall operations."

In 1998, the Group's container manufacturing operations registered consolidated sales of US$119,540,000, a decrease of 3% in comparison to 1997, resulting in a profit before taxation of US$1,346,000, representing a 59% drop against the previous year. The decline in profit was mainly due to the severe imbalance of trade and container movements between Asia and the U.S.-Europe markets, which resulted in empty containers were being build-up at the ports of the U.S. and Europe. The high cost involved in repositioning these containers back to Asia has deterred container leasing companies to lease containers to shipping lines for these routes. In addition, the continuing stiff competition in the region also worsen the business environment. However, the overall cost of raw materials for containers also decreased, enabling the Group to maintain its profit margins.

Affected by the slow-down in container demand in the second half of the year, Shanghai Pacific International Container Co., Ltd. continued to operate on one production shift and produced 40,262 TEUs in 1998, a slight decrease of 6% against 1997. However, a second shift is recommencing in 1999 to achieve economies of scale and to increase its competitiveness. Production capacity will increase from 3,500 TEUs per month to approximately 6,500 TEUs in 1999.

The Group is particularly excited about the performance of its new factory, Xiamen Pacific Container Manufacturing Co., Ltd. ("Xiamen Pacific"). Mr. Chang said, "Since we took over the management of Xiamen Pacific in January, 1998, we have managed to turn it around and achieved a profit of US$1,092,000 in 1998, with its monthly production capacity increased from 1,000 TEUs to 2,500 TEUs at the present time."

During the year under review, container depot and terminal operations attained sales of US$19,238,000, and registered a profit before taxation of US$836,000 as compared to US$964,000 in 1997. The unfavorable results were mainly due to the Hong Kong depot operations.

In the first half of the year, many empty containers in Hong Kong were repositioned to the PRC and other South East Asian countries to meet the container demand in the region. This affected the performance of the Group's empty container storage business in Hong Kong.

"With management's successful corrective measures implemented during the second half of 1998, the Group has reduced the loss recorded by the Hong Kong depot operations to US$85,000 for the year as a whole, a significant improvement from the loss of US$467,000 recorded in the first half of the year," said Mr. Chang.

On the other hand, performance of the Group's five container terminals in the PRC was stable. They collectively registered total sales of US$10,640,000, up from last year's US$9,047,000. Profit before taxation was US$921,000.

The mid-stream operation managed to turn around from a loss before taxation of US$1,873,000 in 1997 to achieve a profit of US$574,000 in 1998. These encouraging results, once again, proved that the restructuring that took place in November 1997 and the ongoing program of strict cost controls were effective.

Mr. Chang concluded, "As it is difficult to predict when the recovery of the Asian economies will take place, the Group will continue its prudent policies with regard to its business expansion plans, placing the utmost priority on maintaining a strong liquidity position while pursuing profit maximization. In the meantime, the Group will continue to focus on its existing businesses, further minimizing overall operating costs and improving efficiencies and standards of service, to enhance our competitiveness and market position. We are confident that we will continue to improve our business in 1999 despite the difficult operating environment that lies ahead."

Note: The full text of the Company's final results announcement can be access through the Internet at : http://www.irasia.com/listco/hk/singamas

Singamas Container Holdings Limited (Incorporated in Hong Kong with limited liability) 1998 Annual Results Announcement For the Year Ended 31st December, 1998

ANNUAL RESULTS

The Directors of Singamas Container Holdings Limited (the "Company") are pleased to announce the consolidated results of the Company and its subsidiary companies (together the "Group") for the year ended 31st December, 1998 together with the comparative figures for the year ended 31st December, 1997 as follows:

Notes:-

1) Revenue

Revenuer represents sales from container manufacturing, container depot and terminal, and mid-stream operations.

2) Taxation

Hong Kong profits tax has been provided at the rate of 16% (1997:16.5%) on the estimated assessable profit for the year. Overseas taxation has been calculated on the estimated assessable profit for the year at the rates prevailing in the countries in which the Group operates. The taxation charge is made up as follows:

3) Earnings per share

The calculation of earnings per share is based on earnings of US$1,548,000 (1997- US$653,000) and 456,001,760 ordinary shares in issue (1997- weighted average number of 456,001,374 ordinary shares) throughout the year. Diluted earnings per share is not presented as the effect from exercise price of the Company's outstanding share options and warrants, if approprioate, is higher than the fair value per share.

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