Advanced achieves 7.1% rise in earnings to S$3.5

million in 2Q2009

• Improved 2Q earnings from better project cost management

• Healthy order book of S$60.0 million as at 14 July 2009

•

SINGAPORE – 11 August 2009 – Advanced Holdings Ltd. (“Advanced” or the “Group”)

global supplier of proprietary process equipment and technologies, clean energy solutions

and environmental technologies, today reported an improved net profit attributable to

equity holders of S$3.7 million for the three months ended 30 June 2009 (2Q2009), an

increase of 15.0% as compared to S$3.2 million a year ago in 2Q2008., a

Advanced Holdings Ltd.

2Q2009 results

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e: Sales@AdvancedHoldings.com

w: www.AdvancedHoldings.com

Company Registration No. 200401856N

Notably, the improvement in the Group’s earnings was achieved despite a 6.9% marginal

decrease in revenue to S$24.8 million in 2Q2009, from S$26.6 million previously.

In 2Q2009, gross profit of the Group rose 10.5% from S$7.1 million to S$7.9 million, with

margins rising significantly to 31.7% from 26.7% previously. Better project cost

management, a more favourable revenue mix and a stabilizing cost base were factors that

contributed positively to Advanced’s performance.

Said Dr Kar Wong, Managing Director of Advanced, “Despite a still uncertain economic

climate, I am pleased to note that Advanced is gaining traction in our business operations,

which, I believe, underscores the strength of our reputation and experience in the industries

we operate in. More importantly, our gross margins have improved significantly to 31.7%

from better project cost management and a more favourable revenue mix.”

With its latest set of results, the Group’s earnings per share (“EPS”) for 2Q2009 was pushed

to 1.23 Singapore cents, from 1.05 Singapore cents as compared to 2Q2008. Net Asset Value

per share (excluding Treasury Shares) as at 30 June 2009 was 23.85 Singapore cents.

Dividends

To reward loyal shareholders for their support during this challenging period, the Group has

declared an interim, tax-exempt dividend of 1.40 cents per share, as compared to 0.70 cents

per share declared in 1H2008.

For the quarter, revenue from Advanced’s Petrochemicals and Chemicals and other

businesses improved and contributed 76.2% to Group revenue. However, growth of the

Group’s Oil and Gas segment was affected by sluggish demand for its equipment and

services as a result of the economic crisis. While key market China continued to perform

healthily, registering sales growth of over 20% in 2Q2009, the Group’s other markets

continue to be challenging.

“Advanced is encouraged by the increasing signs of revitalization that the PRC has exhibited

over the last two quarters as the Chinese government’s RMB 4 trillion Yuan (US$570 billion)

stimulus package begin to take shape. From recent statistics, the PRC became the first of the

major economies to rebound from the global recession, registering an economic growth of

7.9% in the second quarter

government such as the fast tracking of a number of petrochemicals projects will augur well

for our business growth,” said Dr Wong.

Earlier this year, the Chinese government announced that it is speeding up the development

of 40 petrochemicals projects from 2009 to 2011 as part of its stimulus plan for the industry.

These projects include 20 that are already under construction while the others are still in

the planning stage. These projects are mainly in oil refining and production of

petrochemicals. The petrochemicals sector is expected to see industrial added value growth