TT INTERNATIONAL LIMITED (Registration No. 198403771D) (Incorporated in the Republic of Singapore) PARTICIPATION IN WAREHOUSE RETAIL SCHEME AND ACQUISITION OF LEASED LAND 1. Introduction The Board of Directors of TT International Limited (“TT” or the ”Company”) wishes to announce that its application to participate in the Warehouse Retail Scheme (“WRS”) has been approved through facilitation by the Economic Development Board (“EDB”). A 5.6 hectare site in the western part of Singapore has been identified as the location for the WRS project. 2. JTC’s Offer 2.1. Jurong Town Corporation (“JTC”) had, by a letter of offer dated 21 March 2007 (the “JTC Offer Letter”), offered to allocate land situated along Jurong East Street 11 (the “Land”) on a 30 year lease (the “JTC Offer”) to the Company. The acquisition of the Land for the WRS project shall be referred to as the “Transaction”. 2.2. The JTC Offer was conditional upon, inter alia, the Singapore Land Authority (“SLA”) alienating the Land to JTC. By a letter dated 5 July 2007, JTC notified the Company that the Land had been alienated to it by the SLA. 2.3. The land price (the “Land Price”) amounting to S$40,014,890 for the acquisition of the Land will be funded from internal resources and bank borrowings. 3. Financial Effect Of The Transaction 3.1. For illustration purposes only, assuming (as per Rule 1010(8) of the Listing Manual) that the Transaction had been effected as at end of the financial year ended 31 March 2007 (“FY2007”) and based on the FY2007 audited accounts of the Group, the Transaction would not have a material impact on the net tangible assets per share of the Group. 3.2. For illustration purposes only, assuming (as per Rule 1010(9) of the Listing Manual) that the Transaction had been effected as at the beginning of FY2007 and based on the FY2007 audited accounts of the Group, the Transaction would not have a material impact on the earnings per share of the Group. 3.3. The relative figures computed pursuant to Rule 1006 of the Listing Manual are as follows: 3.3.1. Net asset value test – not applicable as this is an acquisition of assets. 3.3.2. Net profit test – not applicable as no profit can be attributed to the Land at this stage. 3.3.3. Market capitalisation test – the Land Price represents approximately 18.58% of the Company’s market capitalisation of S$215.3 million as at 4 July 2007. 3.3.4. Securities issue test – not applicable as this is an acquisition of assets.
3.4. Accordingly, the Transaction would be considered to be a disclosable transaction pursuant to Rule 1010 of the Listing Manual. 4. Rationale For The Transaction The Company had earlier announced its expansion into the third core business – large scale retail business. The Company has also identified certain of its core markets where it has already established a strong foothold as primary markets for this expansion. Hence, the Transaction will fit very well into the medium and long-term growth plans for TT in the progressive building up of its third strategic pillar of growth - the retail business. This retail business will complement the Group’s existing two core businesses: brand management for house brand AKIRA; and distribution of branded electronics products. In addition, the Company plans to consolidate its operations by moving its headquarters, flagship retail stores and warehousing facilities to the building to be constructed on the Land when it is completed. 5. Interest Of Directors And Shareholders In The Transaction None of the directors or controlling shareholders of the Company has any interest, direct or indirect, in the Transaction. 6. Inspection of Documents A copy of the JTC Offer Letter is available for inspection during normal business hours at the Company’s registered address at 10 Toh Guan Road, #10-00, TT International Tradepark, Singapore 608838 for three months from the date of this announcement. By Order of the Board Lien Soh Cheng Company Secretary 5 July 2007
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