Negotiations For A Proposed Injection Of A New Business Segment Involving The Construction-Related Industry

The Board of Directors (the "Board") of Sim Siang Choon Ltd (the "Company") is pleased to announce that the Company is in the process of negotiations with an external party for a proposed injection of a new business segment (the "Proposed Injection"), involving the construction-related industry, into the Company's operations to complement its existing business. In this regard, the Independent Directors of the Company, namely Mr. Chew Thiam Keng and Mr. Lim Ho Seng, have recommended that new independent directors with the relevant expertise be appointed to the Board. Due to their unfamiliarity with the overseas construction-related industry, the Independent Directors of the Company will step down from the Board with effect from 23 July 2008.

The Board would like to express its sincere thanks for the Independent Directors' contributions to the Company's development. The Company would like to wish them well in their future endeavours.

The Company will make further announcements relating to the Proposed Injection at the appropriate time.