ST Engineering's Land Systems Arm Wins Demilitarisation Contract

Singapore, 1 February 2010 - ST Engineering today announced that its land systems arm, ST Kinetics, has been awarded a €30.13m (about S$58.8m) contract for the demilitarisation of ammunition for a country in Africa.  The contract involves the supply of specialised equipment and related services, such as training and operations assistance.  The first delivery is scheduled to be completed in the second half of 2010, with the final delivery expected within the first half of 2012.

Ammunition demilitarisation involves destroying the inherent capabilities of the ammunition through a series of processes such as disassembly, size reduction, melt-out of explosives and incineration of non-recyclable explosives.  Recyclable materials such as projectiles and brass cases are then recycled or sold in the secondary market as scraps.

"This is an important endorsement of our demilitarisation services. We are pleased that the customer has shown confidence in our solution. We will continue to explore opportunities in demilitarisation and work closely with our customers to value add to their operations." ~ SEW Chee Jhuen, President, ST Kinetics

This contract is not expected to have any material impact on the consolidated net tangible assets per share and earnings per share of ST Engineering for the current financial year.

ST Kinetics (Singapore Technologies Kinetics Ltd) is the land systems and specialty vehicles arm of ST Engineering.  It delivers integrated land systems, specialty vehicles and their related through life support for defence, homeland security and commercial applications.  Please visit www.stengg.com.

ST Engineering (Singapore Technologies Engineering Ltd) is an integrated engineering group providing solutions and services in the aerospace, electronics, land systems and marine sectors.  Headquartered in Singapore, the Group reported audited revenues of S$5.34b in FY2008 and ranks among the largest companies listed on the Singapore Exchange.  ST Engineering has more than 20,000 employees worldwide, and over 100 subsidiaries and associated companies in 24 countries and 42 cities.  Please visit www.stengg.com.

Media Contacts:

Sharolyn Choy
SVP, Corporate Communications
ST Engineering
Tel: (65) 6722 1883
Fax: (65) 6720 2293
Email: sharolynchoy@stengg.com

Gaius Ho
AVP / Head, Corporate Communications
ST Kinetics
Tel: (65) 6660 7448
Fax: (65) 6261 2338
Email: hogaius@stengg.com