Midas 2Q FY08 Results News Release

NET PROFIT GROWS 21.2% TO S$8.6 MILLION

- Revenue rises 25.6% to S$38.5 million

- Revenue from Aluminium Alloy Division up 23.0% to S$30.6 million

- Declares second interim dividend of 0.5 Singapore cents per ordinary share

Singapore, August 7, 2008 - Midas Holdings Limited (“Midas” or the “Group”) (麦达斯控股有限公司) today announced a 21.2% increase in net profit to S$8.6 million for the three months ended June 30, 2008 (“2QFY08”), up from S$7.1 million in the previous corresponding period (“2QFY07”). This was on the back of a 25.6% increase in Group revenue from S$30.6 million in 2QFY07 to S$38.5 million in 2QFY08.

The Group’s Aluminium Alloy Division saw higher business volume with its revenue increasing by 23.0% from S$24.9 million in 2QFY07, to S$30.6 million in 2QFY08, constituting about 80% of total Group revenue. Meanwhile, the Group’s PE Pipe Division and Agency & Procurement Division contributed S$4.0 million, or 10.3%, and S$3.9 million, or 10.2%, to total Group revenue respectively for 2QFY08.

The Group’s gross profit margin for 2QFY08 was 31.8% versus 34.4% in 2QFY07. Gross profit margin for our Aluminium Alloy Division was 33.2% for 2QFY08 as compared to 38.0% for 2QFY07; the decline is due to increase in raw material cost. For 2QFY08, Nanjing SR Puzhen Rail Transport Co., Ltd (“NPRT”), the Group’s associated company in which it holds a 32.5% equity stake, contributed about S$1.0 million to Group profit, representing a 60.4% growth over its contribution in 2QFY07.

On a quarter-on-quarter basis, this represents a growth of about 8 times of NPRT’s contribution in the first three months of 2008 (“1QFY08”). NPRT is a Sino-foreign joint venture that develops, manufactures and sells metro trains, bogies and their related parts. Said Mr Patrick Chew (周华光), CEO of Midas, “Since NPRT started operations in January 2007, it has made good progress, securing high-profile metro projects and steadily building up its track record and customer base in the PRC. Its growing contribution to the Group reinforces our confidence in NPRT as a strategic investment that will strengthen Midas’ market leadership position in the PRC rail transport industry.”

Income tax expenses for the Group in 2QFY08 rose by S$1.1 million or 131.0%, largely due to higher profits and changes in corporate income tax rates in the PRC. Since 1QFY08, profits from the Aluminium Alloy Division’s 75MN and 55MN production lines are subjected to higher tax rates of 25% and 12.5% respectively. In 2QFY07, the 75MN line was taxed at 15%, while the 55MN line enjoyed full tax exemption.

As a result, the Group’s profit attributable to shareholders registered a 21.2% increase year-on-year to approximately S$8.6 million in 2QFY08. To reward its shareholders, the Group is declaring a second interim cash dividend of 0.5 Singapore cents per ordinary share.

Outlook

The sustained growth in the PRC’s economy has resulted in a nation-wide railway transportation boom, which in turn, is driving demand for train cars and aluminium extrusion profiles. In line with economic and urban development across the PRC, the PRC Government has plans in various cities to construct new metro lines or to expand existing lines to improve the country’s public transportation system.

In 2QFY08, the Group has continued to benefit from this trend. During the quarter, the Group’s Aluminium Alloy Division secured three new contracts worth an aggregate sum of RMB252.7 million, to supply aluminium alloy extrusion profiles for various metro lines in Shanghai and Guangzhou. All three contracts are to be fulfilled over 2008 and 2009, thus having a positive impact on the Group’s financials over the two years.

In addition, in 2QFY08, NPRT announced its downstream foray into train car maintenance, through its new joint venture company Nanjing Metro Vehicle Maintenance Co., Ltd. (“NMVM”) (南京地铁车辆维修有限公司), formed with Nanjing Metro Industrial Group Co., Ltd. (南京城市地铁实业集团有限责任公司).Meanwhile, the Group’s collaboration plans with Aluminum Corporation of China (“Chinalco”), the largest aluminium producer in the PRC and one of the largest producers of aluminium and alumina in the world, is on track.

Under a framework agreement signed in December 2007, the first collaboration by both parties will be in respect of China Northeast Light Alloy Co., Ltd.’s (“NELA”) (东北轻合金有限责任公司) “thick aluminium alloy plates and sheets project”. Chinalco has a controlling stake in NELA. In addition, Chinalco will also seek collaboration with Midas in the development and investment of aluminium alloy extrusion profiles for rail car bodies.

Commented Mr Chew, “Midas has a long-term vision of becoming an integrated manufacturer and one-stop service provider in the transportation value chain. As we continue to grow our core business in the Aluminium Alloy Division, we are also actively looking for opportunities to broaden our services and enhance our capabilities to leverage on the robust growth in the PRC’s infrastructural sectors. These can come in the form of strategic partnerships or investments that can strengthen and complement our Group’s existing business. NMVM and our collaboration with Chinalco are part of our overall strategy to establish ourselves as an integrated player in the PRC transportation industry.”