News

- Listing Of Furniweb Manufacturing (Vietnam) Co. Ltd. ("FMVC") (A Wholly-owned Subsidiary Company of Furniweb) on Ho Chi Minh City Securities Trading Centre ("HSTC"), With Premier Elastic Webbing & Accessories (Vietnam) Co. Ltd. ("PEWA") And Furnitech Components (Vietnam) Co. Ltd. ("Furnitech"), Being Subsidiary Companies of FMVC ("Flotation Scheme"); And - General Mandate From the Shareholders of Furniweb For Furniweb to Divest up to 800,000 Ordinary Shares of VND10,000 Each In FMVC, Representing Up To 10% of the Enlarged Issued And Paid-up Share Capital Of FMVC After Its Listing On HSTC, For Cash Through The Open Market And/or Placement(s) ("Divestment Mandate")

Reference is made to the announcement dated 28 January 2008. For consistency purposes and unless otherwise defined, all definitions used in this announcement shall have the same meanings as that provided under the "Definitions" section of the circular to shareholders of Furniweb dated 21 September 2007 in relation to the Flotation Scheme and Divestment Mandate ("Circular"). The Board of Furniweb ("Board") wishes to announce that Furniweb (Vietnam) Shareholding Company ("FVSC") has completed the Acquisition and the authorised and contributed legal capital of FVSC has been increased from the existing USD1,500,000 to USD2,509,000. Notwithstanding the above, the Board anticipates that FVSC will not be able to complete the Flotation Scheme by the second quarter of 2008 as stated in the announcement dated 28 January 2008 in view of the bearish equity market condition in Vietnam. The Board noted that since the date of the shareholders' approval for the Flotation Scheme which was obtained on 8 October 2007 and up to the date of this announcement, the HSTC stock index has declined by more than 700 points or approximately 65%. The Board further noted that the bearish sentiment in the equity market in Vietnam was largely attributable to the high world crude oil prices which has caused high inflation rates in Vietnam as well as the weakening of Vietnamese currency as a result of severe foreign currency shortage in Vietnam. In view of the above, the Board wishes to defer the Public Offering and the Listing until such time when the economic and equity market conditions in Vietnam have stabilised or improved. The Board will closely monitor the economic and equity market conditions and sentiment in Vietnam before deciding on the timing of the launch of the Public Offering and the Listing. The Board will make the necessary announcements should there be any further material development pertaining to the Flotation Scheme and Divestment Mandate. This announcement is dated 19 June 2008.