Change - Change in Corporate Information::DISPOSAL OF INVESTMENT IN PT GASUMA FEDERAL INDONESIA

Federal International (2000) Ltd

(Co. Reg. No. 199907113K)

47/49 Genting Road Singapore 349489

DISPOSAL OF INVESTMENT IN PT GASUMA FEDERAL INDONESIA

The Board of Directors (the "Board") of Federal International (2000) Ltd (the "Company" together with its subsidiaries, the "Group") wishes to announce that Federal Hardware Engineering Co. Pte Ltd ("FHEC"), a wholly-owned subsidiary of the Group, has completed the disposal of its 12% interest in PT Gasuma Federal Indonesia ("PTGFI") for cash consideration of US$ 1,884,447 to the existing shareholder of PTGFI (the "Disposal").

The cash consideration was arrived based on willing buyer and willing seller basis after taking into consideration of the carrying value of the investment of S$ 1.4 million recorded by the Group. The Group has recorded a gain on disposal of S$ 1.3 million. The Disposal is part of the Group's process to focus on its core businesses.

The investment in PTGFI was acquired under the terms of an option agreement made on 21 March 2011. Under the option agreement, FHEC acquired 12% interest in PTGFI by paying an exercise price of US$ 1. PTGFI operates an integrated gas processing and power plant in Tuban, East Java, Indonesia.

The gain on disposal will have a positive impact on the Group's earnings per share and the Group's net tangible assets per share for the financial year ended 31 December 2016.

None of the Directors and, to the best of the best knowledge of the Directors, none of the substantial shareholders or controlling shareholder of the Company, has any direct or indirect interest on the above transaction.

By order of the Board Mr Koh Kian Kiong

Executive Chairman and Chief Executive Officer 11 January 2017

About Federal International (2000) Ltd

Established in 1974 and listed on the mainboard of the Singapore Stock Exchange in 2000, the Company (together with its subsidiaries, the "Group") is an integrated service provider and procurement specialist in the oil and gas, energy, utilities and infrastructure industries. The Group also provides project management, engineering, procurement, construction, installation and commissioning ("EPCIC") services for offshore, onshore and heavy engineering projects through its associate, PT Gunanusa Utama Fabricators ("PTG").

The Group's facilities include an 18-hectare bonded fabrication yard located in Cilegong, about 100 kilometres northwest of Central Jakarta. The yard has an annual capacity of about 15,000 tons and is served by 2 jetties. The Group also has a valve design and manufacturing facility located in Scotland, the United Kingdom. The facility is American Petroleum Institute (API) Q1, Spec 6D, ISO 9001:2008 and Pressure Equipment Directive 97/23/EC (PED) certified.

The Group owns a floating, storage and offloading ("FSO") vessel and a 1,200 HP Brewster land drilling rig. The FSO, Federal II, is chartered to China National Offshore Oil Corporation ("CNOOC") through its associate, PT Eastern Jason, until 6 September 2018 and CNOOC has the option to renew the charter for a further 5 years under the terms of the charter agreement. The Group also operates an industrial water plant in the People's Republic of China under a 30-year Build, Operate and Transfer agreement with the local Xinjin county government.