News Release

Micro-Mechanics (Holdings) Ltd.

Micro-Mechanics Posts Net Profit of S$1.2M in 1Q13

• Group revenue eased 4.6% to S$9.9 m in 1Q13 due to slower business environment

• GP margin improved to 49.0%, from 45.1% in 1Q12, boosted by increased operational efficiencies

• Strong financial position maintained with cash of S$8.0 million and zero bank borrowings

Singapore, 27 October 2012 - Mainboard-listed Micro-Mechanics (Holdings) Ltd. ("Micro-Mechanics" or the "Group"), a manufacturer of high precision tools, parts and assemblies for high technology industries, has recorded a net profit of S$1.2 million for the three months ended 30 September 2012 ("1Q13"), unchanged from the same quarter last year.

While Group revenue in 1Q13 eased slightly by 4.6% to S$9.9 million, Micro-Mechanics still achieved a stable bottom line result due to its latest initiatives to boost productivity and the efficiency of its manufacturing operations. In 1Q13, the Group saw gross profit (GP) margin improve to 49.0% from 45.1% in 1Q12, lifted by a
4.4 percentage point gain in its core semiconductor tooling segment's GP margin to 56.6%.

Said Mr Chris Borch, CEO of Micro-Mechanics, "During 1Q13, we began to see promising results from the investments and energy we have put into improving the Group's operational efficiency. This would have been even more encouraging if not for the difficult business environment, particularly for our Custom Machining & Assembly (CMA) business which was hit by a pullback in orders from customers in the semiconductor industry.

As we approach the end of 2012, the markets remain unpredictable, volatile and cost-competitive which make short-term forecasting and business planning difficult. With this challenging business environment, we see the need for our manufacturing operations to employ automated processes that are repeatable, scalable and cost- effective as the days of growing by just adding more labour are over.
To remain successful in the long term, we aim to improve our focus on customers, enhance the value we bring to their businesses, and build a sense of partnership based on strong mutual benefit. Our mission is clear - To deliver "Perfect Parts and Tools, On Time, Every Time" based on repeatable, scalable and cost-effective processes."
As at 30 September 2012, the Group's balance sheet had total assets of S$44.4 million, shareholders' equity of
S$38.0 million, cash and cash equivalents of S$8.0 million and no bank borrowings.

This news release is to be read in conjunction with the Group's financial statements posted on the SGX website on

27 October 2012.

About Micro-Mechanics

Micro-Mechanics designs, manufactures and markets high precision tools, parts and assemblies for the semiconductor, medical, aerospace and other high technology industries.

The Group serves a worldwide base of customers from six manufacturing facilities located in Singapore, Malaysia, China, Thailand, the Philippines and the USA. Together with its direct sales presence in Taiwan, Indonesia, and Europe, the Group's strategy is to relentlessly pursue product and operational improvement while providing its global customers with fast, effective and local support.

MEDIA AND INVESTOR RELATIONS CONTACT O c t a n t C o n s u l t i n g | p h o n e ( 6 5 ) 6 2 9 6 3 5 8 3

Herman Phua | mobile 9664 7582 | email herman@octant.com.sg

Lisa Heng | mobile 9090 9887 | email lisa@octant.com.sg

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Micro-Mechanics Posts Net Profit of S$1.2M in 1Q13

In addition to a market-leading range of precision tools, parts and consumable products used in the assembly and testing of semiconductors, the Group also manufactures precision parts and assemblies on a contract basis for tier- one equipment, aerospace, medical and other industries.

Micro-Mechanics has won wide recognition for its high standard of corporate governance and quality of disclosure, corporate transparency and communications with investors. At the Singapore Corporate Awards 2012, the Group won the Gold award for the Best Managed Board Award (small cap category). It is also a three time recipient of the Best Investor Relations Award (small cap category) at the Singapore Corporate Awards 2012, 2011 and 2010. In addition, the Group has received six awards from the Securities Investors Association Singapore for its corporate transparency and governance practices, and was twice voted 'Best for Shareholders Rights and Equitable Treatment in Singapore' in the Asiamoney Corporate Governance Polls in 2009 and 2010.

For more information, please visit the Group's website at www.micro-mechanics.com

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