Boustead Marks Debut in Aviation Industry Receives delivery of the first EC225 helicopter

KUALA LUMPUR, March 28, 2011 – Boustead Holdings Berhad (Boustead Group) expanded its business portfolio with the Group’s official entry into the local aviation industry through its acquisition of MHS Aviation Berhad (MHS). The acquisition consisting of a 51% stake worth RM100 million was sealed in a sales and purchase agreement (SPA) by officials from MHS and the Boustead Group.

Proceeding the SPA, a signing ceremony also took place between MHS and Eurocopter Malaysia Sdn Bhd to mark the delivery of the first of five EC225s acquired, adding on to MHS’s current fleet of helicopters.

YBhg Tan Sri Dato’ Lodin Wok Kamaruddin, Deputy Chairman/Group Managing Director, Boustead Holdings Berhad said, “The Boustead Group continuously seeks opportunities be it organic or nonorganic and with the acquisition of MHS, we view this as a synergistic effort to strengthen our involvement in the oil and gas sector. Today, via the Heavy Industries Division of the Group, we are already involved in this sector.”

“We are optimistic that this latest acquisition will provide a positive contribution to the Group’s bottom-line on a long-term basis more so as MHS’s reputation is a strong one given that they are the pioneer helicopter service provider for the offshore oil and gas sector in Malaysia. Its focus and determination over the last 28 years of its operations is testament to the company’s impeccable track record and business acumen. We are also glad to note that MHS is the first helicopter operator in Malaysia to be certified by the Malaysian Department of Civil Aviation for its Safety Management System.”

Commenting on the delivery of the first EC225, Mr Pierre Nardelli, President & CEO of Eurocopter Malaysia said, “Our partnership with MHS dates back to as far as 1983 and we are honoured to be associated with a helicopter operator who has flown more than 1,000,000 flights clocking in more than 600,000 hours. The fact that MHS is again enlarging their helicopter fleet with five more EC225 indicates their level of confidence in Eurocopter and their bullish prospects in Malaysia. We are extremely proud to be associated with both Boustead and MHS and that our EC225 will mark the start of a new era of Boustead’s entry into the aviation industry through the acquisition of MHS.”

Being highly versatile, the EC225 belongs to the 11-tonne medium weight twin engine helicopter category and integrates all the latest technological innovations such as the highly aerodynamic and efficient 5-bladed Speriflex® main rotor which gives this machine more power, increased payload and longer range capabilities. Its capabilities can be increased further with the addition of a Forward External Fitted Tank for remote long-range oil rigs. The EC225 also features significant advances in terms of human-machine interface with state-of-the-art avionics and a brand new cockpit layout which help to reduce the pilot workload, making it a top-notch aircraft in the field of flight safety. It can accommodate various seating arrangements of up to 19 passengers in the civil version and up to 29 passengers in the military version, known as the EC725.

MHS, which started operations in 1983, is at present the leading provider of helicopter transport services, emergency medical services as well as search and rescue for Malaysia’s oil and gas industry. MHS also charters aircraft including helicopters and aeroplanes as well as providing flight training, engineering and technical services.

“Boustead is confident that with the recent contract awarded by Petronas Carigali Sdn Bhd to MHS worth RM3.1 billion which will span over the next ten years, this business unit will have a key role in boosting the Group’s earnings. As an investment holding company, it is our mandate to provide shareholders with good returns from our various businesses and we expect this new venture to do so.” concluded YBhg Tan Sri Dato’ Lodin.

About Boustead Holdings Berhad
Since its inception as a modest trading entity more than 180 years ago, the Boustead Group has grown by leaps and bounds to comprise more than 90 subsidiary and associate companies, and has substantial interests in various sectors of the Malaysian economy. The Boustead Group’s operations are focused in six key areas; plantation, heavy industries, property, finance & investment, trading & manufacturing and pharmaceutical. As at 31 December 2010, Boustead Holdings Berhad’s paid-up capital was RM470 million, while its shareholders’ funds stood at RM4.2 billion. Market capitalisation is currently in excess of RM5 billion.

About Eurocopter (Website: www.eurocopter.com)
Established in 1992, the Franco-German-Spanish Eurocopter group is a division of EADS, a world leader in aerospace, defense and related services. The Eurocopter group employs approximately 15,600 people. In 2010, Eurocopter confirmed its position as the world’s No. 1 helicopter manufacturer in the civil and parapublic market, with a turnover of 4.8 billion euros; orders for 346 new helicopters; and a 49 percent market share in the civil and parapublic sectors. Overall, the group’s products account for 33 percent of the total world civil and parapublic helicopter fleet. Its strong worldwide presence is ensured by its 27 subsidiaries and participations on five continents, along with a dense network of distributors, certified agents and maintenance centers. There are 11,200 Eurocopter helicopters currently in service with nearly 2,900 customers in 147 countries. Eurocopter offers the largest civil and military helicopter range in the world.

Forward looking statements

This release may contain certain forward-looking statements with respect to the financial conditions, results of operations and business of the Group and certain plans and objectives of Boustead Holdings Berhad with respect to these items. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future and there are many factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements.

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