Midas Signs JV Framework Agreement with Jilin Kaitong

-- Jilin Kaitong to invest in Midas' subsidiary, Jilin Midas

Light Alloy

-- With an estimated annual production capacity of 200,000

tonnes, Jilin Midas Light Alloy will focus on manufacturing

high precision, high specifications aluminum alloy plates,

sheets, strips and foils

SINGAPORE and HONG KONG, Feb. 24, 2012 /PRNewswire-Asia/ -- Midas Holdings Limited ("Midas" or the "Company", together with its subsidiaries, the "Group"; SGX-ST stock code: 5EN; SEHK stock code: 1021) announced today the signing of a framework agreement ("Agreement") with Jilin Kaitong Engineering Co., Ltd ("Jilin Kaitong") to invest in Jilin Midas Light Alloy Co., Ltd ("Jilin Midas Light Alloy"). Jilin Midas Light Alloy is currently Midas' wholly owned subsidiary with a registered capital of US$30 million.

Under the terms of the Agreement, Jilin Kaitong will invest US$45 million into Jilin Midas Light Alloy for a 45% stake, while Midas will increase its equity contributions in Jilin Midas Light Alloy from US$30 million to US$55 million for a 55% equity stake. Upon the completion of the proposed fund injections, Jilin Midas Light Alloy will have a registered capital of US$100 million.

The proposed fund injections will enable Jilin Midas Light Alloy to establish a new production plant located in Liaoyuan City, Jilin Province. With an estimated annual production capacity of 200,000 tonnes, the new production plant will undertake the manufacturing of high precision, high specifications aluminum alloy plates, sheets, strips and foils.

Commenting on the above, Mr. Patrick Chew, CEO of Midas, said, "We are pleased to have reached this agreement with Jilin Kaitong, and we look forward to working together as strategic partners. This partnership marks yet another step forward in the Group's plan to augment our production capabilities.

"Backed by continued urbanisation and the continued growth of the PRC economy, we expect demand for high precision, high specification aluminum alloy plates, sheets, strips and foils to increase. Demand for these products in the PRC is underpinned by strong growth potential for these products, which are used in various industries, including the aerospace, aviation, railway and containers sectors. This new production plant will enable us to expand our current business and enhance our product offerings."

The total investment amount for this new production plant at Jilin Midas Light Alloy is estimated to be approximately RMB1.79 billion (US$284 million), comprising RMB1.61 billion (US$ 256 million) for property and fixed assets investments and RMB177 million (US$28 million) for working capital requirements. This amount is expected to be fully financed by the equity contributions to its registered capital of US$100million (subsequent to the completion of the proposed additional fund injections from Midas and Jilin Kaitong) and borrowings from financial institutions. Construction of the new production plant is expected to take three years.

The above developments are not expected to have a material financial impact on the Group for the financial year ending December 31, 2012.

About Midas Holdings Limited

Founded in 2000, Midas is today the leading manufacturer of aluminium alloy extrusion products for the passenger rail transportation sector in the PRC. Over the years, Midas has built an established track record in supplying to the PRC passenger rail transportation sector, which includes participation in landmark contracts such as trains for the Beijing-Tianjin High Speed Train Project, and inter-city high speed trains for the CRH3-380 Project. Midas' customers include domestic PRC licensed train manufacturers from China South Locomotive & Rolling Stock Corporation Limited ("CSR") and China CNR Corporation Limited ("CNR"), as well as international customers such as Alstom Transport ("Alstom"), Siemens AG ("Siemens") and Bombardier Transportation.

Midas has a strategic 32.5% stake investment in Nanjing SR Puzhen Rail Transport Co., Ltd ("NPRT"), an associate company engaged in the development, manufacturing and sale of metro trains, bogies and their related parts. NPRT is one of the four Licensed Metro Manufacturers licensed to undertake metro train projects on a nationwide basis in the PRC.

In recognition of its consistent growth and profitability, Midas is one of only six companies, and the only aluminium alloy extrusion products manufacturer, in Asia to be included in Forbes Asia's "Best Under A Billion" list for four consecutive years from 2006 to 2009. The Company was also awarded the "Best Investor Relations Award (Gold)" at the Singapore Corporate Awards 2010 in the "S$300 million to less than S$1 billion market capitalisation" category. As testament to its strong brand name and reputation in the PRC, Midas was conferred the prestigious "China Well-Known Trademark" by the Trademark Office of the State Administration for Industry & Commerce of the PRC ("SAIC") in 2011.

Midas has a primary listing on the Mainboard of the Singapore Exchange Securities Trading Limited and a secondary listing on the Main Board of the Stock Exchange of Hong Kong Limited.

SOURCE　Midas Holdings Limited