ENG WAH IN S$675 MILLION RTO, SET TO TRANSFORM INTO A LEADING R&D AND BIO-MEDICAL SERVICES GROUP - 1st Japanese RTO of an SGX-ST listed company

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1 NEWS RELEASE ENG WAH IN S$675 MILLION RTO, SET TO TRANSFORM INTO A LEADING R&D AND BIO-MEDICAL SERVICES GROUP - 1st Japanese RTO of an SGX-ST listed company Singapore, May 24, In a substantial S$675 million reverse takeover ( RTO ), the first by a Japanese company in Singapore, Eng Wah Organization Limited ( Eng Wah or the Company ), a SGX-ST Mainboard-listed leisure and entertainment group, announced today that it has entered into a Share Exchange Agreement to acquire the entire issued and outstanding shares of Transcu Pte. Ltd. ( Transcu ). Eng Wah s existing leisure and entertainment business and all interest in its existing subsidiaries will be disposed; thus transforming itself into a major research & development and bio-tech company upon completion of the transaction. Pursuant to the Share Exchange Agreement, Transcu, a Singapore-incorporated company, will complete a restructuring including Transcutaneous Technologies, Inc. ( TTI ) such that it will hold the entire issued and paid-up capital of TTI ( the TTI Group ). The TTI Group is a Japan-based bio-tech company focused on research and development, manufacturing and sale of transdermal technology and products. The TTI Group develops innovative, non-invasive transdermal drug delivery systems under its own trademark, TransCutaneous Technologies (TCT TM ). These systems are customized to efficiently deliver drugs for a wide variety of medical and cosmetic applications, thus replacing the existing conventional methods such as injections, oral administrations and patches. Page 1 of 5

2 Eng Wah s Managing Director, Ms Goh Min Yen said: We are of the view that the Share Exchange exercise offers a highly attractive investment platform for the Company to venture into the biomedical services industry. We believe this industry holds excellent potential for growth and that this proposed share exchange agreement will unlock substantial shareholder value for our shareholders. Added Mr Akihiko Matsumura, President and Chief Executive Officer of TTI: We firmly believe in the efficacy and viability of our technology and are optimistic that TCT will help to improve the lives of treatment patients around the world by providing a cost effective, noninvasive, painless method of drug delivery. We are delighted to have reached this share exchange agreement with Eng Wah Organization, a group with a rich and proud history in Singapore. We believe this marks a new chapter of growth and opportunities for both our companies. Details of the Agreement The evaluation for the share exchange ratio of S$675 million was determined at arm s length and a willing-buyer-willing-seller basis. It takes into account Transcu s profit warranty of US$10 million for the current financial year ending March 31, 2008 ( FY2008 ) to Eng Wah and its current shareholders. Pursuant to the Share Exchange Agreement, the shareholders of Transcu will in aggregate hold at least 91.5% of the enlarged issued share capital of Eng Wah. Based on the outstanding shares of 150,000,000 in Eng Wah, 1,614,705,882 Exchange Shares will have been issued to the shareholders of Transcu. The actual number of Exchange Shares to be allotted and issued to the shareholders of Transcu will be adjusted accordingly based on the actual issued shares of Eng Wah as at completion. Page 2 of 5

3 The Share Exchange Agreement is subject to the approval of the Eng Wah Board and shareholders as well as regulatory approvals and requisite waivers being obtained from the MAS, SGX-ST, SIC and any other regulatory authority as required. It is also subject to inprinciple approval being received from SGX-ST for the admission of the Exchange Shares to the Official List of SGX-ST. As part of the conditions precedent to the agreement, Eng Wah must have obtained a separate resolution ( Whitewash Resolution ) from a majority of its shareholders present in a general meeting to receive a take-over offer from Transcu. In addition, Eng Wah is to have no assets and liabilities save for cash of at least S$10 million. Omega Capital is the financial advisor and Drew & Napier the legal advisor to the Acquisition. The company will appoint an independent financial advisor to the independent directors in connection with the Whitewash Resolution. Placement In connection with the Share Exchange Agreement, the Company will endeavour to raise additional funds of S$95 million via the placement of 250 million new shares in the Company at S$0.38 per share ( Placement ). These funds will be used for the future business development and operations of the EW Group after the completion of the share exchange exercise and for the Group s working capital. In this connection, the Company has entered into a Share Placement Agreement with Lim & Tan Securities Pte Ltd ( LTS ) today whereby LTS has undertaken, on a nonunderwritten and on a best effort basis, to procure placees for 250 million new shares in the Company at the issue price of S$0.38 per share. The issue price of S$0.38 represents a discount of 6.17% from the volume weighted average traded price of S$0.405 for shares in the Company on 22 May 2007, being the last trading day immediately preceding the date of the aforesaid Share Placement Agreement. Page 3 of 5

4 The 250 million shares represent approximately 12.41% of the company s enlarged share capital of approximately two billion shares. Assuming all the 250 million shares are placed out, the shareholders of Transcu will hold at least 80.15% and Eng Wah s current shareholders will hold 7.45% of the company s shares. The Placement is conditional upon the completion of the RTO. Note: This release should be read and understood only in conjunction with the full text of the Announcement lodged by Eng Wah Organization Limited on SGXNET on May 24, About Transcutaneous Technologies, Inc ( TTI ) TTI is a research & development focused bio-tech company with headquarters in Japan and a subsidiary, Dharma Therapeutics, Inc. located in Seattle, USA (together the TTI Group ). Founded in March 2004, the principal business activities of the TTI Group are in research and development, manufacturing, and sale of transdermal drug delivery devices and combination devices which include drug compounds. Transdermal drug delivery devices adhere to the skin, delivering drugs through the skin into the body for systemic action. The TTI Group has successfully developed an innovative, non-invasive transdermal drug delivery system called Transcutaneous Technologies (TCT TM ). TCT TM system are customized to efficiently deliver drugs developed by pharmaceutical companies in a wide variety of medical and cosmetic applications, thus replacing the existing conventional methods such as injections, oral administrations and patches. The TTI Group has successfully developed an Ionic Passive Tape and Cream that opens the realm of passive drug delivery technology to water soluble drugs. The technology is applicable both to medical drugs hitherto unavailable for passive delivery and also to nondrug cosmetics. The TTI Group believes that this success will help drive the commercialisation of its products in the domestic market of Japan as well as overseas Page 4 of 5

5 market. In March 2007 Dharma has successfully completed Phase II clinical trials in the United States. In addition to its founder, Mr Akihiko Matsumura, TTI has an impressive line-up of international dignitaries on its Board, including Mr Hironori Aihara, former President of Mitsubishi International Corporation who serves as Chairman, Dr Steven Reed, a member of the Vaccine Development Committee, WHO and former co-founder of Nasdaq-listed Corixa Corp, Mr Alexander Haig, Jr, former White House Chief of Staff and Supreme Allied Commander of NATO, Mr Richard Armitage, former Deputy Secretary of State, USA, Dr James Anderson, a member of the National Academy of Science, Mr Toshimichi Ohyama, a former Executive Director of Sega Corporation who is now Transcu s Director and General Manager, Business Development and Prof Kiyoshi Kanamura, professor of Applied Chemisty, Tokyo Metropolitan University and also Director and CTO of Transcu s R&D division. ISSUED ON BEHALF OF : Eng Wah Organization Limited Transcutaneous Technologies, Inc. BY : Citigate Dewe Rogerson, i.mage Pte Ltd 1 Raffles Place #26-02 OUB Centre SINGAPORE CONTACT : Mrs Elaine Lim / Mr Kevin Lim at telephone DURING OFFICE HOURS : (Office) AFTER OFFICE HOURS : / (Handphone) elaine.lim@citigatedrimage.com kevin.lim@citigatedrimage.com 019/07/010/EW May 24, 2007 Page 5 of 5