1. INTRODUCTION 2. INFORMATION ON THE PROPERTY

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1 JEP HOLDINGS LTD. (Formerly known as Alantac Technology Ltd.) (Registration No E) (Incorporated in the Republic of Singapore on 12 March 1994) THE PROPOSED SALE AND LEASEBACK BY JEP PRECISION ENGINEERING PTE LTD, A SUBSIDIARY OF JEP HOLDINGS LTD., OF THE LEASEHOLD INTEREST IN RESPECT OF THE PROPERTY AT 44 & 46 CHANGI SOUTH STREET 1 SINGAPORE INTRODUCTION 1.1 The Board of Directors of JEP Holdings Ltd. (the "Company") wishes to announce that its subsidiary, JEP Precision Engineering Pte Ltd ( JEP Precision Engineering ), has today entered into a conditional Put and Call Option Agreement (the Option Agreement ) with Mapletree Logistics Trust (acting through its trustee) ("Purchaser") for the sale ( Proposed Sale ) and leaseback (the Proposed Sale and Leaseback ) of the leasehold interest in respect of the property located at 44 & 46 Changi South Street 1 Singapore (the Property ) and all equipment, fixtures and fittings located therein. 1.2 Mapletree Logistics Trust is a real estate investment trust listed on the Main-Board of the Singapore Exchange Securities Trading Limited ( SGX-ST ). 1.3 JEP Precision Engineering, a subsidiary of the Company, is a company incorporated in Singapore on 12 January JEP Precision Engineering s principal business activities are the manufacture of machining aircraft engine components. 2. INFORMATION ON THE PROPERTY 2.1 The Property consists of two (2) single-storey factory building and an office with an approximate gross floor area of 9, square metres. JEP Precision Engineering is the owner of (i) the leasehold estate for a term of 30 years commencing from 16 February 2007 granted by JTC Corporation ( JTC ) for 44 Changi South Street 1 and (ii) the leasehold estate for a term of 30 years commencing from 16 October 2006 granted by JTC for 46 Changi South Street THE PROPOSED SALE AND LEASEBACK 3.1 Sale and Option to Purchase Under the terms of the Option Agreement, the Purchaser is granted a conditional call option ( Call Option ) to require JEP Precision Engineering to enter into a sale and purchase agreement ( Sale and Purchase Agreement ) with the Purchaser for the sale of the Property and JEP Precision Engineering is granted a conditional put option ( Put Option ) to require the Purchaser to enter into the Sale and Purchase Agreement with JEP Precision Engineering for the purchase of the Property. 3.2 Conditions Precedent The Put Option and the Call Option may not be exercised by JEP Precision Engineering and the Purchaser respectively unless, inter alia, the following conditions are satisfied in accordance with the terms and conditions of the Option Agreement:- (a) the Company having obtained approvals from the SGX-ST, its sponsor, Stamford Corporate Services Pte Ltd and/or its shareholders in respect of the Proposed Sale and Leaseback; 1

2 (b) (c) (d) (e) JEP Precision Engineering having obtained approval from its shareholders for the Proposed Sale and Leaseback; JEP Precision Engineering having obtained approvals from JTC and the relevant authorities to the Proposed Sale; Mapletree Logistics Trust having obtained approval from its unitholders (if necessary) for the acquisition of the Property and the Purchaser securing sufficient financing to undertake the acquisition of the Property and the agreements for such financing not having been terminated and being unconditional in all respects; and (unless specifically waived by the other party in writing) either party not being in breach in any material manner of any provision of the Option Agreement, either party not having failed to materially perform and comply in all material respects with any of the covenants and agreements in the Option Agreement and none of the representations and warranties contained in the Option Agreement being materially unfulfilled, untrue or incorrect. 3.3 Purchase Consideration The purchase consideration for the Property of S$16,800,000 ( Purchase Consideration ) was arrived at on a willing-buyer, willing-seller basis, taking into account, inter alia, the Valuation (as defined below) and the prevailing market conditions. The Purchase Consideration is payable in the following manner: (a) (b) (c) upon signing of the Option Agreement, the Purchaser had paid an option fee of S$168,000 (the Option Fee ) to JEP Precision Engineering s solicitors as stakeholders on the terms of the Option Agreement; upon signing of the Sale and Purchase Agreement, the Purchaser shall pay a deposit ( Deposit ) equivalent to 10% of the Purchase Consideration by way of cashier s order/cheque to JEP Precision Engineering s solicitors as stakeholders on the terms of the Sale and Purchase Agreement. The Option Fee shall be applied and held by JEP Precision Engineering s solicitors as part of the Deposit. In the event that completion ( Completion ) of the sale of the Property takes place on the date of the Sale and Purchase Agreement, the Deposit shall be paid to JEP Precision Engineering and/or such other parties as JEP Precision Engineering may direct by cashier s order or in such other manner as the parties may agree in writing; and the balance of the Purchase Price shall be paid to JEP Precision Engineering and/or such other parties as JEP Precision Engineering may direct on Completion by way of cashier s order or in such other manner as the parties may agree in writing. 3.4 Leaseback On Completion, JEP Precision Engineering and the Purchaser will enter into a lease agreement (the Lease Agreement ) governing the terms of the leaseback of the Property by JEP Precision Engineering from the Purchaser for an initial period of seven (7) years commencing on (and including) the date of Completion ( Commencement Date ) and ending on (and including) the day preceding the seventh anniversary date of the Commencement Date, on the terms and conditions of the Lease Agreement. The Lease Agreement also provides the Company with an option to renew the lease period for another seven (7) years. 2

3 4. USE OF SALE PROCEEDS AND RATIONALE FOR PROPOSED SALE 4.1 The proceeds due to JEP Precision Engineering from the Proposed Sale, when made available to the Company and its subsidiaries (the Group ), will be used as general working capital for the Group and other funding requirements of the Group including but not limited to repayment of borrowings and for potential merger and acquisition activities. 4.2 The Directors are of the view that the Proposed Sale is beneficial to the Group as the proceeds from the Proposed Sale will enable the Group to redeploy its capital more efficiently towards expansion of the business of the Group. 4.3 In connection with the Proposed Sale, JEP Precision Engineering will enter into the Lease Agreement upon completion of the Proposed Sale which will allow JEP Precision Engineering to have the continued use of the Property for at least the next seven (7) years to meet the operational requirements of the Group. 5. FINANCIAL EFFECTS OF THE PROPOSED SALE 5.1 The net book value of the Property as at 31 December 2009 was approximately S$7,057,000. Based on the valuation report dated 25 October 2010 ( Valuation Report ) prepared by Colliers International Consultancy & Valuation (Singapore) Pte Ltd, an independent valuer commissioned by JEP Precision Engineering, the value of the Property as at 7 October 2010 was S$12,500,000 ( Valuation ). The valuer adopted the Direct Comparison Method which involves the analysis and study of recent sales of comparable properties in the vicinity/comparable localities and the Income Method which entails the capitalisation at an appropriate rate of return of the estimate of the rental income of the building at current rates after making deductions for necessary outgoings and expenses, in arriving at the value of the Property. There will be a net gain on the Proposed Sale of approximately S$9,243,000, after deducting the relevant expenses. 5.2 The pro forma financial effects of the Proposed Sale are for illustration purposes only and do not reflect the actual financial results of the Company and/or the Group after completion of the Proposed Sale. The following pro forma financial effects have been prepared based on the audited consolidated statements of the Company for the financial year ended 31 December 2009 ( FY2009 ), and assuming that the Proposed Sale had been completed on: (a) 1 January 2009 for illustrating the financial effect on the consolidated earnings and earnings per share of the Group; and (b) 31 December 2009 for illustrating the financial effect on the consolidated net tangible assets of the Group. Net Tangible Assets ( NTA ) NTA of the Group (S$ 000) NTA per Share (cents) Before Proposed Sale 4, After Proposed Sale 9, The NTA per share is calculated based on the number of shares in issue of 520,842,438 as at 31 December

4 Earnings Per Share ( EPS ) Net Profit/(Loss) attributable to Shareholders (S$ 000) EPS (cents) Before Proposed Sale (11,811) (2.80) After Proposed Sale (7,766) (1.84) The EPS for the FY2009 is calculated by dividing the net profit/(loss) after tax attributable to the Shareholders by the weighted average number of shares in issue of 421,880,706 for FY DISCLOSEABLE TRANSACTION Based on the latest unaudited consolidated results of the Group for the half year ended 30 June 2010, the relative figures for the Proposed Sale computed on the bases set out in Rule 1006 of the Singapore Exchange Securities Trading Limited ( SGX-ST ) Listing Manual Section B: Rules of Catalist ( Catalist Rules ) are as follow: Relative figures (%) Rule 1006(a) Net asset value of the Property to be disposed of, as compared with Group s net asset value (1) 21.5 Rule 1006(b) Net profits attributable to the Property to be disposed of, as compared with net profits of the Group (2) Not meaningful (2) Rule 1006(c) Aggregate value of consideration received for the disposal of the Property, compared with the Company s market capitalisation (3) based on the total number of issued shares excluding treasury shares Rule 1006(d) The number of equity securities to be issued by the Company as consideration for the Proposed Sale, compared with the number of equity securities previously in issue Not applicable 4

5 Notes:- (1) The consolidated net asset value of the Group for the half year ended 30 June 2010 was approximately S$32,255,000 while the carrying amount of the Property was approximately S$6,929,000. (2) Not meaningful, as pursuant to the leaseback of the Property by the Group from Mapletree Logistics Trust, the Group will continue to derive revenue from the Property. (3) The Company s market capitalisation of approximately S$36,094,381 is based on its total number of issued shares of 911,474,266 and the weighted average traded price of S$ per share on 1 December 2010, being the market day immediately preceding the date of the Option Agreement. As the figures set out in Rules 1006(a) and 1006 (c) exceed 5%, the Proposed Sale constitutes a discloseable transaction under Chapter 10 of the Catalist Rules. 7. INTERESTS OF DIRECTORS AND SUBSTANTIAL SHAREHOLDERS None of the Directors or substantial shareholders of the Company has any direct or indirect interest in the Proposed Sale and Leaseback. 8. DOCUMENTS AVAILABLE FOR INSPECTION The Option Agreement (enclosing the format of the Sale and Purchase Agreement which in turn encloses the format of the Lease Agreement to be entered into by JEP Precision Engineering) and the Valuation Report are available for inspection during normal business hours at the Company's registered office presently at 44 Changi South, Street 1 Singapore , for a period of three (3) months from the date of this Announcement. BY ORDER OF THE BOARD Adam Lau Fook Joe Lau Executive Chairman and Chief Executive Officer Date: 2 December 2010 This announcement has been prepared by the Company and its contents have been reviewed by the Company s sponsor, Stamford Corporate Services Pte Ltd (the Sponsor ), for compliance with the relevant rules of the Singapore Exchange Securities Trading Limited (the SGX-ST ) Listing Manual Section B: Rules of Catalist. The Sponsor has not independently verified the contents of this announcement. This announcement has not been examined or approved by the SGX-ST and the SGX-ST assumes no responsibility for the contents of this announcement including the correctness of any of the statements or opinions made or reports contained in this announcement. The contact person for the Sponsor is Mr. Ng Joo Khin. Telephone number: jookhin.ng@stamfordlaw.com.sg 5