Further to the announcement made by Hwa Hong Corporation Limited (the "Company") on 5 April 2004 in relation to the conditional agreement dated 5 April 2004 (the "Agreement") between Norwest Holdings Pte Ltd ("Norwest Holdings"), Asset Backed Holdings Limited ("ABK") and David Argyle relating to the disposal of Norwest Holdings' 100% equity interest in Norwest Chemicals Pte Ltd to ABK, the Board of Directors of the Company wishes to announce that as not all the conditions precedent to the completion of the Proposed Transaction (as defined in the Company's announcement on 5 April 2004) have been satisfied or waived, the Agreement is deemed to be terminated and, under the terms of the Agreement, the Agreement shall have no further force or effect with none of the parties thereto being subject to any of the obligations contained in the Agreement (other than the obligations relating to confidentiality) and none of the parties to the Agreement shall thereafter claim any rights at law or equity against any other party thereto (other than those relating to the obligations of confidentiality under the Agreement).


The termination of the Agreement is not expected to have any material effect on the net tangible assets and earnings per share of the Group for the financial year ending 31 December 2004. None of the directors or substantial shareholders of the Company has any interest in the termination of the Agreement.



Submitted by Ong Bee Leem, Company Secretary on 27/08/2004 to the SGX