JOINT-VENTURE WITH CWT LIMITED (16 April 2008)

The businesses of the companies are as follows:

1. CWT is a market leader in supply chain management providing warehousing & logistics solutions, freight forwarding and project management. For more information on CWT, please visit CWT’s website.
2. Tamadam is a fully integrated logistics services provider which owns and manages bonded and nonbonded ambient warehouses and bonded and nonbonded temperature controlled storage. It also provides bonded and nonbonded trucking, distribution and delivery services; open yard storage; freight forwarding services, customs forwarding services and insurance services. Tamadam’s associated company provides food and catering services.

3 SCOPE OF COOPERATION

The scope of cooperation of the MOU will be as follows:

1. Tamadam and CWT shall endeavour to work together to develop businesses providing total logistics services, specialised logistics services and building management services and to tender for such contracts where expedient for both Parties. In the event of such cooperation, TCSB shall be the company to undertake such joint activities; and
2. CWT will allow Tamadam to use CWT’s international freight forwarding network for its international freight forwarding requirements.

4 BENEFITS OF THE MOU TO TAMADAM

The MOU with CWT fits in with Tamadam’s objective of providing first class total logistics services at the best value to our customers. We are glad that we have entered into partnership with CWT, which is one of the fastest growing logistics companies in Asia. CWT shares our values of being fast, dynamic, aggressive and putting our customers first. CWT’s vision is to be a world-class corporation with global logistics capabilities. We are proud that we have been chosen as a partner by CWT to implement their vision in Malaysia.

The MOU will enable Tamadam to instantly tap into CWT’s network of freight forwarding offices that connects customers to 120 ports and 1,200 destinations around the world to grow our own freight businesses.

The market for logistics services in Malaysia is becoming increasingly competitive, however, at the same time, the market is also expanding. This means that formerly niche logistics services can now be very viable businesses. CWT has substantial experience in specialised logistics, such as chemical logistics, project logistics, commodity logistics and marine engineering logistics which Tamadam believes can have higher value added than conventional logistics services and which we would like to grow in Malaysia. Furthermore, CWT has subsidiaries that provide building management and fleet vehicle management services, two businesses that again can be explored in Malaysia.

CWT has built almost 6 million square feet of warehouse space in the last three years . As Tamadam also intends to expand warehouse space under management in Malaysia, whether by building or rental of more warehouses, CWT’s substantial experience in this area will be very useful for us.

5 CONCLUSION

Tamadam’s management have been striving to reinvent the company. We have lowered our borrowings, diversified our income and expanded our capital base. Our shareholders can now be confident that their share values are supported by long term stable earnings. While our catering business continues to underpin our top and bottom line performance, our logistics businesses will continue to grow.

To accelerate growth, smart partnerships are the fastest and most reliable way forward and we are pleased to have secured a like-minded party to work with. Our relationship with CWT will open many possibilities and give us many options to continue to grow shareholder value. We are tremendously excited by this development and hope that our stakeholders can give this partnership their full support