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Establishment Of A Branch Office In Beijing

The Board of Directors of Megachem Limited (the "Company") wishes to announce that Megachem International Trading (Shanghai) Co. Ltd ("MITS"), a subsidiary of the Company in Shanghai, has established a branch office in Beijing, China for the purposes of promoting the Company's businesses and exploring business opportunities in Beijing. The branch office shall serve as an extension of MITS.

The above transaction is not expected to have any material impact on the net tangible assets and earnings per share of the Company for the current financial year.

None of the directors or controlling shareholders of the Company has any interest, direct or indirect, in the above transaction.