Sime Engineering Wins Talisman Contract

Sime Engineering Services Berhad's subsidiary, Sime Darby Engineering Sdn. Bhd., has received a contract for the engineering, procurement, fabrication, testing & pre-commissioning, load-out & seafastening, transportation and offshore installation of the Bunga Orkid-A Central Processing Platform ("BO-A CPP") for the PM-3 CAA Bunga Orkid Development Project from Talisman Malaysia Limited. The value of the contract, including provisional sum items, is estimated at approximately RM1 billion.

The BO-A CPP comprises the 10,700 metric ton Integrated Deck including the Living Quarters, the 8-legged Substructure and Piles, the Flare Bridge, and the Tripod Jacket and Piles. The project is expected to be undertaken over a period of 20 months.

SDE's principal business activity is the provision of engineering, procurement, construction, installation, hook-up and commissioning services to the oil and gas industry.

The contract is expected to have a positive effect on the earnings and net assets of the SES Group for the financial years ending June 30, 2007 and 2008. None of the directors or substantial shareholders of SES or persons connected to them has any interest, direct or indirect, in the award of the contract.

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