KS Energy to Expand Business Activities to North America

KS Energy Services Limited has, through a subsidiary company, entered into a 50:50 joint venture with Ezra Holdings Limited to take up a 25% interest in KSES (USA) Inc, a company operating offshore related assets to provide marine and offshore services to support the offshore drilling operations of international oil companies in North America. The joint venture will enable the Company to establish a presence and expand its operations geographically to North America.

The above transaction is not expected to have a material impact on the Group's earnings per share or net tangible assets for the financial year ending December 31, 2005. None of the directors or substantial shareholders of