Midas Embarks on Capacity Expansion Plans in Luoyang City; Secures Master Supply Agreement With Luoyang CSR

• Construction of new plant in Luoyang City, Henan Province targeted to be completed in the second half of 2012
• To supply 100% of Luoyang CSR's requirements for aluminium alloy extrusion products and fabricated parts on a "preferred supplier basis"
• Poised to leverage on proximity to customers and ease of transport to tap growth opportunities in Central and Southern China

SINGAPORE and HONG KONG, April 11, 2011 /PRNewswire-Asia/ -- Midas Holdings Limited ("Midas" or the "Company", together with its subsidiaries, the "Group"; SGX-ST stock code: 5EN; SEHK stock code: 1021) is pleased to announce that its newly incorporated subsidiary, Luoyang Midas Aluminium Industries Co., Ltd ("Luoyang Midas") (a subsidiary company of the Group's Aluminium Alloy Division, Jilin Midas Aluminium Industries Co., Ltd), will be establishing a new plant in Luoyang City, Henan Province. This is in line with the Group's strategy to expand its aluminium extrusion capacity in Central China to be in closer proximity to its customers.

The Group had earlier announced on November 25, 2010 its intention to set up a new production plant in the PRC outside of its production base in Liaoyuan City, Jilin Province. The Group has now finalised a site located in Luoyang City, Henan Province, instead of a site at Xin'an County, Luoyang City, Henan Province as announced previously.

The Group intends to invest an estimated RMB600 million to RMB650 million through Luoyang Midas to cover the capital expenditure requirements for its new plant. These include two aluminium alloy extrusion production lines, one downstream fabrication line, auxiliary machinery, land, buildings and other infrastructure. Construction of the new plant is expected to be completed in the second half of 2012.

The registered capital of Luoyang Midas is RMB150 million, and Mr Patrick Chew, CEO of Midas, is the legal representative of Luoyang Midas.

Separately, Luoyang Midas has entered into a master supply agreement with Luoyang CSR Mass Transit Vehicle Co., Ltd ("Luoyang CSR"). Under the terms of the agreement, Luoyang CSR has agreed to procure 100% of its requirements for aluminium alloy extrusion products and fabricated parts from Luoyang Midas on a "preferred supplier basis". Until Luoyang Midas' new plant commences operations, Jilin Midas will fulfil any orders from Luoyang CSR under the master supply agreement, if required.

Mr. Chew said, "We are delighted to have received the support of Luoyang CSR with the signing of a master supply agreement to supply aluminium alloy extrusion products and fabricated parts. This is yet another affirmation of our close working relationships with customers as well as quality products and services, in particular for our downstream fabrication business. With our new plant in Luoyang City, we are well-positioned to secure contracts from customers located in central and southern China, given our closer proximity.

"In the 12th Five Year Plan unveiled in March 2011, the PRC authorities have reiterated their commitment to the development of rail transport, both long distance and in urban mass transit. We therefore remain positive about the potential market opportunities in the PRC, given the upcoming metro, inter-city and large-scale high speed train projects to be developed over the years."

With the addition of new production capacity at Luoyang City, the Group's total annual extrusion production capacity is set to increase by 40% from 50,000 tonnes currently to 70,000 tonnes. Its annual downstream fabrication capacity to process train car body components will also increase by 30% from 1,000 train cars currently to 1,300 train cars.

The new production plant will be funded by proceeds raised from Midas' Hong Kong secondary listing in October 2010 and internal resources. The above developments are not expected to have a material financial impact on the Group for the financial year ending December 31, 2011.

About Midas Holdings Limited

Founded in 2000, Midas is today the leading manufacturer of aluminium alloy extrusion products for the passenger rail transportation sector in the PRC. Over the years, Midas has built an established track record in supplying to the PRC passenger rail transportation sector, which includes participation in landmark contracts such as trains for the Beijing-Tianjin High Speed Train Project, and inter-city high speed trains for the CRH3-380 Project. Midas' customers include domestic PRC licensed train manufacturers from China South Locomotive & Rolling Stock Corporation Limited  ("CSR") and China CNR Corporation Limited, as well as international customers such as Alstom Transport ("Alstom"), Siemens AG ("Siemens") and Bombardier Transportation.

Midas has a strategic 32.5% stake investment in Nanjing SR Puzhen Rail Transport Co., Ltd ("NPRT"), an associate company engaged in the development, manufacturing and sale of metro trains, bogies and their related parts. NPRT is one of the four Licensed Metro Manufacturers licensed to undertake metro train projects on a nationwide basis in the PRC.

In recognition of its consistent growth and profitability, Midas is one of only six companies, and the only aluminium alloy extrusion products manufacturer, in Asia to be included in Forbes Asia's "Best Under A Billion" list for four consecutive years from 2006 to 2009. The Company was also awarded the "Best Investor Relations Award (Gold)" at the Singapore Corporate Awards 2010 in the "S$300 million to less than S$1 billion market capitalisation" category. As testament to its strong brand name and reputation in the PRC, Midas was conferred the prestigious "China Well-Known Trademark" by the Trademark Office of the State Administration for Industry & Commerce of the PRC ("SAIC") in 2011.

Midas has a primary listing on the Mainboard of the Singapore Exchange Securities Trading Limited and a secondary listing on the Main Board of the Stock Exchange of Hong Kong Limited.

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