ANNAIK LIMITED

(Company Registration No. 197702066M)

(Incorporated in Singapore with limited liability)

PROFIT GUIDANCE FOR THE FINANCIAL YEAR 2008

In anticipation of the announcement of unaudited results announcement for the full year ended 31 December 2008 ("FY2008"), the Board of Directors ("the Board") of AnnAik Limited and its subsidiaries (the "Group") deems it appropriate to inform shareholders and potential investors that the financial results of the Group for the full year ended 31 December 2008 will show lower profits as compared to the corresponding financial year.

The Board refers to the Group's following financial results announcements:-

i)  Full year ended 31 December 2007 released on 19 February 2008 - "Barring any unforeseen circumstances, the     directors expect the overall results of the Group in the current financial year to be better than year just     ended.";and

ii) Half year ended 30 June 2008 released on 8 August 2008 - "However, barring any unforeseen circumstances,     the Directors are confident that the Group results for the second half of the current financial year will be     profitable."

Following the preliminary assessment of the Group's unaudited financial results for FY2008, the Board expects a marginal loss for the second half of FY 2008 and the financial results for FY2008 will show lower profits as compared to the same corresponding year for FY2007, mainly contributed by the writing down of inventory to net realizable value in the manufacturing business, higher income tax expenses, impairment of goodwill, lower selling prices due to the decrease in steel prices, lower utilization rate and higher fixed cost and operating expenses of our newly set-up plant in China and lower profit contribution from our associate.

Further details of the Group's financial performance for FY2008 will be disclosed when the Company announces its unaudited results announcements before end of February 2009.

By Order of the Board

Ng Kim Keang

Director

Singapore, 16 February 2009