Company Update: Tat Hong Joint Venture With KS Energy

KS Energy Announcement----------------------------------------------

• RMB 87.5 MILLION PROCUREMENT AND MANAGEMENT SERVICES
OF EQUIPMENT CONTRACT FROM SKY CHINA PETROLEUM
SERVICES LTD
• JOINT VENTURE WITH TAT HONG HOLDINGS LTD



The Board of Directors of KS Energy Services Limited (“KS Energy” or the “Company”)
is pleased to announce the following:

A. PROVISION OF PROCUREMENT AND MANAGEMENT SERVICES OF EQUIPMENT TO SKY CHINA PETROLEUM SERVICES LTD (“SKY PETROLEUM”)

The Company has been awarded a RMB 87.5 million procurement and management
services contract inclusive of oilfield equipment by Main Board listed Sky Petroleum.
Sky Petroleum is a PRC based petro-engineering technical services provider in the PRC oil and gas industry.

Under the agreement which is for a period of 5 years, KS Energy will provide Sky
Petroleum procurement and management services for oilfield equipment. KS Energy will set up a joint venture company with Tat Hong Holdings Ltd to provide the procurement and management services (please see details below). The joint venture is not expected to have a material effect on the net earnings per share or net tangible assets per share of the Company for the financial year ended 31 December 2005.

Mr Lim Jit Poh and Billy Lee Beng Cheng are independent directors of Sky Petroleum.
As such, they have abstained from voting in the abovementioned transaction. Save as
aforesaid, none of the directors or substantial shareholders of the Company has any
interest, direct or indirect on the abovementioned transactions.


B. JOINT VENTURE WITH TAT HONG HOLDINGS LTD (“TAT HONG”)

The Company is pleased to announce that it has signed a term sheet with Main Board
listed Tat Hong Holdings Ltd, to form a joint venture in Singapore principally to provide procurement and management services of oilfield equipment to Sky Petroleum. Tat Hong is one of the biggest suppliers of cranes and heavy equipment in the region. Tat Hong and its subsidiary Tutt Bryant Group Limited are currently listed on the Singapore and Australia stock exchanges respectively.


Each party will inject approximately S$100,000 as the issued and paid up capital of the joint venture company. The 50-50 joint venture will be represented on the board by 2 directors from each party. The operations of the Company will be funded by internal resources, shareholders’ loans and bank borrowings. Shareholders’ loans and profit distribution will be effected on an 80% (KS Energy) to 20% (Tat Hong) basis. The joint venture is not expected to have a material effect on the net earnings per share or net tangible assets per share of the Company for the financial year ended 31 December 2005.

None of the directors or substantial shareholders of the Company has any interest, direct or indirect on the abovementioned transactions.


BY ORDER OF THE BOARD
Lim Ka Bee
Company Secretary
Date: 8 February 2006

Tat Hong Holdings Announcement--------------------------------------

FOR IMMEDIATE RELEASE


ANNOUNCEMENT

• JOINT VENTURE WITH KS ENERGY SERVICES LIMITED
• RMB 87.5 MILLION PROCUREMENT AND MANAGEMENT SERVICES OF EQUIPMENT CONTRACT FROM
SKY CHINA PETROLEUM SERVICES LTD

The Board of Directors of Tat Hong Holdings Ltd (“Tat Hong” or the “Company”) is pleased to announce the following:


A. JOINT VENTURE WITH KS ENERGY SERVICES LIMITED

The Company is pleased to announce that it has signed a term sheet with Main Board listed KS Energy Services Limited (“KSES”), to form a joint venture in Singapore principally to provide procurement and management services of oilfield equipment. KSES is an energy services group catering to the oil & gas and petrochemical
industries around the world. It is a leading one-stop supply and services provider to major oil & gas companies in the region and has since November 2003 secured rig related contracts to procure and supply refurbished offshore upgraded rigs to CNOOC Limited group, Maersk Olie og Gas AS, Gulf Drilling International Limited and others.

Each party will inject approximately S$100,000 as the issued and paid up capital of the joint venture company. The 50-50 joint venture will be represented on the board by 2 directors from each party. The operations of the Company will be funded by internal resources, shareholders’ loans and bank borrowings. Shareholders’ loans and
profit distribution will be on a 80% (KS Energy) 20% (Tat Hong) basis. The joint venture is not expected to have a material effect on the net earnings per share or net tangible assets per share of the Company.


B. PROVISION OF PROCUREMENT AND MANAGEMENT SERVICES OF EQUIPMENT BY THE JOINT VENTURE
TO SKY CHINA PETROLEUM SERVICES LTD (SKY PETROLEUM)

The joint venture company will principally provide procurement and management services (inclusive of oilfield equipment) worth RMB 87.5 million to Main Board listed Sky Petroleum, in relation to oilfield equipment. Sky Petroleum is a PRC based petro-engineering technical services provider in the PRC oil and gas industry. The period for the provision of the services is for 5 years.

None of the directors or substantial shareholders of the Company has any interest, direct or indirect in the abovementioned transactions


BY ORDER OF THE BOARD
Ong Tiew Siam
Executive Director/Company Secretary