Hemaraj Opening Third and Fourth Free Zones Now Reaching 1,700 Rai Total

Bangkok, 2 June 2006: Hemaraj Land And Development Plc, the world-class industrial estate and infrastructure developer in Thailand, is expanding duty Free Zones in its industrial estates, in line with the growing export demand from customers. The total extent of Hemaraj’s Free Zones will increase from 231 rai in 2005 to 1,687 rai in 2006. This covers both developed land and SME Factories for Rent and Sale in Rayong, Chonburi and Saraburi. This continues with Hemaraj the leading Free Zone operator in Thailand.

“Free Zone” is an area designated for export-oriented activities whereby tax and duty are exempted. Smooth operation of activities in this area is ensured by the Customs Department. Incentives available for businesses located in Free Zone include: import duty exemption for all kinds of goods including machinery and tools with no time limit, exemption of Value Added Tax (VAT), excise tax, liquor tax and stamp duty under Excise Tax Laws.

Out of 6 industrial estates under its development and management, in 2006 Hemaraj Free Zones are at 3 locations namely Eastern Seaboard Industrial Estate (Rayong), Hemaraj Eastern Seaboard Industrial Estate and S I L Industrial Land (Saraburi).

Eastern Seaboard Industrial Estate (Rayong) or “Detroit of the East” is the flagship industrial estate of Hemaraj with GM, Ford, Mazda and over 100 automotive customers on approximately 8,000 rai of land. During 2005 and 2006 Free Zone area in this industrial estate has increased from 231 rai to 503 rai. Customers can either buy developed land in the Free Zone; or rent or buy SME Factories located in this special area to get the privileges. Companies under operation in Eastern Seaboard Industrial Estate Free Zone include Isuzu Operations (Thailand) Co., Ltd., Max (Thailand) Co., Ltd., Japan’s leading manufacturer of nailers, Thai VMI Service Co., Ltd., England-based ball-bearing manufacturer, Spheric Trafalgar Ltd. and Italy-based Danieli Far East Co., Ltd., an affiliate of one of the top three steel machinery manufacturing in the world.

Hemaraj Eastern Seaboard Industrial Estate continues with the Detroit of the East concept and will be the key expansion area for auto cluster in the coming years with approximately 8,000 rai. In 2006, Hemaraj has established Free Zone of 757 rai in this industrial estate in Rayong province.

S I L Industrial Land (Saraburi) – 80 kilometers north of Bangkok with 3,600 rai, is the latest location of Hemaraj with Free Zone. Positioned as electronics cluster and logistics hub, S I L’s Free Zone area of 427 rai with developed land and also SME factories for rent and sale will enhance customers savings on production costs. Hemaraj also has an Export Processing Zone at Hemaraj Chonburi Industrial Estate. Industrial Estate. Authority of Thailand and Customs Department of Thailand facilitate activities in this area. The Export Processing Zone of 460 rai offers developed land and SME Factories for rent and sale.

Revealing this to media, Hemaraj’s President and Chief Executive Officer Mr. David Nardone said, “Foreseeing the growth potential and the success of our Free Zones in the past years, Hemaraj recently signed an agreement with the Customs Department to expand additional Free Zones in our industrial estates. This is part of our growth strategy at attracting foreign direct investments into Thailand. Industrial investors who are interested in our Free Zones may please contact our Customer Development Department on Tel No. +662 719 9555 or email: marketing@hermaraj.com”.