The Board of Directors of Rotary Engineering Limited (揅ompany? wishes to announce the following exercises to be undertaken by the Company:-
(a) an interim cash dividend for the financial year ending 31 December 2006 of S$0.10 less tax of 20% (or S$0.08 net) (揃onus Dividend? per ordinary share of the Company (揝hare? to be declared and paid to shareholders of the Company (揝hareholders? as at a books closure date to be announced by the Company (揃ooks Closure Date? in proportion to their respective shareholdings of the Company; and
(b) a proposed renounceable non-underwritten rights issue (揜ights Issue? of up to 162,248,000 Shares of the Company (揜ights Shares? at an issue price of S$0.20 for each Rights Share (揑ssue Price?, on the basis of two (2) Rights Shares for every five (5) Shares held by Entitled Shareholders as at the Books Closure Date, fractional entitlements to be disregarded and availability of option to elect to utilise the Net Bonus Dividend to subscribe for Rights Shares.