OF JEP PRECISION ENGINEERING PTE LTD (?JEP?)

1. Sale and Purchase Agreement

The Board of Directors of Alantac Technology Ltd. (?

Company has on 13 June 2007 entered into a conditional sale and purchase agreement

(?

and EDB Ventures Pte Ltd (collectively, the ?

of the issued and paid-up capital (?

The aggregate purchase consideration payable by the Company for the purchase of the Sale

Shares is S$23,800,000 ("

arrived at on a willing buyer and willing seller basis. The Purchase Consideration is payable

by the Company to the Vendors partly in cash, and partly in the form of the issue by the

Company to JOE of an aggregate of 23,037,975 new ordinary shares in the capital of the

Company (?

agreed price per Consideration Share (the ?Company?) wishes to announce that theAgreement?) with Adam Lau Fook Hoong alias Joe Lau (?JOE?), Junaidah Bte MokhtarVendors?) for the proposed acquisition of 85%Sale Shares?) of JEP (?Proposed Acquisition?).Purchase Consideration"). The Purchase Consideration wasConsideration Shares?) amounting to an aggregate of S$3,409,620, at anIssue Price?) of S$0.148.

2. Details of Proposed Acquisition

JEP carries on business relating to the manufacture of precision machining components for

the aerospace, oil and gas and machine tool industries.

The net book value and net tangible assets of JEP and its subsidiaries (?

31

valuation of the JEP Group was commissioned by the Company for the purposes of the

Proposed Acquisition.

The Company shall, in due course, issue a circular to its shareholders explaining the

rationale for the Proposed Acquisition and shall convene an extraordinary general meeting

(?

Acquisition is conditional,

shareholders of the Company for this transaction at the EGM to be convened.JEP Group?) as atst December 2006 is S$8,200,391 and S$8,558,973 respectively. No independentEGM?) to seek the approval of its shareholders for the Proposed Acquisition. The Proposedinter alia, upon the Company obtaining the approval of the

3. Purchase Consideration

The Purchase Consideration was arrived at on a willing buyer and willing seller basis. The

Purchase Consideration is payable by the Company to the Vendors partly in cash and partly

2

in the form of the issue by the Company of the Consideration Shares to JOE at the Issue

Price.

The Company intends to use bank loans and proceeds from the proposed convertible notes

issue (in relation to which an announcement was made by the Company on 27 April 2007) to

fund the cash payments to be made to the Vendors in satisfaction of the Purchase

Consideration.

4. Material conditions of the Proposed Acquisition

Completion is expected to take place two business days following the fulfilment of all the

conditions precedent or such other date as mutually agreed to between the Vendors and the

Company in writing (?

The obligation of the Company to complete the sale and purchase of the Sale Shares is

conditional upon the following conditions being fulfilled:-

(a) the approval by the shareholders of the Company in general meeting of the purchase

by the Company of the Sale Shares in accordance with the terms of the Agreement

and the issue of 23,037,975 Consideration Shares to JOE pursuant to the terms of

the Agreement;

(b) the completion of due diligence investigations conducted by the Company and its

professional advisers on the JEP Group on or before the Completion Date, and the

results of such due diligence investigations being satisfactory to the Company;

(c) all material approvals, consents, licences, permits, waivers and exemptions

(?

Sale Shares by the Company and all Approvals which are material for the carrying on

of the business of JEP and its subsidiaries immediately after Completion being

granted by all third parties including all governmental authorities, to the Company,

the Vendors and JEP (as the case may be);

(d) the Company obtaining in-principle approval by the SGX-ST of the listing on the

SGX-SESDAQ of the Consideration Shares; and

(e) delivery by JOE to the Company of an acceptable disclosure letter.

It is also a term of the Agreement that JOE is to be appointed onto the Board of Directors of

the Company upon completion of the Proposed Acquisition. The Company will make further

announcements in respect of this appointment and the terms of the service agreement to be

entered into with JOE once these are finalised.Completion Date?).Approvals?) for the transactions contemplated pursuant to the acquisition of the