Advanced Holdings Ltd. (the "Company", together with its subsidiaries collectively referred as the

?Group?) would like to provide an update on its business, in anticipation of the announcement of its

audited consolidated financial results for the full year ended 31 December 2006.

In line with the Company?s policy of corporate transparency and to provide shareholders of the Company

and the investors a better and timely understanding of the Company?s business performances, the Board

of Directors of the Company (the Board?) wishes to inform that the consolidated profits for the year

ended 31 December 2006 will be lower than that achieved in 2005.

While the Group is expected to remain profitable for the year ended 31 December 2006, the Board notes

that the financial performance of the Group is not likely to achieve the same performance as compared to

the same period last year. This is mainly due to following factors:-

1) Some unforeseen delays in securing the expected projects and contracts in the Petrochemical &

Chemical industry, resulting in delays in projected delivery and invoicing of these projects and

contracts.

2) Increase in operating cost due to strengthening of the Group?s sales, engineering, management and

finance professionals.

3) Increase in incorporation and related costs due to the incorporation of new subsidiaries and offices

4) Expenditures incurred by the Group to explore strategic technologies alliances and investment

opportunities

As the audited consolidated results for the said period have not yet been finalized, the Board is now not

in a position to quantify precisely the decrease in profit.

The Board wishes to inform the Shareholders that, barring unforeseen circumstances, the Company

expects to remain profitable for the financial year ending 31 December 2007.

Notwithstanding the above, the Directors are optimistic of its performance moving forward, and