Clarification On Response To Queries On Announcement Of Resignation Of Independent Director ("Announcement")

The Board of Directors of ASA Group Holdings Ltd. ("the Company") refers to the Announcement dated 2 May 2008 on "Response to SGX's queries in relation to the Announcement of Resignation of Independent Director which was released to the SGX-ST on 29 April 2008". In the Announcement dated 2 May 2008, it was mentioned that "the external auditors opined that the interest of 9% was too high in view that this is considered an interested party transaction".

We would like to make a correction to the above statement that the external auditors had made an observation, and not an opinion, in the course of the audit for the financial year ended 31 December 2007 that the interest of 9% on the shareholder's loan appeared higher than the average interest rate on the existing bank borrowings of the Company, considering that the loan is deemed an interested party transaction. In their observation, the external auditors had asked management for the basis of the interest rate charged.


By Order of the Board
ASA GROUP HOLDINGS LTD

Tan Cher Liang
Company Secretary
15 May 2008