Update On The Company's Financial Position

The Board of Directors of ASA GROUP HOLDINGS LTD ("the Company") wishes to update its shareholders and other stakeholders on the following:

(1) Collection of the remaining balance of the sale proceeds on the disposal of property

The Board wishes to announce that the Company's wholly owned subsidiary, Shanghai ASA Ceramic Co. Ltd ("Shanghai ASA") has on 27 June 2008 collected the remaining balance of RMB 62.5 million of the sale proceed of RMB 110 million {"sale proceeds"} for the sale of Shanghai ASA's property located at 3988, Hong Mei Nan Lu, Min Hang Qu, Shanghai, 201108, Republic of China, represented on Title Deed No. 953963 ("the Sale Property") from Shanghai JinMing Investment Group; Ltd ("Shanghai JinMing"). The said remaining balance of the sale proceeds from Shanghai JinMing for the property was original due on 31 December 2007 but an extension of time to 30 June 2008 was given to Shanghai JinMing to make full settlement.

Shanghai ASA has also received RMB 3 million being the interest on the late payment of the remaining balance RMB 62.5 million of the sale proceeds from Shanghai JinMing.

(2) Repayment of Bank Loans by Shanghai ASA Ceramic Co., Ltd ("Shanghai ASA") and Shandong ASA Ceramic Co., Ltd ("Shandong ASA")

(a) Shanghai ASA has utilised part of the above mentioned repayment from
Shanghai JinMing to repay its RMB 57.5 million one-term loan provided by the Bank of China; and

(b) The Company's 75% owned subsidiary, Shandong ASA has also fully repaid its RMB 15.0 million one-year term loan to Jiao Tong Bank, China which matured on 28 June 2008. Shandong ASA is now seeking Jiao Tong Bank Ltd's approval to renew a further one-year term loan of RMB 15.0 million to meet its current working capital requirements.

The Company will make immediate announcement if any material development occurs before the next Quarterly Update announcement, pursuant to Rule 1313 (2) of the Listing Manual of the Singapore Exchange Securities Trading Limited, which is to be released in September 2008.

By Order of the Board
ASA GROUP HOLDINGS LTD

Chan Chun-Hsiung
Non-Executive Chairman
Dated: 30 June 2008