Dec. 18, 2001

Toyo Engineering Corporation has been awarded a contract from Polypropylene Malaysia Sdn. Bhd.(PPM, Head Office: Kuala Lumpur) for basic design engineering work for polypropylene debottlenecking for the plant owned by PPM ,which is now operating in Gebeng, Kuantan, Pahang State.

This contract is for basic design engineering work to increase the capacity of the Plant from 80,000t/y to 130, 000t/y that TEC constructed in 1991. The "UNIPOL Process " of the Dow Chemical Company (US) will be employed, as was the case with the existing plant. The basic engineering work is scheduled to be completed in June 2002.

This contract was awarded to TEC based on the positive evaluation placed on TEC's technical capabilities and familiarity with the plant as they constructed the existing plant. Additional factors include not only TEC's excellent record in numerous construction projects such as petrochemical plants, oil refineries and gas processing plants in Malaysia, but also the fact that TEC successfully constructed the original polypropylene plant and the continuous good relationship between PPM and TEC is maintained by TEC's conscientious customer support activities.

By achieving an efficient and successful completion of this basic design engineering , TEC is committed to engage in active sales operations to assure the consecutive contracts for the EPC work that PPM is expected to implement.

In July 1997, TEC was awarded a contract for a VCM (Vinyl Chloride Monomer) plant, and in the succeeding years to April 1999, TEC received contracts for four plant projects an aromatics complex, an oxo-alcohol complex, and an ethylene oxide/ethylene glycol plant. As of August this year, all four projects had been successfully completed.

In recent years, TEC is committed to a further expansion of these operations for capacity expansion and revamping/modification projects of existing plants such as the second ethylene capacity expansion project of an ethylene plant from EMSB in February this year and the basic engineering work on rejuvenation and revamp of its No. 1 gas plant (GPP-1) from PETRONAS Gas (PGB) in April this year.

TEC is enhancing transnational structure as one aspect of its global operational strategies. Toyo Engineering & Construction Sdn. Bhd. (TOYO-Malaysia - a local subsidiary in Malaysia) is being reorganized to attain a structure able to engage in joint project implementation as well as the ability to obtain contracts for and implement small and medium-scale projects independently.

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