Announcement Details/Table Section :

Introduction

The Board of Directors of TWPH wishes to announce that the Company has on 18 October 2011 increased its investment in its 51% owned subsidiary, Max Ease International Limited ("MEIL") by the subscription of an additional 8,925,000 ordinary shares of USD1.00 each at par for cash consideration totalling USD8,925,000 in the share capital of MEIL ("the Subscription") in proportion to the shareholdings of the Company in MEIL.

The Subscription will be funded by cash from the repayment of the loan by MEIL to TWPH amounted to USD8,925,000 as announced on 18 October 2011. Prior to the Subscription, the Company and its ultimate holding company, New Toyo International Holdings Ltd ("NTIH") have shareholding interests of 49% and 51% in MEIL respectively. After the Subscription, the percentage shareholdings of the Company and NTIH in MEIL remain unchanged.

Rationale

The fund from the Subscription will be used by MEIL to repay the short term loan and improve its balance sheet.

Information on MEIL

The authorised share capital of MEIL as at 31 December 2010 was USD257,580 comprising 2,000,000 ordinary shares of HKD1.00 each. Following the Subscription, the issued and paid-up share capital of MEIL will increase from USD128,790 to USD17,628,790 comprising 1,000,000 ordinary shares of HKD1.00 each fully paid-up and 17,500,000 ordinary shares of USD1.00 each fully paid-up. MEIL owns the entire share capital of Anzpac Services (Australia) Pty Limited which manufactures printed cartons and labels.

Effects of the Subscription

The Subscription does not have any effect on the issued and paid-up share capital of TWPH and the Substantial Shareholders' Shareholding. The Subscription does not have a material impact on the Net Tangible Assets and earning of TWPH for the financial year ending 31 December 2011.

Directors' and Major Shareholders' Interest

None of the Directors and Major Shareholders of TWPH and/or persons connected to them has any interest, direct or indirect (other than through their shareholdings in the Company) in the Subscription.

The directors of TWPH, namely, Gary Yen and Tengku Tan Sri Mahaleel bin Tengku Ariff are also directors of MEIL and NTIH.

Approvals Required

The Subscription is not subject to the approval of shareholders of TWPH or any other relevant authorities.

This announcement is dated 18 October 2011.