SBS Transit Ltd (“SBS Transit”) wishes to announce that it has entered into a sale and purchase agreement with SMRT Road Holdings Ltd, a wholly-owned subsidiary of SMRT Corporation Ltd, to acquire 175,000 fully paid-up ordinary shares (“Sale Shares”) in the capital of Transit Link Pte Ltd (“Transit Link”) for a total cash consideration of S$243,982.59.

Prior to this acquisition, SBS Transit is the owner of 33.3% of the capital of Transit Link and the purchase is to reflect an equal ownership in Transit Link by the current two public transport operators in Singapore. Upon completion of the acquisition, SBS Transit’s interest in the shareholding of Transit Link will increase from 33.3% to 50.0%.

The purchase consideration for the Sale Shares was arrived at on a willing seller and willing buyer basis.

The above transaction is not expected to have any material impact on the net tangible assets backing per share and earnings per share of the SBS Transit Group for the year ending 31 December 2006.

None of the Directors of SBS Transit has any interest, direct or indirect, in the above acquisition. As far as the Directors are aware, no controlling shareholders of SBS Transit have an interest, direct or indirect, in the above transaction.