Investor Relations - News

Allotment Of Rights Shares Pursuant To The Non-Renounceable Rights Issue In RCR Tomlinson Limited

On 16 November 2004, RCR Tomlinson Limited ("RCR Tomlinson") announced a non-renounceable 1:10 Rights Issue at an issue price of AUD 0.57 per share.

The Board of Directors of MTQ Corporation Limited (the "Company") wishes to announce that pursuant to the Rights Issue of RCR Tomlison, its wholly subsidiaries, MTQ Holdings Pty Ltd ("MTQ Holdings") and MTQ Engine Systems (Aust) Pty Ltd ("MTQ Engine Systems"), have been allotted a total of 2,019,792 shares ("Rights Shares").

Pursuant to their entitlement under the Rights Issue ("Rights Entitlements"), MTQ Holdings and MTQ Engine Systems were allotted 520,149 and 1,013,653 Rights Shares respectively. In addition to their Rights Entitlements, MTQ Holdings and MTQ Engine Systems were also allotted 166,915 and 319,075 Rights Shares pursuant to their applications for excess Rights Shares under the Rights Issue.

Arising from this exercise, MTQ Holdings and MTQ Engine Systems' shareholdings in RCR Tomlinson increased from 21.60% to 22.60%. This is further diluted to 22.03% following the allotment of 2 million shares as part of the consideration for the settlement of the acquisition of Laser & Allied Cutting Services.

The above investment in the Rights Shares is funded through the net proceeds from the placement of 15,871,000 new ordinary shares in the capital of the Company on 13 April 2004 (the "Placement") and the above amount has been utilised for the purpose as contemplated and announced in connection with the Placement.

Assuming that the transaction has been effected at the beginning of the financial year 2003/04, it is not expected to have a material impact on the consolidated net tangible assets per share and earnings per share of the MTQ for the financial year ended 31 March 2004.


BY ORDER OF THE BOARD
MTQ CORPORATION LIMITED

FONG CHOON SENG
COMPANY SECRETARY