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Use Of Proceeds From The Initial Public Offering And Increase Of Investment In Subsidiary

BackMar 10, 2008

The Board of Directors of Yongmao Holdings Limited (the "Company") wishes to announce that the Company has increased the registered capital of Fushun Yongmao Construction Machinery Co., Ltd, its wholly-owned subsidiary in People's Republic of China, from US$12 million to US$30 million.

The additional investment of US$18 million is to be applied towards the construction of the proposed new manufacturing facility of the group and the acquisition of plant and machinery (as described in the Company's prospectus dated 31 January 2008). The injection is channeled by the Company through internal funds which were the proceeds raised from the Company's initial public offering.

The Company will continue to provide periodic announcements on the utilization of the balance of the initial public offering proceeds as and when such proceeds are materially deployed.

By Order of the Board

Tian Ruo Nan
Chief Executive Officer
10 March 2008

The initial public offering of the Company's shares was sponsored by CIMB-GK Securities Pte. Ltd.