JOINT VENTURE WITH SINOTRANS LTD.

Keppel Telecommunications & Transportation Ltd. (the “Company” or “KT&T”) wishes to announce that it has on 23 September 2011 entered into:

(a) a capital increase agreement with Sinotrans Ltd. (“Sinotrans”) and, its wholly owned subsidiary, Sanshan Port Co., Ltd (“Wuhu Sanshan”); and

(b) a joint venture agreement with Sinotrans,

(collectively, the “Agreements”) for the establishment of a 50:50 Sino-foreign equity joint venture company (the “JV Company”) to develop, construct and operate a general, container and bulk terminal in Sanshan , Wuhu City, Province, People’s Republic of (“PRC”).

Sinotrans, a company listed on Hong Kong Stock Exchange, provides integrated logistics services which include sea, air and road transportation, storage and terminal services, express services, shipping agency and freight forwarding business. Wuhu Sanshan is currently a dormant company with a current registered capital of RMB6,000,000, which is fully contributed by Sinotrans. As at 23 September 2011, the book value and net tangible asset value of Wuhu Sanshan are RMB6,000,000.

Pursuant to the terms of the capital increase agreement, KT&T and Sinotrans will contribute RMB140,000,000 and RMB134,000,000 respectively to the registered capital of Wuhu Sanshan. KT&T’s cash contribution of RMB140,000,000 for a 50% equity interest in Wuhu Sanshan (the “Investment”) was arrived at taking into account the strategic location for the development of a port in San Shan District along the lower reaches of River in serving Wuhu City, Anhui Province and the central region of the PRC and the expected total project development cost, and will be funded through the internal working capital of the Company.

The Investment is conditional upon, amongst others:

(a) receipt of approval from the relevant authorities in relation to the Agreements and the transaction therein; and

(b) receipt of approval from the relevant authorities for the conversion of Wuhu Sanshan into the JV Company.

The JV Company will have a registered capital of RMB280,000,000. Upon the establishment of the JV Company, Sinotrans and the Company shall be entitled to exercise all rights and interests in relation to the 50% equity that they respectively hold in the JV Company.

Pursuant to the terms of the joint venture agreement, the Company and Sinotrans may each introduce potential investors to acquire equity interest in the JV Company, provided that the joint shareholding of the Company and Sinotrans will be no less than 51% of the equity interests of the JV Company and remain in equal proportion. In order to jointly hold a controlling equity interest in the JV Company, decisions are made jointly by the parties in, inter alia, the following matters:

(a) introduction of any potential investor;

(b) the transfer, pledge or other mode of disposal of the equity interest; and

(c) modification and improvement of the operation of the JV Company.

None of the directors or controlling shareholders of the Company has any interest, direct or indirect, in the above transaction.

The foregoing transaction is not expected to have any material impact on the net tangible assets and consolidated earnings per share of the Company for the current financial year.

A copy of the capital increase agreement may be inspected at the registered office of the Company at 1 HarbourFront Avenue #18-01 Keppel Bay Tower Singapore 098632 during normal business hours for a period of three (3) months from the date of this announcement.