Xiangyu Dredging Holdings Limited is pleased to announce that on 27 March 2012 (after trading hours), Jiangsu Xingyu (beingtreated as a subsidiary of the Company), in its ordinary course of business, entered into theZhangjiagang Works Contract with the Customer. Under the Zhangjiagang Works Contract, JiangsuXingyu has agreed to provide dredging-related construction services in Tung ChauChassi Waterwaysof the Changjiang River Region located in Jiangsu Province, the PRC. The Zhangjiagang WorksContract is expected to be completed in December 2012. The estimated aggregate contract sum for such works isapproximately RMB77.1 million (equivalent to about HK$94.1 million).