09:36     TITAN PETROCHEM<01192> - Announcement (2)                           

    If Amalia fails to give notice of readiness of delivery of the Vessel     
    or fails to be ready to validly complete a legal transfer of the          
    Vessel by 30 June 2005, (i) Titan Mercury will have the option of         
    cancelling the MOA provided always that Amalia will have a maximum        
    of 3 banking days (days on which commercial banks are open for            
    business both in the USA and London) after the giving of the notice       
    of readiness for arranging the documents that are to be delivered         
    to Titan Mercury under the MOA and/or (ii) Amalia will make due           
    compensation to Titan Mercury for its loss and for all expenses           
    together with interests if such failure on the part of Amalia is          
    due to proven negligence and whether or not Titan Mercury cancels         
    the MOA.                                                                  
                                                                              
    If after a notice of readiness is given and before delivery, the          
    Vessel ceases to be physically ready for delivery and is not made         
    physically ready again in every respect by 30 June 2005 and new notice    
    of readiness is given, Titan Mercury will retain their option to          
    cancel. In the event that Titan Mercury elects to cancel the MOA          
    the Deposit will be released and returned to Titan Mercury                
    immediately with interests.                                               
                                                                              
    B.   REASONS FOR THE PURCHASE AND BENEFITS TO THE COMPANY                 
                                                                              
    The Group engages in the procurement of oil products, oil                 
    transportation, storage and distribution. The Group currently has         
    a fleet of 9 VLCCs, and have contracted to purchase 3 additional          
    VLCCs (including the one to be acquired under the MOA). The Group         
    has over the past two years experienced rapid growth in its oil           
    transportation business. Having regard to the demand for the Group's      
    oil transportation services, prevailing market conditions and the         
    Group's expansion plans, the Group intends to continue to expand          
    its fleet of VLCCs when suitable opportunities arise. The                 
    transaction under the MOA thus enable the Group to bolster its owned      
    oil transportation operating fleet.                                       
                                                                              
    The Directors are of the view that the terms of the MOA are fair          
    and reasonable and in the interests of the shareholders of the            
    Company as a whole.                                                       
                                                                              
    C.   GENERAL                                                              
                                                                              
    The Purchase constitutes a discloseable transaction of the Company        
    under Rule 14.06(2) of the Listing Rules. A circular containing,          
    amongst other things, further details of the Purchase will be             
    despatched to shareholders as soon as practicable.                        
                                                                              
    As at the date of this announcement, the executive Directors are          
    Mr. Tsoi Tin Chun, Mr. Barry Cheung Chun Yuen, JP, Mr. Patrick Wong       
    Siu Hung, Mr. Dave Lee Yeow Long, the non-executive Director is Mr.       
    Cheong Soo Kiong and the independent non-executive Directors are          
    Mr. Liu Hongru, Miss Maria Tam Wai Chu, JP and Mr. Wong Kong Hon,         
    JP.                                                                       
                                                                              
    D.   DEFINITIONS                                                          
                                                                              
    In this announcement, unless the context requires otherwise, the          
    following terms have the meanings as set out below:                       
                                                                              
    ``Amalia''                                                                
    Amalia Shipping Corporation, a company incorporated in Liberia;           
                                                                              
    ``Board''                                                                 
    the board of Directors;                                                   
                                                                              
    ``Company''                                                               
    Titan Petrochemicals Group Limited, a company incorporated in             
    Bermuda and the shares of which are listed on the Stock Exchange;         
                                                                              
    ``Consideration''                                                         
    US$59,800,000 (approximately HK$466,440,000), being the amount of         
    money payable by Titan Mercury for the purchase of the Vessel             
    pursuant to the MOA;                                                      
                                                                              
    ``Deposit''                                                               
    10% of the Consideration, being US$5,980,000 (approximately               
    HK$46,644,000);                                                           
                                                                              
    ``Directors''                                                             
    the directors of the Company;                                             
                                                                              
    ``Group''                                                                 
    the Company and its subsidiaries;                                         
                                                                              
    ``HK$''                                                                   
    the lawful currency of Hong Kong;