AEI : Reduction Of Share Capital Of A Wholly-Owned Subsidiary

AEI CORPORATION LTD.

(Incorporated in the Republic of Singapore) Company Registration No. 198300506G

REDUCTION OF SHARE CAPITAL OF A WHOLLY-OWNED SUBSIDIARY

The board of directors (the "Board" or "Directors") of AEI Corporation Ltd. (the "Company", and together with its subsidiaries, the "Group") wishes to announce that AEI Engineering Pte. Ltd. ("AEI Engineering"), a wholly-owned subsidiary of the Company, has on 12 January 2018 effected a capital reduction exercise of its share capital from S$1,000,450 to S$1,000 ("Capital Reduction Exercise"). The purpose of the Capital Reduction Exercise is to return the Company an amount of S$999,450 in paid-up capital which is in excess of AEI Engineering's requirements. The Capital Reduction Exercise does not result in any change in the total number of issued ordinary shares in AEI Engineering held by the Company.

The Capital Reduction Exercise will not have any impact on the earnings per share and net tangible assets of the Company and the Group for the current financial year.

None of the directors or substantial shareholders of the Company has any interest, direct or indirect in the Capital Reduction Exercise, save for their respective interests through their shareholdings and/or directorships (as the case may be) in the Company.

By Order of the Board

Tan Chu En Ian

Executive Director and Chief Executive Officer

12 January 2018