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Notice To All Holders Of Redeemable Convertible Cumulative Preference Shares ("RCCPS")

To all holders of Redeemable Convertible Cumulative Preference Shares ("RCCPS")

THIS NOTICE IS ISSUED BY COSCO CORPORATION (SINGAPORE) LIMITED ("THE COMPANY"). IF YOU ARE IN ANY DOUBT AS TO THE CONTENTS HEREIN OR AS TO THE COURSE OF ACTION YOU SHOULD TAKE, YOU SHOULD CONSULT YOUR BANK MANAGER, STOCKBROKER, SOLICITOR, ACCOUNTANT OR OTHER PROFESSIONAL ADVISER IMMEDIATELY.

If you have sold all your RCCPS in the Company, you should immediately forward this Notice and its enclosure(s) to the purchaser or transferee or to the bank, stockbroker or other agent through whom the sale was effected for onward transmission to the purchaser or the transferee.

NOTICE IS HEREBY GIVEN THAT THE COMPANY SHALL BE REDEEMING ALL THE RCCPS (UNLESS EARLIER CONVERTED TO ORDINARY SHARES) 30 DAYS FROM THE DATE OF THIS NOTICE AT THE REDEMPTION AMOUNT OF S$1.50 FOR EACH RCCPS

1. On 15 November 1999 ("Issue Date"), the Company allotted 33,453,283 RCCPS. As at the date of this Notice, there are approximately 17 RCCPS holders holding 57,663 outstanding RCCPS.

2.1 Pursuant to Article 4A(B)(c) of the Company's Articles of Association, it states that unless earlier redeemed or converted, each RCCPS shall be redeemed on the Final Redemption Date at the Redemption Amount of S$1.50 for each RCCPS together with a sum equal to any arrears and accruals of the Preference Dividend in respect of such RCCPS calculated down to the Final Redemption Date and Additional Amounts (if any) payable to such RCCPS holder, all of which will be paid in accordance with the Articles of Association of the Company by Singapore Dollar cheque drawn on a bank in Singapore and despatched to each RCCPS holder at his respective address appearing in the Register of Members of RCCPS holders.

2.2 As 14 November 2004 is a Sunday (which is not a Business Day) and a public holiday, the following Monday is gazetted as a public holiday and the Final Redemption Date shall be the next following Business Day on 16 November 2004.

2.3 Pursuant to Article 4A(A) of the Company's Articles of Association, the final Preference Dividend shall be payable to the RCCPS holders on the Final Redemption Date.

2.4 The final Preference Dividend will be paid in accordance with the Articles of Association of the Company by Singapore Dollar cheque drawn on a bank in Singapore and despatched to each RCCPS holder at his respective address appearing in the Register of Members of RCCPS holders, and if tax is deducted or withheld, together with the relevant tax voucher.

3. As a RCCPS holder, you may wish to convert your RCCPS into ordinary shares and your conversion notice (kindly refer to paragraph 5 below) must reach us on or before 3 November 2004. This is to facilitate the Company to process the conversion of the RCCPS into ordinary shares prior to the books closure date on 3 November 2004 at 5pm; and for the Company to determine the entitlements of RCCPS holders to any arrears and accruals of the Preference Dividend in respect of such RCCPS prior to the date of conversion ("Conversion Date") and Additional Amounts (if any) payable to the respective RCCPS holders.

4. NOTICE IS HEREBY GIVEN THAT the Transfer Books and Register of Members of RCCPS holders of the Company will be closed for the period from 4 November 2004 to 5 November 2004 (both dates inclusive) for the purposes of determining the entitlements of the RCCPS holders to the final Preference Dividend, Redemption Amount and the sum equal to any arrears and accruals of the Preference Dividend in respect of such RCCPS calculated down to the Final Redemption Date or prior to the Conversion Date (as the case may be) and Additional Amounts (if any) payable to the respective RCCPS holders. Duly completed transfers in respect of the RCCPS received by the Company's Registrar, Kon Choon Kooi Pte Ltd, 47 Hill Street #06-02 Chinese Chamber of Commerce & Industry Building Singapore 179365, up to 5.00pm on 3 November 2004 will, subject to the Articles of Association of the Company, be registered for the purposes aforesaid.

5. A conversion notice is enclosed for your use in the event that you wish to convert your RCCPS into ordinary shares.

6. The last day for trading of the RCCPS on the Singapore Exchange Securities Trading Limited ("SGX-ST") will be on 27 October 2004 ("Last Day for Trading of RCCPS") and the trading of the RCCPS will cease with effect from 28 October 2004. The RCCPS will be delisted from the Official List of the SGX-ST at 9.00am on 17 November 2004.

7.1 The Company will cancel all the existing RCCPS share certificates upon mandatory redemption, whether or not the RCCPS holders return their share certificates. Upon cancellation, the RCCPS share certificates shall be void and will cease to have any effect or be valid for any purpose.

7.2 In respect of RCCPS holders whose securities accounts are credited with the RCCPS registered in the name of the Central Depository (Pte) Limited ("CDP") as at the Final Redemption Date, no further action needs to be taken as arrangement will be made by the Company with CDP for all RCCPS certificates issued in the name of CDP or its nominees to be cancelled.


BY ORDER OF THE BOARD


Lawrence Kwan
Company Secretary
Singapore
14 October 2004