Additional Investment In A Wholly-Owned Subsidiary

BackDec 24, 2007

The Board of Directors of Straco Corporation Limited ("the Company") wishes to announce that the Company has on 21 December 2007, increased its investment in its wholly-owned subsidiary, Infotainment Development & Management Pte Ltd ("IDM") from S$1,000,000/- to S$3,000,000/-.

The additional investment is funded by the capitalisation of the shareholders loan of S$2,000,000/-made by the Company to IDM and is not expected to have any material impact on the net tangible assets or earnings per share of the Group for the financial year ending 31 December 2007.

None of the Directors or substantial shareholders of the Company has any interest, direct or indirect, in the above transaction. By Order of the Board Lotus Isabella Lim Mei Hua Company Secretary