BOC Plays Major Role in China Industrial Development; Gas Supply Infrastructure Vital to Economic Growth.

Business Editors

SINGAPORE--(BUSINESS WIRE)--Feb. 11, 2004

BOC (LSE: BOC), the largest industrial gases company in China and in Asia, is now the primary industrial gases supplier for two of China's major industrial parks.

BOC has won more than 90 percent of the gases business in both the China-Singapore Suzhou Industrial Park (SIP) and the Suzhou New District (SND). Both parks are located in Jiangsu province and have jointly attracted more than US$6.0 billion in foreign direct investment from semiconductor manufacturers and electronics, pharmaceutical, information technologies and fine chemical companies.

As the first industrial gases company to invest in China two decades ago, BOC has helped fuel the growth of the Chinese industrial economy, particularly in the chemicals, electronics and metals industries. Today, through its three lines of business and several joint venture companies, BOC's investments in China total more than US$400 million.

For example, BOC's wholly owned subsidiary in Suzhou -- BOC Gases (Suzhou) Co., Ltd. -- has invested millions of dollars in the construction of pipelines and new on-site supply schemes to meet increasing demand for industrial gases from key customers in SIP and SND.

CS Tay, general manager, Process Gas Solutions, BOC China, says, "Through continuous investment in gas supply infrastructure and service capability, BOC has emerged as SIP and SND's supplier of choice for gases and related services. This investment and its subsequent success underscores BOC's commitment to the Asian market and to China in particular.

"We have been doing business in China for more than 20 years, and we are confident that our strategy of focused investments in China, such as selective, large-scale investments in infrastructure and strategic joint ventures, will further cement BOC's leadership position in Asia," Tay said.

In addition to investing in pipeline infrastructure in SIP/SND, BOC's Process Gas Solutions line of business has recently initiated important projects with: YPC, a subsidiary of Sinopec, the leading chemicals group in China; Taiyuan Iron and Steel Corporation (TISCO), the largest stainless steel producer in China; and Guangzhou Iron and Steel (GIS), a major steel producer in China with an annual steel production capacity of 3.5 million tons. BOC's Process Gas Solutions line of business is a leading supplier of gas and related solutions to the glass, petroleum, chemicals, water services, electronic packaging, fiber optics, hydrogen energy, metals and food industries.

BOC Edwards, BOC's line of business that provides equipment, materials and services for the global semiconductor industry, is also well-positioned to meet the needs of its customers in China. BOC Edwards has logistics and customer service teams in place, including an operations hub in the Shanghai Wai Gao Qiao Free Trade Zone, to support its equipment in China's rapidly growing number of chip fabrication facilities (fabs). Equipment installations include high-purity special gas generating plants, chemical and gas supply systems, gas exhaust management systems and over 1800 vacuum pumps. More than 20 new wafer fabs are planned for China in the next five years.

The BOC Group is one of the largest and most global of the world's leading gases companies. Serving two million customers in more than 50 countries, BOC employs some 44,500 people and had annual sales of over $ 7 billion in 2003. BOC is organized into three global lines of business - aligning our organization directly to our customers.

Process Gas Solutions (PGS) provides tailored solutions to the process needs of our largest customers, primarily in industries such as oil refining, chemicals and steel. The result is the dedicated supply of gases by pipeline (tonnage), from on-site production units, or in liquid form by tanker (merchant market). PGS works globally, wherever the world's largest companies do business.

Industrial and Special Products (ISP) serves customers who need smaller volumes of gas, mostly delivered in cylinders. It offers a range of gases, products and services for cutting and welding metals, and for a host of customers in the medical, hospitality and scientific markets. ISP also has a significant liquefied petroleum gas (LPG) business in certain countries.

BOC Edwards is synonymous with the semiconductor industry, supplying gases, equipment and services to one of the world's most challenging industries. The chemical, metallurgical and scientific instrument markets are increasingly important to BOC Edwards' general vacuum business.