INTRODUCTION

The Board of Directors ("the Board") of KKB Engineering Berhad ('KKB" or "the Company") is pleased to announce that its subsidiary, OceanMight Sdn. Bhd., has received a Purchase Order Contract from Samsung Engineering (M) Sdn. Bhd. ("Samsung Engineering") for the Module Fabrication and Supply of Steel Structures for Malaysia Shell R&M Onshore Gas Plant Project, Bintulu.

A formal contract shall be executed in due course.

The contract sum for the abovementioned Contract is worth approximately RM111.6 million (Ringgit Malaysia One Hundred Eleven Million Six Hundred Thousand Only).

DURATION OF CONTRACT

The completion date for Samsung Engineering is scheduled to be within third quarter of 2024.

FINANCIAL EFFECTS

The abovementioned Contract will have no effect on Share Capital of the Company and is expected to contribute positively towards the earnings and net assets of the Company and Group for the duration of Contract.

RISK FACTORS

Risk factors affecting the Contract include execution risks such as availability of skilled manpower and materials, forex and changes in pricing, weather conditions and/or political, economic and regulatory conditions.

DIRECTORS' AND MAJOR SHAREHOLDERS' INTERESTS

To the best of our knowledge, none of the Directors and/or major shareholders and/or person connected with them has any interest, director indirect in the abovementioned Contract.

DIRECTORS' STATEMENT

The Board is of the opinion that the abovementioned Contract is in the best interest of KKB and its Group.

This announcement is dated 10 April 2023.