The Board of Directors of KKB Engineering Berhad (“KKB”) wishes to announce that the Board has on 20 February 2012:

(i) recommended a final dividend of 5 sen per ordinary share of RM0.50 each, taxable at 25%, in respect of the financial year ended 31 December 2011, subject to approval by the shareholders at the forthcoming Thirty-Sixth Annual General Meeting. This will bring the total gross dividend to 10 sen per ordinary share of RM0.50 each in respect of the financial year ended 31 December 2011.

The date of the Thirty-Sixth Annual General Meeting and the dates of the final dividend entitlement and payment will be announced at a later date.

(ii) proposed to seek shareholder mandate for the existing and new RRPT by way of an ordinary resolution at the forthcoming annual general meeting of KKB (“AGM”) to be convened at a later date. A Circular to Shareholders is currently being prepared for seeking shareholders' approval on the Proposed Shareholder Mandate.

The existing shareholder mandate was obtained at the AGM of KKB held on 5 May 2011. In accordance with the Main Market Listing Requirements of Bursa Malaysia Securities Berhad, this existing shareholder mandate shall lapse at the conclusion of the forthcoming AGM, unless renewal is obtained.

This announcement is dated 20 February 2012.