Contents :

1. Pursuant to Paragraphs 10.08, 10.09 and PN12/2001 of the Malaysia Securities Exchange Berhad Listing Requirements ("MSEB"), KKB Engineering Berhad ("KKB") wishes to make the following announcement on recurrent related party transactions which are of a revenue or trading nature between KKB and Edisi Optima Sdn. Bhd. ("EOSB"), a company which is related to Dato' Anwarrudin bin Ahamad Osman, a director of KKB:-

 

Nature of Transactions	Estimated Value for Sales
Provision of Project Management Services, EPCC (Engineering, Procurement, Construction and Commissioning) of Engineering Projects, and Sale of Fabricated/Galvanised Steel Products.	RM2.611 million

2. Dato' Anwarrudin bin Ahamad Osman is interested in EOSB by virtue of his substantial shareholdings in this company.

3. These recurrent transactions are necessary for the day-to-day operations of the KKB Group and are carried out in the normal course of business, with the transactions prices made on commercial terms. Efficiency in business dealings and competitive prices, reliability of goods, material and services, and reduced delivery time are the major advantages in dealing with EOSB. In addition, EOSB has a long-standing relationship with KKB and the company being ISO 9001:2000 certified has proven to meet the stringent requirements of the Group. All these will ultimately benefit the Group and shareholders by enhancing profitability and maximizing returns on shareholders' funds.

4. The abovementioned transactions are recurring and although the % ratio is below 5%, KKB will obtain a Mandate from shareholders at its forthcoming AGM of which the date will be fixed. A Circular pertaining to the Shareholders' Mandate will be issued in due course.

5. Save as disclosed above, none of the other Directors, major shareholders and/or persons connected has any interest in EOSB.