The Board of Directors of KKB Engineering Berhad (“KKB”) wishes to announce that the Board has on 23 February 2011:-

(i) recommended a final dividend of 12.5 sen per ordinary share of RM0.50 each, taxable at 25%, in respect of the financial year ended 31 December 2010, subject to approval by the shareholders at the forthcoming Thirty-Fifth Annual General Meeting. This will bring the total gross dividend to 17.5 sen per ordinary share of RM0.50 each in respect of the financial year ended 31 December 2010.

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

(ii) proposed to seek shareholders mandate from the shareholders for the existing 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 Shareholders Mandate.

The existing shareholders mandate was obtained at the AGM of KKB held on 11 May 2010. In accordance with the Main Market Listing Requirements of Bursa Malaysia Securities Berhad, the existing shareholders mandate shall lapse at the conclusion of the forthcoming AGM, unless renewal is obtained.

(iii) to seek shareholders' approval on the Proposed Amendment by way of a special resolution at the forthcoming AGM to be held at a later date.

Details of the Proposed Amendment will be distributed to the shareholders of KKB at a later date.

This announcement is dated 23 February 2011.