The Board of Directors (“the Board”) of KKB Engineering Berhad (“KKB”) is pleased to announce that KKB Engineering Berhad – WCT Berhad Joint Venture (“KKB-WCT JV") has on 25 July 2016 received a Letter of Award from Lebuhraya Borneo Utara Sdn Bhd for the development and upgrading of the Proposed Pan Borneo Highway in the State of Sarawak (Phase 1 Works Package Contract – WPC-09: Sungai Arip Bridge to Bintulu Airport junction) for a Contract Sum of RM1,289,080,000.00 (Ringgit Malaysia: One Billion Two Hundred Eighty Nine Million and Eighty Thousand Only) (“the Contract”).

The duration for the Contract is Fifty-One (51) months from the date of the Letter of Award. KKB-WCT JV is a seventy (70) (KKB) and thirty (30) (WCT) joint venture and a Joint Venture Company will be incorporated to undertake the Contract for the abovementioned Contract.

To the best of our knowledge, none of the Directors or major shareholders or persons connected with them has any interest, direct or indirect in the abovementioned Contract. The Board is of the opinion that the abovementioned award is in the best interest of KKB and its Group.

The Contract is expected to contribute positively to KKB Group’s earnings during the duration of the Contract.

This announcement is dated 26 July 2016.