Further to the announcement made by KKB Engineering Berhad (“the Company”) on 26 July 2016 on the 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), the Board of Directors (“the Board”) wishes to announce that on 22 August 2016, the Company has incorporated a joint venture company under the name of KKBWCT Joint Venture Sdn Bhd (“the JVCO”) to undertake the abovementioned project.

The issued and paid-up capital of the JVCO is RM10,000,000.00 divided into 10,000,000 ordinary shares. KKB Engineering Berhad subscribed to 70% of the issued and paid-up capital of the JVCO. The remaining 30% of the issued and paid-up capital of the JVCO is held by WCT Berhad.

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.

This announcement is dated 22 August 2016.