INTRODUCTION

The Board of Directors (“the Board”) of KKB Engineering Berhad (“the Company” or “KKB”) is pleased to announce that KKB Industries (Sabah) Sdn Bhd, a Subsidiary of the Company has received a Purchase Order from Leadshine Sdn Bhd for the Supply and Delivery of Concrete-Lined Mild Steel Pipes (“Leadshine”).

AND

KKB has also been awarded the Tender for Annual Supply and Delivery of Steel Products Ref.: DPC53C/18 from Syarikat SESCO Berhad (“SESCO”).

The total combined contract sum for the abovementioned two (2) contracts is approximately RM17.75 million (Ringgit Malaysia: Seventeen Million and Seven Hundred and Seventy Five Thousand Only).

DURATION OF CONTRACT

The contract duration for Leadshine is approximately ten (10) months whereas the contract duration for SESCO is approximately one (1) year.

FINANCIAL EFFECTS

The above contracts are expected to contribute positively to the earnings and net assets of the KKB Group for the financial year ending 31 December 2019.

RISK FACTORS

Risk factors affecting the Contracts/order include execution risks such as availability of skilled manpower and materials, changes in pricing, weather conditions and/or political, economic and regulatory conditions.

DIRECTORS’ AND MAJOR SHAREHOLDERS’ INTERESTS

None of the Directors and/or major shareholders and/or person connected with them has any interest, direct or indirect in the abovementioned Contracts/order.

DIRECTORS’ STATEMENT

The Board is of the opinion that the abovementioned Contracts/order is in the best interest of KKB and its Group.

This Announcement is dated 15 April 2019.