INTRODUCTION

The Board of Directors (“the Board”) of KKB Engineering Berhad (“KKB”) is pleased to announce that its subsidiary, OceanMight Sdn Bhd (“OMSB”) has received a Letter of Award from MISC Offshore Floating Terminals Dua (L) Limited (“MISC”) for the Provision of Engineering, Procurement, Construction and Commissioning of New ESP Module for Upgrading and Modification on MAMPU-1 and AJK Platform for Vestigo Petroleum Sdn. Bhd. (“MISC CONTRACT”)

A formal agreement for the said MISC CONTRACT shall be executed in due course.

Secondly, KKB has also been issued with a Supply Order by Mirecont Sdn. Bhd. (“Mirecont”) for the Supply of MSCL Pipes for the Sarawak Water Supply Grid Program.

Lastly, KKB has received a Purchase Order from SKE Alliance Sdn. Bhd. (“SKE”) for the Supply of MSCL Pipes for the Sarawak Water Supply Grid Program.

The total combined contract sum for MISC, Mirecont and SKE is worth approximately RM29 million (Ringgit Malaysia Twenty Nine Million Only).

DURATION OF CONTRACT

The MISC CONTRACT is to be completed by December 2019. For Mirecont and SKE, the supply for both shall be progressively delivered or collected by March 2020.

FINANCIAL EFFECTS

The contract/orders will have no effect on Share Capital of the Company and is expected to contribute positively towards the earnings and net assets of the Company and Group for the duration of the supply period.

RISK FACTORS

Risk factors affecting the contract/orders 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 contract/orders.

DIRECTORS’ STATEMENT

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

This announcement is dated 20 June 2019.