Letter of Intent for Phase 1, Plot 1 Zone E2 Hotel Development, Al Reem Island, Abu Dhabi, United Arab Emirates

IJM-LFE Joint Venture (“Joint Venture”) has on 14 April 2008 received a Letter of Intent dated 12 April 2008 from Tamouh Investments LLC, Abu Dhabi, United Arab Emirates, for the construction and completion of Phase 1, Plot 1 Zone E2 Hotel Development, Al Reem Island, Abu Dhabi, United Arab Emirates (“the Contract”) for an estimated contract sum of AED1 billion (approximately RM840 million).

The Joint Venture is required to start mobilization to the site and commence the foundation and basement works on 15 April 2008, pending agreement on the terms and conditions of the Contract. In the event the parties fail to enter into the Contract, all works done shall be valued and reimbursed based on an agreed schedule of rates.

The Joint Venture is a 70:30 joint venture between IJM Construction Sdn Bhd (Abu Dhabi Branch) and LFE Engineering Sdn Bhd (Abu Dhabi Branch). IJM Construction Sdn Bhd and LFE Engineering Sdn Bhd is a wholly-owned subsidiary of the Company and LFE Corporation Berhad respectively.

None of the Directors or major shareholders of the Company, or persons connected with them, has any interest, direct or indirect, in the transaction.