Termination of the Joint Venture Shareholders’ Agreements with Benua Bitara Sdn Bhd

The Company had on 13 June 2002 executed two (2) Joint Venture Agreements (“JVAs”) with Benua Bitara Sdn Bhd (“BBSB”), which resulted in the formation of two (2) joint venture companies, that is, Mowtas Bulkers Sdn Bhd (“MBSB”) and Mowtas Multi-User Jetty Sdn Bhd (“MMUJ”) for the setting up and operation of bulking and jetty services respectively in the Mowtas Valley, Sandakan. As the intended objectives of MBSB and MMUJ have not been realised, the Company has today executed two (2) Termination Agreements with BBSB to terminate the JVAs.

In consequence thereof, the Company will acquire the remaining 480,000 ordinary shares of RM1 each in MBSB (representing 40% of the equity interest of MBSB) and 55,000 ordinary shares of RM1 each in MMUJ (representing 55% of the equity interest of MMUJ) at a purchase consideration of RM480,000 and RM1 respectively.

With the acquisition of the remaining 40% and 55% of the equity interest of MBSB and MMUJ respectively, MBSB and MMUJ will become wholly-owned subsidiaries of the Company.

None of the Directors nor the substantial shareholders of the Company, or persons connected with them, has any interest, direct or indirect, in the above transactions and no approval of shareholders is required. The above transactions will not have any significant effect on the earnings or net assets per share of the Company for the financial year ending 31 March 2008.

Announcement