(Unless otherwise stated, all abbreviations used herein shall have the same meanings as those stated in the Prospectus dated 29 June 2016 in relation to the Listing)

Reference is made to the subject article in the weekly issue of The Edge for 15 August 2016 to 21 August 2016.

The Board takes note that the article speculates about the potential termination of HEB from existing contracts with MRCB Group and HEB's future earnings due to the defamation suit brought by MRCB Engineering Sdn Bhd against inter alia HSS Integrated Sdn Bhd (an associate company of HEB), as disclosed in HEB's Prospectus dated 29th June 2016 ("the Legal Suit"). The article particularly referred to LRT 3 and Kwasa Damansara township projects.

In this respect and for the avoidance of doubt, the Board wishes to emphasise on the following information:

1. As at 31 May 2016, the total unbilled amounts  from HEB's existing contracts with MRCB Group subsidiaries / associates is only RM3.5 million. This represents less than 1.0% of HEB's total order book of RM365.9 million;

2. The appointment to provide project management services for the Kwasa Damansara township development is by Kwasa Land Sdn Bhd (a wholly-owned subsidiary of Employees Provident Fund);  and

3. LRT 3 project is not part of HEB's order book.

Therefore, there will be no material impact on HEB's order book and the Group's future earnings arising from the Legal Suit and/or termination of HEB's existing contracts with MRCB Group subsidiaries / associates.

This announcement is dated 15 August 2016.