Introduction

HEB wishes to announce that its associate company, HSS Integrated Sdn Bhd ("HSSI"), has received a letter of appointment from IJMC-KEB Joint Venture for the provision of construction supervision for West Coast Expressway Selangor Alignment Section 1 (Banting Interchange – SKVE Interchange), Section 2 (SKVE Interchange - SAE Interchange), Section 6 (Kapar Interchange – Assam Jawa Interchange) & Section 7 (Assam Jawa Interchange - Tg Karang Interchange) (“Contract”). IJMC-KEB is a joint venture between IJM Construction Sdn Bhd and Kumpulan Europlus Berhad.

Information on the Contract

The Contract's value is RM41,325,300.00 and is expected to be completed within 39 months to 41 months from commencement of construction works. The Contract is in addition to HSSI’s existing appointment for the provision of engineering design for West Coast Expressway from Tg. Karang to Banting and construction supervision for West Coast Expressway Selangor Alignment Section 3 and Section 5. Pursuant to the exclusive teaming arrangement between HSSI and HEB’s wholly-owned subsidiary, HSS Engineering Sdn Bhd ("HSSE"), HSSI and HSSE will be collaborating exclusively to execute and complete the Contract.

Financial Effects

The Contract will not have any material impact on the net assets and earnings of HEB Group for FYE 2016.  However, it is expected to positively contribute to HEB Group’s future earnings.

The Contract will not have any impact on the share capital and/or shareholding structure of HEB.

Directors’ and major shareholders’ interests

None of the Directors and/ or Major Shareholders of HEB and persons connected to the Directors and/ or Major Shareholders of HEB have any interest, direct or indirect, in the Contract.

Directors’ Statement

The Board of Directors, after considering all the relevant factors, is of the opinion that the acceptance of the Contract is in the best interest of HEB Group.

This announcement is dated 15 August 2016.