Further to the Company's announcement on 18 July 2016, the Board of Directors of the Company wishes to announce that:

(a) the Defendants have filed its Statement of Defence on 22 July 2016;

(b) the Plaintiff has filed its Reply to the Defendant's Statement of Defence on 12 August 2016;

(c) the Defendants have filed on 25 August 2016 its Notice of Application and Supporting Affidavit for leave to file a Rejoinder in response to the Plaintiff's Reply dated 12 August 2016;

(d) the second case management was held on 26 August 2016 and the Plaintiff was directed to file the Opposing Affidavit by 9 September 2016 if the Plaintiff intend to object the Defendants’ application for leave; and

(e) the third case management has been fixed on 15 September 2016.

The solicitors acting for HSS Integrated Sdn Bhd ("HSSI") are of the opinion that HSSI has a good defence to the claim made by the Plaintiff. Nevertheless, in the event that HSSI is unsuccessful in its defence, the solicitors are of the opinion that the damages are unlikely to exceed RM300,000.00.

The Board of Directors of the Company is of the view that this legal suit will have no material impact on the Company's order book and future earnings.

This announcement is dated 26 August 2016.