“Unless otherwise stated, the terms used in this announcement shall carry the same meaning as defined in the Company's announcements dated 22 December 2016 and 23 December 2016.”

Further to the announcements made by the Company on 22 December 2016 and 23 December 2016, the Board of Directors of the Company wishes to further announce that:

Financial Impact

HSSI was required to hold a professional indemnity insurance policy to the satisfaction of MAHB.  The professional indemnity insurance policy submitted to MAHB was for a cover of RM3 million.  Pursuant to the terms of the MOA and notwithstanding the Notice of Arbitration, the Board of the Company is of the view that HSSI’s liability is limited to the amount covered by the professional indemnity insurance policy which was submitted to MAHB. The insurance premium for the professional indemnity insurance policy has already been fully paid for and accounted for in the financial results of the Group.

Based on the above, the Board is of the view that the matter will not have any material impact on the financial and operational position, order book and future earnings of the Company.

This announcement is dated 4 January 2017.