“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, 23 December 2016 and 4 January 2017.”

Further to the announcements made by the Company on 22 December 2016, 23 December 2016 and 4 January 2017, the Board of Directors of the Company (“Board”) wishes to announce that:

1. Pursuant to the parties’ mediation proceeding, MAHB and HSSI have agreed, on a without admission of liability basis, to a full and final settlement of Ringgit Malaysia One Million and Five Hundred Thousand (RM1,500,000.00) towards all MAHB’s claims against HSSI arising out of the subject matter of MAHB’s claim under the parties’ mediation proceeding and the Notice of Arbitration;

2. HSSI has remitted, via electronic transfer, Ringgit Malaysia One Million and Five Hundred Thousand (RM1,500,000.00) only to MAHB, and upon receipt of the monies, MAHB agrees to withdraw the Notice of Arbitration against HSSI; and

3. The agreed settlement is borne by HSSI’s insurer pursuant to its professional indemnity insurance policy, save for an excess amount of Ringgit Malaysia One Hundred and Fifty Thousand (RM150,000.00) only  to be contributed by HSSI under the terms of the insurance coverage.

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

This announcement is dated 31 March 2017.