Further to the announcement made on 13 July 2016, the Board of Directors of Sarawak Consolidated Industries Berhad (“the Company”) wishes to announce that its wholly owned subsidiary, SCIB Industrialised Building System Sdn. Bhd. (“the Plaintiff”) had on 2 May 2017 through its solicitor, Messrs Loke, King, Goh & Partners Advocates entered a Consent Judgment against Millennium Crest Sdn. Bhd. (“the Defendant”) in the sum of RM1,982,000 with interest of 6% per annum calculated from the date of the Consent Judgment until full and final settlement by the Defendant. Full particulars of the Consent Judgment will be announced upon sealing of the same.

A confirmation as to whether SCIB Industrialised Building System Sdn. Bhd. (“SIBS”) is a major subsidiary

SIBS or the Plaintiff is not a major subsidiary of the Company.

 The cost of investment in SIBS

The total cost of investment in SIBS is RM2,500,002/-.

The financial and operational impact of the Consent Judgment on the Group

The Group has adequate resources to meet the commitment of the claim and therefore, the Consent Judgment is not expected to have any material financial and operational impact on the Group.

The expected losses, if any, arising from the Consent Judgment

Save and except for the amount of outstanding sum due and owing to the Plaintiff from the Defendant and the legal costs, the Company is not expected to incur any further loss arising from the Consent Judgment. The total outstanding sum owing by Millennium Crest Sdn. Bhd. of RM2,786,696 was fully provided as impairment losses in the audited financial statements for the financial year ended 31 December 2016.

Steps taken and proposed to be taken in respect of the Consent Judgment

The Company is seeking the necessary legal advice for the next course of action.

This announcement is dated 4 May 2017