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Pursuant to the announcement dated 12 April 2007, The Board of Directors of Excel Force MSC Berhad ("the Company") wishes to announce the latest status of the litigation between the Company and Automatic Identification Technology Sdn Bhd ("AIT"). The chronology of events is as follows:

i) On 30 March 2007, the Company served a statutory notice under Section 218 of the Act to Automatic Identification Technology (AIT) (Statutory Notice) for a long outstanding amount of RM150,000.00, being the cost of application, software with installation and configuration of a system at an end client.

ii) On 9 April 2007, AIT through its legal counsel, served the Company with an express notice not to file any winding up petition and requested the Company to withdraw the said Statutory Notice immediately and to provide an undertaking within forty eight (48) hours not to proceed further with the said Statutory Notice as well as an undertaking not to file any winding up petition based on the Statutory Notice. The Company did not withdraw the said Statutory Notice.

iii) On 12 April 2007, AIT served a statutory notice under Section 218 of the Act to the Company claiming a sum of RM557,160.00 for services provided and works done by the Company that were inadequate, defective and not up to specifications at the site of a client (Notice). The Company had on the same day responded that the alleged amount in the Notice was not particularised and is therefore unable to plead thereto and demanded that AIT withdraw the Notice immediately which was not met with.

iv) AIT then proceeded to file an application for injunction at the Kuala Lumpur High Court Originating Summons No. D7-24-118-2007 (KLHCOS No. D7-24-118-2007) to stop the Company from proceeding with the winding-up petition against AIT on the ground that AIT is disputing the Companys claim as AIT has a claim of RM557,160.00 against the Company. At the hearing on 16 May 2007, the Court has directed both parties to file written submissions and had fixed 17 October 2007 to hear the oral submissions.

v) On 27 April 2007, the Company vide its solicitors filed an application for injunction at the Kuala Lumpur High Court Originating Summons No. D8-24-131-2007 (KLHCOS No. D8-24-131-2007) to stop AIT from proceeding with the winding-up petition against the Company on the ground that the sum of RM557,160.00 claimed by AIT is non-existence and its bona fide disputed. At the hearing on 17 July 2007, (for KLHCOS No. D8-24-131-2007), the Court had requested AIT to withdraw the Notice as no particulars as to the existence of debts owing to AIT was shown. The Notice was withdrawn and thereafter the Company withdraw its application for injunction and AIT was ordered by the Court to pay cost of the application for injunction.

vi) The Company has on 27 July 2007 filed a further affidavit in relation to KLHCOS No. D7-24-118-2007 suit to inform the Court that the Notice by AIT for the claim of RM557,160.00 has been withdrawn in the KLHCOS No. D8-24-131-2007.

The Companys solicitors is of the opinion that with the withdrawal of the Notice, AIT will not have any basis to claim the RM557,160.00 against the Company in the Injunction Application. The Company therefore has a fair chance of successfully defending and defecting AITs application for injunction.


This announcement is dated 6 August 2007.

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