The Board of Directors of EKA wishes to announce that on 09 September 2016, the High Court of Malaya in Penang has granted an Order pursuant to Section 176(1) and Section 176(10) of the Companies Act, 1965 to restrain all further proceedings or actions against EKA and any of its 8 wholly-owned subsidiaries namely:

1. Kilang Bihun Bersatu Sdn Bhd
2. Rasayang Food Industries Sdn Bhd
3. Bersatu Noodles Industries Sdn Bhd
4. Bersatu Biotechnology (Johore) Sdn Bhd
5. Kilang Bihun Bersatu (East Malaysia) Sdn Bhd
6. Bersatu Sago Industries Sdn Bhd
7. Bersatu Sago Industries (Mukah) Sdn Bhd
8. EKA Foodstuff Sdn Bhd

by any party including the scheme creditors but not limited to any winding-up proceeding or taking of any action or proceeding, and so on, or in any way under any form of guarantee or indemnity granted to or conferred by EKA and its 8 wholly-owned subsidiaries (“EKA Group”), any enforcement, detention, or any other form of execution of any judgement or order against the EKA Group, any execution of the rights or remedies or powers of appointment of any receiver and manager over any of the EKA Group (including but not limited to the taking of any actions or proceedings or continuing with the exercise or rights or remedies under any Debenture, the sale of any asset that is the subject of any security interest created by the EKA Group, repossession of any plant, equipment or machinery under lease or hire purchase and any arbitration proceedings be restrained for a period of 90 days effective from 09 September 2016.

On 30 August 2016, EKA announced that it is an affected listed issuer as the Company had triggered Paragraph 2.1 (a) of Practice Note 17 of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad as the Company’s shareholders’ equity on a consolidated basis is 25% or less of the issued and paid-up capital of the Company and such shareholders’ equity is less than RM40.0 million in the Company’s unaudited interim financial results for the 2nd quarter ended 30 June 2016.

As a result, the EKA Group is unable to comply with its repayment obligations and the Order was applied for and in order to facilitate the EKA Group to convene a meeting with its creditors pursuant to Section 176(1) of the Companies Act, 1965 for the purposes of taking into consideration and, if considered fit, to approve with or without any alteration or modification, a proposed scheme of arrangement and compromise for the EKA Group. Full details of the proposed scheme of arrangement will be contained in an Explanatory Statement which will be issued to the scheme creditors in due course.

The EKA Group also given the liberty to hold its meeting with its member(s) pursuant to Section 176(1) of the Companies Act, 1965 for the purposes of taking into consideration and, if considered fit, to approve with or without any modification of the proposed scheme.

The Order is not expected to have any material impact on the financial and operational matters of EKA Group as the Order is to solely facilitate the EKA Group’s scheme of arrangement.

This announcement is dated 14 September 2016.