The Company wishes to announce that Kilang Bihun Bersatu Sdn Bhd (“KBBSB”), a wholly-owned subsidiary of EKA had on 16 January 2019 been served with a Writ and Statement of Claim dated 31 December 2018 issued by Session Court of Georgetown in relation to the claims filed by Plaintiff through a firm of lawyers acting on their behalf.

KBBSB is required to file a Memorandum of Appearance in the Magistrates Court, Georgetown within 14 days from 16 January 2019, failing which Judgement in Default will be entered against KBBSB.

Particulars of claims and circumstances leading to filing of the Writ and Statement of Claim dated 31 December 2018.

The Plaintiff had through a firm of lawyers acting on their behalf issued a Notice of Demand dated 31 May 2018 to KBBSB demanded the sum of RM232,937.05 due to the Plaintiff. As a result of KBBSB fails to comply with the Notice of Demand, the Plaintiff has institute a legal proceedings for the recovery of the outstanding sum under the Hire Purchase Agreement dated 10 June 2014.

The Plaintiff seeks against KBBSB for the following:-

a) The outstanding sum of RM232,937.05;

b) interest at the rate of 8% per annum from on the outstanding sum of RM230,271.32 calculated on daily basis from 16 October 2018 until the date of full settlement; and

c) costs – Court Fees of RM108.00 & Legal Fees of RM1,000.00

Financial and Operational Impact

The above will not have any financial or operational impact on the Group

Expected losses to the Group, if any

KBBSB is exposed to the claims, interests and legal expenses as stated above.

Steps taken by the Company

KBBSB will appoint a firm of lawyers to act on its behalf.

This announcement is dated 16 January 2019.