1. INTRODUCTION
Pursuant to Paragraph 10.08 of the Listing Requirements of Bursa Malaysia Securities Berhad for MESDAQ Market, ES Ceramics Technology Berhad ("the Company" or "ES") wishes to announce that GTR Ceramics Sdn. Bhd. (GTR), a wholly owned subsidiary of ES, had on 30 January 2008 disposed of a company car, Toyota Fortuner 2.7 (A) bearing registration no. BHV 8110 for a cash consideration of RM105,000 to Mr. Tan Boon Heng, I/C No. 670401-10-5309, a Director of GTR and Substantial Shareholder and an Alternate Director of ES (the Disposal).
2. DETAILS OF THE DISPOSAL
GTR purchased the car on 25 August 2005 at a purchase consideration of RM177,724. Based on the latest audited financial statements of ES for the financial year ended (FYE) 31 May 2007, the net book value of the company car was RM91,725.
3. DETAILS OF RELATED PARTY
Mr. Tan Boon Heng is a Director of GTR and Substantial Shareholder and an Alternate Director of ES. He is also the brother of Mr. Tan Boon Sing who is also a Director of GTR and a Substantial Shareholder and Director of ES.
4. CONSIDERATION
The disposal consideration of RM105,000 which is an estimated market value is based on a willing buyer willing seller basis.
5. RATIONALE OF THE DISPOSAL
Mr. Tan Boon Heng had requested to purchase the said company car for his own personal use. The Disposal is satisfied wholly in cash. The proceeds from the Disposal will be utilised as working capital.
6. FINANCIAL EFFECTS OF THE DISPOSAL
The Disposal will not have any material effect on the earnings per share, net assets per share and gearing of ES Group. The Disposal will not have any effect on the issued and paid-up share capital and substantial shareholders shareholdings of ES. The Disposal is expected to result in a gross gain on disposal of RM13,275 against the aggregate net book value of the company car based on the audited financial statements of the Group for the FYE 31 May 2007. Nonetheless, the gain on disposal will not have any material effect on the earnings of ES Group.
7. INTERESTS OF DIRECTORS, SUBSTANTIAL SHAREHOLDERS AND PERSONS CONNECTED TO THEM
Save disclosed above, none of the Directors and/or Substantial Shareholders of ES and/or persons connected to them have any interest, direct or indirect in the Disposal.
8. APPROVAL REQUIRED
The Disposal does not require the approval of ES's shareholders nor any government authority.
9. STATEMENT BY DIRECTORS
After considering the above, the Directors of ES are of the opinion that Disposal is in the best interest of the Company.
This announcement is dated 31 January 2008.