KNM - NOTICE OF RIGHTS ENTITLEMENT

LISTING'S CIRCULAR NO. L/Q : 66192 OF 2012

RENOUNCEABLE TWO-CALL RIGHTS ISSUE OF 488,920,659 NEW ORDINARY SHARES OF RM1.00 EACH IN KNM GROUP BERHAD (KNM) (KNM SHARES) (RIGHTS SHARES) AT AN ISSUE PRICE OF RM1.00 FOR EACH RIGHTS SHARE ON THE BASIS OF ONE (1) RIGHTS SHARE FOR EVERY TWO (2) EXISTING KNM SHARES HELD AS AT 5:00 P.M. ON 18 OCTOBER 2012 TOGETHER WITH 488,920,659 DETACHABLE WARRANTS (WARRANTS) ON THE BASIS OF ONE (1) WARRANT FOR EVERY ONE (1) RIGHTS SHARE SUBSCRIBED FOR, OF WHICH THE FIRST CALL OF RM0.40 IS PAYABLE IN CASH ON APPLICATION AND THE SECOND CALL OF RM0.60 IS TO BE CAPITALISED FROM KNMS SHARE PREMIUM ACCOUNT ("RIGHTS ISSUE").

Kindly be advised of the following :

1) The above Company's securities will be traded and quoted [ "Ex - Rights Issue" ]
as from : [ 16 October 2012 ]

2) The last date of lodgement : [ 18 October 2012 ]

3) Retention Money : Where securities are not delivered in time for registration by the seller, then the brokers concerned :-

a) Selling Broker to deduct [ 1/3 ] , of the Selling Price against the Selling Client.

b) Buying Broker to deduct [ 10% ] of the Purchase Price against the Buying Client.

c) Between Broker and Broker, the deduction of [ 1/3 ] of the Transacted Price is applicable.