Further to our announcement dated 12 December 2014, we wish to furnish the following additional information pertaining to the acquisition.

(1) Basis of arriving at the purchase price

1.1 The purchase price of RM39,007,631.00 for the 5.3292 hectares (573,630 sq. ft.) works out to RM68.00 per sq. ft.

1.2 Kossan recent acquisitions in the vicinity:

1.3 Recent disposal in the vicinity:

(2) RATIONALE FOR THE ACQUISITION

2.1 The land proposed to be acquired is for expansion of the gloves division of the Group. The prospect for gloves manufacturing remains excellent.

2.2 The land is situated in the vicinity occupied by the Group as one of its core gloves manufacturing hub. Currently the Group has 25 acres with 4 manufacturing plants producing 5.0 billion pieces of gloves per annum in that vicinity. All the plants are running at full capacities.

2.3 The proposed acquisition will provide synergistic cost advantage to the Group.

This announcement is dated 17 December 2014.