The Board of Directors of LEBTECH wishes to inform that LCSB, a wholly owned subsidiary of LEBTECH and LEBTECH as Corporate Guarantor, had on 7 September 2016 received a Writ of Summons and Statement of Claim from Messrs Yong Dan Rakan-Rakan, acting on behalf of Jotun.

1. The date of the presentation of the Writ of Summons and Statement of Claim

The Writ of Summons and the Statement of Claim were dated 1 September 2016. Both were served on LEBTECH and LCSB vide Messrs Yong Dan Rakan-Rakan, being the solicitors for Jotun via a letter dated 7 September 2016 of which received on 7 September 2016.

LEBETCH and LCSB are required to enter an appearance at the Court within fourteen (14) days from the service of this Writ.

2. The particulars of the claim under the Writ of Summons and Statement of Claim, including the amount claimed for and the interest rate.

The claim pursuant to the Writ of Summons and Statement of Claim are as below :

(a) The sum of RM19,495.02 being the amount owing by LCSB as at 18 July 2016;

(b) Interest at the rate of 5% per annum on the amount of RM19,495.02 stated above and calculated from 1 September 2016 until the date of full settlement;

(c)  Cost incurred for this Writ of Summons and Statement of Claim;

(d) Interest at the rate of 5% per annum on the cost that have been awarded in para (c) from the date of judgement until the date of full settlement; and

(e)  Any other relief deemed suitable and beneficial as the Court may deem fit.

And any fixed amount for cost and, in the event Jotun managed to obtain ruling for substituted service, an additional amount to be determined.

3. The details of the default or circumstances leading to the filing of the Writ of Summons and Statement of Claim on LCSB

According to the Statement of Claim, Jotun had through a firm of lawyers acting on its behalf issued a letter dated 20 July 2016 to LCSB and LEBTECH and demanded the payment of the outstanding sums of RM19,495.02. Thereafter, Jotun filed the Writ of Summons with Shah Alam Magistrates Court as LCSB and LEBTECH have failed to pay the outstanding sums demanded.

4. The financial and operational impact of the Writ of Summons and Statement of Claim on the Group.

The Writ of Summons and Statement of Claim is not expected to have any material financial and operational impact on the Group.

5. The expected losses, if any arising from the Writ of Summons and Statement of Claim

Beside the legal costs of the case, LEBETCH and LCSB are not expected to incur any further losses arising from the Writ of Summons and Statement of Claim.

6. The steps taken and proposed to be taken by LCSB in respect of the Writ of Summons and Statement of Claim

LEBTECH and LCSB are seeking the necessary legal advice to remedy this situation. Further announcement on the development of the above matter will be made to Bursa Malaysia Securities Berhad in due course.

This announcement is dated 8 September 2016.