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The Board of Directors of Malaysia Building Society Berhad ( MBSB ) is pleased to announce that Springtide Sdn Bhd ( Springtide ), a wholly owned subsidiary of MBSB has entered into a Sale and Purchase Agreement ( the said Agreement ) with Coronation Springs Sdn Bhd ( the Purchaser ) to dispose of all those pieces of land and hereditament held under (1) Lot No. 281 Geran 59952 Bandar Tanjung Bungah, Daerah Timur Laut Pulau Pinang and (2) Lot No. 389 Geran 47098 Bandar Tanjung Bungah, Daerah timur Laut, Pulau Pinang together with any premises erected thereon
(  the Property ).

The aggregate value of the consideration is RM19.5 million. Gain on disposal of the properties is expected to be RM1,700,000.

The net book value of the property as per Springtides latest audited accounts as at December 2003 was RM 17,800,000.00. There will be no impact on MBSBs share capital and shareholders shareholdings and there were no liabilities to be assumed arising from the above transaction.

There is also no material impact on the earning per share of the Group for the financial year ending 2004 as well as net tangible assets per share of the Group.

The rationale of the transaction is to dispose of non generating asstes.

The salient terms of the said Agreement are as follows:

(i) The Property shall be purchased free from all liens claims and encumbrances together with possession subject however to the conditions and restrictions of title at the purchase price of RM19,500,000.00. upon the terms and condition contained therein.

(ii) The Purchaser has paid the deposit amounting to RM1,950,000.00.

(iii) The balance purchase price shall be paid and satisfied by the Purchaser in the following manner:

v the sum of RM1,950,000 only to be paid within 14 days after the receipt of the Letter of Release issued by the Architects/Engineers and other Consultants (the Letter of Release) ; and

v the remainder of the purchase price of RM15,600,000 only to be paid within 3 months from the date of the receipt of the Letter of Release with 4 months extension upon the expiry of the said 3 months period subject to an interest of 8.00% per annum to be borne by the Purchaser on the final balance purchase price to be calculated on a daily basis from the expiry of the 3 months till the day of payment of the balance purchase price .

The time frame for the completion of the above transaction is approximately seven months from the date of the agreement. The transaction does not involve any issuance or offer of securities. Hence it has not departed from the Commissions Policies and guidelines on Issue/Offer of Securities.

The Board also wishes to announce that in their opinion, the transaction is in the best interest of MBSB. The Board of Directors have no interest whether direct or indirect on the transaction.

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