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Arab-Malaysian Merchant Bank Berhad ("Arab-Malaysian") on behalf of the Board of Directors of SCIB ("Board") wishes to announce the Recurrent Related Party Transactions ("RRPT") of a revenue or trading nature expected to be entered into by the Company and/or its subsidiaries ("SCIB Group") for the period from 1 July 2002 to the next Annual General Meeting ("AGM") of the Company, including transactions which exceeded RM1 million, being the lower prescribed limit pursuant to paragraph 2.1 of Practice Note 12/2001 of the Kuala Lumpur Stock Exchange ("KLSE").

The principal activities of SCIB are the manufacturing and sale of precast concrete pipes, prestressed spun concrete piles and other related concrete products.
Pursuant to Paragraph 10.09 of the KLSE Listing Requirements, the Board proposes to seek a shareholders mandate on RRPT of a revenue or trading nature made in the ordinary course of business on normal commercial terms which are not more favorable to the related party than those generally available to the public.

The RRPT are set out in Table 1 below.

The Proposed Shareholders Mandate will enable the SCIB Group to carry out RRPT necessary for the SCIB Groups day-to-day operations which are time-sensitive in nature, and will eliminate the need to announce and to convene separate general meetings on each occasion to seek the prior approval of shareholders for the RRPT.

This will also substantially reduce expenses associated with the convening of general meetings on an ad-hoc basis, improve administrative efficiency and allow human resources and time to be channeled towards attaining other corporate objectives.

The Proposed Shareholders Mandate will not have any material effect on the issued and paid-up share capital, earnings, net tangible assets and substantial shareholders shareholdings in SCIB.

The Proposed Shareholders Mandate is subject to the approval of the shareholders of SCIB at an Extraordinary General Meeting ("EGM") to be convened.

The directors and substantial shareholders of SCIB who are interested in the Proposed Shareholders Mandate are set out in Table 1. Accordingly, Tuan Haji Zainal Abidin bin Haji Ahmad has abstained from all deliberations and voting at all meetings of the Board in relation to the Proposed Shareholders Mandate and he will abstain and will ensure that persons connected with him will also abstain from voting in respect of their direct and indirect shareholdings on the resolution pertaining to the Proposed Shareholders Mandate at the forthcoming EGM.

Save for Tuan Haji Zainal Abidin bin Haji Ahmad, the Board, having taken into consideration all aspects of the Proposed Shareholders Mandate, is of the opinion that the Proposed Shareholders Mandate is in the best interest of the Company.

A circular setting out further details of the Proposed Shareholders Mandate and the Notice of EGM will be dispatched to the shareholders in due course.

MM-020610-38907.pdf

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