The Board of Directors of Tanco (Board) wishes to announce that Tanco Resorts Berhad (TRB), a wholly owned subsidiary of Tanco is proposing to undertake the following:-

(a) proposed payment in cash to the respective eligible VSC members (Eligible VSC Members) an entitlement sum calculated based on the remaining unutilized tenure of their respective VSC membership agreements as at 30 April 2014 (Cut-Off Date) (Proposed Pay-Out); and

(b) the proposed distribution by Pacific Trustees Berhad (Trustee) of the remaining balance in the VSC trust account and the VSC sinking fund account as at Cut-Off Date to each of the Eligible VSC Members proportionately based on the value of the remaining unutilized tenure of the vacation points held by such Eligible VSC Member under their respective VSC membership agreements as at Cut-Off Date in relation to the total value of the remaining unutilized tenure of the vacation points held by all Eligible VSC Members as at Cut-Off Date; and the further refund by TRB to the respective Eligible VSC Members who have paid the anniversary fees for year 2014 (and beyond) which shall be pro-rated as at Cut-Off Date and any excess amount (if any) that the Eligible VSC Members have paid in advance for the anniversary fees (the Proposed Distribution and Refund); and

(c) thereafter proposed termination and dissolution of the VSC following the deposit of the Proposed Pay-Out to the Trustee (Proposed Termination and Dissolution of the VSC),

(collectively referred to as the Proposal).

Please refer to the attachment for the full text of the announcement pertaining to the Proposal.

This announcement is dated 4 April 2014.