The Board of Directors of Kerjaya Prospek Group Berhad ("Company") is pleased to announce that its wholly-owned subsidiary company, Kerjaya Prospek (M) Sdn. Bhd. ("KPSB"), has on 20 July 2017 accepted a letter of award ("LA") from Kerjaya Prospek Property Sdn Bhd ("KP Property"), a related party, at a total contract sum of Ringgit　Malaysia　Sixty Four Million Two Hundred Twenty One Thousand Two Hundred Thirteen and Sen Eighty Three Only (RM64,221,213.83) ("Contract").

The Contract is for foundation piling works and associated sub-structure works for proposed mixed development comprising of one (1) block of twenty-five (25) storey hotel and office building and two (2) blocks of fifty-three (53) storey service apartment building on top of eleven (11) storey podium, one (1) partial underground level and three (3) storey basement on Lot 45770, 45771, 45772, 2915 and 2917, Jalan Puchong, Mukim Petaling, Wilayah Persekutuan Kuala Lumpur, of which is a development of KP Property.

The construction works to be undertaken by KPSB is expected to commence on 2 August 2017 ("Date of Commencement") and due to be completed on 1 October 2018.

The Contract will further increase and enhance the existing order book of the Company and its group of companies ("Group").

The Contract will have no effect on the issued share capital of the Company but it is expected to contribute positively to the earnings and net assets per share of the Company and the Group for the financial years ending 2017 to 2018.

The Contract is regarded as Recurrent Related Party Transactions of a Revenue or Trading Nature ("RRPT") pursuant to the Bursa Malaysia Securities Berhad Main Market Listing Requirements of which the mandate to enter into such RRPT had been obtained from its shareholders at the recent Annual General Meeting of the Company held on 25 May 2017.

KP Property is a company owned by Datuk Tee Eng Ho and Mr. Tee Eng Seng (whom are brothers and both the directors and major shareholders of the Company and Datin Toh Siew Chuon (director of the Company and spouse of Datuk Tee Eng Ho).

Saved for Datuk Tee Eng Ho, Mr. Tee Eng Seng and Datin Toh Siew Chuon, none of the Directors and/or substantial shareholders of the Company or persons connected to them have any interest, whether direct or indirect, in the Contract.

A copy of the press release in relation to the above is attached for information.