Reference is made to Key ASIC Berhad ("Key ASIC" or "the Company")'s announcement on 26 April 2012 where the actual value of the Recurrent Related Party Transaction of RM8,122,992 ("First Exceeded Amount") with Key ASIC Limited ("KAL") had exceeded by more than 10% from the estimated transaction value of RM6,000,000 ("Estimated Transaction Value") disclosed in the Circular to Shareholders on the Proposed Renewal of Shareholders' Mandate for Recurrent Related Party Transaction of a Revenue or Trading Nature dated 26 May 2011.

The Board of Directors of Key ASIC wishes to announce that the actual value of the Recurrent Related Party Transaction from 17 June 2011 to 2 May 2012 was RM9,427,571, representing an increment of another 21.74% of the Estimated Transaction Value (RM9,427,571 - RM8,122,992/RM6,000,000).

The variation was due to the renewal of license for the electronic design automation ("EDA") tools, which is integral and part of the ordinary course of business.