“Unless otherwise stated, the terms used in this announcement shall carry the same meaning as defined in the Company's announcement dated 5 April 2018.”

Further to the announcement made on 5 April 2018, the Board wishes to announce that the fire incident on 5 April 2018 at RKR has resulted in damage to one (1) factory block housing the assembly and packing line and inventories of work-in-progress, packing materials, hardware and finished goods. A Notice of Loss of USD5.50 million (equivalent to RM21.45 million) was submitted to the insurance company, Military Insurance Corporation (“MIC”) on 5 April 2018.

The total net book value of the damaged factory building, ancillary structures and installation is approximately USD0.64 million (equivalent to RM2.50 million) whereas the total net book value of the damaged plant and machinery and office equipment is approximately USD0.28 million (equivalent to RM1.09 million).

The total net book value of work-in-progress furniture parts, packing materials, hardware and finished goods (completed furniture) damaged by the fire is approximately USD3.19 million (equivalent to RM12.44 million).

The Board will make further announcement whenever there is new development as well as any significant financial impact on the insurance claim.

This announcement is dated 21 May 2018.