BURSA ANNOUCEMENTS

Date : 11 August 2011

MULTIPLE PROPOSALS I-POWER BERHAD ("I-POWER" OR THE "COMPANY") I. PROPOSED CAPITAL REDUCTION; II. PROPOSED CRR REDUCTION; III. PROPOSED SHARE PREMIUM REDUCTION; IV. PROPOSED SHARE CONSOLIDATION; V. PROPOSED ACQUISITION; VI. PROPOSED EXEMPTION; VII. PROPOSED OFFER FOR SALE; VIII. PROPOSED PRIVATE PLACEMENT; IX. PROPOSED INCREASE IN AUTHORISED SHARE CAPITAL; X. PROPOSED CHANGE OF NAME; AND XI. PROPOSED AMENDMENTS (COLLECTIVELY REFERRED TO AS THE "PROPOSALS")

I-POWER BERHAD

TypeAnnouncement
SubjectMULTIPLE PROPOSALS
DescriptionI-POWER BERHAD ("I-POWER" OR THE "COMPANY")

I. PROPOSED CAPITAL REDUCTION;
II. PROPOSED CRR REDUCTION;
III. PROPOSED SHARE PREMIUM REDUCTION;
IV. PROPOSED SHARE CONSOLIDATION;
V. PROPOSED ACQUISITION;
VI. PROPOSED EXEMPTION;
VII. PROPOSED OFFER FOR SALE;
VIII. PROPOSED PRIVATE PLACEMENT;
IX. PROPOSED INCREASE IN AUTHORISED SHARE CAPITAL;
X. PROPOSED CHANGE OF NAME; AND
XI. PROPOSED AMENDMENTS

(COLLECTIVELY REFERRED TO AS THE "PROPOSALS")
The terms used herein, unless the context otherwise stated, bear the same meaning as those defined in the earlier announcement in relation to the Proposals.
We refer to the announcement made by OSK Investment Bank Berhad ("OSK"), on behalf of the Board of Directors of I-Power ("Board") on 11 August 2011 in relation to the Proposals.
    The paragraphs under Section 11.3 of the aforesaid announcement would be replaced by the following:-
      I-Power had recorded an unaudited consolidated loss after tax of approximately RM31,000 for the FPE 31 March 2011 while Instacom Group had registered an audited consolidated PAT of RM3,473,806 for the FYE 31 December 2010.
        The estimated loss per share of I-Power for the FYE 30 June 2011 was 0.01 Sen based on the annualised unaudited consolidated loss after tax of approximately RM41,333 for the FYE 30 June 2011 and the existing 402,623,400 I-Power Shares in issue.
          For illustrative purposes only, based on the above, the combined PAT of the enlarged I-Power Group after the Proposals would be approximately RM3,432,473. Based on the enlarged issued and paid-up capital after the Proposals of 1,219,301,691 Consolidated Shares in the minimum scenario and 1,227,700,447 Consolidated Shares in the maximum scenario, the EPS of the enlarged I-Power Group will increase from loss per share of 0.01 Sen to approximately 0.28 Sen.
            In addition, based on the profit guarantee of RM15,000,000 for the financial year ending 31 December 2012, the combined PAT of the enlarged I-Power Group would be approximately RM14,958,667. Based on the enlarged issued and paid-up capital after the Proposals of 1,219,301,691 Consolidated Shares in the minimum scenario and 1,227,700,447 Consolidated Shares in the maximum scenario, the EPS of the enlarged I-Power Group will further increase to 1.23 Sen and 1.22 Sen, respectively. As such, based on the aforementioned, the Proposed Acquisition is expected to be earnings accretive to the enlarged I-Power Group.
              The Proposals are not expected to have any material effect on the earnings per share of I-Power for the FYE 30 June 2011 as the Proposals is only expected to be completed by second quarter of year 2012.
                Barring unforeseen circumstances, the Proposed Acquisition and the Proposed Private Placement are expected to contribute positively to the future earnings of the enlarged I-Power Group.

                This announcement is dated 11 August 2011.

                Announcement Info

                Company NameI-POWER BERHAD (ACE Market) 
                Stock Name IPOWER    
                Date Announced11 Aug 2011  
                CategoryGeneral Announcement
                Reference NoOI-110811-58377

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