Acceptance of Conditional Letter of Award for the Design, Build, Supply, Installation s1

ACCEPTANCE OF LETTER OF AWARD FOR THE PROCUREMENT OF MAINTENANCE SERVICES OF MYSIKAP SYSTEM FOR THE ROAD TRANSPORT DEPARTMENT (JPJ)

1. Introduction
HeiTech Padu Berhad (“HeiTech” or “the Company”) is pleased to announce that the Company has on 28 October 2016 received a Letter of Award for the Appointment of HeiTech Padu Berhad by Road Transport Department (JPJ) for The Maintenance Services of MYSIKAP System for the period 2016 to 2018.

The letter was signed and accepted on 1st November 2016.

2. The Contract Value

The Contract Value of the project is RM79,768,327.34 (Ringgit Malaysia Seventy Nine Million Seven Hundred Sixty Eight Thousand Three Hundred Twenty Seven and Cent Thirty Four Only) (Inclusive 6% GST).

3. Duration of the Project

The Contract is for a period of two (2) years commencing from November 2016 to Disember 2018. Any further renewal or extension of the duration is at the discretion from the Government.

4. The effect on net assets of the Group

The Proposed Transaction will not have any material effect on HeiTech Group’s Net Asset for the financial year ending 31 December 2016 and is expected to contribute positively to the future earnings of HeiTech Group.

5. The risks in relation to the contract

The risks are normal risks encountered by other Companies undertaking a similar endeavor and the Group has taken the necessary steps to protect itself and to mitigate the risks when and as it occurs.

6. Directors' and Substantial Shareholders' Interest

None of the Directors or substantial shareholders or any person connected to the Directors or substantial shareholders of HeiTech has any interest, either direct or indirect in the above Contract.

7. Statement of the Directors

The Board of Directors is of the opinion that the execution of the contract is in the ordinary course of business and is in the best interest of the Company.

8. Financial effects

The Letter of Award will have a positive effect on the earnings per share. Nevertheless, the Contract will have no material effect to the dividened policy, gearing, share capital and the substantial shareholders’ shareholdings of the Company for the financial ending 31st December 2016.

This announcement is dated 1 November 2016.