1.0 INTRODUCTION

Bina Darulaman Berhad (BDB) wishes to announce that Jabatan Kerja Raya has issued an Interim Letter of Acceptance dated 24th August 2009 to Kedah Sato Sdn Bhd (KSSB), a wholly owned subsidiary of BDB, to undertake the project known as "Cadangan Membina Kampus Tetap Kolej Universiti Insaniah (KUIN), Kedah Darul Aman ("The Project") subject to the terms and conditions stipulated in the Interim Letter of Acceptance and the Contract Agreement to be drawn up.

2.0 SALIENT TERMS OF THE ACCEPTANCE LETTER

The salient terms of the Acceptance Letter are as follows :

(i) The Contract Sum
The Contract Sum shall be RM330,000,000.00 (Ringgit Malaysia : Three Hundred Thirty Million Only).

(ii) Type of Contract
The project is a "Design and Build" contract with deferred payment terms.

(iii) Commencement and Completion Date
The date of site possession shall be on 14th September 2009 and the project is expected to be completed on 13th September 2012.

(iv) Performance Bond
KSSB is required to furnish a Performance Bond equivalent to 5% of the contract sum in any one of the following form :

a) Bank Guarantee
b) Financial Institution Guarantee
c) Insurance Guarantee
d) A deduction of 10% on every interim payment up to 5% of the contract sum

(v) Public Liability Insurance Policy
KSSB shall subscribe to public liability insurance policy with a minimum liability of RM2,000,000.00

(vi) Insurance Policy for the Works
KSSB shall subscribe to the Insurance Policy for the works from an authorized insurance company for the sum of RM330,000,000.00

3.0 FINANCIAL EFFECT

The Project is expected to contribute to future earnings of KSSB and the BDB Group of Companies.

4.0 DIRECTORS AND SUBSTANTIAL SHAREHOLDERS INTEREST

None of the directors and substantial shareholders of BDB or person connected to the Directors or substantial shareholders of BDB or KSSB has any interest, whether direct or indirect in the said project.

5.0 STATEMENT BY DIRECTORS

The Board of Directors of BDB is of the opinion that the Project is in the best interest of the BDB Group, in particular KSSB as it is expected to enhance future earnings.