1.0 INTRODUCTION

Bina Darulaman Berhad (BDB) wishes to announce that its wholly owned subsidiary, Syarikat Bina Dan Kuari Kedah Sdn Bhd (BINAKUARI) had on 21st April 2008 received the Interim Letter of Acceptance from Kerajaan Negeri Kedah Darul Aman for the project known as “Kerja-kerja Menaiktaraf dan Membaikpulih Jalan-jalan Negeri di Negeri Kedah Darul Aman Untuk Tempoh Dua (2) Tahun Bagi Daerah Kota Star / Padang Terap, Daerah Kuala Muda / Sik, Daerah Kulim / Bandar Baharu dan Daerah Baling” (The Project).

2.0 INFORMATION ON THE PROJECT

The total contract sum for the said project shall be of RM49.0 million. Work on site have commenced with the site possession made on 4th May 2008. The date of completion of work is on 3rd May 2010.

3.0 INFORMATION ON SYARIKAT BINA DAN KUARI KEDAH SDN BHD  (BINAKUARI)  

Syarikat Bina Dan Kuari Kedah Sdn Bhd is a wholly owned subsidiary of BDB and was incorporated on 5th November 1973 under the Malaysian Companies Act, 1965 as a private company limited by shares. The company is principally involved in operating a granite quarry and as a contractor specializing in road construction and maintenance.

4.0 SALIENT TERMS AND CONDITIONS OF THE INTERIM LETTER OF  ACCEPTANCE       

Without limiting to the following and subject to the Letter of Award to be issued, the  salient terms and conditions of the said Interim Letter of Acceptance are as follows:-
 
(i) The Total Contract Sum
 
 The total contract sum shall be RM49,000,000.00 million (Ringgit Malaysia :  Forty Nine Million Only)

(ii) Basis of the Contract

 The contract shall be based on Works Order.

(iii) Commencement And Completion Date

 The completion date shall be two (2) years from the date of site possession  on of 4th May 2008. The completion date shall be on 3rd May 2010.
 
(iv) Performance Bond
 
 BINAKUARI is required to furnish a total Performance Bond of RM2,450,000.00  (Ringgit Malaysia : Two Million Four Hundred and Fifty Thousand Only) being  five (5) percent of the estimated project cost.

(v) Public Liability Insurance Policy
 
 BINAKUARI is required to subscribe to the Insurance Policy with a minimum  liability of RM500,000.00 (Ringgit Malaysia : Five Hundred Thousand Only)  favouring Kerajaan Negeri Kedah Darul Aman. The policy shall be at least from  4th May 2008 to 13th August 2011.
 
(vi) Insurance Policy for the Works

 Binakuari is required to subscribe to the Insurance Policy for the project from an  authorized insurance company favouring Kerajaan Negeri Kedah Darul Aman  for the total sum of RM49,000,000.00 (Ringgit Malaysia Forty Nine Million)
 
5.0 FINANCIAL EFFECT

 The project is expected to contribute positively to the earnings of Binakuari.

6.0 DIRECTORS AND SUBSTANTIAL SHAREHOLDERS’ INTEREST

 None of the Directors and Substantial shareholders of BDB and Binakuari or person  connected to the Directors and Substantial shareholders has any interest, whether  direct or indirect in the said contract.

7.0 STATEMENT BY DIRECTORS

 The Board of Directors of BDB is of the opinion that the project is in the best interest  of the company and the group.
 

This Announcement is dated 8th May 2008