1.0 INTRODUCTION

Bina Darulaman Berhad (BDB) wishes to announce that its wholly owned subsidiary, Kedah Sato Sdn Bhd (KSSB) had on 14^th January 2009 received a Letter of Acceptance (“LA”) (Ref. No. MAHB/PCD/CM/09-0231-01[1]) from Malaysia Airports Sdn Bhd for the Project known as “Proposed Upgrading of Infrastructure Works and Building Facilities at Sultan Abdul Halim Airport, Alor Setar, Kedah Darul Aman” (Contract No. MASB/PCD/C/01/2009) (“the Project”).

2.0 INFORMATION OF THE PROJECT

The Total Contract Sum of the Project shall be of RM5,133,309.26 (Ringgit Malaysia: Five Million One Hundred Thirty Three Thousand Three Hundred Nine and Cents Twenty Six Only (“Contract Sum”).

The Contract Period shall be for six (6) months commencing 19^th January 2009 and the actual works on site has yet to commence due to certain compliance of conditions precedent as stipulated in the said LA.

3.0 INFORMATION ON KEDAH SATO SDN BHD (KSSB)

Kedah Sato Sdn Bhd (KSSB) is a wholly owned subsidiary of BDB and was incorporated on 24^th March 1982 under the Malaysian Companies Act 1965 as a private company limited by shares.

 The company is principally involved in building and general construction and is a class A contractor.

4.0 CONDITIONS PRECEDENT OF THE SAID LETTER OF ACCEPTANCE

Paragraph 2 of the said LA stipulated that KSSB shall comply and deposit with Malaysia Airports Sdn Bhd before commencement of site possession as follows:-

(i) Performance Bond

KSSB is required to furnish a Performance Bond of RM256,665.46 (Ringgit Malaysia: Two Hundred Fifty Six Thousand Six Hundred Sixty Five and Cents Forty Six) only being 5% of the Contract Sum.

 (ii) All Risks Insurance Policy

KSSB is required to subscribe to the Insurance Policy with a minimum liability of RM1,000,000.00 favouring Malaysia Airports Sdn Bhd. The policy shall cover from the period of commencement date with any extension thereof and also to include principal existing property.

 (iii) Other Requirements

KSSB is required also to insure all its workers and/or employees as required by Workmen Compensation Insurance Policy (SOCSO) and also registration under Employee’s Social Security Scheme.

5.0 FINANCIAL EFFECT

The Project is expected to contribute positively to the earnings of KSSB.

6.0 DIRECTORS AND SUBSTANTIAL SHAREHOLDERS’ INTEREST

None of the Directors and Substantial Shareholders of BDB and KSSB or person connected to the Directors and Substantial Shareholders have 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 16^th February 2009