1.0 INTRODUCTION

Bina Darulaman Berhad (BDB) wishes to announce that its subsidiary company namely Kedah Holdings Sdn Bhd (KHSB) had on 11th March 2009 received a Letter of Appointment as Development Manager to undertake the Project known as the Proposed Construction and Completion of One Apartment Block (118 Units) on Part of Lot PT 1840, Mukim Padang China, Daerah Kulim at Kulim Golf & Country Resort, Kulim Hi-Tech Park, Kedah Darul Aman (the Project).

2.0 INFORMATION OF THE PROJECT

The Project consists of one (1) block Apartment with 118 units known as Block A, Kulim Heights Apartment, located on part of lot PT 1840, Mukim Padang China, Daerah Kulim at Kulim Golf & Country Resort, Kulim.

3.0 INFORMATION ON RELATED PARTY

Kedah Overseas Trading Network Sdn Bhd (KOTRAN) is a wholly owned subsidiary of Kedah State Development Corporation (KSDC) which was incorporated on 7th July 1998. KSDC is the holding corporation of KOTRAN , holding 100% of the total issued capital and also a major shareholder of BDB, holding 59.94% of the total issued and paid up capital of BDB.

4.0 INFORMATION ON THE LETTER OF APPOINTMENT

The salient terms of the said Letter of Appointment without restricting to the following are as follows:-

4.1 Management Fee

i. KHSB will be paid a management fee of Two Point Five per cent (2.5%) from the total gross sale value of unsold units (balance unsold as at 11th March 2009 is 55 units), balance of unpaid progress billing and balance of contra units.

ii. KHSB shall be paid the management fees progressively as per claim submitted to KOTRAN.

4.2 Contract Period

The Contract shall be for a period of twelve (12) months from the date of this Letter of Appointment.

 4.3 Profit

 i. If in the event the profit of the said Project (Block A) exceeds RM1.79 millions (which in any event is to be paid to KOTRAN as Land Cost) the excess profit shall be divided equally between KOTRAN and KHSB.

ii. The Project profit shall be paid upon completion of the sale and construction of the said Project.

5.0 FINANCIAL EFFECT

The Project is expected to contribute positively to the Group earnings for the financial years 2009 & 2010.

6.0 DIRECTORS AND SUBSTANTIAL SHAREHOLDER’S INTERESTS

Y.Bhg. Dato’ Abdul Rahman bin Ibrahim who sits on the Board of Directors of BDB as a Non Executive Non Independent Director is the Chief Executive Officer of the KSDC, the major shareholder of BDB.

Save as the above, none of the directors and/or shareholders of BDB/KHSB and person connected to him, has any interest, direct or indirect interest 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 BDB as it is expected to enhance its future earnings.

8.0 DOCUMENTS FOR INSPECTION

The said Letter of Appointment and other relevant documents may be inspected at the Registered Office, Aras 9, Menara BDB, 88 Lebuhraya Darulaman, 05100 Alor Setar, Kedah.