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General Announcement
Reference No BD-070829-66777

Company Name	:	BINA DARULAMAN BERHAD
Stock Name	:	BDB
Date Announced	:	29/08/2007


Type	:	Announcement
Subject	:	CADANGAN PEMBANGUNAN PERUMAHAN MAMPU MILIK DI ATAS LOT 2070 DAN 2137, MUKIM GURUN, DAERAH KUALA MUDA KEDAH FOR SYARIKAT PERUMAHAN NEGARA BERHAD ("SPNB")

Contents :

1.0 INTRODUCTION

Bina Darulaman Berhad (BDB) wishes to announce that its wholly owned subsidiary company, Syarikat Bina dan Kuari Kedah Sdn Bhd (Bina Kuari) has entered into a Development Agreement (hereinafter referred to as "the Agreement") with SPNB and Konsortium Waza Maju Sdn Bhd on 1st August 2007.

2.0 INFORMATION ON THE PARTIES

Syarikat Bina dan Kuari Kedah Sdn Bhd (Bina Kuari)

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.

Syarikat Perumahan Negara Berhad (SPNB)

of Tingkat 10, Bangunan MAS, Jalan Sultan Ismail , 50250 Kuala Lumpur is a wholly owned company of Minister of Finance Incorporated (hereinafter referred to as "SPNB"). It is the owner for a project particularly known as

"Cadangan Pembangunan Perumahan Mampu Milik Di Atas Lot 2070 dan 2137, Mukim Gurun, Daerah Kuala Muda, Kedah"

(hereinafter referred to as "the Project").

Konsortium Waza Maju Sdn Bhd (Waza Maju)

is a company incorporated in Malaysia under the Companies Act 1965 as a private company limited by shares. Its registered office is located at PT 1819, Kawasan Perusahaan Mergong, Jalan Lencong Barat, Mergong Barrage II, 05050 Alor Star, Kedah. The company is principally involved in operating as a developer, contractor and subcontractor of all kinds of constructional, structural, civil engineering, electrical, mechanical, plumbing, sanitary and marine works and all other kinds of works.

3.0 INFORMATION ON THE AGREEMENT

The Development Agreement is drawn up to formalize and set out the basic terms of the parties relationship with each other in carrying out the project on a commercial basis and in the spirit and manner as stipulated by terms and conditions of the Agreement.

SPNB is entrusted with the responsibility of developing and providing affordable housing accommodation at appropriate locations in Malaysia to meet the housing requirements of the public particularly within the lower and middle-income group.

For this purpose, SPNB has identified pieces of land held on Lot 2070 and 2137, Mukim Gurun, Daerah Kuala Muda, Kedah (hereinafter referred to as "the said lands") for development purpose.

Bina Kuari and Waza Maju have been appointed as the Design and Build Contractor to undertake the works as spelt out under the Development Project. For purpose of this appointment, Bina Kuari and Waza Maju have formed an unincorporated joint venture entity known as "Bina Kuari – Konsortium Waza Maju JV" with all terms in respect of each partner's responsibility are spelt out in the Joint Venture and Shareholders Agreement and Supplemental Joint Venture Agreement dated 12th February 2007 and 18th July 2007 respectively.

4.0 INFORMATION ON THE PROJECT

The total estimated development cost of the Project is RM124.5 million which will be financed though bank borrowings and progress claims.

The Project shall consist of 1,326 units of mixed development of

"Rumah Mampu Milik"

or affordable housing accommodations, to be developed on the said lands.

5.0 FINANCIAL EFFECTS ON THE GROUP'S EARNINGS

The project undertaken by Bina Kuari through the joint venture is expected to contribute positively to the Group's earnings for the financial year 2008.

6.0 DETAILS OF THE LETTER OF AWARD

SPNB has issued a Letter of Intent dated 21st August 2007 to the joint venture entity to undertake the said project. The Letter of Award is expected to be issued to the JV in due course upon the JV fulfilling the conditions as stipulated in the said Letter of Intent.

7.0 APPROVALS REQUIRED

The proposed Project is not subject to any regulatory approvals except in so far as to the requirements to be fulfilled by SPNB being a wholly owned subsidiary of Minister of Finance Incorporated as far as the Project is concerned.

8.0 DIRECTORS AND SUBSTANTIAL SHAREHOLDERS' INTEREST

Save as disclosed above, in so far as the Directors of Bina Kuari are aware, none of the Directors, substantial shareholders or persons connected to the Director or substantial shareholders of the company have any interest, direct or indirect in the proposed project.

9.0 DIRECTORS RECOMMENDATION

The Board of Directors of Bina Kuari is of the opinion that the undertaking of the Project is in the best interests of the Company and Group.

10.0 DOCUMENTS FOR INSPECTION

The Development Agreement, the Joint Venture Agreement, the Supplementary Agreement and the Letter of Intent may be inspected at the Registered Office of the Company located at Aras 9, Menara BDB, 88 Lebuhraya Darulaman, 05100 Alor Star, Kedah.

This Announcement is dated 29th August 2007