HeiTech Padu Bhd : Others

ACCEPTANCE OF LETTER OF AWARD FOR THE NEW CORE BANKING INFRASTRUCTURE TECHNOLOGY REFRESH PROJECT FOR BANK SIMPANAN NASIONAL

1. Introduction

HeiTech Padu Berhad ('HeiTech' or 'the Company') is pleased to announce that the Company has on 28 December 2016 received a Letter of Award for the New Core Banking Infrastructure Technology Refresh Project for Bank Simpanan Nasional.

The scope of the Project is for the delivery of Hardware, Software, Services and Maintenance for the New Core Banking Infrastructure Technology Refresh.

The Letter of Award was signed and accepted on 30 December 2016.

2. The Contract Value

The consideration for the Contract is RM43,823,330.90 (Ringgit Malaysia: Forty Three Million Eight Hundred Twenty Three Thousand Three Hundred Thirty and Ninety Cent Only) (Inclusive 6% GST) and maintenance for a period of Two (2) years is RM9,769,574.03 (Ringgit Malaysia: Nine Million Seven Hundred Sixty Nine Thousand Five Hundred Seventy Four and Three Cent Only (Inclusive 6% GST).

The Total Contract value of the project is RM53,592,904.93(Ringgit Malaysia: Fifty Three Million Five Hundred Ninety Two Thousand Nine Hundred Four and Ninety Three Cent Only) (Inclusive 6% GST).

3. Duration of the Project

The Contract is for a period of Three (3) years from the commencement date.

The duration of work is for a period to be determined by the Bank and commencement of the Project is subjected to the Agreement signed by the parties hereto within thirty (30) days from the date of receipt of Letter of Acceptance.

4. The effect on net assets of the Group

The Proposed Transaction will not have any material effect on HeiTech Group's Net Asset for the financial year ending 31 December 2016 and is expected to contribute positively to the future earnings of HeiTech Group.

5. The risks in relation to the contract

The risks are normal risks encountered by other Companies undertaking a similar endeavor and the Group has taken the necessary steps to protect itself and to mitigate the risks when and as it occurs.

6. Directors' and Substantial Shareholders' Interest

None of the Directors or substantial shareholders or any person connected to the Directors or substantial shareholders of HeiTech has any interest, either direct or indirect in the above Contract.

7. Statement of the Directors

The Board of Directors is of the opinion that the execution of the contract is in the ordinary course of business and is in the best interest of the Company.

8. Financial effects

The Letter of Award will have a positive effect on the earnings per share. Nevertheless, the Contract will have no material effect to the dividened policy, gearing, share capital and the substantial shareholders' shareholdings of the Company for the financial ending 31st December 2016.

This announcement is dated 30 December 2016.