Unless otherwise defined, the terms used in this announcement shall have the same meaning as those defined in the announcement dated 28 November 2014.

Reference is made to the announcement dated 28 November 2014 in relation to the Proposed Private Placement.

On behalf of the Board of Directors of Hiap Huat, Hong Leong Investment Bank Berhad wishes to announce further clarification to the utilisation of gross proceeds of RM4.67 million to be raised from the Proposed Private Placement based on an indicative issue price of RM0.14 per Placement Share. The said gross proceeds are to be utilised in the following manner:

Notes:

(1)        The working capital amount of approximately RM4.59 million will be utilised for Hiap Huat and its subsidiaries’ (“Hiap Huat Group”) day-to-day operations to support its existing business operations, which include the payment of trade payables and purchase of raw materials and other direct costs, the breakdown of which are as follows:

(2)        The estimated expenses relating to the Proposed Private Placement of RM80,000 comprise the professional fees, fees payable to relevant authorities and other miscellaneous expenses. Any surplus or shortfall of the estimated expenses for the Proposed Private Placement will be adjusted accordingly to the working capital of Hiap Huat.

This announcement is dated 5 December 2014.