We refer to the announcements dated 28 November 2014, 5 December 2014, 27 January 2015, 10 March 2015, 24 August 2015 and 2 September 2015 in relation to the Private Placement. Unless stated otherwise, the abbreviations used in this announcement shall have the same meanings as defined in the announcement dated 28 November 2014.

On behalf of the Board of Directors of Hiap Huat (“Board”), Hong Leong Investment Bank Berhad wishes to announce that the approval from Bursa Malaysia Securities Berhad for the extension of time of up to 9 March 2016 to complete the implementation of the Private Placement will lapse after today. The Company has not been able to implement the Private Placement due to the following:

(i)         prevailing market conditions;

(ii)        the present market price of Hiap Huat Shares traded on the ACE Market, being below the par value of RM0.10 for each Hiap Huat Share; and

(iii)        low trading volume of Hiap Huat Shares on the ACE Market.

After taking into consideration the abovementioned factors, the Board has decided not to proceed with the Private Placement.

This announcement is dated 9 March 2016.