Acceptance of Conditional Letter of Award for the Design, Build, Supply, Installation s1

ACCEPTANCE OF LETTER OF AWARD FOR THE APPOINTMENT OF DUTA TECHNIC SDN BHD (SUBSIDIARY OF HEITECH PADU BERHAD) BY TENAGA NASIONAL BERHAD FOR MAINHEAD B : PROPOSED 132kV SINGLE CIRCUIT LOOP IN/OUT INTO PMU TUNJUNG FROM KOTA BHARU – TANAH MERAH TRANSMISSION LINE

1. Introduction

HeiTech Padu Berhad (“HeiTech” or “the Company”) is pleased to announce that Duta Technic Sdn Bhd (“DTSB”)(a subsidiary of HeiTech Padu Berhad) has on 6 th December 2016 received a Letter of Acceptance for the Appointment of Duta Technic Sdn Bhd by Tenaga Nasional Berhad for Mainhead B : Proposed 132kV Single Circuit Loop In/Out Into PMU Tunjung From Kota Bharu – Tanah Merah Transmission Line (“the Project”).

The scope of the Project is for engineering design covering civil and structural works and supply of double circuit transmission towers to facilitate looping in and out to PMU Tunjung including manufacturing, inspection, testing, delivery, installation and construction, site test, commissioning, all related insurances, placing into commercial operation within the time for completion as stated in the contract of 364 days and remedy any defects or damage within the defects notification period of 12 month from the day of handing over of the project to TNB.

Approval to release the announcement has been given by Tenaga Nasional Berhad on 16.12.2016.

2. The Contract Value

The Contract Value of the project is RM2,338,880.00 (Ringgit Malaysia Two Million Three Hundred Thirty Eight Thousand Eight Hundred And Eighty Only).

3. Duration of the Project

The Contract is for a period of Three Hundred Sixty Four (364) days from the commencement date.

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 dividend policy, gearing, share capital and the substantial shareholders’ shareholdings of the Company for the financial ending 31st December 2016.

This announcement is dated 16 December 2016.