OTHERS PESTECH INTERNATIONAL BERHAD (“PESTECH” or “THE COMPANY”) -CONTRACT AGREEMENT BETWEEN PESTECH (CAMBODIA) LIMITED, A WHOLLY-OWNED CAMBODIAN SUBSIDIARY OF THE COMPANY AND SCHNEITEC CO., LTD., IN RELATION TO THE DEVELOMENT OF 115kV SIEM REAP – ODDOR M

The Board of Directors of PESTECH is pleased to announce that PESTECH (Cambodia) Limited (“PCL”), a wholly-owned Cambodian subsidiary of the Company, had on today, completed the execution of a Contract Agreement (“Agreement”) with Schneitec Co., Ltd, a company incorporated under the laws of the Kingdom of Cambodia, wherein PCL will undertake the design, engineering, manufacturing, installation, testing and commissioning for the development of a 115kV double circuit transmission line for approximately 75km ± 3km from Oddor Meanchey to Siem Reap, a 115/22kV Oddor Meanchey substation, and a 230/22kV Bek Chan (Porsenchey) substation (“Project”) at a contract price of USD26,000,000/- (United States Dollar: Twenty Six Million) only.

The scope of work of the Project mainly involves the following:-

(a)turnkey construction of approximately 75km ± 3km double circuit transmission line from Oddor Meanchey to Siem Reap;

(b)turnkey construction of a 115kV/22kV Oddor Meanchey substation;

(c)turnkey construction of a 230/22kV Bek Chan substation; and

(d)all relevant works.

The Project is expected to commence within one (1) month from the date of the Agreement. (“Commencement Date”) and is expected to be completed as follows:-

(a)in respect of the Oddor Meanchey Transmission Line and Substation, within 18 months from the Commencement Date;

(b)In respect of the Bek Chan substation, within 24 months from the Commencement Date.

The Agreement will have no material effect on the revenue and earnings of the Group for the financial year ending 30 June 2018, but is expected to contribute positively to the future earnings and net assets per share of the Group.

The Company does not foresee any exceptional risk other than the normal operational risk associated with the Project.   The Company will take the necessary steps to mitigate the risks as and when it occurs.

None of the Directors and/or Major Shareholders and/or persons connected to them, has any interest, direct or indirect in the Agreement.

This announcement is dated 19 December 2017.

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