Memorandum Of Understanding

Pestech International Berhad (Pestech or the company) – Update on the status of memorandum of understanding

PESTECH INTERNATIONAL BERHAD (PESTECH OR THE COMPANY) – UPDATE ON THE STATUS OF MEMORANDUM OF UNDERSTANDING (“MOU”) BETWEEN PESTECH SDN. BHD. (“PSB”), A WHOLLY-OWNED SUBSIDIARY OF THE COMPANY, AND TANJUNG PIAI MARITIME INDUSTRIES SDN. BHD. (“TPMISB”)

Unless otherwise stated, all abbreviations used herein shall have the same meanings as those stated in the announcements dated 14 April 2015, 27 May 2015, 28 August 2015, 26 November 2015, 25 February 2016, 26 May 2016 and 30 August 2016 in relation to the MOU for the exclusive exploratory efforts in the establishment of power supply infrastructure to the Tanjung Piai Integrated Petroleum and Maritime Industrial Park (“TPIPMIP“), Mukim Serkat, Daerah Pontian, Johor Darul Takzim.

Pursuant to the MOU, PSB, a wholly-owned subsidiary of PESTECH, intended to extend assistance to Tanjung Prai Maritime Industrial Sdn.Bhd. (“TPMISB“),  a wholly-owned subsidiary of Benalec Sdn Bhd, which in turn is a wholly-owned subsidiary of Benalec Holdings Berhad (PSB and TPMISB are collectively known as “The Parties“) in the application of Independent Distribution Licence (“IDL“), for PSB to undertake full turnkey construction of infrastructure and internal electric power reticulation systems, as well as the maintenance of all installation post construction, amongst other things.

In view of the feasibility studies done by TPMISB, it has been concluded that the IDL model is not preferred for the development of TPIPMIP. Pursuant thereto, the Parties have no intention of extending the validity of the MOU and the Board of Directors wishes to announce that the MOU has now lapsed.

There is no financial impact and obligation on the Company.

This announcement is dated 28 October 2016.