Further to its Announcement dated 2 February 2012, Zelan Berhad (“ZB”) wishes to announce that:

(a)  Zelan Construction Sdn Bhd, a wholly owned subsidiary of ZB, has entered into a Joint Venture Agreement with Kiara Teratai Sdn Bhd to form a joint venture on an unincorporated basis under the name of “Zelan - Kiara Teratai JV” (“Proposed JV”) for the sole purpose of carrying out the construction of a new integrated Immigration, Custom, Quarantine and Security Complex (“ICQS Complex”, “Proposed Project” or “Works”) at Bukit Kayu Hitam, in the State of Kedah; and

 (b)  Northern Gateway Infrastructure Sdn Bhd has appointed Zelan – Kiara Teratai JV to carry out and complete the Works for a maximum guaranteed lump sum price of RM310 million.   

 The Proposed JV and the Proposed Project constitute related party transactions of ZB.

 Please refer to the attachment for the details of the Announcement.