1.           INTRODUCTION

Further to its Announcements dated 28 October 2011 and 18 July 2012, Zelan Berhad (“ZB”) wishes to announce that:

(a) Zelan BEC Consortium, in which ZB has 51% participating interest, has on 2 August 2012 accepted the letter of award issued by Mudajaya Corporation Berhad (“Mudajaya”) for the design and build of chimney for the development of Tanjung Bin’s 1 X 1,000 MW Coal Fired Power Plant Project in Negeri Johor Darul Takzim (“Works”) for the lump sum price of Ringgit Malaysia Thirty Four Million Seven Hundred Seventy Thousand Seven Hundred Forty Three and Sen Sixty Three (RM34,770,743.63) only; and

(b) Zelan Construction Sdn Bhd (“ZCSB”), a wholly owned subsidiary of ZB, has on 2 August 2012 entered into a Definitive Collaboration Agreement (“Collaboration Agreement”) with Balanced Engineering & Construction Pte Ltd (“BEC”) to form a joint venture on an unincorporated basis by the name of Zelan BEC Consortium (“Consortium”) for the sole purpose of undertaking the execution and completion of the Works.

2. INFORMATION ON THE WORKS

2.1 The Works comprise the design and build of chimney of total height of 200m constructed of reinforced concrete windshield of indicative size of 16.90m (O.D.) necessary to house one (1) number of flue gas duct indicative size of 10.50m (O.D.) with 7.50m reducer piece at stack outlet complete with piling and reinforced concrete foundations works.

2.2 The completion period for the Works is 16 months, commencing on 30 July 2012.

3. INFORMATION ON THE CONSORTIUM

3.1 ZCSB has 51% participating interest in the Consortium, while BEC has 49%. The rights and obligations (including sharing of profits and liabilities) of ZCSB and BEC in relation to the Works shall be based on the aforesaid percentages of their respective participating interests in the Consortium.

3.2       ZCSB was incorporated on 6 August 1992, as a private limited company under the Companies Act 1965. It has an authorized share capital of RM25 million, out of which RM20 million has been issued and paid-up.

3.3       BEC was incorporated on 24 June 2000, as a private limited company under the laws of Singapore. It has an authorized share capital of Singapore Dollar 1.2 million, all of which has been issued and paid-up.

This Announcement is dated 2 August 2012.