Zelan Berhad (“Company”) would like to announce that its wholly owned subsidiary, Zelan Construction Sdn. Bhd. (“ZCSB”) and ICOP Construction (M) Sdn. Bhd. (“ICOP”), have on 20 October 2015 jointly accepted the award of the sub-contract for the Sewerage Conveyance System for Zone 7A & 7B under Cadangan Pembinaan Langat Centralised Sewage Treatment Plant dan Penyambungan Rangkaian Paip Pembetungan di Kawasan Tadahan Lembangan Sungai Langat Secara Reka dan Bina (“Sub-Contract Works”) from MMC-Sumitomo Consortium (“Contractor”). ZCSB and ICOP will perform the Sub-Contract Works on a joint venture basis through an entity to be incorporated.

The Sub-Contract Works involve the construction and completion of approximately 16.6 km of pipe jacking in various sizes and 164 no. of shafts for jacking and receiving pit in various sizes and depths. The Sub-Contract Sum is Ringgit Malaysia Ninety Six Million Nine Hundred and Ninety Thousand Only (RM96,990,000.00), which is inclusive of Goods and Services Tax.

The date for completion for the whole of the Sub-Contract Works shall be twenty six (26) months from the Date for Possession of the Site to be notified by the Contractor.

MMC Corporation Berhad holds 39.25% direct equity interest in the Company. This Sub-Contract therefore constitutes a related party transaction for the Company which falls within the shareholders’ mandate for recurrent related party transactions of revenue or trading nature which was granted by the shareholders of the Company on 14 May 2015.

This Announcement is dated 21 October 2015.