1.           Introduction

The Board of Directors of Malaysia Marine and Heavy Engineering Holdings Berhad (“MHB” or “the Company”) wishes to announce that Malaysia Marine and Heavy Engineering Sdn. Bhd. (“MMHE”), a wholly owned subsidiary of the Company, had on 3 July 2023 entered into a Memorandum of Understanding (“MoU”) with Uzma Engineering Sdn. Bhd. (“UESB”), a wholly-owned subsidiary of Uzma Berhad, (MMHE and UESB are collectively referred to as “Parties” and individually referred to as “Party”) to explore potential collaborations, develop innovative solutions, provide comprehensive services in the oil and gas industry inclusive of floater conversion/modification as well renewable energy solutions (“Prospect”), and jointly prepare and submit competitive technical and commercial proposals for any potential, selected and agreed Prospect (“Proposal”).

2.           Salient Terms

The salient terms of the MoU are as follows: -

(a) the Parties shall cooperate in the preparation of the Proposal that will be submitted on a non-exclusive basis unless otherwise specified in a definitive agreement, relating to Prospect. Each Party shall prepare the Proposal according to its scope of work as outlined in the MoU;

(b)the potential scope of work of MMHE, UESB and all other parties involved shall be defined in a collaboration agreement, pre-bid agreement or any definitive agreement during the preparation, submission and negotiation of the Proposal; and

(c) the duration of the MOU will be for one (1) year effective from 3 July 2023 until 2 July 2024.

3.           Risks Factors

The risk factors involved in the MoU is expected to be minimal. In the event MMHE enters into a definitive agreement with UESB, the Board and management will exercise due care in considering the associated risks and benefits.

4.           Financial Effects

The MoU is not expected to have any material effect on the earnings per share, net assets per share, gearing, share capital and shareholding structure of the Company for the financial year ending 31 December 2023.

5.           Director's and Major Shareholders' Interests

None of the Directors and/or major shareholders and/or persons connected with the Directors and/or major shareholders of MHB has any direct or indirect interest in the MoU.

6.           Directors' Statement

The Board of Directors, upon considering all the relevant aspects of the MoU, is of the opinion that entering the MoU is in the best interest of the Company.

This announcement is dated 3 July 2023.