Reference is made to the Company’s announcement dated 26 April 2022 in relation to the acceptance of the letter of award amounting to RM33,777,162.00 from Pertama Makmur Sdn Bhd in respect of Construction of Office and Training Centre (Design and Build) for one of the Ministry Department of Malaysia (“Letter of Award”).

The Board of Directors of Comintel Corporation Bhd wishes to announce that due to the unpredictable market conditions leading to an escalation in construction costs caused by a nine-month delay in the commencement date, the parties to the Letter of Award have mutually agreed to cancel the Letter of Award. As part of the cancellation, each party releases the other from any and all claims that may have arisen in connection with the Letter of Award.

The cancellation of the Letter of Award will not have any effect on the issued share capital of the Company and is not expected to have any material impact on the earnings and earnings per share, gearing and net assets and net assets per share of the Group.

The Directors of the Company are of the opinion that the cancellation of the Letter of Award is in the best interest of the Company.

This announcement is dated 27 July 2023.