1. INTRODUCTION

The Board of Directors of Nestcon ("the Board") wishes to announce that Nestcon Builders Sdn. Bhd. ("NBSB"), a wholly-owned subsidiary of the Company, had on 5 August 2026 accepted the letter of award dated 5 August 2026 ("LOA") from EXSIM Waterfront Sdn. Bhd. ("EWSB") in respect of the construction of one (1) block of 57-storey serviced apartments on PT. 224 (Tanah Tebusguna Plot A1-8), Seksyen 8, Bandar George Town, Daerah Timur Laut, Pulau Pinang ("the Main Building and Infrastructure Works").

2. INFORMATION ON NBSB

NBSB was incorporated in Malaysia as a private company limited by shares having its registered address at No. D-09-02, Level 9, EXSIM Tower, Millerz Square @ Old Klang Road, Megan Legasi, No. 357, Jalan Kelang Lama, 58000 Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur.

The nature of business of NBSB is principally involved in construction works.

3. INFORMATION ON EWSB

EWSB was incorporated in Malaysia as a private company limited by shares having its registered address at 163-D-5, Wisma Seri Perak, Jalan Perak, 10150 George Town, Pulau Pinang.

The nature of business of EWSB is principally involved in the development of building projects for own operation such as renting space in these buildings, and construction of buildings.

4. DETAILS OF THE LOA

(a) The contract sum for the Main Building and Infrastructure Works is RM243,000,000.00 (Ringgit Malaysia: Two Hundred and Forty-Three Million only).

(b) The date of commencement shall be 18 January 2027 ("Date of Commencement").

(c) The overall completion period for the Main Building and Infrastructure Works shall be thirty-five (35) months from the Date of Commencement. Accordingly, the completion date shall be 17 December 2029.

(d) The defect liability period shall be twenty-seven (27) months from the date of issuance of Certificate of Practical Completion.

(e) NBSB shall carry the Main Building and Infrastructure Works in accordance with the other supplementary terms and conditions set out in the LOA.

5. FINANCIAL EFFECTS

The acceptance of the LOA by NBSB to undertake the Main Building and Infrastructure Works is expected to contribute positively to the net assets per share, earnings per share and gearing of the Company throughout the duration of the Main Building and Infrastructure Works.

6. RISK FACTORS

The Company does not foresee any exceptional risk other than the normal operational risks associated with the LOA and/or the Main Building and Infrastructure Works. Nevertheless, the Company will take the necessary steps to mitigate the risks as and when they occur.

7. APPROVAL REQUIRED

The acceptance of the LOA is not subject to the approval from the Company's shareholders and/or any regulatory authorities.

8. DIRECTORS' AND MAJOR SHAREHOLDERS' AND/OR PERSONS CONNECTED WITH A DIRECTOR OR MAJOR SHAREHOLDER'S INTERESTS

None of the Directors and/or major shareholders of Nestcon or persons connected with them has any interests, direct or indirect, in the LOA and/or the Main Building and Infrastructure Works.

9. STATEMENT BY THE BOARD OF DIRECTORS

The Board, after having considered all aspects of the LOA and the Main Building and Infrastructure Works, is of the opinion that the LOA and the Main Building and Infrastructure Works are within the ordinary course of business of Nestcon and the acceptance of the LOA is in the best interest of the Company.

This announcement is dated 5 August 2026.