The Board of Directors of MBMR wishes to announce that the Company’s indirect wholly-owned subsidiary, FAHB has today entered into a Memorandum of Understanding with SAIC on intended cooperation for an automotive business in Malaysia.

SAIC Motor Corporation Limited, a public company incorporated under the laws of the People’s Republic of China with its legal address at Room 509, Building 1, No. 563 Songtao Road, Zhangjiang Hi-Tech Park, Pudong, Shanghai 201203, China (“SAIC”) is the largest listed vehicle manufacturer in China which maintains a leading position in the Chinese automotive market. SAIC is mainly engaged in the development, production, sales of and investment in passenger vehicles, commercial vehicles and automotive components and parts, as well as related automotive services trade and financing businesses. Vehicle brands under SAIC includes Maxus, MG, Roewe and Yuejin, whereas products produced by SAIC joint venture companies are Baojun, Buick, Chevrolet, Iveco, Skoda, Volkswagen and Wuling.

FAHB was incorporated in Malaysia under the Companies Ordinances, 1940-1946 on 3 March 1960 as a public limited company under the name Federal Auto Company Berhad . On 15 July 1970, it changed its name to Volvo Malaysia Berhad and subsequently assumed its present name on 17 October 1975. FAHB is principally involved in investment holding, letting, maintenance and management of properties. Its subsidiary companies are mainly involved in trading of motor vehicles and spare parts and providing ancillary services. It is a 100% owned subsidiary of MBMR. Its principal place of business is at Lot 43, Jln Pelukis U1/46 Sec U1, 40150 Shah Alam Selangor Darul Ehsan Malaysia.

This MOU formalises the intention of SAIC and FAHB to conduct further discussions, due diligence and feasibility studies with regard to the reintroduction of MG vehicles in Malaysia and the development of facilities for the assembly of complete knocked down (CKD) MG vehicles. This MOU shall continue to be effective for a period of one (1) year from the date of the MOU and can be extended as mutually agreed by both parties.

The MOU is not expected to have any material effect on the earnings, net assets and gearing of MBMR for the current financial year ending 31 December 2013. There is no effect on the issued and paid-up share capital and the substantial shareholders’ shareholding in MBMR.

None of the Directors or major shareholders of MBMR or persons connected to them have any interest, direct or indirect, in the MOU. The Directors of MBMR, having considered all aspects of the MOU and the business opportunities presented by the MOU, are of the opinion that entry into the MOU is in the best interests of MBMR, its shareholders and FAHB.

This announcement is dated 12 April 2013.