INTRODUCTION

The Board of Directors of MBMR wishes to announce that Fadara Trading Sdn. Bhd. ("FTSB") and Fadara Properties Sdn. Bhd. ("FPSB"), both wholly-owned subsidiary companies of Federal Auto Holdings Berhad ("FAHB"), which in turn is the wholly owned subsidiary of MBMR, have resolved by way of special resolution at their respective extraordinary general meetings ("EGM") held on 1 January 2018 to approve the voluntary winding up pursuant to Section 439 of the Companies Act 2016.

1. INFORMATION ON FADARA TRADING SDN. BHD.

FTSB was incorporated on 24 May 1982 with issued share capital of RM200,000.00 representing 200,000 Ordinary Shares. It has ceased operations in 2006 and has since remained dormant. FTSB is not a major subsidiary of MBMR Group (“the Group”).

2. INFORMATION ON FADARA PROPERTIES SDN. BHD.

FPSB was incorporated on 19 April 1976 with issued share capital of RM1,225,470.00 representing 1,225,470 Ordinary Shares. It has ceased operations in 2011 and has since remained dormant. FPSB is not a major subsidiary of MBMR Group.

3. RATIONALE FOR VOLUNTARY WINDING UP

FTSB and FPSB have been dormant since 2006 and 2011 respectively and FAHB has no future plan to activate the business or operation of these companies.

4. DETAILS OF VOLUNTARY WINDING UP

FTSB and FPSB have resolved by way of special resolution at their respective EGMs held on 1 January 2018 to approve the voluntary winding up pursuant to Section 439 of the Companies Act 2016 and also resolved to appoint Mr. Ho Meng Chan of Project Ventures Sdn. Bhd. as liquidator of FTSB and FPSB for the purpose of the voluntary winding up.

5. EFFECT OF THE VOLUNTARY WINDING UP

The voluntary winding up proceeding of FTSB and FPSB will not have any operational impact on or result in any loss to the Group. The voluntary winding up of FTSB and FPSB will also not have any material effect on the earnings, net assets and gearing of MBMR for the current financial year ending 31 December 2017.

There is no effect on the issued share capital and the substantial shareholders’ shareholding in MBMR.

6. STATEMENT BY DIRECTORS

None of the Directors or major shareholders of MBMR or persons connected to them have any interest, direct or indirect, in the voluntary winding up.

This announcement is dated 2 January 2018.