Reference is made to Sapura Industrial Berhad ("SIB" or "the Company")'s announcement dated 4 June 2026 ("the Announcement").

1.    EXECUTION OF SALE AND PURCHASE AGREEMENT

1.1  Further to Paragraphs 4 and 11 of the Announcement, the Board of Directors of SIB wishes to announce that it had on 8 July 2026 executed a Sale and Purchase Agreement ("SPA") with Loongsen Plastics (M) Sdn. Bhd. ("Purchaser") to dispose all that one (1) piece of vacant 99-year leasehold (expiring 22 October 2073) industrial land held under H.S.(M) 549, Plot 98, Mukim Bukit Katil,  Ayer Keroh, Daerah Melaka Tengah, Negeri Melaka, measuring approximately 2.163 hectares ("Property") for a total cash consideration of RM10,477,260.00 ("Sale Consideration") and upon the terms and conditions as contained in the SPA ("Proposed Disposal").

2.    SALIENT TERMS OF THE SPA

2.1  The Proposed Disposal is conditional upon the fulfillment of the following conditions precedent within six (6) months from the date of the SPA:

(a)   at the costs and expenses of the Company, the Company having secured the written consent to transfer the Property in favour of the Purchaser granted by the relevant State Authorities;

(b)   if the Purchaser is taking a loan to finance its acquisition of the Property, at the costs and expenses of the Purchaser, the Company having secured the written consent to charge the Property to the Purchaser's financier granted by the relevant State Authorities; and

(c)   the delivery of a written confirmation from the Company to the Purchaser or the Purchaser's solicitors, of the termination of the existing tenancy agreement between the Company and the existing tenant, and that the vacant possession of the Property having been re-delivered by the existing tenant.

       (collectively, "Conditions Precedent"). On the date the last of the Conditions Precedent is fulfilled and/or waived (to the extent permitted by law), the SPA shall be unconditional ("Unconditional Date")

2.2  The Sale Consideration shall be paid in the following manner as described in Clause 2.1 of the SPA

(a)   10% of the Sale Consideration amounting to RM1,047,726.00 shall be paid as deposit, comprising:

          (i)   2% of the Sale Consideration amounting to RM209,545.20 as earnest deposit ("Earnest Deposit") has been paid by the Purchaser to Raja, Darryl & Loh ("Escrow Solicitors") prior to the execution of the SPA;

         (ii)   3% of the Sale Consideration amounting to RM314,317.80 shall be paid by the Purchaser to its solicitors as stakeholder on the date of the SPA as a retention sum to be applied towards real property gains tax; and

        (iii)   5% of the Sale Consideration amounting to RM523,863.00 ("Balance Deposit") shall be paid by the Purchaser to the Escrow Solicitors as stakeholder on the date of the SPA. The Escrow Solicitors is authorised to release the Earnest Deposit and Balance Deposit including all interests earned thereto to the Company on

                the Unconditional Date.

(b)   The remaining 90% of the Sale Consideration amounting to RM9,429,534.00 ("Balance") shall be paid by the Purchaser to the Escrow Solicitors within 90 days from the Unconditional Date ("Completion Date"). If the Purchaser fails to pay the Balance by the Completion Date, the Company shall grant to the Purchaser an     automatic extension of 30 days from the Completion Date to pay the Balance, provided that the Purchaser shall pay to the Company interest at the rate of 8% per annum on the Balance or any part thereof remaining unpaid, calculated on a daily basis, from the day next following the Completion Date until the date of actual payment of the Balance. The Escrow Solicitors is authorised to release the Balance on the 14th day following the day upon which the Memorandum of Transfer (among other documents) have been duly presented for registration at the relevant land office and vacant possession of the Land having been delivered to the Purchaser.

2.3  Vacant possession of the Land, free from all encumbrances and claims whatsoever, must be delivered by the Company to the Purchaser within three (3) working days after the the date of receipt of the full payment of the Sale Consideration ("Date of Possession"), failing which the Company shall be liable to the Purchaser for interest at the rate of 8% per annum calculated on a daily basis on the total Sale Consideration, from the day following the Date of Possession until the date of actual delivery of actual delivery of vacant possession of the Land to the Purchasers.

3.    Barring unforeseen circumstances, the acquisition is expected to be completed by the first half of the Company's financial year ending 2028.

4.    The Proposed Disposal provides an opportunity for the Company to realise the capital appreciation of the Property. The Property was initially acquired by the Company to expand its plant in Melaka. Having held the asset as an investment for twenty five (25) years and having considered the need for an expansion of plant in other areas which are in closer proximity to the Company's or its subsidiaries' customers, the Board believes that the Proposed Disposal is timely, allowing the Company to unlock the value of its noncore assets and convert them into liquid funds for more productive operational use and other expansion opportunities.

5.    Further announcements will be made as and when there are material developments relating to the Proposed Disposal.

6.    The SPA will be available for inspection at the registered office of SIB which is situated at Lot 2 & 4, Jalan P/11, Seksyen 10, Kawasan Perindustrian Bangi, 43650 Bandar Baru Bangi, Selangor Darul Ehsan during normal working hours, 9.00 a.m. to 5.30 p.m, from Monday to Friday (except public holiday) for a period of three (3) months from the date of this announcement.

This announcement is dated 8 July 2026.