The Board of Directors of REDtone International Berhad (“REDtone”) wishes to announce that its wholly-owned subsidiary, REDtone Telecommunications Sdn Bhd (“RTSB”), had provided financial assistance amounting to RM910,000 to Sprintz Designs Sdn Bhd (“Sprintz Designs”), a third party main contactor of RTSB, to facilitate the issuance of performance bond by the bank in conjunction with the projects undertaken by Sprintz Designs and RTSB in the ordinary course of business of the REDtone Group (“Provision of Financial Assistance”).

The Provision of Financial Assistance does not have any material impact on the net assets, earnings and gearing of the REDtone Group and has no effect on the issued share capital and substantial shareholders’ shareholdings of REDtone.

None of the Directors and major shareholders of REDtone and/or persons connected with them has any interest, direct or indirect, in the Provision of Financial Assistance.

The Board of Directors of REDtone is of the opinion that the Provision of Financial Assistance is in the best interest of the REDtone Group.

This Announcement is dated 31 January 2020.