1. INTRODUCTION

The Board of Directors of LKL International is pleased to announce that LKLAM, a wholly-owned subsidiary of LKL International, was awarded an order for the procurement of PPE by the Sarawak State Health Department (“Order”) for a sum of RM7,075,800.00.

2. FINANCIAL EFFECTS

The Order is not expected to have a material effect on the net assets and gearing of the Company and its subsidiaries for the financial year ending 30 April 2020. However the Order is expected to contribute positively to the earnings of the Company for the financial year ending 30 April 2020.

3. THE RISKS IN RELATION TO THE ORDER

The risks mainly relate to matters pertaining to delivery of products to the customer which are considered normal operational risks.

4. INTERESTS OF DIRECTORS, MAJOR SHAREHOLDERS AND/OR PERSONS CONNECTED WITH THEM

None of the Directors, major shareholders and/or persons connected with them have any interest, whether direct or indirect, in the Order.

5. STATEMENT OF DIRECTORS

The Board of Directors of the Company is of the opinion that the Order is in the ordinary course of business and is in the best interests of the Company.

This announcement is dated 7 April 2020.