The Board of Directors of Omesti Berhad ("Omesti" or "the Company") wishes to announce that the Company together with Formis Network Services Sdn Bhd (“FNS”), an indirect 51% owned subsidiary of Omesti (collectively, “the Defendants”), have on 13 May 2020 received a Writ of Summons ("Writ") and Statement of Claim both dated 2 April 2020 filed by Foster Moore International Limited ("the Plaintiff"). The amount claimed against the Defendants are as follows :

i)       the Defendants jointly and severally pay the Plaintiff the outstanding sum of USD769,827.04 (or RM3,204,405.05 based on the exchange rate of 4.1625 as at 5 March 2020);

ii)     interest at the rate of 1.5% per month on the following sums from the following due dates until the date of judgment:

iii)    post-judgment interest at the rate of 5% per annum on the judgment sum from the date of judgment until full and final settlement of the same;

iv)     costs; and

v)      any further and other relief as this Court deems appropriate.

The claim is in respect of FNS’ alleged failure to pay the Plaintiff for works done in accordance with the Master Service Agreement dated 20 November 2017 (“MSA”) entered into between the Plaintiff, Omesti and FNS for the Plaintiff to provide services and deliverables to FNS in connection with FNS’ agreement to deliver an online register of companies solution to Suruhanjaya Syarikat Malaysia. Omesti agreed to guarantee the payment obligation of FNS under the MSA.

There will be no financial impact on the earnings and net assets of the Omesti Group at this juncture. There is also no operational impact on the Omesti Group. The expected losses arising from the litigation are the expenses in engaging advocates and solicitors to address the litigation and the cost of the litigation and litigation proceedings.

Omesti and FNS have obtained legal advice on this matter and have engaged solicitors to represent them in defending the suit.

This announcement is dated 13 May 2020.