ACCEPTANCE ON THE LETTER OF AWARD (“LOA”) FOR MAINTENANCE AND TECHNICAL SUPPORT SERVICES FOR HARDWARE AND SOFTWARE OF MAINFRAME SYSTEMS FOR THE ROAD TRANSPORT DEPARTMENT OF MALAYSIA (“JPJ”)

1.         Introduction

HeiTech Padu Berhad (“HeiTech” or “the Company”) is pleased to announce that the Company has, on 21 May 2020, signed the LOA for Maintenance and Technical Support Services for Hardware and Software of Mainframe Systems for the Road Transport Department of Malaysia (“JPJ”).

2.         The Contract Value

The Contract Value is RM126,021,280.00 (Ringgit Malaysia One Hundred Twenty Six Million Twenty One Thousand Two Hundred Eighty Only).

3.         Duration of the Contract

The Contract is for a period of Twenty Nine (29) months commencing from 1 May 2020 to 30 September 2022.

4.         The effect on net assets of HeiTech Group

The Contract will not have any effect on HeiTech Group’s net asset for the financial year ending 31 December 2020.

5.         The risks in relation to the Contract

The risks are normal risks encountered by companies undertaking a similar endeavour and the Company has taken the necessary steps to protect itself and to mitigate the risks as and when they occur.

6.         Directors' and Substantial Shareholders' Interest

None of the Directors or substantial shareholders or any person connected to the Directors or substantial shareholders of HeiTech has any interest, either direct or indirect in the above Contract.

7.         Statement of the Directors

The Board of Directors is of the opinion that the execution of the Contract is in the ordinary course of business and is in the best interest of the Company.

8.         Financial effects

The Contract is expected to have positive effects on future earnings and earnings per share of HeiTech. Nevertheless, the Contract will have no material effect on the dividend policy, share capital and substantial shareholdings of the Company for the financial year ending 31 December 2020.

This announcement is dated 21 May 2020.