KAWAN wishes to announce that the public shareholding spread as at 29 December 2006 is 23.52% comprising 679 public shareholders holding not less than 100 shares each.

Therefore, KAWAN has not complied with the public shareholding spread requirement pursuant to paragraph 8.15(1) of the Listing Requirements of Bursa Malaysia Securities Berhad.

Bursa Malaysia Securities Berhad had via its Letter of Warning dated 22 December 2006, directed KAWAN to comply with paragraph 8.15(1) of the Listing Requirements within three (3) months from 22 December 2006.

KAWAN is aggressively taking steps to increase its public shareholding spread. The number of public shareholders had increased from 562 as at 31 October 2006 to 679 as at 29 December 2006. KAWAN is endeavor to comply with the public shareholding spread by 21 March 2007.