On behalf of the Board of Directors of KFB, we wish to announce that Bursa Malaysia Securities Berhad had via its letter dated 29 March 2007 rejected the Company's application for a further extension up to 22 June 2007 of time to comply with the public shareholding spread pursuant to Paragraph 8.15 of the Listing Requirements.

The Company has a public shareholding spread of 25.02% held by 715 public shareholders holding not less than 100 shares each as at 20 March 2007 which was fall short of the requisite number of 1000 public shareholders by 285 holding not less than 100 share pursuant to paragraph 8.15(1) of the LR.

This announcement is dated 29 March 2007.