KAWAN wishes to announce that the public shareholding spread as at 20 March 2007 is 25.02% comprising 715 public shareholders holding not less than 100 shares each."

However, the Company has just managed to meet the percentage of shareholdings spread of 25% but the number of public shareholders still fall short of the requisite number of 1,000 shareholders by 285 at this point in time.

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.

This announcement is dated 22 March 2007.