In approving the listing of KFB on the Second Board of Bursa Malaysia Securities Berhad (“Bursa Securities”), the Securities Commission (“SC”) had vide its approval letter dated 25 April 2005 imposed, among others, a condition requiring KFB to within one (1) year from the date of the SC’s approval letter obtain the Certificate of Fitness (“CF”) or relevant building approvals for the extension to the factory building situated on P.T. Tapak Perusahaan Shah Alam, Bandar Shah Alam, Daerah Petaling, Selangor bearing address at Lot 20, Jalan Pengapit 15/19, Shah Alam, Selangor (“Lot 20”) (“Condition”).

As announced on 24 April 2006, the SC has vide its letter dated 20 April 2006, approved an extension of time to 25 April 2007 for KFB to comply with the Condition subject to, inter-alia, KFB making quarterly announcement to Bursa Securities on the status on the approval for the building plan and CF for the said extension.

In this respect, the Board of Directors of KFB wishes to announce that the KFB group is taking steps to meet the conditions required by Majlis Bandaraya Shah Alam in obtaining the CF where:

1. A letter of support has been obtained from Jabatan Bomba dan Penyelamat, Negeri Selangor; and
2. Letter of appeal has been submitted to Majlis Bandaraya Shah Alam together with the letter of support in (1) above.

This announcement is dated 31 May 2006.