The Board of Directors of KFB is pleased to announce that the Company has planned to expand its business by investing into KFN in China.

KFN was incorporated on 15 August 2006 with an Authorised Share Capital of USD5.0 million. No capital has been injected and KFN is presently dormant.

KFB would only inject capital into KFN and make KFN a wholly-owned subsidiary once Bank Negara Malaysia's approval has been obtained. On becoming a wholly-owned subsidiary of KFB, KFN would principally be involved in the manufacturing, trading, distributing and exporting of frozen food products.

Presently, none of the Directors or substantial shareholders or persons connected with the Directors or substantial shareholders of the Company has any direct or indirect interest in KFN.