Bonus issue of 40,000,000 new ordinary shares of RM0.50 each in Kawan Food Berhad ("KFB") ("KFB Shares") to be credited as fully paid-up on the basis of one (1) new KFB Share for every two (2) existing KFB Shares held ("Bonus Issue").

Kindly be advised of the following :

1. The above Company's securities will be traded and quoted [ "Ex - Bonus Issue" ] as from : [ 16 July 2008 ]
2. The last date of lodgement : [ 18 July 2008 ]
3. Retention Money : Where securities are not delivered in time for registration by the seller, then the brokers concerned :-
• Selling Broker to deduct [ 1/3 ] , of the Selling Price against the Selling Client.
• Buying Broker to deduct [ 33.33% ] of the Purchase Price against the Buying Client.
• Between Broker and Broker, the deduction of [ 1/3 ] of the Transacted Price is applicable.

Remarks

"Bursa Malaysia Securities Bhd would like to clarify that on the basis of settlement taking place on 21 July 2008 with bonus issue of KAWAN shares RM0.50 each, any shareholder who is entitled to receive KAWAN bonus issue shares, may sell any or all of his KAWAN shares arising from the bonus issue beginning the Ex-Date ( 16 July 2008 ).

For example, if Mr X purchases 200 KAWAN shares on cum basis on 15 July 2008, Mr X should receive 200 shares on 18 July 2008. As a result of the bonus issue, 300 KAWAN shares will be credited into Mr X's CDS account on the night of 18 July 2008 being the Book Closing Date. Therefore, Mr X can sell the bonus issue shares of 300 on or after the Ex-Date ie from 16 July 2008 onwards."