Reference is made to the Company’s announcement on 20 June 2012 on the completion of disposal of 275,000 ordinary shares of RM1.00 each representing 55% equity interest in Dynamic Communication Link Sdn Bhd (“DCL”) to Touch Mindscape Sdn Bhd for a total cash consideration of RM15,000,000 (“the DCL Disposal”).

 Pursuant to the Circular to Shareholders dated 20 January 2012 in relation to the DCL Disposal, an amount of RM4.7 million was allocated for working capital requirements to fund the purchase of inventories, namely leather products, for the trading business of the MESB and its subsidiaries.

The Board of Directors of MESB after due consideration has interpreted to expand the scope of working capital requirements to include the funding of expansion of retailing business, day-to-day operational expenses of the MESB and its subsidiaries in the ordinary course of business, and any unutilised fund will be invested in short term deposits.

As at 31 July 2012, the actual utilisation of proceeds allocated for the working capital requirements was RM1.97 million.

The abovementioned expansion of the scope of working capital requirements does not have any significant negative impact on the net assets and earning of the Group.

This announcement is dated 24 August 2012