The Board of Directors of the Company wishes to announce that its wholly-owned subsidiary, Icon Line (Malaysia) Sdn Bhd has on 19 June 2008 entered into a Joint Venture arrangement with Ms Juliana Eddy, Mr Herman and Mr Eddy Chuwardi from Indonesia to provide integrated freight and logistic services under the proposed entity, PT. ICON FREIGHT INDONESIA or such other names as may be allowed by the authorities in Indonesia.

Total amount of Capital:-

The proposed Joint Venture entity will ultimately have an issued and paid-up capital of US$250,000.00.

Shareholding structure:-

1. Icon Line (Malaysia) Sdn Bhd : 62%
2. Juliana Eddy : 22%
3. Herman : 6%
4. Eddy Chuwardi : 10%

Rationale for the transaction

The purpose of the above investment overseas is to enable the Group to venture into freight and logistic business in Indonesia.

Financial Effects of the Transaction

The transaction does not have any effect on the issued and paid up capital of the Company or on the shareholdings of the major shareholders and is not expected to have any material impact on FMH Group's earning and net assets for the financial year ending 30/06/2008.

Directors' and Major Shareholders' Interests

None of the Directors and/or major shareholders of FMH has any interest, direct or indirect in the transaction.

Statement by the Board of Directors of the Company

The Board having taken into consideration, all aspects of the transaction, is of the opinion that it is in the best interest of the Group.