1.      INTRODUCTION

The Board of Directors of Freight Management Holdings Berhad ("FMHB" or the "Company") wishes to announce that the Company had on 31 October 2012 entered into an agreement with Mr Yusob Boachobi (Thai ID No 3801500081237) and YKP-FM Global Shipyard Co. Ltd ("YKPFM") to subscribe in cash for 250,000 ordinary shares of 100 Baht each in YKPFM representing 25% of the issued and paid-up capital in YKPFM, a company incorporated under the laws of Thailand for a total consideration of 25,000,000 Baht, equivalent to RM2,500,000.

2.      DETAILS OF THE YKPFM

       YKPFM incorporated in Thailand and having its registered office at 88 Moo 5 Tumbol Bor Nam Ron, Amphoe Kantang Trang Province Thailand have an authorised and paid up share capital of Thai Baht One Hundred Million (100,000,000 Baht) consisting of 1,000,000 ordinary shares of One Hundred Thai Baht (100 Baht) each as at 31 October 2012 inclusive of FMHB's subscription. YKPFM is engaged in the business of ownership and management of ship yard and boat docks, ship yard development and construction, and repair and maintenance works for barges, tugboats and other boats. Upon completion of the subscription and allotment of shares to FMHB, YKPFM will become an associate company of the Company.

3.      DIRECTORS’ AND MAJOR SHAREHOLDERS’ INTERESTS

None of the Directors, major shareholders of the Company and/or persons connected with them has any interest, direct and/or indirect in the subscription.

4.      FINANCIAL EFFECTS ON THE ACQUISITION

The subscription is not expected to have a material effect on the earnings and net assets of the Company but is expected to contribute positively in the future.

5.      APPROVAL REQUIRED

The subscription is not subject to approval of any relevant authorities or shareholders.  

6.      DIRECTORS’ STATEMENT

The board of Directors of FMHB is of opinion that the subscription is in the best interest of the Company.

7.      PERCENTAGE RATIO

The highest percentage ratio applicable to the acquisition pursuant to Paragraph 10.02(g) of the Listing Requirements for the Main Market of Bursa Malaysia Securities Berhad is 1.96% based on the audited financial statements of the Group for the financial year ended 30 June 2012.

This announcement is dated 2 November 2012