The Board of Directors of Freight Management Holdings Berhad ("FMHB" or "the Company") wishes to announce that Icon Line (Malaysia) Sdn. Bhd. ("ILM"), a wholly-owned subsidiary of FMHB has on 5 September 2013 entered into an Agreement ("the Agreement") with the following persons via a special purpose company in the Philippines known as FM Global Logistics (Phil) Inc ("FMGLP") under the laws of the Philippines:-

1. Irene M. Manguiat (“Irene”);
2. Bernardita B. Rivadeneira (“Bernardita”); and
3. Jose Antonio P. Castro (“Jose”).

The intended activity of FMGLP is to undertake the business to provide point to point integrated logistics services to and from the Philippines. FMGLP will have an authorised share capital of P10,000,000.00 divided into 100,000 shares of P100.00 each. The paid up share capital of FMGLP shall be decided at a later date and the capital will be contributed as follows:-

1. 50% from ILM;
2. 30% from Irene;
3. 12.5% from Bernardita; and
4. 7.5 % from Jose.

Upon the completion of the allotment of capital, FMGLP will be a 50%-owned subsidiary by ILM.

Contemporaneously, FMGLP and ILM (hereafter collectively referred to as "the Buying Parties") will enter into a Business Sale Agreement with the following parties:-

1. Global Star Logistics, Inc (formerly known as Virtual Logistics, Inc) ("GSL"), in which Irene, Bernardita and Jose are the registered owner of GSL;
2. Irene;
3. Bernardita; and
4. Jose

(hereinafter collectively referred to as "the Selling Parties").

The Selling Parties have agreed to sell the following assets ("the Assets") to the Buying Parties at USD350,000.00:-

1. the Business Intellectual Property;
2. the Goodwill;
3. the Records to the extent such records and documents relate solely to the Business; and
4. the transfer of GSL Employees.

The above transactions are not subject to the approval of the shareholders of the Company or the approval of any relevant authorities in Malaysia.

None of the Directors or major shareholders of the Company and/or persons connected to them have any interest, direct or indirect, in the above transactions.

The above transactions are not expected to have any material impact on the earnings and net tangible assets of the Group for the financial year ending 30 June 2014 but is expected to contribute positively in the future.

This announcement is dated 6 September 2013.