The Board of Directors of Freight Management Holdings Bhd ("FMHB" or "the Company") wishes to announce that FM Global Logistics Ventures Sdn. Bhd. (formerly known as Icon Line (Malaysia) Sdn. Bhd.) (“FMGLV”), a wholly-owned subsidiary of FMHB has on 26 November 2014 entered into a joint venture agreement with Amass Freight International Co. Ltd., a company incorporated in the Peoples Republic of China (“AFICL”) to jointly set up a limited liability company within the Jebel Ali Free Trade Zone in United Arab Emirates. The joint-venture company will be issued with a trading licence by Jebel Ali Free Zone Authority to be proposed as "Amass Freight Middle East" (“FZCO”) subject to the approval of the relevant authority in Dubai.

The intended activity of FZCO is an investment holding company, trading and provision of logistics services. FZCO will have an authorised share capital of AED1,000,000.00 divided into 10 shares of AED100,000.00 each. The paid up share capital of FZCO shall be AED1,000,000.00 divided into 10 shares of AED100,000.00 each and the capital will be contributed as follows:-

1. 50% from FMGLV; and
2. 50% from AFICL.

Upon the completion of the allotment of shares, FMGLV will hold 50% equity interest in FZCO.

The joint venture will be funded by internally generated funds and/or bank borrowing and the breakdown of the funding will be determined later. The joint-venture is expected to commence operations by January 2015.

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

The investment in FZCO is not expected to have any material impact on the earnings and net tangible assets, gearing, share capital, substantial shareholders’ shareholdings of the Group for the financial year ending 30 June 2015 but is expected to contribute positively in the future.

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

This announcement is dated 26 November 2014.