News & Announcements

15 May 2009
PERWAJA HOLDINGS BERHAD ("the Company" or "Perwaja") DISPUTE WITH PETRONAS

Further to the Company's announcement made on 13 May 2009, the Board of Directors of Perwaja wishes to clarify on the following items as detailed below:

1. Presentation of the Writ
The Writ of Summons accompanied by the statement of claim was presented to the High Court, Kuala Lumpur on 27 April 2009.

2. Interest Claimed
The Board of Directors of the Company wishes to inform that there has been no delay in payment of the sum admitted to Petronas.

There are 3 sets of interest claimed.
(1) Two sets relate to claims that pre-date the issue of writ:

(i) Interest of RM1,361,473.82 up to 28.02.2009. This claim is disputed.
(ii) Interest on the principal at 3.5% above the prevailing base lending rate (per annum) as quoted from time to time by Malayan Banking Berhad to the date of the writ. This claim is also disputed.

(2) Additional interest at the rate of 8% or such other rate as the Court may deem fit from the date of writ until full payment. The Court has a discretion under s 11 of the Civil Law Act 1956 to award interest at the rate it deems fit (but not exceeding 8%) from such date as the Court deems fit to the date of judgment.

(3) Expected losses The Company does not expect any loss arising from this claim. However, the Board wishes to inform that the Company has made sufficient provision to meet any liability that may arise due to the claim. Further, the Board wishes to inform that the Company will defend the claim made by Petronas.

Query Letter content

We refer to your Company's announcement dated 13 May 2009, in respect of the aforesaid matter.

In this connection, kindly furnish Bursa Securities with the following additional information for public release:-

1. The date of presentation of the writ of summons and the statement of claim.
2. The interest rate on the amount claimed.
3. The expected losses, if any arising from the summons.

Please furnish Bursa Securities with your reply within one (1) market day from the date hereof.

Yours faithfully
SUZALINA HARUN
Head, Issuers Listing Division
Regulation

WCY/RZ

copy to:- Head, Market Surveillance, Securities Commission (via fax)