1. INTRODUCTION

The Board of Directors of Titijaya wishes to announce that the Company has on 2nd  December 2015, entered into a Framework Agreement (“FA”) with Stone Master Corporation Berhad (Company No. 498639-X) (“SMCB” or “Vendor”).

Pursuant to the FA, the Vendor agrees to offer the Products and Services coupled with interest free vendor financing services to the Company over a span of eighteen (18) months from the date thereof in the FA (“Availability Period”), and Titijaya agrees to accept the dual offers subject to all the salient terms and conditions as stated therein the FA.

2. BACKGROUND INFORMATION ON SMCB

SMCB was incorporated in Malaysia under the Companies Act 1965 on 11 November 1999 as a public limited company under its present name. SMCB is listed on the Main Market of the Bursa Malaysia Securities Berhad.

The issued and paid-up share capital of SMCB stands at RM22,476,294.25 divided into 89,905,177 ordinary shares of RM0.25 each.

SMCB is principally an investment holding company with its subsidiaries engaging in the importing, manufacturing, trading and undertaking contracts of natural stones, ceramic tiles, sanitary wares and other building finishing materials.

3. RATIONALE FOR THE SIGNING OF THE FA

Titijaya and SMCB shall collaborate with each other for products and services provided by SMCB at competitive prices on Selected Development Projects.  As under the FA Agreement, payments will only be made after completion with favourable deferred payment terms of 60 months with no interest charges.  This will contribute positively towards the Group operating cash flow.

4. EFFECTS OF THE SIGNING OF THE FA

The FA does not have any effect on the issued and paid-up share capital of Titijaya and is not expected to have any material effect on the earnings, gearings and net assets of Titijaya for the financial year ending 30 June 2016.

5. THE RISKS IN RELATION TO THE SIGNING OF THE FA

The Board of Directors of Titijaya does not foresee any risk factors in respect to the signing of the FA, other than the normal market risk.

6. APPROVALS REQUIRED

The signing of the FA is not subject to the approvals of any authority and/or the shareholders of the Company.

7. DIRECTORS AND SUBSTANTIAL SHAREHOLDERS INTEREST

None of the Directors and/or Substantial Shareholders of Titijaya or persons connected to them has any interest, direct or indirect, in the FA.

8. DIRECTORS' STATEMENT

The Board of Directors of Titijaya, having considered all aspects of the signing of the FA, is of the opinion that the signing of the FA is in the best interest of the Company.

9. DOCUMENT AVAILABLE FOR INSPECTION

The FA will be available for inspection at the Registered Office of the Company at Level 7, Menara Milenium, Jalan Damanlela, Pusat Bandar Damansara, Damansara Heights, 50490 Kuala Lumpur for a period of 3 months from the date of this announcement.

This announcement is dated 2 December 2015.