Reference is made to the Company's announcement dated 8 September 2010 in relation to the Exclusive CKD Franchise and Distribution Agreement ("Distribution Agreement") between Tan Chong Industrial Equipment Sdn. Bhd. ("TCIE"), a wholly-owned subsidiary of the Company and Xi'an Silver Bus Corporation ("Silver Bus") in respect of the sole and exclusive right to assemble and distribute completely knocked-down buses under the brand of Silver Bus in Malaysia and such other countries as TCIE and Silver Bus may agree from time to time.

We are pleased to inform that all the conditions precedent to the Distribution Agreement have been fulfilled. Accordingly, the Distribution Agreement is now unconditional.