The Board of Directors of Tan Chong Motor Holdings Berhad ("TCMH") informs that the Group has incorporated two (2) new wholly-owned subsidiaries ("Subsidiaries"), particulars of which are set out in the table attached below, under the Companies Act, 1965 to cater for the Group's future business expansion needs.

The incorporation of the Subsidiaries has no material effect on the earnings, gearing and net assets of the Group for the financial year ending 31 December 2011.