The Board of Directors of Tan Chong Motor Holdings Berhad ("the Company") informs that the Company has incorporated a new wholly-owned subsidiary named Tan Chong Premier Sdn Bhd ("Tan Chong Premier") under the Companies Act, 1965 on 28 March 2011.

Tan Chong Premier has an authorised capital of RM100,000/- made up of 100,000 shares of RM1/- each and an issued and paid-up capital of RM2/-. Its principal activity will be insurance agency business.

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