OTHERS INCORPORATION OF KPS TECHNOLOGY GROUP LLC

KNM GROUP BERHAD

Type

Announcement

Subject

OTHERS

Description

INCORPORATION OF KPS TECHNOLOGY GROUP LLC

KNM Group Berhad ("KNM" or "the Company") is pleased to announce that KPS Inc., its wholly

owned Canadian subsidiary, has on 2 January 2013 incorporated a new subsidiary, KPS Technology Group LLC ("KPSTG") in Houston, Texas for a total cash consideration of USD2.00 only ("Investment").

KPSTG is expected to be utilised in furtherance to the future strategic plans of the Company.

The incorporation of KPSTG is not expected to have any material effect on KNM's earnings and

net assets for the financial year ending 31 December 2013.

None of the Directors, major shareholders or persons connected to the Directors and/or major shareholders of the Company has any interest, direct or indirect, in the Investment.

This announcement is dated 4 January 2013.

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