On behalf of the Board of Directors of the Company ("Board"), Mercury Securities Sdn Bhd ("Mercury Securities" or the "Principal Adviser") wishes to announce that ECML Hotels Sdn Bhd ("ECML" or the "Purchaser") (a wholly-owned subsidiary of ECMLFG) had on even date entered into a conditional sale and purchase agreement ("SPA") with Tune Hotels Sdn Bhd ("THSB" or the "Vendor") in relation to the proposed acquisition of:-

(i) a piece of land held under GRN 358300, Lot 46867, Bandar Johor Bahru, Daerah Johor Bahru, Johor, measuring in land area of approximately 4,257.00 square metres ("sqm") (approximately 45,821.97 square feet ("sq ft")), together with a 7-storey limited-service hotel known as "Tune Hotel @ Danga Bay" comprising 218 hotel rooms ("Danga Bay Property"); and

(ii) 3 pieces of land held under:-

(a) GRN 76084, Lot 20001 Seksyen 46, Bandar Kuala Lumpur, Daerah Kuala Lumpur, measuring in land area of approximately 383.00 sqm (approximately 4,122.58 sq ft) (MoMo's Kuala Lumpur);

(b) PN 10025, Lot 1590 Seksyen 46, Bandar Kuala Lumpur, Daerah Kuala Lumpur, measuring in land area of approximately 348.00 sqm (approximately 3,745.84 sq ft) ("Vacant Land"); and

(c) PN 24460, Lot 1305 Seksyen 46, Bandar Kuala Lumpur, Daerah Kuala Lumpur, measuring in land area of approximately 611.56 sqm (approximately 6,582.79 sq ft) (The Chow Kit, an Ormond hotel),

together with an existing structure which is being re-developed into 2 hotels to be known as (i) "The Chow Kit", an Ormond hotel comprising 113 hotel rooms and (ii) "MoMo's Kuala Lumpur" comprising 99 hotel rooms (Collectively, the "KL Property"),

(Collectively, the Danga Bay Property and the KL Property are referred to as the "Hospitality Assets"),

together with the Hospitality Businesses (as defined in Section 2.2.1 of this announcement) for a total cash consideration of RM62.04 million comprising RM16.45 million for the Danga Bay Property and RM45.59 million for the KL Property ("Purchase Consideration"), upon the terms and conditions as set out in the SPA ("Proposed Acquisition").

Please refer to the attached document for further details on the Proposed Acquisition.

This announcement is dated 8 August 2019.

Attachment(s):- ECM Ann - Proposed Acquisition (08.08.2019).pdf