General Announcement

TIONG NAM LOGISTICS HOLDINGS BERHAD

NEW SUBSIDIARY

Contents:

The Board of Directors is pleased to announce that Tiong Nam Logistics Solutions Sdn. Bhd. (TNLS) a 100% owned subsidiary of Tiong Nam Logistics Holdings Bhd (TNLHB) has on 31 March 2014 entered into a Shares Sale agreement (SSA) to acquire 1,037,500 ordinary shares of RM 1.00 each in cash (Acquisition) or equivalent to 100% of the issued and fully paid-up capital of Sinar Mekar Sdn. Bhd. (SMSB).

The Acquisition shall result the indirect acquisition of SM Global Logistics Sdn. Bhd. (SMG), by TNLS as SMG is a 100% owned subsidiary of SMSB.

Principal activities of SMSB are air, ocean & overland freight forwarding, customs brokerage, heavy bulking, long length equipment/machinery transportation & rigging, container inland haulage, general cargo transportation & bonded truck facilities, container depot & warehousing & distribution, project transportation & handling.

Principal activities of SMG are provision of public bonded warehousing and distribution services, total gas and chemical warehousing management and services.

The followings are information on SMSB:

1. Company No : 171513-T

2. Incorporation date : 28 June 19883. Registered address : Lot 640, Block 4, MTLD, Demak Laut Ind. East. Jalan Bako 93050 Kuching, Sarawak.

4. Directors : (i) Awgku Jinal Abedin Bin Pgn Haji Jawa

(ii) Augustine Wong Chung Ho

(iii) Suraiti @ Suriati Binti Zainuddin

(iv) Chua Seng Huat

(v) Goh Chung Siong

(vi) Datuk Haji Abang Abdul Wahap Bin Abg, Julai

(vii) Awang Bemee Bin Awang Ali Basah

5. Paid-up capital : 1,037,500 ordinary shares of RM 1.00 each fully paid-up 6. Shareholders : (i)Awgku Jinal Abedin Bin Pgn Haji Jawa (410,393 ordinary shares of RM 1.00 each fully paid representing 39.56% shareholdings)(ii) Augustine Wong Chung Ho (268,750 ordinary shares of RM 1.00 each fully paid representing 25.90% shareholdings) (iii) Suraiti @ Suriati Binti Zainuddin (118,750 ordinary shares of RM 1.00 each fully paid representing 11.44% shareholdings)

(iv) Chua Seng Huat (169,607 ordinary shares of RM 1.00 each fully paid representing 16.35% shareholdings)

(v) Goh Chung Siong (40,000 ordinary shares of RM 1.00 each fully paid representing 3.86% shareholdings) (vi) Kueh Hoi Lai (30,000 ordinary shares of RM 1.00 each fully

paid representing 2.89% shareholdings)The followings are information on SMG:

1. Company No : 244517-D

2. Incorporation date : 15 July 19923. Registered address : Lot 640, Block 4, MTLD, Demak Laut Ind. East. Jalan Bako 93050 Kuching, Sarawak.

4. Directors : (i) Awgku Jinal Abedin Bin Pgn Haji Jawa

(ii) Augustine Wong Chung Ho

5. Paid-up capital : 250,000 ordinary shares of RM 1.00 each fully paid-up

6. Shareholder : Sinar Mekar Sdn. Bhd. (250,000 ordinary shares of RM 1.00 each fully paid representing 100.00% shareholdings)

The cash consideration for the Acquisition amounting to RM 3,000,000 (Ringgit Malaysia Three Million Only) is arrived at based on the willing buyer willing seller basis and is based on the future earning potential of both SMSB and SMG.

SMSB audited group net profit after tax for the year ended 30 June 2013 amounting to RM 1,368,516 (Ringgit Malaysia One Million Three Hundred Sixty Eight Thousand Five Hundred And Sixteen Only).

The Acquisition would not have any effect on the issued and paid-up capital and substantial shareholders shareholdings nor will it have any significant effect on the earnings per share, net assets per share and gearing of TNLHB group for the year ending 31 March 2015.

The sources of finance for the Acquisition are from internal generated funds.

TNLHB will not assume any liabilities, including contingent liabilities and guarantees arising from the Acquisition.

The Acquisition does not require approval form shareholders and any government authorities.

None of the directors, substantial shareholders or persons connected with them has any interest direct or indirect in the Acquisition.

The rationale for the Acquisition is for potential profit contribution by SMSB and SMG in future.

The Board has considered the rationale and of the view that the above Acquisition is in the best interest of the Group.

The financial and business prospect of the Acquisition is subject to certain risk inherent in the logistics sector including changes in political, economic, regulatory and social conditions as well as increase in interest rate.