The Board of Directors of SIB ("Board") wishes to announce that Sapura Industrial Berhad ("SIB") had on 8 June 2026 executed a Letter of Offer with Zeito Plastic Components Sdn Bhd ("ZPC") for the proposed disposal of 2 pieces of land as follows:

1. a vacant 99-year leasehold (expiring 18 July 2103) industrial land held under Pajakan Negeri 106755, Lot 48474, Bandar Baru Bangi, Daerah Ulu Langat, Negeri Selangor Darul Ehsan, measuring approximately 20,461 square metres ("Lot 5"); and
2. a vacant 99-year leasehold (expiring 18 July 2103) industrial land held under Pajakan Negeri 106756, Lot 48475, Bandar Baru Bangi, Daerah Ulu Langat, Negeri Selangor Darul Ehsan, measuring approximately 20,503 square metres ("Lot 7").

(collectively referred to as "Subject Properties") ("Proposed Disposal")

The salient details of the Subject Properties are as follows:

The Proposed Disposal provides an opportunity for SIB to realise the capital appreciation of the Subject Properties. The Subject Properties were initially acquired by SIB to expand its plant in Bandar Baru Bangi. Having held the Subject Properties as an investment for 22 years and considered the need for an expansion of plant in other areas which are in closer proximity to SIB's or its subsidiaries' customers, the Board believes that the Proposed Disposal is timely, allowing SIB to unlock the value of its non-core assets and convert them into liquid funds for more productive operational use and other expansion opportunities.

In this respect, SIB shall commence negotiations with ZPC on the Proposed Disposal, subject to the terms and conditions to be mutually agreed upon and recorded in a sale and purchase agreement ("SPA") to be entered into between the parties for the purpose of the Proposed Disposal.

A detailed announcement on the Proposed Disposal will be made upon the signing of the SPA.

This announcement is dated 8 June 2026.