The Board of Directors of EG Industries Berhad ("EG" or the "Company") wishes to announce that Genetronic (Malaysia) Sdn. Bhd. ("GTR"), a subsidiary consolidated by the Company, has recently entered into a Letter of Intent ("LOI") with a U.S.-based customer ("Customer M") for the proposed manufacture and sales of high-performance open networking switches incorporating Co-Packaged Optics ("CPO") technologies. The collaboration is expected to generate approximately USD100 million.

Customer M is a global provider of open-networking solutions, specialising in high-performance ethernet switches and networking solutions for hyperscale, cloud and AI data centre applications.

The collaboration marks the Group's entry into the CPO technology business, complementing its existing Linear Pluggable Optics ("LPO") technology products, and is expected to further strengthen the Group's manufacturing capabilities in advanced networking products and support its participation in the growing AI, cloud computing and data centre infrastructure markets.

GTR, held through EG Operations Sdn. Bhd., is regarded as a subsidiary of EG. Pursuant to the agreement with the other investors, EG has full control over GTR's financial and operating activities through its representation on the board of directors.  

The LOI is anticipated to contribute positively to the future earnings and net assets of EG Group on consolidated basis for the financial year ending 2027 and 2028. The LOI will not have any effect on the issued share capital or shareholding structure of EG.

None of the Directors, major shareholders of the Group and/or persons connected with them has any direct or indirect interest in the said LOI

This announcement is dated 15 July 2026.