Reference is made to the Company’s announcement dated 3 March 2023 pertaining to the acceptance of the Letter of Award (“LOA”) on 3 March 2023, wherein Bertam Development Sdn Bhd (“BDSB”) was awarded a project for the construction and completion of Building and Infrastructure Works (“Sub-Contract Works”) for the proposed development of 1 Block of Hotel at Lot 015679320, Off Jalan Coastal, District Kota Kinabalu, Sabah (“Project”) for Akas Permai Sdn Bhd (“APSB”).

The Board of Directors of Bertam wishes to announce that the Company had on 19 November 2024 signed a Letter of Mutual Revision with APSB to mutually revise the LOA for the purpose of discharging the parties from their obligations and liabilities under the LOA. The duly executed Letter of Mutual Revision was received by BDSB on 19 November 2024.

The letter of mutual revision mainly for the revision of the contract value from RM82,000,000.00 to RM24,373,034.50, was agreed between both parties arising from the exclusion of the prime costs portion from the contractual agreement for the project's scope for both parties.

The Board also wishes to inform that the revision of the LOA is made by mutual agreement and does not contravene any of the provisions of the LOA.

The Board is of the view that, save for the revision of the contract value, the revision of the LOA will not have any material effect on the earnings of the Company or the net assets of the Group for the financial year ending 31 December 2024. The revision will enable the Group to allocate its resources to other existing and new contracts with better expected profit margins.

This announcement is dated 19 November 2024.