Announcement – Favelle Favco Berhad (“Favco” or “the Company”) Provision of Financial Assistance Pursuant to Practice Note No. 11/2001 of the Listing Requirements of Bursa Malaysia Securities Berhad

On behalf of the Board of Favco, we wish to announce that pursuant to Practice Note No. 11/2001, the aggregate amount of financial assistance provided during the quarter ended 31 March 2009 to facilitate the ordinary course of business of the Company and the Group is as per the table under Tables Section below. There would be no significant financial impact to the earnings and cash flow of Favco Group as a result of the below financial assistance granted during the reporting quarter as these guarantees are not expected to be realised and called upon.