Announcement – Favelle Favco Berhad (“Ffb” or “Company”) Proposed Acquisition by Ffb of a Crane Fabrication Yard Comprising Freehold Industrial Land, Buildings and Improvements, Located at No. 28 Yarrunga Street, Prestons, New South Wales, 2170 Australia With a Total Land Area Measuring Approximately 11.6 Acres From Muhibbah Engineering (M) Bhd for a Total Purchase Consideration of Aud15,000,000 (Equivalent to Rm48,091,500), to Be Satisfied via the Issuance of 31,678,743 New Ordinary Shares of Rm0.50 Each in Ffb (“Proposed Acquisition”)

FAVELLE FAVCO BERHAD

19/09/2012 12:36:02 PM

We refer to the announcement dated 25 June 2012 in relation to the Proposed Acquisition (“Announcement”). Unless otherwise stated, the definitions used herein shall have the same meanings as defined in the Announcement.

On behalf of the Board, Maybank IB wishes to announce that Bursa Securities has, vide its letter dated 14 September 2012, approved the listing and quotation of 31,678,743 FFB Shares to be issued at RM1.5181 per FFB Share (“Consideration Shares”) as the Purchase Consideration pursuant to the Proposed Acquisition subject to the following conditions:

1. FFB and Maybank IB must fully comply with the relevant provisions under the Listing Requirements pertaining to the implementation of the Proposed Acquisition;
2. FFB and Maybank IB to inform Bursa Securities upon the completion of the Proposed Acquisition;
3. FFB and Maybank IB to furnish the following to Bursa Securities prior to the quotation of the Consideration Shares:
   1. Confirmation from Maybank IB that all approvals required from the relevant authorities for the Proposed Acquisition have been obtained;
   2. A certified true copy of the resolution passed by the shareholders of FFB at the EGM approving the Proposed Acquisition;
   3. FFB to furnish Bursa Securities with a written confirmation of its compliance with the terms and conditions of Bursa Securities’ approval once the Proposed Acquisition is completed; and
   4. To incorporate Bursa Securities’ comments in respect of the circular to shareholders.

This announcement is dated 19 September 2012.