MATERIAL LITIGATION SUMMONS WITH NOTICE RECEIVED FROM JUSTIN SANTIAGO

MATERIAL LITIGATION SUMMONS WITH NOTICE RECEIVED FROM JUSTIN SANTIAGO

FAVELLE FAVCO BERHAD

Favelle Favco Berhad ("Favco" or the "Company") wishes to announce that the Company has been informed that a Summons with Notice in an action commenced by Justin Santiago, the plaintiff in the Supreme Court of the State of New York, was left at the business premises of its wholly-owned U.S. subsidiary, Favelle Favco Cranes (USA) Inc. ("FFC USA") on 24 June 2026. The action names FFC USA, Favco and several other parties as defendants. The plaintiff is seeking damages of USD25,000,000 in respect of alleged injuries, harm and losses arising from a crane incident in New York in July 2023.

The Company understands that FFC USA's involvement was limited to the supply of the crane. Neither Favco nor FFC USA owned, operated or maintained the crane at the time of the incident. The Company further notes that the official independent investigation report did not attribute the incident to any failure by the manufacturer.

Based on the information presently available, the Company believes that it has strong grounds to defend the claims against Favco and FFC USA. The Company has notified its insurer of the claim and will take all necessary steps to vigorously defend the proceedings.

This announcement is dated 29 June 2026.