2. INFORMATION ON OBS (SINGAPORE) PTE. LTD, PT DAPO AGRO MAKMUR, KARLI BOENJAMIN, EFFENDI SURYONO AND ORIGINAL COST OF INVESTMENT

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1 GENERAL ANNOUNCEMENT - INVESTMENT IN PT DAPO AGRO MAKMUR ( PT DAPO ) 1. INTRODUCTION The Board of Directors of Oriental Holdings Berhad ( OHB ) has on 15 July 2011 obtained the approval from Menteri Hukum and Hak Asasi Manusia Republik Indonesia dated 5 July 2011 for the acquisition of PT Dapo Agro Makmur ( PT DAPO ) from Karli Boenjamin by OBS (Singapore) Pte Ltd ( OBS ) and Effendi Suryono ( Acquisition ).. On securing the approval from Menteri Hukum and Hak Asasi Manusia Republik Indonesia, PT DAPO s issued and paid up capital will be increased to Rp8,000,000,000 (8,000 units) and upon completion of the Acquisition, PT DAPO shall become a 90% subsidiary of OBS. 2. INFORMATION ON OBS (SINGAPORE) PTE. LTD, PT DAPO AGRO MAKMUR, KARLI BOENJAMIN, EFFENDI SURYONO AND ORIGINAL COST OF INVESTMENT OBS (SINGAPORE) PTE. LTD. OBS is a wholly owned subsidiary of Oriental Boon Siew (Mauritius) Pte Ltd ( OBSM ), which in turn is a 50.5% subsidiary of OHB. OBS was incorporated in Singapore on 8 March The issued and paid up share capital of OBS is Singapore Dollars 100,000. The principal activities are investments and granting of loans. PT DAPO AGRO MAKMUR PT DAPO, a limited liability company, duly organised and existing under the laws of the Republic of Indonesia, having its address at Jalan Garuda Dempo No. 65, RT.04, Kelurahan Keputraan, Kecamatan Lubuk Linggau Barat II, Kota Lubuk Linggau, Sumatera Selatan, Indonesia. PT DAPO was incorporated on 29 April 2010 and dormant currently. Its present authorised share capital is Rp8,000,000,000 divided into 8,000 shares having a par value of Rp 1,000,000 each whilst it present issued and fully paid-up share capital is Rp8,000,000 divided into 8,000 shares having a par value of Rp1,000,000 each. The intended principal activities are cultivation of oil palm plantation and related activities. The existing director of PT DAPO is Effendi Suryono (KTP No: ) and existing Commissioner is Karli Boenjamin (KTP No: ). It does not have any audited accounts and based on its management accounts, the Net Asset of PT DAPO as at was Rp 1,437,000,000 (approximately RM 505,824). KARLI BOENJAMIN Karli Boenjamin ( KB ) is an Indonesian citizen, (KTP No: ), having his address at Pantai Mutiara, Kaveling R/19, Rukun Tetangga 009, Rukun Warga 016, Kelurahan Pluit, Kecamatan Penjaringan, Kotamadya Jakarta Utara, Indonesia. The original cost and date of investment of KB in PT DAPO is as follows :- Date of Allotment No. of Shares Par Value Cumulative cost of Allotted investment ,080 Rp500,000 Rp540,000,000

2 -2- EFFENDI SURYONO Effendi Suryono ( ES ) is an Indonesian citizen, (KTP No: ) having his address at Jalan Mitro, Gang Srikaya No. 37, Rukun Tetangga 01, Rukun Warga : 03, Kelurahan Air Selemba, Kecamatan Pangkal Balam, Kotamadya Pangkal Pinang, Pulau Bangka, Indonesia. The original cost and date of investment of ES in PT DAPO is as follows :- Date of Allotment No. of Shares Par Value Cumulative cost of Allotted investment Rp500,000 Rp60,000, SALIENT FEATURES Some of the salient features are as follows :- 3.1 KB and ES are currently the registered holders and beneficial owners of 1,080 and 120 fully paid share in the share capital of PT DAPO, each having a par value of Rp500,000. ( Sale Shares ) 3.2 KB and ES agree to sell and transfer and OBS agrees to purchase and accept all right, title and interest in the Sale Shares together with all accrued rights attaching thereto free from all encumbrances and claims and the Sale Shares at any time comprise 90.0% (ninety percent) of the issued shares of the Company as in accordance with the Share Sale Agreement entered into. 3.3 PT DAPO has been issued a Location Permit No. No.472/KPTS/BPM-PTP/2010, dated 10 th December 2010 by the competent Indonesian Government in respect of a piece of land ( Said Land ) in Kecamatan BTS Ulu, Kabupaten Musi Rawas, Provinsi Sumatera Selatan, Indonesia having an area of approximately 10,100 hectares. 3.4 The Said Land is a concession pursuant to the Ijin Usaha Perkebunan (Plantation Business License) issued by the Indonesian Government to the Company in which the INTI refers to the concession rights to the Land which belongs to the PT DAPO (concession owner/investor) is required to comply to the PLASMA Programme stipulated in accordance with Law No. 18 of 2004 on Plantations and Minister of Agriculture Decree No. 357 of 2002 on Guidance on Plantation Business License including subsequent amendment and its implementing regulations. 3.5 The PLASMA (small farmers) programme requires the INTI to assist in building, operating and at a later date transfer the portion of land to PLASMA. The land area allocated to the PLASMA is dependent on the number of family heads in the concession area. 3.6 In this concession, the INTI and PLASMA land is in the approximate ratio of 80:20 i.e. 8,080 hectares and 2,020 hectares respectively. Under the Izin Lokasi (Location Permit) 20% of the concession rights to the Land is reserved for the locals, meaning that 80% of the concession rights to the Land belongs to PT DAPO. 3.7 The Location Permit is issued for 36 months ( 3 years) with an extension of 12 months (1 year) subject to the relevant approvals. PT DAPO has the concession rights to develop the Land into a palm oil plantation. 4. RATIONALE FOR THE TRANSACTION The purpose of the above transaction is to enable the Group to further expand in plantation division. 5. PROSPECTS Based on the past sixteen years experience in the development of oil palm plantations in Indonesia and given the good soils and climatic conditions at PT DAPO and the assistance and support by our local partner, we are confident to develop the Lands into a oil palm plantation within the time frame allowed by the local authorities. The Board is confident that the acquisition will further enhance the plantation division s contribution to OHB s performance in the future.

3 6. PURCHASE CONSIDERATION AND LIABILITIES TO BE ASSUMED -3- The sales and purchase price of the Sale Shares shall be USD3,434,000 (RM Million equivalent) based on the acquisition price of the Land at US$ per hectare covering the INTI Portion and US$ covering the PLASMA portion. The purchase consideration has been arrived at on a willing buyer willing seller basis based on the basis that the cost of the concession rights, which has increased overtime, reflects the scarcity of suitable land for oil palm development in Indonesia. It is considered fair, reasonable and on current commercial terms for accessible land suitable for palm oil cultivation in the province of South Sumatra if benchmarked with previous purchase costs in 1994-USD250 per hectare, in 2007-USD400 per hectare and in 2010-USD500 per hectare. The purchase consideration is via internally generated funds. There is no liability to be assumed from the Acquisition. 7. FINANCIAL EFFECTS OF THE TRANSACTIONS The acquisition will not have any effect on the issued and paid-up share capital of OHB and has no material effect on the earnings, net assets, gearing of the Group and stockholdings of substantial stockholders of OHB. The highest percentage ratio applicable to the transaction pursuant to paragraph 10.02(g) of the Listing requirements is 1.11%. 8. APPROVAL No stockholders approval is required. All Indonesian regulatory approvals have been obtained. Regulatory approvals, if any, from Malaysia will be obtained where required. 9. DIRECTORS AND MAJOR STOCKHOLDERS INTERESTS AND PERSON CONNECTED TO DIRECTORS AND MAJOR STOCKHOLDERS None of the Directors and/or major stockholders and/or persons connected with a director or a major stockholder of OHB have any interest, direct and indirect in the joint venture except the following : Karli Boenjamin is a director and substantial shareholder of 7.5% of the subsidiaries of OHB, namely PT Gunung Maras Lestari, PT Gunungsawit Bina Lestari. He is also a director and substantial shareholder of 10% each in PT Bumi Sawit Sukse Pratama and PT Gunung Sawit Selatan Lestari, another subsidiaries of OHB. 10. TOTAL AMOUNT TRANSACTED WITH THE SAME RELATED PARTY FOR THE PRECEDING TWELVE (12) MONTHS The related party transaction with the same related party for the preceding 12 months is USD 11,299,020 (RM 33,959,204.61). 11. DOCUMENTS FOR INSPECTION The Share Sale Agreement will be made available for inspection at the registered office of OHB at Suite 2-1, 2 nd Floor, Menara Penang Garden, 42A Jalan Sultan Ahmad Shah, Penang during normal business hours from Monday to Friday (except public holidays) for a period of three months from the date of this announcement. 12. TIME FRAME FOR COMPLETION The Acquisition is expected be completed within 3 months from the date of this announcement. 13. STATEMENT BY AUDIT COMMITTEE AND THE BOARD OF DIRECTORS The Audit Committee and the Board of Directors having considered all aspects of the Acquisition, are of the view that the Acquisition is fair, reasonable and on normal commercial terms and it is in the best interest of the Company and not detrimental to the interest of the minority shareholders. They are of the opinion that the said investment is a good investment opportunity for the Group as they expect the Acquisition is to contribute to the future earnings of OHB Group.

4 RISKS IN RELATION TO THE ACQUISITION The Board does not foresee any material risk pursuant to the Acquisition except for cross border risks, the industry risks and other risks on the acquisition and will continue to put in place the necessary controls and action plans to mitigate those risks. This announcement is dated 18 July 2011.

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