The Proposed Acquisitions entail the acquisition by LTHB of all the subsidiaries of LTIGL as follows:-

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1 LATITUDE TREE HOLDINGS BERHAD ( LTHB OR COMPANY ) PROPOSED ACQUISITION OF ALL THE SUBSIDIARIES OF LATITUDE TREE INTERNATIONAL GROUP LTD. FOR AN AGGREGATE CONSIDERATION OF SGD46,770, (RM117,018,540.00) (Unless otherwise stated, the exchange rate of Singapore Dollar ( SGD ) 1.00: RM2.502, being the middle rate published by Bank Negara Malaysia ( BNM ) on 31 January 2013, has been used throughout this Announcement. The disclosure of direct and indirect interests and substantial shareholdings in companies not incorporated in Malaysia in this Announcement are made in accordance with Section 6A and 69D of the Companies Act, 1965.) This Announcement is dated 5 February INTRODUCTION On behalf of the Board of Directors of Latitude Tree Holdings Berhad ( Board ), AmInvestment Bank Berhad ( AmInvestment Bank ) wishes to announce that the Company proposes to acquire all the subsidiaries of Latitude Tree International Group Ltd. ( LTIGL ), a 77.62%-owned subsidiary of LTHB, for an aggregate consideration of SGD46,770, ( Purchase Consideration ) ( Proposed Acquisitions ). Accordingly, AmInvestment Bank had, on behalf of LTHB, served the letter of offer to the board of directors of LTIGL on even date to notify them of the Company s intention to undertake the Proposed Acquisitions ( Offer Letter ). The Proposed Acquisitions is subject to the share sale agreement comprising the terms and conditions to be agreed upon by LTHB and LTIGL and the share sale agreement shall be executed within six (6) weeks from the date of acceptance of the Offer Letter. 2. DETAILS OF THE PROPOSED ACQUISITIONS The Proposed Acquisitions entail the acquisition by LTHB of all the subsidiaries of LTIGL as follows:- (i) (ii) (iii) (iv) 13,523,396 ordinary shares, representing 99.99% of the share capital in Latitude Tree Vietnam Joint Stock Company ( LTVJS ); 2,350,000 ordinary shares, representing 85.00% of the share capital in Grob Holz Company Ltd ( GHCL ); 50,000 ordinary shares, representing 100% of the share capital in Latitude Tree International. Ltd. ( LTIL ); and 1 ordinary share, representing 100% of the share capital in Linkage Creation International Co. Ltd. ( LCICL ) (collectively referred to as Sale ). LTVJS, GHCL, LTIL and LCICL are hereinafter collectively referred to as the Target Companies. Please refer to Appendices I and III for further details of the Target Companies and the properties held by the Target Companies respectively.

2 2.1 Background Information on LTIGL LTIGL is an investment-holding company incorporated in Singapore on 8 October 2007 with an issued and paid-up share capital of SGD28,460,000 comprising 239,636,000 ordinary shares under the Singapore Companies Act (Chapter 50) as a private limited company under the name of Latitude Tree Pte. Ltd. Subsequently, the company changed its name to Latitude Tree International Group Pte. Ltd on 26 May On 17 June 2009, the company was converted to a public limited company and changed its name to Latitude Tree International Group Ltd. The company was listed on the Catalist Board of the Singapore Exchange Securities Trading Limited (the SGX-ST ) on 19 August LTHB presently owns 77.62% of the issued and paid-up share capital of LTIGL. LTIGL s businesses and operations are conducted via the Target Companies, which are the subject of the Proposed Acquisitions. As at 4 February 2013, the Directors of LTIGL and their respective shareholdings in LTIGL are as follows:- Shareholdings Direct Indirect No. Of % No. Of Designation % Yek Siew Liong Lin Chen Jui-Fen Non-Executive Chairman Chief Executive Officer and Executive Director 11, , , (b) Yeoh Joe Son Executive Director Toh Seng Thong Non-Executive Non- Independent Director Ng Wei Hua Independent Director Phuan Phui Seck Independent Director Peter Sim Swee Yam Independent Director Notes:- (b) Deemed interested via shareholdings held by his spouse, Ms Kiu Een Edith Kui Poh Een Deemed interested via shareholdings held by her late spouse, Mr Lin Tzu-Keng and LTHB

3 As at 4 February 2013, the substantial shareholders of LTIGL and their respective shareholdings in LTIGL are as follows:- Shareholdings Direct Indirect No. Of % No. Of % LTHB 182, , The Estate of Mr. Lin Tzu-Keng 1, , (b) Yek Siew Liong 11, , (c) Kiu Een Edith Kiu Poh Een 2, , (d) Lin Chen Jui-Fen , (e) Lin Chin-Hung , (e) Notes:- (b) (c) (d) (e) Deemed interested via shareholdings held by Maybank Kim Eng Securities Pte Ltd Deemed interested via shareholdings held by LTHB and the spouse of the late Mr. Lin Tzu-Keng, Mdm. Lin Chen Jui-Fen Deemed interested via shareholdings held by his spouse, Ms. Kiu Een Edith Kiu Poh Een Deemed interested via shareholdings held by her spouse, Mr. Yek Siew Liong Deemed interested via shareholdings held by the Estate of Mr. Lin Tzu-Keng and LTHB The original cost of investment in the Target Companies by LTIGL and the dates of such investments are as follows:- Amount Target Companies RM SGD Date of investment LTVJS 64,402,566 28,047, October 2008 GHCL 13,693,951 5,703, November 2012 LTIL 172,725 75, April 2009 LCICL April ,269,245 32,826,440

4 2.2 Purchase Consideration The total purchase consideration for the Sale shall be SGD46,770, ( Purchase Consideration ). The Purchase Consideration shall be satisfied in the following manner:- (i) (ii) by way of set-off against the capital due to be returned to LTHB amounting to the sum of SGD46,258, following the cancellation of 186,000,000 ordinary shares in LTIGL held by LTHB pursuant to a selective capital reduction exercise proposed to be carried out by LTIGL ( Proposed SCR ) within four (4) weeks (or such other timeframe as LTHB determines in consultation with LTIGL) after the satisfaction of all the conditions precedent ( Completion Date ) as stipulated in the Offer Letter; and the balance of the Purchase Consideration of SGD511, to be paid in cash ( Cash Portion ) on Completion Date. 2.3 Conditions Precedent of the Proposed Acquisitions The Proposed Acquisitions shall be conditional upon, inter alia, the following:- (i) (ii) (iii) (iv) the approval of the shareholders of LTHB for the Proposed Acquisitions; the approval of the shareholders of LTIGL for the disposal of the Sale to LTHB; the approval of the shareholders of LTIGL for the Proposed SCR; and the approval of any other relevant authority and/or persons for the Proposed Acquisitions. 2.4 Basis of arriving at the Purchase Consideration The Purchase Consideration was arrived at on a willing buyer-willing seller basis after taking into consideration the following:- (i) (ii) the earnings of the Target Companies of SGD8.61 million based on the audited financial statements of the Target Companies for the financial year ended ( FYE ) 30 June 2012; and the net assets attributable to the equity holders of the Target Companies of SGD51.20 million based on the audited financial statements as at 30 June The Purchase Consideration of SGD46,770, (equivalent to approximately RM117,018,540.00) or approximately SGD0.20 (equivalent to approximately RM0.49) per ordinary share in LTIGL ( LTIGL Share(s) ) represents a:- (i) (ii) price-earnings multiple of approximately 5.43 times based on the audited earnings per share ( EPS ) of SGD0.04 for the FYE 30 June 2012; and price-to-book multiple of approximately 0.91 times based on the audited net book value per share of SGD0.21 as at 30 June 2012.

5 2.5. Salient Terms of the Offer Letter The salient terms and conditions of the Offer Letter are, amongst others, the following:- (i) (ii) LTHB shall not be obliged to complete the purchase of any of the Sale unless the purchase of all of the Sale is completed simultaneously; LTIGL shall warrant that there is, in relation to the Sale :- (b) (c) no encumbrance, sale, assignment, transfer, option or any other disposal or dealing over or affecting the Sale ; no agreement or arrangement to give or create any circumstances which may give or create any such encumbrance, sale, assignment, transfer, option or other disposal or dealing; and no claim by any person to be entitled to or under any such encumbrance, sale, assignment, transfer, option or other disposal or dealing or agreement or arrangement; (iii) (iv) (v) LTHB shall be entitled to carry out legal, financial and tax due diligence investigations in relation to the Proposed Acquisitions. In connection with such due diligence, LTIGL shall provide LTHB with reasonable access to the premises, books and records and senior employees of LTIGL; Pending the completion of the Proposed Acquisitions, LTIGL shall procure LTVJS, GHCL, LTIL and/or LCICL not to declare, make and/or pay a dividend or other distribution of any nature whatsoever; and On the Completion Date, LTIGL shall cause the name of Latitude Tree International Group Ltd to be changed, which shall not contain the word Latitude Tree. 2.6 Source Of Funding The Cash Portion will be funded by internally-generated funds of LTHB and its subsidiaries ( LTHB Group ). 2.7 Encumbrances The Sale shall be acquired free from encumbrances and with all attached or accrued rights as at the date of completion of the Proposed Acquisitions. 2.8 Liabilities to be assumed There are no liabilities, including contingent liabilities and guarantees of the Target Companies, to be assumed by LTHB Group pursuant to the Proposed Acquisitions. 2.9 Financial Commitment The Company does not expect to incur any material financial commitment to put the businesses of the Target Companies on-stream as the businesses of the Target Companies are currently operational.

6 3. RATIONALE FOR THE PROPOSED ACQUISITIONS LTIGL is principally an investment holding company, with business operations conducted through its subsidiaries, i.e. the Target Companies, which are involved in the manufacture and sale of wooden furniture, furniture parts and components. The Proposed Acquisitions represent an opportunity for LTHB to increase its effective interest in the Target Companies, which would result in LTHB holding the Sale either directly or indirectly through a nominee company as determined at the sole discretion of LTHB. This will allow the LTHB Group to have direct control on the business development of the Target Companies without being subjected to regulatory restrictions and compliance obligations associated with the listing status of LTIGL on the SGX-ST. The LTHB Group will also be able to derive operational costs savings through the elimination of listing-related costs and expenses associated with the listing status of the LTIGL Group on the SGX-ST. The Board believes that the Proposed Acquisitions will enable the LTHB Group to better consolidate its existing operations to improve the LTHB Group s competitiveness and financial performance in the long run. 4. POLICIES ON THE FOREIGN INVESTMENTS, TAXATION AND REPATRIATION OF PROFITS OF THE COUNTRIES WHERE THE TARGET COMPANIES OPERATE The Company understands that foreign investments in the countries where the Target Companies operate (i.e. Vietnam, Thailand, Brunei Darussalam and Singapore) are generally permitted. In addition, the Company believes that the legal framework for foreign direct investment in the said countries favours the principle of freedom of foreign trade. The Company is not aware of any exchange controls prohibiting or restricting the transfer or repatriation of profits from the countries where the Target Companies operate. Furthermore, LTIGL has been repatriating profits from the countries where the Target Companies operate. 5. RISK FACTORS IN RELATION TO THE PROPOSED ACQUISITIONS In view that the Target Companies are currently indirect subsidiaries of LTHB Group, the Proposed Acquisitions are not expected to materially change the risk profile of LTHB Group s business. Similar to the LTHB Group, the Target Companies are exposed to, amongst others, business, operational and foreign exchange risks inherent to the wooden furniture industry.

7 6. INDUSTRY OVERVIEW AND PROSPECTS The principal business of the Target Companies is the manufacture, processing, trade and sale of wooden furniture. The products of the Target Companies are exported worldwide, with 90% of the LTIGL Group s revenue being derived from United States of America ( US ) for the FYE 30 June The Target Companies operations and source of raw materials are based in Vietnam and Thailand. The overview and outlook of the US economy and the wooden furniture industry in Vietnam and Thailand are set out below. 6.1 Overview And Outlook Of The US Economy Output in the US rose above the pre-crisis peak in the second half of 2011, sooner than in many other advanced economies. Still, compared with earlier recoveries, growth remains sluggish, consistent with the broad evidence of significant legacy effects of financial crises and housing busts. Job creation, which accelerated in the second half of 2011, slowed again in Weaker external conditions and the confluence of global spillovers explain much of the slowing, with a payback from the unusually warm winter weather also temporarily weighing on growth in the second quarter. On the demand side, growth in business investment lost some momentum, in part due to the partial expiration of bonus depreciation allowances, although uncertainty related to the fiscal and economic outlook may have also played a role. Private consumption has also moderated since early The housing market is showing signs of stabilising after a sharp correction. The US economy is projected to grow at about 2 percent during under the baseline, with uncertainty and weaker external demand weighing on aggregate demand. US inflation will stay subdued, given lower commodity prices and persistent economic slack, averaging 2 percent this year and declining to 1.75 percent in The near-term growth outlook is subject to large downside risks from both external and domestic factors. The main external risk pertains to a further escalation of the Euro area crisis. Although safe haven capital flows into the US could help to lower bond yields, supporting interest-sensitive components of aggregate demand, they also have been associated with real appreciation pressures, which dampen exports. As noted above, US growth will also fall sharply if potential output in the US and its major trading partners disappoints and risk aversion increases. A major US domestic risk is the potential for much sharper fiscal contraction if policymakers fail to reach an agreement to prevent large automatic tax increases and spending cuts scheduled to take effect at the beginning of At the extreme, the fiscal cliff could result in a fiscal withdrawal of more than 4 percent of GDP in about 3 percentage points of GDP larger than the fiscal adjustment assumed under the baseline. Growth would stall in 2013 with the full materialisation of the cliff and would inflict large spillovers on major US trading partners and also on commodity exporters (because of declines in commodity prices). Another fiscal risk, although relatively more medium term, relates to a potential jump in the risk premium on US Treasury bonds, reflecting investor concerns about the sustainability of US debt levels in the absence of a credible plan for medium-term consolidation. The rise in long term interest rates would lead to lower aggregate demand and growth, particularly in the US but also elsewhere through asset price and trade spillovers. More generally, a deterioration in economic conditions in the US economy that hurts investor confidence and raises risk aversion at the global level could induce sharp swings in global capital flows and asset prices. (Source: World Economic Outlook October 2012, International Monetary Fund)

8 The US economy grew at an annual rate of 2.3% in the third quarter (Second Quarter of 2012 ( 2Q 12 ): 2.1%). On a seasonally-adjusted annualised basis, the economy grew at 2.0% (2Q 12: 1.3%). Private consumption improved, particularly in demand for automobiles and non-durable goods. Household spending was sustained by the increase in credit and withdrawal in personal savings amid higher consumer confidence. Job creation remained positive, registering a stronger gain of 521,000 during the quarter (2Q 12: 200,000). Private fixed investments grew by 6.4% (2Q 12: 9.9%), as the tentative improvement in housing market led to higher residential investment. Federal government expenditures rose due to the larger-than expected increase in defence spending. The annual rate of inflation was lower at 1.7% (2Q 12: 1.9%). (Economic and Financial Developments in the Malaysian Economy in the Third Quarter of 2012, BNM) 6.2 Overview And Outlook Of The Industry Vietnam Vietnam is the largest wooden furniture exporter in the tropical region. In 2010, Vietnam s exports of wooden furniture and parts increased to USD3.4 billion, a significant jump (22%) on the previous year. Although Vietnam s furniture production costs are reportedly rising, Vietnam has a comparative advantage in labour and overall production costs compared to the largest wooden furniture and parts exporter, China. Vietnam also benefited from the anti-dumping measures imposed by the US on some Chinese furniture items and has become the largest wooden bedroom furniture exporter to the US, with exports growing by more than 30% per annum in recent years. Vietnam s exports of wooden bedroom furniture to the US were valued at USD1.1 billion in 2010, compared with China s at USD806 million. In 2011, Vietnam and the European Union ( EU ) successfully completed the second round of negotiation of a voluntary partnership agreement ( VPA ), which may be implemented prior to March 2013 when the EU Timber Regulation ( EUTR ) is due to take effect. Under the EUTR, any timber product licensed according to the terms of a VPA will be automatically recognized as legal in the EU market. European importers will be under no obligation to seek further safeguards (such as certification) to demonstrate the legal origin of VPA licensed timber. The agreement will be particularly significant for the Vietnamese wooden furniture manufacturing sector which is a major supplier to the EU. Although some Vietnamese manufacturers consider that the additional costs of VPA licensing may affect their cost competitiveness, others view the process as an opportunity to gain greater share of the European market. Despite facing raw material shortages and rising production costs, Vietnam is expected to further expand its wooden furniture exports in the coming years, and overcome the challenges of the depressed EU and US markets. Secondary processed wood products ( SPWP ) exports of all major International Tropical Timber Organisation ( ITTO ) producer exporters expanded in 2010, with ITTO producers accounting for 12% of world SPWP exports. The Asia-Pacific region was the dominant ITTO exporting region, accounting for 76% of producer exports due to growing intra-regional trade supported by free trade agreements and rising demand in the ASEAN region. In contrast, Africa s SPWP exports have continued to decline in recent years, and in 2010 remained at a relatively low level. Although Vietnam s SPWP exports declined in 2009 as a result of reduced consumer demand for wooden furniture in traditional markets, exports (mainly wooden furniture and parts) expanded significantly in recent years, making Vietnam the largest tropical country exporter in 2007.

9 In 2010, exports recovered to a peak of USD3.7 billion, an 81% jump on the previous year s value. Vietnam has a comparative advantage in labour and overall production costs in comparison with the largest wooden furniture exporter China, and has moved towards the final round of a VPA with the EU which, if implemented, will ensure access of Vietnamese products to EU markets after the implementation of the EUTR in Following Vietnam, ITTO producer countries including Malaysia, Indonesia, Brazil, Thailand, and the Philippines were the other major exporters of SPWPs. ITTO producers continued to play a more significant role in global mouldings exports compared with exports of other SPWP items, accounting for over 32% of world exports of wooden mouldings in The US continued to be the largest importer of wooden furniture and parts with imports valued at $13.5 billion, accounting for nearly 31% of total imports by ITTO consumers and 26% of the world s imports in Imports in 2010 had rebounded from three successive years of decline, increasing 20% on the previous year, and assisted by growth in employment, low interest rates and stabilizing home prices which had push up consumer spending and demand for furniture. In early 2012, US furniture sales improved modestly in spite of increase in wooden furniture prices, implying that the volume of furniture demand may have declined. Furniture prices are expected to rise in late 2012 as furniture production costs in China and Vietnam escalate. (Source: Annual Review and Assessment of the World Timber Situation 2011, International Tropical Timber Organization) Thailand Thailand s wooden furniture industry faces considerable competition from regional competitors, Malaysia, Indonesia, Vietnam, Taiwan and China in particular. Malaysia was the first country to use parawood for large-scale furniture production and benefits from slightly lower production costs than Thailand. China is beginning to import processed rubber-wood for use in its furniture manufacturing industry and enjoys the advantage of significantly cheaper labour expenses. As rival countries advance their production quality, the level of competition for Thailand s furniture exporters is expected to heat up. Various government agencies and industry representatives have been active in promoting and encouraging Thailand s furniture exports. The Department of Export Promotion ( DEP ) stepped up its efforts in showcasing Thailand s furniture exporters during the economic crisis when domestic purchases of furniture slumped by over 70 percent. The DEP currently works with the Thailand Furniture Industry Association to stage an annual trade show, along with coordinating participation in relevant trade events abroad. (Source: Country report - Overview of Thailand s Furniture Industry, Furniture & Furnishing Export International, January/February 2012)

10 6.3 Prospects of the Target Companies The wooden furniture industry in Vietnam and Thailand is export-oriented and is mostly exported to the US market. The growth of the wooden furniture industry in Vietnam and Thailand are attributable to, amongst others, availability of timber resources and the comparative advantage of labour and production costs. The exchange rates between USD and the functional currencies of the Target Companies in Vietnam and Thailand also render the wooden furniture produced by the Target Companies to be competitively priced. The Target Companies have been exporting their products to US for over 10 years. Despite the uncertainties associated with the US economy, the Board believes that the Target Companies track records and established customer base will enable the LTHB Group to continue to expand their businesses in the US market. In addition, with the Target Companies manufacturing operations being based in Vietnam and Thailand, the Target Companies are able to enjoy the availability of timber resources and the advantages of labour and production costs. (Source: Management of LTHB) Premised on the above, the Board believes that the prospects of the Target Companies are positive. However, this positive expectation is susceptible to the slowdown in the US economy and fluctuations in the USD exchange rate vis-a-vis the RM.

11 7. FINANCIAL EFFECTS OF THE PROPOSED ACQUISITIONS 7.1 Share Capital and Substantial Shareholders Shareholdings The Proposed Acquisitions will not have any effect on the issued and paid-up share capital and substantial shareholders' shareholdings of the Company as the Proposed Acquisitions do not involve the issuance of new shares in the Company. 7.2 Net Assets ( NA ) and Gearing Based on the audited consolidated financial statements of the LTHB Group as at 30 June 2012, the proforma effects of the Proposed Acquisitions on the consolidated NA per LTHB Share and gearing of the LTHB Group, assuming the Proposed Acquisitions had been effected on that date are as set out below:- Audited as at 30 June 2012 After the Proposed Acquisitions RM 000 RM 000 Share Capital 97,208 97,208 Share premium 1,225 1,225 Other reserves (4,875) (3,062) Retained earnings 116, ,034 Shareholders funds/na 209, ,405 No. of in issue ( 000) 97,208 97,208 NA per Share (RM) Total borrowings (RM 000) 102, ,751 Gearing (times) Cash (RM 000) 59,942 58,061 Notes:- (b) (c) Assuming completion of the Proposed SCR to be undertaken by LTIGL Assuming estimated expenses in relation to the Proposed Acquisitions amounting to RM0.6 million. Assuming the following:- (i) (ii) The exchange rate is based on SGD1.00: RM2.502 ; and The effects of the Proposed Acquisitions have been computed based on the audited financial statements of LTIGL for the FYE 30 June Earnings and Earnings Per LTHB Share ( EPS ) The Proposed Acquisitions are expected to be completed by the first (1 st ) half of calendar year The Proposed Acquisitions are expected to contribute positively towards the earnings and EPS of LTHB Group for the FYE 30 June 2013 as it would allow LTHB to fully consolidate the financial results of the Target Companies.

12 8. APPROVALS REQUIRED The Proposed Acquisitions are subject to the following approvals being obtained:- (i) (ii) shareholders of the Company at an EGM to be convened for the Proposed Acquisitions; the shareholders of LTIGL at an EGM to be convened for the Proposed Acquisitions and the Proposed SCR; and (iii) any other relevant authority and/or persons for the Proposed Acquisitions (if required).. The Proposed Acquisitions are not conditional upon any other proposals. 9. CORPORATE EXERCISE ANNOUNCED BUT PENDING COMPLETION Save for the proposed disposal of 1,405,250 ordinary shares of New Taiwan Dollar ( NTD ) 10 each in Win Yuan Bio Tech Co. Ltd. ( Win Yuan ) ( Win Yuan ) to Mr Chen Cheng-Pin ( Purchaser ) by Uptown Promenade Sdn Bhd ( Uptown Promenade ), a wholly-owned subsidiary of the Company, for a total consideration of NTD5 million as announced on 31 December 2012 on Bursa Securities, LTHB Group does not have any corporate exercise which has been announced on Bursa Securities but pending completion as at the date of this Announcement. For information, as at the LPD, Uptown Promenade is in the midst of making arrangements to transfer the Win Yuan to the Purchaser. 10. DIRECTORS AND MAJOR SHAREHOLDERS INTERESTS Save as disclosed below, none of the Directors and/or major shareholders of the Company and persons connected to them are interested in the Proposed Acquisitions as the Directors and/or major shareholders and persons connected to them do not have any direct or indirect interest in the Proposed Acquisitions:- (i) (ii) (iv) (v) The Estate of Mr. Lin Tzu Keng, being a major shareholder of LTHB and LTIGL; Mdm. Lin Chen Jui-Fen, a major shareholder of LTHB and a shareholder of LTIGL, the Deputy Chairman and Non-Independent Non-Executive Director of LTHB and also the Chief Executive Officer and Executive Director of LTIGL; Mr. Yek Siew Liong, a major shareholder of LTHB and deemed substantial shareholder of LTIGL, the Non-Independent Non-Executive Director of LTHB and also the Non- Executive Chairman of LTIGL; and Mr. Lin Chin-Hung, a major shareholder of LTHB and LTIGL and also the Managing Director of LTHB. (The Estate of Mr. Lin Tzu Keng, Mdm. Lin Chen Jui-Fen, Mr. Yek Siew Liong and Mr. Lin Chin- Hung are collectively referred to as Interested Major Shareholders/Directors ).

13 The interests of the interested directors in LTHB as at 4 February 2013 are set out in the following table:- Direct No. of ( 000) Shareholdings Indirect No. of % ( 000) % Mdm. Lin Chen Jui-Fen 11, , Mr. Lin Chin-Hung , (b) Mr. Yek Siew Liong , (c) Notes:- (b) (c) Deemed interested via shareholdings held by her late spouse (i.e. Mr. Lin Tzu-Keng) and child s (i.e. Mr. Lin Chin-Hung) interest in the Company pursuant to Section 6A of the Act Deemed interested via shareholdings held by his parents (i.e. the late Mr. Lin Tzu-Keng and Mdm. Lin Chen Jui-Fen) pursuant to Section 6A of the Act Deemed interested via shareholdings held by Konsortium Kontrek Sdn Bhd pursuant to Section 6A of the Act The Interested Major Shareholders/Directors, who are Directors of LTHB, have abstained from all board deliberations and voting in respect of the Proposed Acquisitions. They will also continue to abstain from voting in respect of their direct and indirect shareholdings in LTHB on the resolution pertaining to the Proposed Acquisitions at the forthcoming EGM. The Interested Major Shareholders/Directors have undertaken that they will ensure that persons connected with them will abstain from voting in respect of their direct and indirect shareholdings in LTHB on the resolution pertaining to the Proposed Acquisitions at the forthcoming EGM. 11. DIRECTORS STATEMENT After having considered all aspects of the Proposed Acquisitions (including but not limited to the rationale, prospects and financial effects), the Board of LTHB (save for the Interested Major Shareholders/Directors) is of the opinion that the Proposed Acquisitions are fair, reasonable and on normal commercial terms and are not detrimental to the interest of the minority shareholders. The Board (save for the Interested Major Shareholders/Directors) is also of the opinion that the Proposed Acquisitions are in the best interest of the LTHB Group. 12. AUDIT COMMITTEE S STATEMENT The Audit Committee of LTHB, having considered all aspects of the Proposed Acquisitions, is of the opinion that the Proposed Acquisitions are:- (i) (ii) (iii) in the best interest of LTHB, after taking into consideration the rationale disclosed in this announcement; fair, reasonable and on normal commercial terms; and not detrimental to the interest of LTHB s non-interested shareholders.

14 13. ESTIMATED TIME FRAME FOR SUBMISSION TO RELEVANT AUTHORITIES Barring any unforeseen circumstances, the applications to the regulatory authorities in relation to the Proposed Acquisitions are expected to be made within two (2) months from the date of this announcement. 14. ESTIMATED TIMEFRAME FOR THE COMPLETION OF THE PROPOSED ACQUISITIONS Barring any unforeseen circumstances, the Proposed Acquisitions are expected to be completed by the first (1 st ) half of calendar year HIGHEST PERCENTAGE RATIO It should be noted that presently LTHB has an indirect interest in the Target Companies via its 77.62% interest in LTIGL. The highest percentage ratio applicable to the Proposed Acquisitions pursuant to Paragraph 10.02(g) Chapter 10 of the Listing Requirements is 212%, which has been computed by dividing the net profits attributable to the assets which are the subject matter of the Proposed Acquisitions with the net profits of the Company based on the latest audited consolidated financial statements of LTHB for the FYE 30 June ADVISERS AmInvestment Bank has been appointed as the Malaysian Adviser to the Company for the Proposed Acquisitions. In view of the interests of the directors and major shareholders set out in Section 10 of this announcement, the Proposed Acquisitions are deemed related party transactions. In this respect, the Board has appointed Inter-Pacific Securities Sdn Bhd to act as the Independent Adviser for the Proposed Acquisitions to provide the non-interested shareholders of LTHB with an independent evaluation on whether the Proposed Acquisitions are fair and reasonable and not detrimental to the non-interested shareholders of LTHB. 17. OTHER TRANSACTIONS WITH RELATED PARTIES Save as disclosed below, there were no other transactions entered into between the Company and LTIGL during the twelve (12) months preceding the date of this announcement:- (i) (ii) (iii) the Proposed Acquisitions; the disposal of 1,997,500 ordinary shares of THB100 each in GHCL, representing 85% of the issued and paid-up share capital of GHCL to LTIGL by Grob Holz Sdn Bhd, a whollyowned subsidiary of LTHB, for a total cash consideration of THB148,560,000 or approximately RM14,831,972, which was completed on 26 November 2012 and announced to Bursa Securities on 27 November 2012; and recurrent transactions of a revenue and trading in nature as disclosed in the circular to shareholders dated 26 November 2012.

15 18. DOCUMENTS FOR INSPECTION The Offer Letter will be made available for inspection during normal business hours at the Registered Office of the Company at Lot 6.05, Level 6, KPMG Tower, 8 First Avenue, Bandar Utama, Petaling Jaya, Selangor, Malaysia from Mondays to Fridays (except public holidays) from the date of this announcement up to and including the date of the EGM of the Company to be convened in relation to the Proposed Acquisitions.

16 APPENDIX I INFORMATION ON TARGET COMPANIES 1. Information on LTVJS LTVJS was incorporated in Vietnam on 21 December 2000 and subsequently converted into a joint stock company on 7 January The principal activities of LTVJS are the manufacturing, processing and trading of wooden household furniture. The principal market for LTVJS is the United States of America. As at the LPD, the authorised share capital of LTVJS is Vietnamese Dong ( VND ) 135,234 million comprising 13,523,400 ordinary shares of VND10,000 each and are fully issued and paidup. As at 4 February 2013, the shareholders of LTVJS and their shareholdings are as follows:- Shareholdings Direct Indirect Nationality/Country of No. Of % No. Of % Incorporation LTIGL Singapore 13,523, * LTHB Malaysia ,523, (b) The Estate of Mr. Lin Tzu- Taiwan ,523, (b) Keng Lin Chin-Hung Taiwanese ,523, (b) Lin Chen Jui-Fen Taiwanese ,523, (b) Notes:- * Immaterial (b) Deemed interested via shareholdings held by Latitude Tree International Ltd and Linkage Creation Co. Ltd, which are wholly-owned subsidiaries of LTIGL, pursuant to Section 6A of the Act. Deemed interested pursuant to Section 6A of the Act. RK Resources Co., Ltd, a wholly-owned subsidiary of LTVJS, was incorporated in Vietnam on 16 May The details of the directors of LTVJS and their respective shareholdings in LTVJS as at the LPD are as follows:- Shareholdings Nationality Designation Direct No. Of % No. Of Indirect Mdm. Lin Chen Jui-Fen Taiwanese Director ,523, Mr. Yeoh Joe Son Malaysian Director Mr. Liu Kun-Chin Taiwanese Director % Note:- Deemed interested via shareholdings held by LTHB / LTIGL pursuant to Section 6A of the Act.

17 APPENDIX I INFORMATION ON TARGET COMPANIES (CONT D) 2. Information on GHCL GHCL was incorporated in Thailand as a private limited company under the Thai Civil and Commercial Code on 6 October As at the LPD, GHCL is a 85%-owned subsidiary of LTIGL. GHCL is principally involved in the manufacture and sale of dried sawn timber, laminated board, wooden furniture parts and components. The principal market for LTVJS is Malaysia, Thailand and Vietnam. As at the LPD, the authorised share capital of GHCL is Thai Baht ( THB ) 235,000,000 comprising 2,350,000 ordinary shares of THB100 each and are fully issued and paid-up. As at 4 February 2013, the shareholders of GHCL and their shareholdings are as follows:- Shareholdings Direct Indirect Nationality/Country of No. Of % No. Of % Incorporation LTIGL Singapore 1,997, LTHB Malaysia - - 1,997, The Estate of Mr. Lin Tzu- Taiwan - - 1,997, Keng Lin Chin-Hung Taiwanese - - 1,997, Lin Chen Jui-Fen Taiwanese - - 1,997, Notes:- * Immaterial Deemed interested pursuant to Section 6A of the Act. The details of the directors of GHCL and their respective shareholdings in GHCL as at the LPD are as follows:- Shareholdings Direct Indirect No. Of % No. Of % Nationality Designation Mdm. Lin Chen Jui-Fen Taiwanese Director - - 2, Mr. Yek Siew Liong Malaysian Director (b) Notes:- (b) Deemed interested via shareholding held by LTHB/LTIGL pursuant to Section 6A of the Act. Deemed interested via shareholding held by Konsortium Kontrek Sdn Bhd pursuant to Section 6A of the Act.

18 APPENDIX I INFORMATION ON TARGET COMPANIES (CONT D) 3. Information on LTIL LTIL is a company incorporated in the British Virgin Islands on 21 March 2007 as a private limited company under its present name. As at the LPD, LTIL is a wholly-owned subsidiary of LTIGL. The principal activities of LTIL are that of an investment holding company. LTIL is currently dormant. As at the LPD, the authorised share capital of LTIL is USD50,000 comprising 50,000 ordinary shares of USD1.00 each and are fully issued and paid-up. As at 4 February 2013, the shareholders of LTIL and their shareholdings are as follows:- Shareholdings Direct Indirect Nationality/Country of No. Of % No. Of % Incorporation LTIGL Singapore 50, LTHB Malaysia , The Estate of Mr. Lin Tzu- Taiwan , Keng Lin Chin-Hung Taiwanese , Lin Chen Jui-Fen Taiwanese , Notes:- * Immaterial Deemed interested pursuant to Section 6A of the Act. The details of the directors of LTIL and their respective shareholdings in LTIL as at the LPD are as follows:- Shareholdings Nationality Designation Direct No. Of % No. Of Indirect Mdm. Lin Chen Jui-Fen Taiwanese Director , % Note:- Deemed interested via shareholdings held by LTHB / LTIGL pursuant to Section 6A of the Act.

19 APPENDIX I INFORMATION ON TARGET COMPANIES (CONT D) 4. Information on LCICL LCICL is a company incorporated in Brunei Darussalam on 13 April 2007 as a private limited company under its present name. As at the LPD, LCICL is a wholly-owned subsidiary of LTIGL. The principal activity of LCICL is investment holding. LTIL is currently dormant. As at the LPD, the authorised share capital of LCICL is USD5,000,000 comprising 5,000,000 ordinary shares of USD1.00 each, of which USD1.00 comprising 1 ordinary share of USD1.00 each has been issued as fully paid-up. As at 4 February 2013, the shareholders of LCIL and their shareholdings are as follows:- Shareholdings Direct Indirect Nationality/Country of No. Of % No. Of % Incorporation LTIGL Singapore LTHB Malaysia The Estate of Mr. Lin Tzu- Taiwan Keng Lin Chin-Hung Taiwanese Lin Chen Jui-Fen Taiwanese Notes:- * Immaterial Deemed interested pursuant to Section 6A of the Act. The details of the directors of LCICL and their respective shareholdings in LCICL as at the LPD are as follows:- Shareholdings Nationality Designation Direct No. Of % No. Of Indirect Mdm. Lin Chen Jui-Fen Taiwanese Director Note:- % Deemed interested via shareholding held by LTHB / LTIGL pursuant to Section 6A of the Act.

20 APPENDIX II SUMMARY OF KEY FINANCIAL DATA 1. SUMMARY OF KEY FINANCIAL DATA The table below sets out a summary of LTIGL s audited consolidated financial statements for the FYE 30 June 2010, FYE 30 June 2011 and FYE 30 June 2012:- Audited (1) 2012 FYE 30 June SGD 000 SGD 000 USD 000 USD 000 Revenue 149, , , ,534 Profit/ (Loss) Before Tax ( PBT/LBT ) 18,540 14,173 13,653 8,964 Taxation (1,584) (870) (870) (810) Profit/ (Loss) After Tax ( PAT/LAT ) 16,956 13,303 12,783 8,154 Paid-up capital 28,460 28,460 28,460 28,460 Shareholders Funds/ Net Assets 52,342 52,176 55,903 55,726 Total borrowings 36,141 29,145 33,621 34,610 (Source: SGX website) Note:- (1) Prior to 1 July 2011, the functional currency of LTIGL Group was SGD and all transactions in currencies other than SGD were treated as transactions in foreign currencies. In the FYE 30 June 2012, the Company reassessed its functional currency and determined that the functional currency should be USD to better reflect the currency of the primary economic environment. This change has been applied retrospectively and the comparative figures have been restated accordingly. For the purpose of the commentaries on financial performance the FYE 30 June 2011, the analytics have been based on the previous functional currency (i.e. SGD). Commentaries on financial performance FYE 30 June 2010 The LTIGL Group recorded revenue of SGD149.5 million in the FYE 30 June 2010, representing an increase of 23.0% from the revenue recorded in the FYE 30 June 2009 of SGD121.5 million. The increase in revenue was mainly supported by general improvement in global economic conditions (particularly the US economy). Additionally, increase in orders from pent-up demand for furniture as well as higher production output from the two factories in Vietnam contributed to the increase in revenue during the year. PAT increased by SGD7.6 million to SGD17.0 million in the FYE 30 June 2010 from the previous year. Apart from the overall increase in revenue, the increase in PAT was attributed by higher sales of better profit margin products and lower factory costs per unit from higher production output. The increase in PAT was then partially offset by 8.5% increase in operating costs as well as additional tax expenses.

21 APPENDIX II SUMMARY OF KEY FINANCIAL DATA (CONT D) The LTIGL Group incurred a 377.1% increase in tax expenses during the year as a result of a new tax ruling imposed by the Vietnam Tax Authority which required non-business incomes to be taxed at full corporate tax rate of at 25% as well as the expiration of a four (4)-year tax holiday enjoyed by its indirect wholly-owned subsidiary, RK Resources Co. Ltd, during the year. FYE 30 June 2011 The LTIGL Group recorded revenue of SGD147.1 million in the FYE 30 June 2011 constituting a slight decrease of 1.6% from revenue recorded in the FYE 30 June 2010 of SGD149.5 million. The decrease was mainly due to the weakening of the USD against the SGD as more than 95% of LTIGL Group s sales were transacted in the US Dollar. Lower production output in the second half of FY2011 from shortage of production workers also attributed to the decrease in revenue during the year. PAT decreased by SGD3.7 million to SGD13.3 million in the FYE 30 June 2011 from the previous year. The LTIGL Group faced increased cost of production arising from increases in prices of raw materials during the year among other factors affecting the PAT for the year. FYE 30 June 2012 LTIGL Group recorded revenue of USD152.5 million in the FYE 30 June 2012, which is a slight decrease of 2.56% from revenue recorded in the FYE 30 June 2009 of USD156.5 million as a result of lower orders received as well as continued lower production output from the shortage of production workers in the first half of the year. PAT decreased by USD4.6 million to USD8.2 million in the FYE 30 June 2012 from the previous year. The decrease in PAT in the current year was primarily caused by increase cost of production from increased minimum wages in Vietnam and higher raw material costs. Other operating expenses remained relatively constant during the year.

22 APPENDIX III PROPERTIES HELD BY THE TARGET COMPANIES Location Description Tenure Year Lease Expiring Title Deed No., 18571/18572/19359, and 19943, Moo 1, Tung Mo Subdistrict, Sadao District, Songkhla Province, Thailand Title Deed No.18604, Moo 1, Tung Mo Subdistrict, Sadao District Songkhla Province, Thailand No. 29, Road DT 743 Song Than, Industrial Zone II, Di An District, Binh Duong Province, Vietnam Lot L, Road 27, Song Than, Industrial Zone II, Di An District Binh Duong Province, Vietnam Lot 241, 242, 249,250 and 251, Lai Uyen Commune, Ben Cat District, Binh Duong Province, Vietnam Age of Building (years) Site Area (sq.ft.) Net Book Value (RM 000) Date of Revaluation (R) / Acquisition (A) Lessor/Sub- Lessor Rental annum per Encumbrances Industrial Freehold N/A 6 869,024 12,566 21/1/2005(A) N/A N/A Pledged to Thai land with3 Military Bank of blocks of Thailand factory buildings and 4 blocks of workers quarters Vacant Land Freehold N/A N/A 333, /1/2005 (A) N/A N/A Pledged to Thai Military Bank of Thailand Industrial land with 5 blocks of factory building, 1 office building and 2 blocks of workers quarters Industrial land with 1 block of warehouse building Industrial land with 3 blocks of factory building and 1 block of warehouse building Leasehold ,869 17,860 February 2001 (A) Dai Nam Joint Stock Company Leasehold ,243 4,024 March 2006 (A) Dai Nam Joint Stock Company Leasehold ,082 10,640 May 2002 (A) Department of Natural Resources and Environment of Binh Duong Province USD59,260 - Fully paid - USD5,365 -

23 APPENDIX III PROPERTIES HELD BY THE TARGET COMPANIES (CONT D) Location Description Tenure Year Lease Expiring Lot 231 and 240, Lai Uyen Commune, Ben Cat District, Binh Duong Province, Vietnam Lot 77, 232, 243 and 244, Lai Uyen Commune, Ben Cat District, Binh Duong Province, Vietnam Lot 299 Lai Uyen Commune, Ben Cat District, Binh Duong Province, Vietnam Lot N, Road 26, Song Than, Industrial Zone II, Di An District, Binh Duong Province, Vietnam Industrial land with 2 blocks of factory building and 2 blocks of warehouse building Industrial land with 3 blocks of factory building and 1 block of office building Industrial land with 2 blocks of workers quarter Industrial land with 2 blocks of factory building and 1 block of office building Age of Building (years) Site Area (sq.ft.) Net Book Value (RM 000) Date of Revaluation (R) / Acquisition (A) Lessor/Sub- Lessor Leasehold ,011,043 12,785 May 2002 (A) Department of Natural Resources and Environment of Binh Duong Province Leasehold ,035,962 22,133 May 2002 (A) Department of Natural Resources and Environment of Binh Duong Province Leasehold ,116,670 3,940 Nov 2006 (A) People s Committee of Binh Duong Province Leasehold ,008 3,350 Sept 2010 (A) Dai Nam Joint Stock Company Rental per Encumbrances annum USD7,125 - USD6,954 - Fully paid - Fully paid -