DISPOSALS BY MAICA OF:- 19,000,000 ORDINARY SHARES OF RM1.00 EACH REPRESENTING 100% EQUITY INTEREST IN MAICA LAMINATES SDN BHD ("MAICA LAMINATES"); AND- 2,393,479 ORDINARY SHARES OF RM1.00 EACH REPRESENTING MAICA'S ENTIRE 52.5% EQUITY INTEREST IN MAICA CORPORATION SDN BHD ("MAICA CORPORATION")FOR A TOTAL CASH CONSIDERATION OF RM41,344,047 ("DISPOSALS")

Type	Announcement
Subject	MALAYSIA AICA BERHAD ("MAICA" OR THE "COMPANY") DISPOSALS BY MAICA OF: - 19,000,000 ORDINARY SHARES OF RM1.00 EACH REPRESENTING 100% EQUITY INTEREST IN MAICA LAMINATES SDN BHD ("MAICA LAMINATES"); AND - 2,393,479 ORDINARY SHARES OF RM1.00 EACH REPRESENTING MAICA'S ENTIRE 52.5% EQUITY INTEREST IN MAICA CORPORATION SDN BHD ("MAICA CORPORATION") FOR A TOTAL CASH CONSIDERATION OF RM41,344,047 ("DISPOSALS")
Contents	With reference to the conditional approval by the Securities Commission ("SC") on 27 August 1998 for the Disposals. The SC's approval was subject to, amongst others, the following: (i) the proceeds from the Disposals are to be deposited in fixed deposit account(s) with major locally-owned financial institution(s); and (ii) Maica is required to seek the approval of the SC for any change in the utilisation of the proceeds, which has been placed in the above mentioned fixed deposits account(s). On behalf of Maica, PM Securities Sdn Bhd ("PM Securities") wishes to announce that the SC had vide its letter dated 9 July 2008 approved the proposed utilisation of balance of proceeds amounting to RM31.899 million for the hire purchase financing to Spanco Sdn Bhd ("Spanco"). The SC's approval is subject to the terms and conditions as follows: (i) PM Securities/Maica to disclose the following information in the circular to shareholders: (a)The reasons for the losses incurred by Maica for the past five (5) financial years; (b)Maica's future plans for Consolidated Leasing (M) Sdn Bhd ("Conlease") and the Maica Group as a whole; (c)The entire balance of proceeds amounting to RM31.899 million from the disposal of Maica Laminates and Maica Corporation will be advanced to Conlease to provide hire purchase financing to Spanco; (d)The risks involved in Spanco being Maica's single hire purchase customer; (e)Spanco's high gearing position for the past three (3) financial years; (f)The related party transactions as a result of the hire purchase agreements between Conlease and Spanco; (g)Opinions from PM Securities and the board of directors of Maica on whether Maica's venture into the hire purchase business and its decision to provide hire purchase financing to only one customer, Spanco, is in the best interest of Maica; and (h)The control measures that will be put in place by the management and board of directors of Maica as well as internal operations to ensure that the related party transactions in relation to the hire purchase arrangements between Conlease and Spanco are conducted at arms' length and on normal commercial terms not prejudicial to the minority shareholders of Maica. (ii) The approval of the SC should be obtained for any variation to the proposed utilisation of proceeds; and (iii) PM Securities/Maica to inform the SC of the completion of the proposed utilisation. This announcement is dated 10 July 2008.

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