The Board of Directors of MESB wishes to announce that MESB Development Sdn Bhd (“MESBDSB”), a wholly-owned subsidiary of the Company had on 23 September 2010 entered into a MOU with the UMHSB.

2. DETAILS OF THE MOU

2.1 Objectives of the MOU

UMHSB is a company incorporated in Malaysia and having its business address in Kedah, is a wholly-owned subsidiary of the Universiti Utara Malaysia, a public university established under the Universities And University Colleges Act 1971 (Act 30) (“UUM”), who is desirous to provide accomodation nearby the existing campus of UUM to its students and for that purpose UUM has agreed to grant UMHSB a concession period of 25 years to design, build, operate, lease and transfer to UUM such accommodation in the agreed building design upon the expiry of the said concession period with a consideration by UUM to pay the lease on quarterly basis in advance through the Concession Period (“hereinafter referred to as “the Project”).

2.2 Salient Terms of the MOU

The salient terms of the MOU are as follows:-
2.2.1 Basis of Understanding

• Upon receiving the Concession from UUM to enter into a back to back Concession Agreement to assign UMHSB’s rights under the Principle Concession to MESBDSB to enable MESBDSB to carry out the UMHSB’s role and complete all agreed building in the said Project and deliver all completed building and Apartment for the use of UUM.

• MESBDSB is to develop an identified location by erecting thereon a few blocks of apartment to be utilized as hostel for students’ accommodation specifically for UUM in accordance with the layout plan, buildings plan and specifications to be approved by the relevant local authorities and/or other appropriate authorities as specified to the said Project.

• MESBDSB shall contribute capital in terms of monetary and financial to purchase the said Land and proceed to complete the Project.

• MESBDSB be appointed as the main contractor for the said Project upon the execution of the Concession Agreement between the UUM and UMHSB.

2.2.2 Duration of the MOU

The MOU shall continue in force and remain in full force and effective for 12 months from the date of MOU

3. FINANCIAL EFFECTS OF THE MOU

The MOU is not expected to have any material effect on the financial results of MESB for the current financial year ending 31 March 2011. However, the MOU may contribute positively to the future earnings of MESB Group.

4. RISK FACTORS

The MOU is subject to normal business risks.

5. DIRECTORS’ AND MAJOR SHAREHOLDERS’ INTEREST

None of the Directors and major shareholders of MESB or any persons connected to them has any interest, direct or indirect in the MOU.

6. STATEMENT BY DIRECTORS

The Board of Directors of MESB is of the opinion that the MOU is in the best interest of the Group.

7. APPROVALS REQUIRED

The MOU is not subject to the approval of the shareholders of MESB or any regulatory authorities.

8. DOCUMENT AVAILABLE FOR INSPECTION

The MOU is available for inspection at the registered office of the Company at 10th Floor, Menara Hap Seng, No. 1 & 3, Jalan P. Ramlee, 50250 Kuala Lumpur during normal business hours from Monday to Friday (except public holidays), for a period of one (1) month from the date of this announcement.

This announcement is dated 24 September 2010.