1. INTRODUCTION

Pursuant to Paragraph 9.19(23) of Bursa Malaysia Securities Berhad Main Market Listing Requirements, the Board of Directors of the Company wishes to announce that the Company had on 1 September 2016, acquired 1,000,000 ordinary shares of RM1.00 each fully paid-up in the capital of Generasi Prestasi Sdn. Bhd. ("GPSB") from Anakku Sdn. Bhd., a wholly-owned subsidiary of the Company, for a total cash consideration of RM2.00. As a result, GPSB ceased to become a wholly-owned subsidiary of Anakku Sdn. Bhd. and became a wholly-owned subsidiary of the Company.

2. INFORMATION OF GPSB

GPSB was incorporated in Malaysia under the Companies Act, 1965 on 28 December 1993. The present authorised share capital of GPSB is RM1,000,000/- divided into 1,000,000 ordinary shares of RM1.00 each and the paid-up share capital is RM1,000,000.00 divided into 1,000,000 ordinary shares of RM1.00 each.

The principal activity of GPSB is trading in baby and children wear, care and related products through Heavy Traffic Outlets ("HTO"), distibutors as well as retailing boutique outlets and providing sub-licensing.

3. FINANCIAL EFFECTS

The acquisition of GPSB is not expected to have any material effects on the earnings or net assets of the Company for the financial year ending 31 March 2017.

4. DIRECTORS’ AND MAJOR SHAREHOLDERS’ AND/OR PERSONS CONNECTED WITH A DIRECTOR OR MAJOR SHARHOLDER’S INTERESTS

None of the Directors and/or major shareholders or persons connected to them has any interests, direct or indirect, in the aforesaid acquisition.

5. STATEMENT BY THE BOARD OF DIRECTORS

The Board of Directors is of the opinion that the acquisition is in the best interest of the Company.

This announcement is dated 1 September 2016.