General Announcement
Reference No IC-110207-49199
Company Name
: IRIS CORPORATION BERHAD (ACE Market)
Stock Name
: IRIS
Date Announced
: 07/02/2011

Type
: Announcement
Subject
:OTHERS

Description
:Type: General Announcement

Subject: Joint-Venture Agreement (“JV Agreement”) Between IRIS Corporation Berhad (“ICB” or “the Company”), KOTO MALAYSIA SDN.BHD. (“KOTO”) and AMBITECH SDN.BHD. (“AMBITECH”) for the Development, Manufacture and Construction of Koto’s Industrialized Building System (“IBS”).


Announcement Details/Table Section :


1. INTRODUCTION
The Company wishes to announce that on 7th February 2011, the Company entered into a JV Agreement with Koto and Ambitech expressing its intention to jointly participate in the development, manufacture, construction and operation of the Koto Industrialized Building System ("IBS") owned by Koto for mass building projects in West Malaysia (the state of Perak is excluded unless the projects in this state is sourced, owned or managed by ICB).

2. INFORMATION ON KOTO IBS
Koto IBS is an alternative way to mass manufacture energy efficient housing, commercial buildings, high-rises and affordable housing. The Koto IBS is a fully integrated system – from the foundation, walls of all types, to ceilings, suspended ceilings, roofing, columns, beams and lightweight lintel beams.

3. CONTENTS OF THE JV AGREEMENT

The salient terms of the JV Agreement are inter alia as follows:-
(a) Koto to build, design, install, test, start-up and commission the manufacturing plant prior to handing over the plant to the Joint-Venture Company (“JVC”). Koto will provide all technical support and transfer the know-how of Koto IBS into the JVC.

(b) Koto to provide a perpetual license and rights to use and manufacture the Koto IBS and its products by the JVC in West Malaysia.

© ICB is to pay an upfront one-off license fee for the Koto IBS amounting to United States Dollars Fifty Thousand (USD 50,000.00) only.

(d) ICB shall invest into the JVC in a progressive manner. The total investment sum into the JVC by ICB amounts to United States Dollars One Million (USD 1,000,000.00) only.

(e) Ambitech shall provide consultancy and marketing services relevant and as required by the JVC.

(f) The Parties expect to incorporate a private limited company within the next 180 days from today. The shareholdings of the company are to be in the following percentages breakdown: ICB (60%), Koto (30%) and Ambitech (10%).

4. RATIONALE FOR THE JOINT-VENTURE

The JV Agreement forms the basis of a new collaboration between Koto, Ambitech and ICB to promote and deploy this alternative building or construction technology.

5. DIRECTORS’ AND MAJOR SHAREHOLDER’S INTERESTS

None of the directors, major shareholders, persons connected with directors or major shareholders of the Company or any of its subsidiaries have any interest, direct or indirect, in the JVC.

This announcement is dated 7 February 2011.

© 2011, Bursa Malaysia Berhad. All Rights Reserved.

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