Advertisement of Petition EVERMASTER GROUP BERHAD (Receiver and Manager Appointed) (Evermaster or the Company) - Advertisement of Petition The Company refer to the advertisement of winding up petition appearing in the New Strait Times newspaper on Tuesday, 3 August 2010 pertaining to the winding up petition on Evermaster Wood Products Sdn Bhd (Receiver and Manager Appointed) (EWP), a wholly-owned subsidiary of the Company (Kuala Lumpur High Court, Winding Up No. 28NCC-520-2010) and wish to announce that the details of the said winding up petition are as following :- 1. Date of Presentation of Winding Up Petition and Date Winding Up Petition was served. The winding up petition against EWP was presented via Kuala Lumpur High Court Winding Up No. 28NCC-520-2010 on 12 July 2010 by Abdallah Sayed Ismaeel Co. (the Petitioner). The Company wishes to announce that the date the winding-up petition was served to EWP cannot be determined as EWP did not receive the said winding-up petition. The winding-up petition came to Evermasters knowledge when the advertisement of petition appeared on newspaper. 2. Particulars of Claim under the Winding Up Petition. The Petitioner is alleging that EWP is indebted to the Petitioner for the sum of RM1,635,000.00 (equivalent to USD$500,000.00 at the foreign exchange of USD1 : RM3.270 as of 20.01.2010) and a further sum of RM821,500.00 (equivalent to USD$250,000.00 at the foreign exchange of USD1 : RM3.286 as of 11.03.2010) being the refund of deposit paid by the Petitioner to EWP pursuant to contract entered by the Petitioner and EWP dated 14 January 2010 for the purchase of plywood as described in the said contract on the basis of total failure of consideration. EWP has dispute on the claim and instructed the solicitor to strike out the winding up Petition. 3. Details of the Default or Circumstances leading to the filing of the Winding Up Petition against VVB. The circumstances leading to the filing of the winding-up petition against EWP was due to the fact that the Company did not made the said payment in the sum of RM1,635,000.00 (equivalent to USD$500,000.00 at the foreign exchange of USD1 : RM3.270 as of 20.01.2010) and a further sum of RM821,500.00 (equivalent to USD$250,000.00 at the foreign exchange of USD1 : RM3.286 as of 11.03.2010) to the Petitioner as the said amount is in dispute. 4. Whether EWP is a Major Subsidiary EWP is a major subsidiary of Evermaster. 5. Financial and Operational Impact Arising from the Winding Up Proceedings. The winding-up petition has no financial and operational impact to the Group. 6. Expected losses arising from the winding up processing. There will be no expected losses arising from the Petition. 7. Steps taken and proposed to be taken in respect of the winding-up proceedings. EWP has appointed solicitor to oppose or strike out the Petition. This announcement is dated 4 August 2010.