EA HOLDINGS BERHAD AWARDED ANOTHER SIZEABLE PROJECT BY LEMBAGA HASIL DALAM NEGERI MALAYSIA

16 Jul 2013 07:54
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Latest RM12 million project follows on heels of last week’s RM59 million project awarded by LHDNM •

CEO expresses strong confidence in securing more significant, sizeable projects in near future •

Group revenue set to touch RM90 million in current financial year, soaring 95.7% from previous financial year KUALA LUMPUR, July 15 (Bernama) -- Fresh from winning a RM59.14 million project from Lembaga Hasil Dalam Negeri Malaysia (“LHDNM”) last Wednesday, 10th July 2013; the EA Holdings Berhad (EAH) Group today announced the award of yet another project from LHDMN â€" this time for RM12 million for the provision of licensing renewal and maintenance services for mainframe support software for a period of three years and five months. EAH Chief Executive Officer Mohammad Sobri bin Saad described “the award of these two significant projects as testimony of the Group’s core competencies and proven track record as tender bids were evaluated and won based on technical and commercial merits.” “With today’s Letter of Award (LOA), the EAH Group has secured more than RM90 million from LHDNM over the last two years. This serves as testimony of our strong and proven track record in implementation and delivery, not just with LHDNM, but for all our other valued clients throughout Malaysia,” said CEO Sobri. The latest LOA awarded this afternoon to EAH’s wholly-owned subsidiary, EASS Sdn Bhd, is a separate project from the LHDNM LOA valued at RM59.14 million announced by EAH to Bursa Malaysia last Wednesday, 10th July 2013. These projects by LHDNM were awarded through separate open tender exercises by LHDNM and are not inter-related throughout the bidding process. Both these LHDNM projects are expected to contribute positively to the earnings and net assets of the EAH Group for the current and upcoming financial years. Apart from LHDNM, the EAH Group has also secured and completed several sizeable projects from other statutory bodies and GLCs. CEO Sobri, meanwhile, expressed strong confidence for the EAH Group to continue securing more projects of significant sizes in the near future “to increase the Group’s revenue and profitability as we strive to make this a ‘historic year for the EAH Group’ while maximising value for shareholders.” For example, CSS MSC Sdn Bhd, another wholly-owned subsidiary of EAH, is confident of securing a project from a regulatory financial institution in Malaysia by end of this month. CSS is presently in the final phase of negotiation with the regulatory financial institution with regards to the quantum and scope of works of the project to be awarded by end-July 2013. CSS is well known within Malaysia’s banking and financial services sector for its innovative solutions and services for banking applications, business intelligence and data warehousing. “The EAH Group is today one of Malaysia’s leading end-to-end solutions provider renowned for empowering clients to be more productive and efficient,” said Sobri. “Our innovative solutions derived from global ‘best practices’ continue to enable all our clients to realize the role of IT as a strategic business and operations enabler.” EAH is also in the midst of acquiring an equity stake in Plant Offshore Berhad (“POB”), as per its announcement to Bursa Malaysia dated 6 May 2013, as part of its ongoing efforts to expand and realise other channels of revenue for the Group. POB is active in the Oil & Gas (“O&G”), Biomass and Renewable Energy sector. Presently, POB has tendered for projects in the O&G sector, both domestically and abroad, in the region of several hundred millions. “EAH’s earnings are poised to grow rapidly in the next few years, driven by continued growth of our existing business and soon-to-be-acquired POB will give EAH exposure to the thriving oil and gas sector,” said CEO Sobri. “Our Group’s business model offers solid scope for growth through existing and new businesses and we foresee our earnings to be very strong moving forward,” he added. “In short, EAH offers investors a defensive yet high earnings growth exposure, which is particularly attractive under the prevailing market environment.” For the first quarter of Financial Year ending 31 December 2013, EAH recorded revenue of RM11.3 million. With the award of these LHDNM projects coupled with other significant ones secured in its robust and healthy pipeline, EAH is confident of achieving revenue of RM90 million for the current financial year. Compared to revenue recorded in the previous financial year ended 31 December 2012 of RM46 million, this represents an increase of RM44 million or 95.7% in revenue. ISSUED BY EA HOLDINGS BERHAD

FOR MORE INFORMATION PLEASE CONTACT: Name: Kevin Tay Chief Financial Officer, EAH Group Email: kevin@eah.com.my Tel : 03-6204 0050 Fax : 03-6204 0051

--BERNAMA