General Announcement

Company Name

:

IRE-TEX CORPORATION BERHAD

Stock Name

:

IRETEX

Date Announced

:

05/09/2006

Type

:

Announcement

Subject

:

INCREASE IN CAPITAL OF SUZHOU STYROTEX PLASTIC COMPANY LIMITED BY STYROTEX (ASIA PACIFIC) SDN. BHD., A SUBSIDIARY COMPANY OF IRE-TEX CORPORATION BERHAD

Contents:

1. Increase in capital of Suzhou Styrotex Plastic Company Limited

Further to the announcement dated 14 April 2006, the Board of Directors of Ire-Tex Corporation Berhad ("ITCB" or "the Company") wishes to announce that Styrotex (Asia Pacific) Sdn. Bhd. ("SAPSB"), a subsidiary company of ITCB, has made payment to subscribe for additional capital amounting to United States Dollar ("USD") 50,000 in registered capital of its subsidiary company, Suzhou Styrotex Plastic Company Limited ("SSPC") in the People's Republic of China ("PRC") which has been verified on 29 August 2006. With the latest increase in capital the current total registered capital of SSPC is USD162,500.

 

2. Rational for the increase in capital of SSPC

The increase in capital of SSPC is to fund the capital expenditure and additional working capital requirements of SSPC.

 

3. Effects of the increase in capital of SSPC

The increase in capital of SSPC is not expected to have ay material impact on the earnings and net tangible assets of the Company for the financial year ending 31 December 2006. The increase in capital of SSPC will not have any effect on the share capital and shareholding structure of ITCB as it was by cash.

 

4. Approvals Required

The increase in capital of SSPC is not subject to the approval of any governmental authorities or the shareholders of the Company.

 

5. Directors' and Substantial Shareholders' Interests

None of the Directors and/or substantial shareholders and/or persons connected to the Directors or substantial shareholders of the Company has any interests, direct or indirect, in the increase in capital of SSPC.

 

6. Directors' Statement

The Board of Directors of ITCB is of the opinion that the increase in capital of SSPC is in the best interest of the Company.

 

7. Departure from the Securities Commission's Policies and Guidelines on Issue/Offer of Securities ("SC Guidelines")

The increase in capital of SSPC has not departed from the SC Guidelines.