General Announcement

Reference No CC-071206-92327

Company Name

:

IRE-TEX CORPORATION BERHAD

Stock Name

:

IRETEX

Date Announced

:

06/12/2007

Type

:

Announcement

Subject

:

INCREASE IN CAPITAL OF IRE-TEX PACKAGING MATERIAL (XIAMEN) CO. LTD., A WHOLLY OWNED SUBSIDIARY OF IRE-TEX CORPORATION BERHAD

Contents :

1. Increase in capital of Ire-Tex Packaging Material (Xiamen) Co. Ltd.

Further to the announcement dated 5 February 2007, the Board of Directors of Ire-Tex Corporation Berhad ("ITCB" or "the Company") wishes to announce that the Company has made payment to subscribe for additional capital amounting to United States Dollar ("USD") 30,000 in the registered capital of its wholly owned subsidiary company Ire-Tex Packaging Material (Xiamen) Co. Ltd. ("ITPMX") in the People's Republic of China ("PRC") which has been verified on 3 December 2007. With the allotment the current total registered capital of ITPMX is USD919,990.

As the above allotment was made to the Company, ITPMX remains as a wholly owned subsidiary of ITCB.

2. Rationale for the increase in capital of ITPMX.

The increase in capital of ITPMX is to fund the additional working capital requirements of ITPMX.

3. Effects of the increase in capital of ITPMX.

The increase in capital of ITPMX is not expected to have any material impact on the earnings and net assets of the Company for the financial year ending 31 December 2007. The increase in capital of ITPMX will not have any effect on the share capital and substantial shareholders' shareholding of ITCB as it was by cash.

4. Approvals Required.

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

5. Directors' and Major Shareholders' Interests.

None of the Directors and/or major shareholders of ITCB and/or persons connected with them have any interests, direct or indirect, in the increase in capital of ITPMX.

6. Directors' Statement.

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

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

The SC Guidelines is not applicable to the increase in capital of ITPMX.