General Announcement

Company Name

:

IRE-TEX CORPORATION BERHAD

Stock Name

:

IRETEX

Date Announced

:

08/06/2006

Type

:

Announcement

Subject

:

INCREASE IN AUTHORISED CAPITAL AND ISSUED AND PAID UP CAPITAL OF POWERTUDE SDN. BHD., A WHOLLY OWNED SUBSIDIARY COMPANY OF IRE-TEX CORPORATION BERHAD

Contents:

1. Introduction

The Board of Directors of Ire-Tex Corporation Berhad ("ITCB" or "the Company") wishes to announce that its wholly owned subsidiary company Powertude Sdn Bhd ("PTSB") has on 8 June 2006 increased its authorised capital from Ringgit Malaysia One Hundred Thousand (RM100,000) comprising One Hundred Thousand (100,000) shares of RM1.00 each to Ringgit Malaysia One Million (RM1,000,000) comprising One Million (1,000,000) shares of RM1.00 each ("Increase in Authorised Capital").

On the same day PTSB has also increased its issued and paid up capital from Ringgit Malaysia Two (RM2) to Ringgit Malaysia One Million (RM1,000,000) by way of allotment of 999,998 ordinary shares of RM1.00 each ("Increase in Share Capital") to ITCB for a cash consideration of RM999,998.00.

 

2. Information on PTSB

PTSB was incorporated in Malaysia on 24 November 2005. The principal activity of PTSB is generation of energy from biomass.

 

3. Rationale

The Increase in Share Capital is to provide funds for capital expenditure and additional working capital for PTSB's business.

The Increase in Authorised Capital is to accommodate the Increase in Share Capital.

 

4.Effects of the Increase in Authorised Capital and Increase in Share Capital

The Increase in Authorised Capital will not have any impact on the net tangible assets, earnings, share capital and shareholding structure of ITCB.

The Increase in Share Capital is not expected to have any material impact on the net tangible assets of ITCB for the financial year ending 31 December 2006.

The Increase in Share Capital is not expected to have any material impact on the earnings of ITCB for the financial year ending 31 December 2006. In the longer term, it is hoped that the Increase in Share Capital for the expansion of PTSB's business will bring additional contribution to ITCB Group.

The Increase in Share Capital will not have any effect on the share capital and shareholding structure of ITCB.

 

5. Approvals Required

The Increase in Authorised Capital and Increase in Share Capital is not subject to the approval of any governmental authorities or the shareholders of ITCB.

 

6. Directors' and Substantial Shareholders' Interests

None of the Directors and substantial shareholders or persons connected to the Directors or substantial shareholders of ITCB has any interests, direct or indirect, in the Increase in Authorised Capital and Increase in Share Capital.

 

7. Directors' Statement

The Board of Directors of ITCB is of the opinion that the Increase in Authorised Capital and Increase in Share Capital is in the best interest of ITCB.

 

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

The SC Guidelines do not apply to the Increase in Authorised Capital and Increase in Share Capital.