General Announcement

Company Name

:

IRE-TEX CORPORATION BERHAD

Stock Name

:

IRETEX

Date Announced

:

14/08/2006

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 3 July 2006, 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") 100,000 in registered capital of its wholly subsidiary company Ire-Tex Packaging Material (Xiamen) Co. Ltd. ("ITPMX") in the People's Republic of China ("PRC") on 10 August 2006. With the allotment the current registered capital of ITPMX is USD789,990.

 

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

 

2. Rational for the increase in capital of ITPMX

The increase in capital of ITPMX is to fund the capital expenditure and 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 tangible assets of the Company for the financial year ending 31 December 2006. The increase in capital of ITPMX 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 ITPMX 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 substantial shareholders or persons connected to the Directors or substantial shareholders of the Company has 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. Departure from the Securities Commission's Policies and Guidelines on Issue/Offer of Securities ("SC Guidelines")

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