Company Name	:	IRE-TEX CORPORATION BERHAD
Stock Name	:	IRETEX
Date Announced	:	15/11/2007

Type	:	Announcement
Subject	:	INVESTMENT IN IRE-TEX PREMIER INDIA PRIVATE LIMITED, A COMPANY INCORPORATED IN INDIA

Contents :

1. INTRODUCTION
	The Board of Directors of Ire-Tex Corporation Berhad ("ITCB" or "the Company") wishes to announce that the Company has on 14 November 2007 entered into an agreement ("Agreement") with Premier Tissues India Limited, a Company incorporated under the Companies Act, 1956 (India) and Mr. G.G. Shenoy s/o Mr. G.D. Shenoy (and their nominees/associates) (hereinafter collectively referred to as the "Promoters") to take up a 50% equity interest in a company called Ire-Tex Premier India Private Limited ("ITPI") ("the Investment").
2. INFORMATION ON INVESTMENT IN ITPI
	ITPI was incorporated in India on 5 March 2007 under the Companies Act, 1956 (India) with an initial authorised share capital of Rs. 12,000,000 (Rupees Twelve Million only) comprising of 1,200,000 (One Million and Two Hundred Thousand) equity shares of face value of Rs. 10 (Rupees Ten) each.
	In accordance with the terms of the agreement, the Company agreed to subscribe for 600,000 equity shares of Rs. 10 each amounting to Rs. 6,000,000 (Rupees Six Million only) representing 50% of the paid up share capital of ITPI and the Promoters agreed to subscribe for 600,000 equity shares of Rs. 10 each amounting to Rs. 6,000,000 (Rupees Six Million only) representing 50% of the paid up share capital of ITPI.
	Currently the paid up capital of ITPI is Rs. 6,000,000 (Rupees Six Million only) comprising 600,000 shares of Rs. 10 each ("Shares") of which 300,000 Shares are held by the Company and 300,000 Shares are held by the Promoters. The cost of the Company's investment in ITPI amounts to approximately RM250,000 (Ringgit Malaysia Two Hundred and Fifty Thousand only).
	ITPI was set up for the purposes of manufacture assembly and sale of various types and forms of packaging materials and other related products in India.
3. RATIONALE FOR THE INVESTMENT
	The Investment will provide an opportunity for the Company to venture into a new market for manufacture and sale of its packaging related materials to customers including multinational corporations in India.
4. EFFECTS OF THE INVESTMENT.
	The Investment is not expected to have any material impact on the earnings of the Company for the financial year ending 31 December 2007. In the longer term it is hoped that the Investment will contribute positively to the ITCB Group.
	The Investment will not have any effect on the net assets of ITCB Group as it was by way of cash.
	The Investment will not have any effect on the share capital and substantial shareholders' shareholding of ITCB.
5. APPROVALS REQUIRED
	The Investment is not subject to the approval of any governmental authorities or the shareholders of the Company.
6. DIRECTORS' AND MAJOR SHAREHOLDERS' INTERESTS
	None of the Directors and/or major shareholders of ITCB and/or persons connected with them have any interest, direct or indirect, in the Investment.
7. DIRECTORS' STATEMENT
	The Board of Directors of ITCB, having considered all aspects of the Investment, is of the opinion that the Investment is in the best interest of the Company.
8. COMPLIANCE WITH THE SECURITIES COMMISSION'S POLICIES AND GUIDELINES ON ISSUE/OFFER OF SECURITIES ("SC GUIDELINES")
	The Board of Directors of ITCB is not aware of any departure from the SC Guidelines.