General Announcement

Company Name

:

IRE-TEX CORPORATION BERHAD

Stock Name

:

IRETEX

Date Announced

:

18/07/2006

Type

:

Announcement

Subject

:

INVESTMENT IN SHANGHAI KINGPAK ENVIRO-TECH PLASTIC PRODUCTS CO. LTD BY STYROTEX (ASIA PACIFIC) SDN. BHD., A 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 Styrotex (Asia Pacific) Sdn. Bhd. ("SAPSB"), a subsidiary company of ITCB, has made payment to subscribe for United States Dollar ("USD") 200,000 in the registered capital of Shanghai Kingpak Enviro-Tech Plastic Products Co. Ltd. ("SKETPP") on 13 July 2006 ("the Investment"). With the subscription SAPSB holds fifty percent (50%) of the total registered capital of SKETPP.

 

2. Information on SKETPP

SKETPP is an approved enterprise with foreign investment in the People's Republic of China ("PRC") and its current paid up capital is USD400,000. The principal activities of SKETPP are manufacturing, marketing and sales of plastics vacuum foaming products.

 

3. Rationale for the Investment

The Investment will provide an opportunity for the Company to capture and expand the sales of its packaging related materials to customers in PRC, which is in line with the Group's vision to expand and diversify its overseas business activities and market share.

 

4. Effects of the Investment

The Investment 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. In the longer term it is hoped that the Investment will contribute positively to the Group

The Investment will not have any effect on the share capital and shareholding structure as the Investment is by cash.

 

5. Apprpvals Required

The Investment is not subject to the approval of any governmental authorities or the shareholders of the Company.

 

6. 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 Investment.

 

7. Director's Statement

The Board of Directors of ITCB is of the opinion that the Investment is in the best interest of the Company.

 

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

The Investment has not departed from the SC Guidelines.