General Announcement

Reference No CC-080131-48C9E

Company Name

:

IRE-TEX CORPORATION BERHAD

Stock Name

:

IRETEX

Date Announced

:

31/01/2008

Type

:

Announcement

Subject

:

Acquisition of remaining 30% shareholding in Ire-Tex (Johor) Sdn. Bhd. ("ITJSB") and increase in issued and paid up capital of ITJSB from RM2 million to RM3 million

Contents :

1. Introduction
The Board of Directors of Ire-Tex Corporation Berhad ("ITCB" or "the Company") wishes to announce the following:
(a) The Company has acquired the remaining 30% interest in its subsidiary company ITJSB comprising 600,000 ordinary shares of RM1.00 each from Interstate Resources Berhad for a cash consideration of Ringgit Malaysia One (RM1.00) only on 31 January 2008 ("The Acquisition"), and
(b) on 31 January 2008, following the Acquisition, ITJSB has increased its issued and paid-up share capital from RM2,000,000 to RM3,000,000 by way of an allotment of 1,000,000 ordinary shares of RM1.00 each of ITCB for a cash consideration of RM1,000,000 ("Increase in Share Capital").

2. Information on ITJSB

ITJSB was incorporated in Malaysia on 25 October 1999. The principal activity of ITJSB is manufacturing of packaging materials and related products.

The authorized share capital of ITJSB is RM5,000,000 consisting of 5,000,000 ordinary shares of RM1.00 each.

Prior to the Acquisition, the issued and paid-up share capital of ITJSB was RM2,000,000 comprising 2,000,000 ordinary shares of RM1.00 each and ITCB held 1,400,000 ordinary shares of RM1.00 each representing 70% of the total shareholding of ITJSB. With the Acquisition ITJSB has become a wholly owned subsidiary of ITCB.

After the Increase in Share Capital, the issued and paid-up share capital of ITJSB is currently RM3,000,000 comprising 3,000,000 ordinary shares of RM1.00 each.

The purchase consideration for the Acquisition was arrived at on a willing seller and willing buyer basis.

3. Rationale

The Acquisition will result in ITCB having full control of ITJSB and thus determine its future business direction.

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

4. Effects

The Acquisition and the Increase in Share Capital are not expected to have any material impact on the net assets of the Company for the financial year ending 31 December 2008.

The Acquisition and the Increase in Share Capital are not expected to have any material impact on the earnings of the Company for the financial year ending 31 December 2008.

The Acquisition and the Increase in Share Capital will not have any effect on the share capital and substantial shareholders' shareholding of ITCB as the Acquisition and Increase in Share Capital were by cash.

5. Approvals Required

The Acquisition and the Increase in Share Capital are 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 Acquisition and Increase in Share Capital.

7. Directors' Statement

The Board of Directors of ITCB is of the opinion that the Acquisition and the Increase in Share Capital are 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 Board of Directors of ITCB is not aware of any departure from the SC Guidelines.