Postal address : Lot Nos. 7 and 9, Jalan Teknologi 3/1, Taman Sains Selangor 1, Kota Damansara, Petaling Jaya, Selangor Darul Ehsan

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1 PARAMOUNT CORPORATION BERHAD PROPOSED DISPOSAL OF TWO (2) CONTIGUOUS PARCELS OF LEASEHOLD LAND HELD UNDER TITLES H.S.(D) PT AND H.S.(D) PT 10570, ALL SITUATED IN MUKIM PEKAN BARU SUNGAI BULOH, DAERAH PETALING, NEGERI SELANGOR DARUL EHSAN MEASURING APPROXIMATELY 9.4 ACRES IN TOTAL AREA BY SELEKSI MEGAH SDN BHD, A WHOLLY-OWNED SUBSIDIARY OF PARAMOUNT, FOR A TOTAL CASH CONSIDERATION OF RM92,129, INTRODUCTION The Board of Directors (Board) of Paramount Corporation Berhad (Paramount) wishes to announce that Seleksi Megah Sdn Bhd (SMSB), a wholly-owned subsidiary of Paramount, has on 2 January 2018, entered into a sale and purchase agreement (SPA) with EM Hub Sdn Bhd (Company No A) (EHSB or the Purchaser) for the proposed disposal of two (2) contiguous parcels of leasehold land held under titles H.S.(D) PT and H.S.(D) PT 10570, all situated in Mukim Pekan Baru Sungai Buloh, Daerah Petaling, Negeri Selangor Darul Ehsan measuring approximately 9.4 acres or 38,043 square meters in total area (collectively, the Land) to EHSB for a total cash consideration of RM92,129, (Proposed Disposal). 2. INFORMATION ON THE LAND Details of the Land are as follows: Postal address : Lot Nos. 7 and 9, Jalan Teknologi 3/1, Taman Sains Selangor 1, Kota Damansara, Petaling Jaya, Selangor Darul Ehsan Title details : All of the following titles situated in Mukim Pekan Baru Sungai Buloh, Daerah Petaling, Negeri Selangor Darul Ehsan: Title No PT No Land Area (square meters) H.S.D PT ,494 H.S.D PT ,549 Total 38,043 Description of the Land : The Land is generally flat in terrain and lie approximately 1.2 meters above Jalan Teknologi 3/1. It has a direct frontage onto Jalan Teknologi 3/1, which is connected to Jalan Teknologi and Persiaran Sungai Buloh in Taman Sains Selangor 1, Kota Damansara, Petaling Jaya, Selangor Darul Ehsan. Land lease tenure : 99 years up to 19 January 2107 Category of land use : Industrial Existing use : Vacant Net book value (NBV) : RM46,461, based on the latest audited financial statements of SMSB for the financial year ended 31 December 2016 (FY2016). Original cost of investment and date of investment : Lot No. 7 was acquired by SMSB on 21 September 2007 at a purchase consideration of RM20,518, whilst Lot No. 9 was acquired by SMSB on 5 February 2008 at a purchase consideration of RM19,410,

2 Page 2 Encumbrances : None Valuation : RM92,100, as appraised by Knight Frank Malaysia Sdn Bhd (KFM) based on the Comparison Approach valuation methodology according to KFM s Valuation Report dated 20 December INFORMATION ON SMSB AND EHSB 3.1 SMSB is a company incorporated in Malaysia on 27 September 2002 under the previously enacted Companies Act, 1965, and having its registered office at Level 8, Uptown 1, 1 Jalan SS21/58, Damansara Uptown, Petaling Jaya, Selangor Darul Ehsan. It is principally involved in the business of property development. Currently, SMSB has an issued share capital of RM45,480, represented by 5,000,000 ordinary shares and 8,096 non-cumulative redeemable convertible preference shares, all of which are held by Paramount. 3.2 EHSB is a company incorporated in Malaysia on 15 November 2017 under the Companies Act, 2016, and having its registered office at No. 3, Persiaran Waja, Bukit Raja Industrial Estate, Klang, Selangor. EHSB is principally involved in the business of property holding and construction. Currently, EHSB has an issued share capital of RM1.00 represented by one ordinary share held by SCLand Development Sdn Bhd (Company No T), which is a wholly-owned subsidiary of Aluminium Company of Malaysia Berhad (Company No U) (ALCOM), a public company listed on the Main Market of Bursa Malaysia Securities Berhad. The directors of EHSB are Dato Lim Chee Khoon and Mr Keith Christopher Yeoh Min Kit. 4. BASIS IN ARRIVING AT THE SALE CONSIDERATION The sale consideration of RM92,129, (Sale Consideration) was arrived at on a willing-buyer willing-seller basis after taking into consideration the NBV of the Land as at 31 December 2016 and the Valuation as appraised by KFM. 5. SALIENT TERMS OF THE SPA 5.1 SMSB has agreed to sell and the Purchaser has agreed to purchase the Land free from all encumbrances on an as is where is basis as at the date of the SPA, with vacant possession, subject to all conditions of title and restrictions in interest affecting the Land, whether express or implied, at the Sale Consideration and upon the terms and conditions stated in the SPA. 5.2 The SPA is conditional upon and subject to the fulfillment of the following conditions precedent (CP s) within a period of six (6) months from the date of the SPA or such extended period as may be mutually agreed between the parties (Compliance Period): SMSB having obtained the written consent of the Selangor state authority to the transfer of the Land to the Purchaser (Land Transfer); the Purchaser having obtained the written consent of the Selangor state authority to the creation of a charge on the Land in favour of the Purchaser s financier (Land Charge); and

3 Page the Purchaser having obtained the approval of the shareholders of its ultimate holding company, ALCOM, for its acquisition of the Land from SMSB. The date of fulfilment of the last CP shall be referred to as the Effective Date. 5.3 The Sale Consideration shall be satisfied by the Purchaser in the following manner: Milestone i) 10% of the Sale Consideration upon execution of the SPA (Deposit) ii) 90% of the Sale Consideration (Balance Sale Consideration) within a period of one (1) month from the Effective Date (Completion Period) Amount (RM) 9,212, (inclusive of RM1,842, earnest deposit, equivalent to 2% of the Sale Consideration which was paid to SMSB prior to the date of the SPA) 82,916, Sale Consideration 92,129, The Completion Period may be extended by one (1) month subject to payment of interest at the rate of 8% per annum on the amount due but remaining unpaid from the date after the Completion Period until the date of full and final settlement of the amount due (Completion Date). 5.5 If the consent of the Selangor state authority to the Land Charge is given on terms and/or conditions which will adversely affect the interest of any party (Adverse Terms), the affected party is entitled to request for an appeal to be lodged with the Selangor state authority to amend or remove the Adverse Terms, and if the appeal is unsuccessful or is not obtained within the Compliance Period, either party may terminate the SPA with notice in writing to the other party on the basis that the relevant CP has not been met within the Compliance Period. 5.6 If the CP s are not fulfilled as indicated in item 5.2 above, either party may terminate the SPA with notice in writing to the other party, whereupon SMSB shall, within ten (10) business days thereafter, refund the Deposit free of interest to the Purchaser and the Purchaser shall, within ten (10) business days, perform its termination obligations as set out in the SPA which is, amongst others, to procure withdrawal of any private caveat lodged by it or its financier on the Land and thereafter the SPA shall be null and void and of no further effect. SMSB shall thereafter be at liberty to sell or otherwise deal with the Land in any manner as it deems fit without any reference to the Purchaser. 6. LIABILITIES TO BE ASSUMED BY THE PURCHASER There are no liabilities, including contingent liabilities and guarantees, to be assumed by the Purchaser pursuant to the Proposed Disposal.

4 Page 4 7. UTILISATION OF PROCEEDS The total proceeds of RM92,129, is intended to be utilised by the Paramount Group (the Group) in the following manner: Utilisation Amount RM million Estimated time frame for utilisation from the Completion Date i) Estimated expenses for the Proposed 2.0 Immediately Disposal ii) Acquisition of new land bank 50.0 Within 12 months iii) Working capital and cut back on Group leverage 40.1 Within 12 months Should the actual amount utilised for the first two items vary from the above estimates, the amount allocated for the third item shall be adjusted accordingly RATIONALE FOR THE PROPOSED DISPOSAL The Proposed Disposal provides an opportunity for Paramount to unlock the value of the Land, and to utilise the cash proceeds to acquire new land bank that are able to generate higher returns within a shorter turnaround time, to improve cash liquidity for the Group s integrated developments and to reduce bank borrowings. 9. FINANCIAL EFFECTS OF THE PROPOSED DISPOSAL 9.1 Share capital and Substantial Shareholders Shareholding The Proposed Disposal will not have any effect on the issued share capital and the substantial shareholders shareholding structure of Paramount, as the transaction does not involve any issuance of shares. 9.2 Net assets (NA) per share, earnings per share (EPS) and gearing The proforma effects of the Proposed Disposal on the consolidated NA per share, EPS and gearing of Paramount are set out below: Audited as at 31 December 2016 After the Proposed Disposal NA (RM 000) 934, ,823 NA per share (RM) Basic EPS (sen) Gearing (times)

5 Page 5 Based on the audited consolidated financial statements of the Company for FY2016, the Proposed Disposal will result in a proforma after tax gain on disposal of approximately RM33.19 million to the Group. 10. APPROVALS OR CONSENTS REQUIRED As stated in item 5.2 above, the consent of the Selangor state authority is required for the Land Transfer and the Land Charge, and the approval of the shareholders of ALCOM, the ultimate holding company of the Purchaser, is required for the Proposed Disposal. The Proposed Disposal is not subject to the approval of the shareholders of Paramount. 11. INTERESTS OF DIRECTORS, MAJOR SHAREHOLDERS AND/OR PERSONS CONNECTED WITH THEM None of the Company s Directors, major shareholders or persons connected with them have any interest, direct or indirect, in the Proposed Disposal. 12. DIRECTORS STATEMENT The Board, having considered all aspects of the Proposed Disposal, is of the opinion that the Proposed Disposal is in the best interest of the Group. 13. HIGHEST PERCENTAGE RATIO APPLICABLE TO THE PROPOSED DISPOSAL The highest percentage ratio applicable to the Proposed Disposal pursuant to paragraph 10.02(g) of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad is 9.86% based on the audited financial statements of Paramount for FY ESTIMATED TIMEFRAME FOR COMPLETION OF THE PROPOSED DISPOSAL Barring any unforeseen circumstances, the Proposed Disposal is expected to be completed by the third quarter of DOCUMENTS AVAILABLE FOR INSPECTION Copies of the following documents are available for inspection by the shareholders of Paramount at the registered office of Paramount at Level 8, Uptown 1, 1 Jalan SS21/58, Damansara Uptown, Petaling Jaya, Selangor Darul Ehsan, during normal office hours from Mondays to Fridays (except public holidays) for a period of three (3) months from the date of this announcement: i) the SPA; and ii) KFM s Valuation Report dated 20 December This announcement is dated 2 January 2018.