The Board of Directors of BHS Industries Berhad ("Company") is pleased to announce the incorporation of its wholly-owned subsidiary, namely, Nextgreen Pulp & Paper Sdn. Bhd. ("NPPSB").

The authorised share capital of NPPSB is RM400,000 divided into 400,000 ordinary shares of RM1.00 each with a total issued and paid-up share capital of RM2.00 comprising 2 ordinary shares of RM1.00 each.

The intended business activities of NPPSB are processing, manufacturing, trading and selling of pulp and paper and its related products.

The aforesaid incorporation would not have a material effect on the Group's earnings and net assets for the financial year ending 30 June 2015.

None of the Directors and substantial shareholders of the Company and persons connected to the Directors and substantial shareholders of the Company has any interest, direct or indirect, in the said incorporation.