The Board of Directors of BHS Industries Berhad ("Company") wishes to announce the incorporation of a wholly-owned subsidiary, detailed as follows:-  

The aforesaid incorporation would not have any material effect on the Group's earnings per share or net assets per share of the Group for the financial year ending 30 June 2017.

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 abovementioned transaction (other than through their interests in the shares of the Company).