swkplnt - Disposal of Land

1. INTRODUCTION

The Board of Directors of Sarawak Plantation Berhad wishes to announce that its wholly owned subsidiary, Sarawak Plantation Property Holding Sdn. Bhd ("SPPH") has entered into a Sale and Purchase Agreement ("SPA")with Sealink Sdn. Bhd. ("the Purchaser") on 15 July 2008 to dispose of a parcel of land, described as Lot 482 Block 4 Miri Concession Land District measuring approximately 1.9441 hectares for a total consideration of RM9,031,460.

2. RATIONALE FOR THE DISPOSAL

Given the attractive offer price by the Purchaser, the Board of SPPH was of the opinion that this is a good option to realize capital gain from the investment in this property.

3. DETAILS OF THE SALE AND PURCHASE AGREEMENT

The SPA was executed between SPPH and Sealink Sdn. Bhd. and the details are as follows:

(a) RM903,146 had earlier been received as deposit and part payment for the sale;
(b) RM8,128,314, being the balance of the consideration for the disposal will be received within 90 days from the date of the SPA.

The property is sold on a "as is where is " basis and there are no other conditions for the completion of the SPA. This disposal is expected to be completed within a period of 90 days from the date of the SPA.

Sarawak Plantation Berhad intends to utilize the proceeds from the disposal for working capital purposes.

4. BASIS OF DETERMINING THE PURCHASE PRICE

The consideration for the sale was arrived at on a willing buyer willing seller basis.

5. ORIGINAL COST AND DATE OF INVESTMENT

The original cost of investment was RM125,013 and the property was acquired by SPPH pursuant to a Sale and Purchase Agreement on 29 March 1998.

6. FINANCIAL EFFECTS OF THE ACQUISITION

(a) Earnings per Share
Upon successful completion of this disposal, it is expected to give rise to a gain of RM8.9 million, hence increasing the earnings per share of Sarawak Plantation Berhad by approximately 3 sen per share.

(b) Net Assets per Share
The disposal is not expected to have any material effect on the net assets per share of Sarawak Plantation Berhad for the financial year ending 31 December 2008.

(c) Gearing
The disposal is not expected to have any material effect on the gearing of Sarawak Plantation Berhad for the financial year ending 31 December 2008.

(d) Share Capital and Substantial Shareholding
The disposal is not expected to have any effect on the share capital and substantial shareholding of Sarawak Plantation Berhad.

7. APPROVALS REQUIRED

This disposal is not subject to approval of shareholders or any relevant Malaysian Government authority(s).

8. DEPARTURE FROM SECURITIES COMMISSION' GUIDELINES

To the best of the knowledge and belief of the Directors, there is no departure from the policies and guidelines of the Securities Commission in relation to this disposal.

9. DIRECTORS AND SUBSTANTIAL SHAREHOLDERS' INTEREST

To the best of the knowledge and belief of the Directors and or substantial shareholders of Sarawak Plantation Berhad, none of the Directors and or substantial shareholders of Sarawak Plantation Berhad and / or persons connected to them have any interest direct or indirect in this disposal.

10. DIRECTORS STATEMENT

The Directors of Sarawak Plantation Berhad, having taken into consideration the rationale and all the relevant aspects of the disposal, are of the opinion that the SPA is in the best interest of SPB.

11. DOCUMENTS AVAILABLE FOR INSPECTION

The SPA is available for inspection during normal working hours from Mondays to Fridays (except public holidays) at the hours of 8am - 5 pm at the registered office of Sarawak Plantation Berhad at 8th Floor Wisma NAIM 21/2 Mile Rock Road 93200 Kuching Sarawak.

This announcement is dated 15 July 2008.