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Newsroom

Litigation

The Board of Directors of ViTrox Corporation Berhad (the "Company") wishes to announce that by the Civil Suit No. 22-75-2006 in the High Court of Malaya at Penang, Tan Hwang Kiat (the "Plaintiff") has commenced an action against ViTrox Technologies Sdn Bhd ("the Subsidiary"), a wholly owned subsidiary of the Company.

In the statement of claim endorsed on the writ of summons that was served on 6 March 2006 on the Subsidiary, the Plaintiff alleges that the Subsidiary had in the Subsidiary's corporate directory under the file - Vitrox-CorpDirectory-InfoSummary-RiskFactors - published in the Bursa Malaysia website, www.bursamalaysia.com, under the heading of Information Summary and in the sub-heading entitled Material Litigation published a statement that is defamatory of the Plaintiff.

The Plaintiff did not specify any specific quantum of damages in the aforementioned writ of summons. At this stage the quantum of damages of the suit cannot be determined as damages (if any) that is to be awarded in a defamation action is to be assessed by the Court having the benefit of evidence adduced during trial. In accordance, the Company is not able to assess the financial impact of the suit on the Company and its subsidiaries ("Group"). Other than the potential damages (if any), the suit is not expected to have any other financial impact on the Group. The suit is not expected to have any operational impact on the Group.

As the Plaintiff's claim is founded on the allegation of the tort of defamation it is not a liquidated claim that can be quantified. The Plaintiff had therefore claimed the interest rate on the judgment sum which is to be assessed in the event that the Plaintiff is successful in its claim. In such an event, the Plaintiff is entitled to claim interest of 8% per annum on the judgment sum from the judgment date until the full settlement of the said sum.

The Subsidiary having consulted its solicitors has been advised that it has good defence to the action commenced by the Plaintiff and has instructed its solicitors to do the necessary to defend the said action.