General Announcement
Reference No OS-061009-59768

Submitting Merchant Bank : OSK SECURITIES BERHAD
Company Name : KOTRA INDUSTRIES BERHAD (MESDAQ Market)
Stock Name : KOTRA  
Date Announced : 09/10/2006


Type : Announcement
Subject : KOTRA INDUSTRIES BERHAD ("KOTRA" OR THE "COMPANY")

(A) PROPOSED BONUS ISSUE OF UP TO 80,988,272 SHARES OF RM0.50 EACH IN KOTRA ("BONUS SHARES") ON THE BASIS OF SIX (6) BONUS SHARES FOR EVERY FIVE (5) SHARES HELD AT AN ENTITLEMENT DATE TO BE DETERMINED LATER;

(B) PROPOSED TRANSFER OF THE LISTING OF AND QUOTATION FOR THE ENTIRE ENLARGED ISSUED AND PAID-UP SHARE CAPITAL OF KOTRA FROM THE MESDAQ MARKET TO THE MAIN BOARD OF BURSA MALAYSIA SECURITIES BERHAD ("BURSA SECURITIES");

(C) PROPOSED INCREASE IN AUTHORISED SHARE CAPITAL OF KOTRA FROM RM50,000,000 COMPRISING 100,000,000 SHARES TO RM100,000,000 COMPRISING 200,000,000 SHARES; AND

(D) PROPOSED AMENDMENTS TO THE MEMORANDUM AND ARTICLES OF ASSOCIATION OF KOTRA.

(COLLECTIVELY KNOWN AS THE "PROPOSALS")

Contents :

On behalf of the Board of Directors of KOTRA ( “Board” ), OSK Securities Berhad ( “OSK” ) wishes to announce the following proposals:-

(a) Bonus issue of up to 80,988,272 ordinary shares of RM0.50 each in KOTRA (“ Bonus Shares ”) on the basis of six (6) Bonus Shares for every five (5) ordinary shares of RM0.50 each in KOTRA (“Shares”) held at an entitlement date to be determined later (“ Proposed Bonus Issue ”); (b) Transfer of the listing of and quotation for the entire enlarged issued and paid-up share capital of KOTRA from the MESDAQ Market to the Main Board of Bursa Securities (“ Proposed Transfer ”);

(c) Increase in authorised share capital of KOTRA from RM50,000,000 comprising 100,000,000 Shares to RM100,000,000 comprising 200,000,000 Shares (“ Proposed Increase in Authorised Share Capital ”); and

(d) Amendments to the Memorandum and Articles of Association of KOTRA (“ Proposed Amendments ”).

(Collectively referred to as the " Proposals ")

Further details of the Proposals are set out in the attachments below.


This announcement is dated 9 October 2006.

KOTRA Announcement.doc
KOTRA Announcement-Tables.doc