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Commercial Sector: SIGNING CEREMONY BETWEEN OBNET SDN. BHD. A SUBSIDIARY OF KANNALTEC BERHAD AND CISCO MALAYSIA; AND TELEKOM MALAYSIA BERHAD

SHAH ALAM, Selangor, Malaysia - April 20, 2007 – A signing ceremony by Obnet Sdn Bhd. (“Obnet”) (formerly known as Intelligent Edge Solutions Sdn. Bhd.), a subsidiary of Kannaltec Berhad was held at Holiday Inn Glenmarie in Shah Alam on Friday morning, April 20th with Yang Berhormat Dato’ Dr. Haji Karim bin Haji Mansor (Setiausaha Politik kepada Dato’ Seri Dr. Haji Mohamad bin Khir bin Toyo, Menteri Besar Selangor, Merangkap ADUN Tanjung Sepat) as the guest-of-honor and was attended by Encik Shahruddin Salehuddin, Vice President, Sales, TM Retail and Mr. Kumaran Singaram, Managing Director Cisco Malaysia.

Obnet entered into a Technology Collaboration with Cisco Malaysia; and Metro Ethernet Services Agreement with Telekom Malaysia Berhad for SelNet Selangor Broadband Infrastructure Project awarded by the Selangor Government to Obnet for 20-year concession.

Obnet, has been granted a 20-year concession by the Selangor State Government to design, supply, install, operate and maintain SelNet Broadband Infrastructure network for 345 government offices in Selangor. Obnet is to deliver and install all related structure for the provision of the broadband services and application at the designated sites inside the Selangor government buildings to department statutory bodies and municipalities concerned. In consideration, the Selangor State Government has agreed to subscribe for the broadband services and applications offered by Obnet at agreed rates for a concession period expiring on 22 September 2025.

SelNet is a network infrastructure that connects all Selangor’s State Government Department, Statutory Bodies, Municipals/Local Authorities, Government Linked Companies and Government Agencies with high-speed broadband that support data, voice, video and images. SelNet will be the ICT infrastructure that support all existing and future applications such as video-conferencing, SPEK (Accounting Package), Geographical Information System, rent collection system, e-Government, VoIP, surveillance monitoring, tracking, e-Learning, knowledge management, disaster recovery and government intelligence.

Datuk Yusof bin Ampuan Kechil, Chairman and Advisor of Obnet Sdn. Bhd. said “We are very enthusiastic to be awarded the development of SelNet project for the Selangor government. Kannaltec is the provider for broadband services and applications for Selangor government. SelNet will enable government departments and agencies to operate seamlessly among each other and enhance operational efficiency and productivity. SelNet will be the catalyst for accelerated growth in ICT development in Selangor.”

“The Selangor State Government is increasing its use of information and communications technology to drive modernisation, boost efficiencies, and deliver better services to citizens. Selangor Government also aims to provide broadband access capabilities to 90 per cent of households in the Selangor by 2010. The development of ICT infrastructure in Selangor and Malaysia must be done with commitment and conviction from all parties. We will keep pushing the initiative from within the State. The State Government will work hand-in-hand with corporations such as Kannaltec, bodies such as the Malaysia communication and Multimedia Commission and interested ICT service providers to create the best ICT infrastructure in Malaysia,” Yang Berhormat Dato’ Dr. Haji Karim bin Haji Mansor (Setiausaha Politik kepada Dato’ Seri Dr. Haji Mohamad bin Khir bin Toyo, Menteri Besar Selangor, Merangkap ADUN Tanjung Sepat) added.

Mr. Kumaran Singaram, Managing Director of Cisco Malaysia said, “Cisco has a proven track record, expertise, and the right technologies that the Selangor State Government can leverage to ensure that the transformation of public services delivery becomes a success. The network can become the platform to enable the Selangor State Government to achieve significant operational efficiencies and more importantly create a closer relationship with the people in Selangor.” Kannaltec sees this as an opportunity to grow itself into an ICT infrastructure and services provider. It holds a virtual monopoly on container monitoring services in Malaysia and it has started its data centre in Kelana Jaya. The concession adds to Kannaltec Group’s growth strategy to entrench itself in its existing business and increasing the scope of its services to include the provision of ICT infrastructure and services.

INFORMATION ON KANNALTEC

Kannaltec was listed on the Mesdaq Market of Bursa Malaysia on 4 May 2005. Kannaltec Group designs, develops and provides ICT Service Management solutions and ICT Infrastructure solutions.

Kannaltec Group commenced operation in 1994. Kannaltec Group is the expert in capturing and processing data in the complex maritime trade documents and processes utilizing its software. Kannaltec is the monopoly player in providing ICT Service Management in its containers monitoring solution for most of the shipping lines that operate in Malaysia. Kannaltec provides ICT Service Management solutions and ICT Infrastructure solutions from its Disaster Recovery and Call centre in Kelana Jaya. Currently, Kannaltec Group is the concession owner to develop SelNet Broadband Infrastructure for the Selangor State.

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