Favelle Favco Berhad (“Ffb” or “the Company”) Acceptance of Purchase Orders

INTRODUCTION The Board of Directors of FFB is pleased to announce that its wholly-owned subsidiary, Kroll Cranes A/S, Favelle Favco Cranes Pte. Ltd and Favelle Favco Cranes (M) Sdn Bhd had received the following purchase orders or Letter of Intent (“Contracts”) respectively in the month of September 2016, October 2016 and up to the date of announcement:-

Contracts secured by	Customer	Brief description of the Contracts	Duration of the Contracts
Kroll Cranes A/S	HHIC-Phil Korea	Supply of Tower Crane	which is expected to be delivered by second quarter of 2017
Favelle Favco Cranes Pte. Ltd	Federal Hardware Engineering Co. Pte Ltd	Supply of Offshore Crane	which is expected to be delivered from second quarter of 2017 to third quarter of 2017
Kroll Cranes A/S	Energy Solution Management Co. Ltd	Supply of Tower Crane	which is expected to be delivered by second quarter of 2017
Favelle Favco Cranes (M) Sdn Bhd	MISC Offshore Floating Terminals (L) Limited	Supply of Offshore Crane	which is expected to be delivered by end of 2017

The approximate combined value of the above substantial orders secured amount to RM70.6 million. FINANCIAL EFFECTS

The above Contracts are expected to contribute positively to the earnings and net assets of FFB for the financial year ending 31 December 2016 and beyond. The Contracts do not have any impact on the share capital and shareholding structure of FFB.

DIRECTORS' AND MAJOR SHAREHOLDERS' INTERESTS

None of the Directors or major shareholders or persons connected to the Directors or major shareholders has any direct or indirect interest in the above Contracts.

DIRECTORS' STATEMENT

The Board of Directors of FFB is of the opinion that the acceptance of the above Contracts is in the best interest of FFB.

This announcement is dated 2 November 2016.