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, Favelle Favco Cranes (M) Sdn Bhd, Favelle Favco Cranes (USA), Inc. and Favelle Favco Cranes Pty. Limited had received the following purchase orders or Letter of Intent (“Contracts”) respectively in the month of December 2015 and up to the date of announcement:-

Contracts secured by	Customer	Brief description of the Contracts	Duration of the Contracts
Favelle Favco Cranes (M) Sdn Bhd	SapuraKencana Energy Sarawak Inc	Supply of Offshore Crane	which is expected to be delivered by third quarter of 2016
Favelle Favco Cranes (USA), Inc	TES, Inc	Supply of Tower Crane	which is expected to be delivered by third quarter of 2016
Favelle Favco Cranes Pty. Limited	Stride High Pty Ltd	Supply of Tower Crane	which is expected to be delivered by second quarter of 2016
Favelle Favco Cranes Pty. Limited	Brookfield Multiplex Constructions Pty Ltd	Supply of Tower Crane	which is expected to be delivered by second quarter of 2016
Favelle Favco Cranes (M) Sdn Bhd	Samsung C&T Corporation UEM Construction JV Sdn Bhd	Supply of Tower Crane	which is expected to be delivered by second quarter of 2016
Favelle Favco Cranes (M) Sdn Bhd	PTT Exploration and Production Public Company Limited	Supply of Offshore Crane	which is expected to be delivered by end of 2016

The approximate combined value of the above substantial orders secured amount to RM64.0 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 19 January 2016.