1. INTRODUCTION

The Board of Directors of Sarawak Plantation Berhad ("SPB") wishes to announce that its wholly owned subsidiary, Sarawak Plantation Property Holding Sdn. Bhd. ("SPPH"), has entered into a Sale and Purchase Agreement ("SPA") with Everlasting Prosperity Sdn. Bhd. ("the Purchaser") on 30 July 2012 to dispose of 65 parcels of land, described as Lots 433 to 497 all of Block 26 Kemena Land District ("the land") measuring approximately 23,340 square metres for a total consideration of RM7,200,000-00.

2. RATIONALE FOR THE DISPOSAL

Given the attractive price offered by the Purchaser, the Board of SPPH was of the opinion that this is a good option to realize capital gain from the investment in the land.

3. DETAILS OF THE SALE AND PURCHASE AGREEMENT

The SPA was executed between SPPH and the Purchaser and the details are as follows:

(a) RM720,000-00, being 10% of the total consideration, was paid by the Purchaser to SPPH upon execution of the SPA;

(b) RM2,160,000-00, being 30% of the total consideration, will be paid by the Purchaser to SPPH 4 months from the date of execution of the SPA;

(c) RM4,320,000-00, being 60% of the total consideration, will be paid by the Purchaser to SPPH 9 months from the date of execution of the SPA or within 3 months from the date of written consent from the appropriate authority to transfer the land to the Purchaser, whichever is the later.

4. BASIS OF DETERMINING THE PURCHASE PRICE

The consideration for the sale was arrived at on a willing buyer willing seller basis.

5. ORIGINAL COST AND DATE OF INVESTMENT

The original cost of investment was RM1,742,359.93 and all the land was acquired by SPPH pursuant to a Sale and Purchase Agreement dated 29 March 1998.

6. FINANCIAL EFFECTS OF THE ACQUISITION

(a) Earnings per Share

Upon successful completion of this sale, it is expected to give rise to an estimated gain of RM 5.7 million, hence increasing the earnings per share of SPB by approximately 2 sen per share.

(b) Net Assets per Share

The disposal is not expected to have any material effect on the net assets per share of SPB for the financial year ending 31 December 2012.

(c) Gearing

The disposal is not expected to have any material effect on the gearing of SPB for the financial year ending 31 December 2012.

(d) Share Capital and Substantial Shareholding

The disposal is not expected to have any material effect on the share capital and substantial shareholdings of SPB for the financial year ending 31 December 2012.

7. APPROVALS REQUIRED

This disposal is not subject to the approval of shareholders save for the written consent from the appropriate authority to transfer the land to the Purchaser.

8. DEPARTURE FROM SECURITIES COMMISSION'S GUIDELINES

To the best of the knowledge and belief of the Directors, there is no departure from the policies and guidelines of the Securities Commission in relation to this disposal.

9. DIRECTORS AND SUBSTANTIAL SHAREHODLERS' INTEREST

To the best of the knowledge and belief of the Directors and/or the substantial shareholders of SPB, none of the Directors and/or the substantial shareholders of SPB and/or persons connected to them have any interest, direct or indirect in this disposal.

10. DIRECTORS' STATEMENT

The Directors of SPB, having taken into consideration the rationale and all the relevant aspects of the disposal, are of the opinion that the SPA is in the best interest of SPB.

11. DOCUMENTS AVAILABLE FOR INSPECTION

The SPA is available for inspection during normal working hours from Mondays to Fridays (except public holidays) at the hours of 8 am - 5 pm at the registered office of SPB at 8th Floor Wisma Naim 21/2 Miles Rock Road 93200 Kuching Sarawak.

This announcement is dated 30 July 2012.