ITMAX System Berhad announced that the Company had on 3 July 2023 accepted the letter of award ("LOA") dated 27 June 2023 awarded by Segamat Specialist Hospital Sdn Bhd ("SSHSB") in relation to the sub-contract works for the design and provision of smart healthcare systems services, including mechanical and electrical engineering works and smart systems for a hospital located at PTD 25406, Mukim Sungai Segamat, Daerah Segamat, Johor Darul Takzim ("Services") through Suqizam Ibrahim Architects Sdn Bhd ("SIASB") for a contract sum of MYR 40,000,000. The LOA is regarded as a recurrent related party transaction ("RRPT") which is necessary for the day-to-day operations and within the ordinary course of business of ITMAX and its subsidiaries ("ITMAX Group"). The RRPT is made on arm's length basis and on normal commercial terms which are not more favorable to the related parties than those generally available to the public.

The contract sum for the Services shall be based on SSHSB's proposed completion period as stated below at a provisional quantity basis amount of MYR 40,000,000 ("Contract Sum") and a three years maintenance period, detailed as below:- Date of commencement: 1 July 2023. Date of completion: 31 December 2024. Maintenance period: 1 January 2025 to 31 December 2027.

The terms of the maintenance period will be agreed through a supplementary agreement to the LOA upon completion of the works. The Accepted Contract Amount shall be deemed to include the supply of labour, machinery and testings for the execution and completion of the mechanical and electrical works as stipulated in the contract documents. The Company is required to submit a sum equivalent to (5%) of the Accepted Contract Amount within 14 days after receiving the LOA from the bank approved by SSHSB and shall be in the form annexed to Tender Document or in some other form approved by SSHSB, in the name of SSHSB.

The validity shall remain valid until three (3) months after the date of Certificate of Practical Completion. The retention sum shall be 10% of all certified payments with a maximum limit equivalent to 5% of the Contract Sum. The certification for the release of the first moiety of the total retention sum (2.5%) for the Works shall only be issued by SIASB upon the issuance of the Certificate of Practical Completion or upon the approval (by SIASB) of the "As-Built" drawings, operation and maintenance manuals, letters of guarantee/warranty, test reports and records, keys, etc.

submitted by the Company or the fulfillment of all obligations and requirements as stipulated in the Contract Documents and subsequent correspondences, whichever is the latest. The second moiety of the total retention sum (2.5%) shall only be released upon the issuance of Certificate of Making Good Defects (CMGD) or the expiry of Defect Liability Period (DLP) whichever is the later by SIASB.