1) INTRODUCTION

The Board of Directors of Tex Cycle Technology (M) Berhad (“TCTB” or “the Company) is
pleased to announce that its wholly owned subsidiary, Tex Cycle (P2) Sdn Bhd (“Tex Cycle
P2”) has entered into a Memorandum of Understanding (“MOU”) with MyBamboo Sdn Bhd
(“MYBAMBOO”) on 21 May 2020.

2) BACKGROUND OF THE MOU

This MOU will articulate the relationship of the parties and how they will collaborate and
conduct their respective and collective organisations’ business for the success of their entry
into the new and global markets to be mutually agreed.

Tex Cycle P2 is a company established and registered in Malaysia and having its registered
address at Level 2, Tower 1, Avenue 5, Bangsar South City, 59200 Kuala Lumpur, specialized
on scheduled waste management for over 30 years including technological expertise in
converting waste to energy.

MYBAMBOO is a private company established under the laws of Malaysia and having its
registered address at No. 9A, Jalan Medan Tuanku, Medan Tuanku, 50300 Kuala Lumpur.
MYBAMBOO’s business includes but not limited to propagation of bamboo through
reforestation or commercial plantation, management of bamboo forest, development of
bamboo as a sustainable source for timber replacement, waste recovery including the research
in new products and market of tropical bamboo.

The objectives of the MOU are as follows:

i. To establish a working team with local stakeholders.

ii. To facilitate power generation using bamboo as biofuel.
iii. To identify and initiate projects within Malaysia that will allow technical collaboration
between both parties and bring in technology and attract investment/funding.
iv. To work towards scaling successful projects to create a viable bamboo biomass-based
economy.

3) SALIENT TERMS OF THE MOU

The MOU creates no contractual relationship between Tex Cycle P2 and MYBAMBOO but is
aimed to provide a platform, a goal to which both Tex Cycle P2 and MYBAMBOO is aiming
to achieve.

The MOU is not a commitment of funds but rather an agreement to work together and if
feasible to embark into the objectives stated above. The financial arrangements to cover
expenses for the cooperative activities undertaken within the framework of this MOU shall be
mutually agreed upon by the respective parties on a case-by-case basis subject to the
availability of funds.

The MOU will remain in effect for duration of 3 years or terminated by any one of the
partners by mutual consent.
4) EFFECT OF THE MOU

The MOU will not have any effect on the share capital and substantial shareholders’
shareholdings of TCTB. The MOU is not expected to have any significant effect on the
earnings per share, net assets per share and gearing of TCTB for the financial year ending 31
December 2020.

The Director of TCTB believes that the collaboration with MYBAMBOO will give TCTB an
advantageous platform to further benefit and better prospect in the future.

5) RISK FACTORS

The Directors of TCTB are of the view that the risk factors involved in this MOU at this
juncture is minimal and in the event the Company enters into a term arrangement it will
exercise due care in considering the risks and benefits associated and will take appropriate
measures in planning the successful implementation of the MOU vis-à-vis its current business
operations.

6) DIRECTORS AND MAJOR SHAREHOLDERS’ INTERESTS

None of the Directors, major shareholders and persons connected with Directors or major
shareholders of the Company or any of its subsidiaries have any interest, direct or indirect, in
the MOU.

7) APPROVAL REQUIRED

The MOU is not subject to the approval of the shareholders of TCTB or any regulatory
authority.

8) DOCUMENTS FOR INSPECTION

The MOU is available for inspection at the Registered Office of the Company at Level 2,
Tower 1, Avenue 5, Bangsar South City, 59200 Kuala Lumpur during normal business hours
for a period of three (3) months from the date of this announcement.

This announcement is dated 21 May 2020.