We refer to our announcement made on 22 August 2011.

The Company wishes to announce that the High Court had on 30 October 2012 dismissed with cost the appeal by Kar Sin Berhad ("KSB"), a wholly-owned subsidiary of YNHP against the additional assessments raised by the Inland Revenue Board for the Years of Assessment 1998 and 1999.

Pursuant to this matter, KSB intends to appeal against the decision to the Court of Appeal and further announcement on the appeal will be made at the appropriate time.

This announcement is dated 31 October 2012.