KPJ Healthcare

Kpj Healthcare Berhad ("kpj" Or "the Company") Management Agreement ("agreement") Entered Into Between Kumpulan Perubatan (johor) Sdn Bhd ("kpjsb"), A Wholly-owned Subsidiary Of Kpj and New jeddah clinic hospital ("njch") And Jeddah Clinic Hospital Kandarah ("jchk")

BackMar 08, 2007

General Announcement

Reference No JC-070308-65702

Company Name	:	KPJ HEALTHCARE BERHAD
Stock Name	:	KPJ
Date Announced	:	08/03/2007


Type	:	Announcement
Subject	:	KPJ HEALTHCARE BERHAD ("KPJ" OR "THE COMPANY") MANAGEMENT AGREEMENT ("AGREEMENT") ENTERED INTO BETWEEN KUMPULAN PERUBATAN (JOHOR) SDN BHD ("KPJSB"), A WHOLLY-OWNED SUBSIDIARY OF KPJ AND NEW JEDDAH CLINIC HOSPITAL ("NJCH") AND JEDDAH CLINIC HOSPITAL KANDARAH ("JCHK")

Contents :

The Board of Directors of KPJ ("Board") is pleased to announce that KPJSB had on 8 March 2007 entered into Agreement with NJCH and JCHK. NJCH and JCHK are the owner of private hospitals known as New Jeddah Clinic Hospital and Jeddah Clinic Hospital Kandarah, respectively, in the Kingdom of Saudi Arabia (hereinafter referred to as the "Hospitals").

The salient terms of the Agreement are as follows:-

? Under the Agreement, KPJ will manage the Hospitals by providing administration, financial, general management, and other services related to the running and operation of a private hospital for a period of five (5) years upon the date of which the managers report for duty at the Hospitals ("Commencement Date") and with an option for renewal for another a period of five (5) years.

? The fee payable for management of the Hospitals shall be a total sum of Ringgit Malaysia Six Hundred Thousand (RM600,000.00) per annum (exclusive of taxes, levies and/or duties) payable by twelve equal monthly instalment of Ringgit Malaysia Fifty Thousand (RM50,000) which is due at the end of each month except for the first management fee which shall be paid within fourteen (14) days upon the Commencement Date.

? The incentive for management of the Hospitals shall be fifteen percent (15%) of any amount in excess of the Hospitals' net profit before tax of Saudi Riyal Six Million (SR6,00,00000) per annum (exclusive of taxes, levies and/or duties) be payable in one (1) lump sum within two (2) months from the end of the financial year of the Hospitals.

The Agreement is envisaged to strengthen the core activity of KPJ as a specialist healthcare services provider by expanding its presence overseas to capture a larger market base which is in line with its strategic mission to venture into new services, new markets and the expansion of existing services.

The Agreement does not have an effect on the share capital and substantial shareholders' shareholding of KPJ. The Agreement is not expected to have a material effect on the net asset per share, earnings per share, gearing and dividend of the KPJ Group.

The Agreement is within the ordinary course of business of the KPJ Group.

The Directors and major shareholders of KPJ do not have any interest, direct or indirect in the above Agreement. In so far as the existing Directors and the major shareholders are able to ascertain and are aware, no persons connected to them have any interest, direct or indirect in the said Agreement.

This announcement is dated 8 March 2007

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Kpj Healthcare Berhad ("kpj" Or "the Company") Management Agreement ("agreement") Entered Into Between Kumpulan Perubatan (johor) Sdn Bhd ("kpjsb"), A Wholly-owned Subsidiary Of Kpj and New jeddah clinic hospital ("njch") And Jeddah Clinic Hospital Kandarah ("jchk")

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