INTRODUCTION

The Board of Directors of Jaya Tiasa Holdings Berhad ("JTH") wishes to announce that JTH's subsidiaries, namely Atlantic Timber Holdings Limited and Pacific Timber Holdings Limited have on 28 December 2011 entered into a Sale and Purchase Agreement with Cezar Augusto Carrenho De Souza, to sell their collective equity interest of 100% in Selvaplac Verde Ltda (a company incorporated in Brazil) for cash consideration of Brazilian Real Two Million Only (R$2,000,000) [equivalent to RM3,396,600]. The consideration was arrived at on a willing buyer-willing seller basis.

INFORMATION ON PURCHASER

The Purchaser, Cezar Augusto Carrenho De Souza is a Brazilian businessman.

EFFECTS OF THE DISPOSAL

The disposal does not have any effect on the share capital of the Group and the Company, or any material effect on the earnings and net assests of the Group for the financial period ending 30 June 2012.

RATIONALE

The disposal is in line with the intention of the Group to divest its Brazilian operations in view of continuing losses incurred and unclear prospect of recovery.

DIRECTORS' AND MAJOR SHAREHOLDERS' INTERESTS

None of the Directors and/or major shareholders of JTH and/or persons connected with them has any interest, direct or indirect, in the disposal.

STATEMENT BY THE BOARD OF DIRECTORS

The Board of Directors is of the opinion that the disposal is in the best interest of the Group and its shareholders.