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MATERIAL LITIGATION JUDGEMENT ON THE LITIGATION IN TURKEY BETWEEN IRIS TECHNOLOGIES (M) SDN. BHD. (“IRIS TECH”) A WHOLLY OWNED SUBSIDIARY OF IRIS CORPORATION BERHAD (“THE COMPANY”) ITS JOINT VENTURE PARTNER KUNT ELEKTRONIK SAN.VE.TIC.A.S(“JVCO”) AND THE SECURITY GENERAL DIRECTORATE OF MINISTRY OF INTERIOR (KNOWN AS "EGM").

IRIS CORPORATION BERHAD

Type

Announcement

Subject

MATERIAL LITIGATION

Description

JUDGEMENT ON THE LITIGATION IN TURKEY BETWEEN IRIS TECHNOLOGIES (M) SDN. BHD. (“IRIS TECH”) A WHOLLY OWNED SUBSIDIARY OF IRIS CORPORATION BERHAD (“THE COMPANY”) ITS JOINT VENTURE PARTNER KUNT ELEKTRONIK SAN.VE.TIC.A.S(“JVCO”) AND THE SECURITY GENERAL DIRECTORATE OF MINISTRY OF INTERIOR (KNOWN AS "EGM").

JUDGEMENT ON THE LITIGATION IN TURKEY BETWEEN IRIS TECHNOLOGIES (M) SDN. BHD. (“IRIS TECH”) A WHOLLY OWNED SUBSIDIARY OF IRIS CORPORATION BERHAD (“THE COMPANY”) ITS JOINT VENTURE PARTNER KUNT ELEKTRONIK SAN.VE.TIC.A.S (“JVCO”) AND THE SECURITY GENERAL DIRECTORATE OF MINISTRY OF INTERIOR (KNOWN AS "EGM").

This is a follow up on the announcement last made on 15th March 2013.

The Company received the update on the court proceedings of the consolidated Ankara 12th Civil Court of First Instance (2009/343) and 23rd Civil Court of First Instance Ankara (2010/347) and several merged cases relating thereto from its solicitors in Turkey.

The Company was informed that a decision was declared on 16th September 2014 and was duly served on the JVCO on 28th January, 2015. The Company makes this announcement as soon as the facts and figures in the Judgment which is in the Turkish language is accurately verified and endorsed by its solicitors

The Judgment declared the following:-

1. The JVCO’’s claim for unlawful termination by EGM and payment for the balance amount of (Turkish Lira) TL6.195.000 (equivalent to RM9,014,221) due to the JVCO for works completed was rejected.

2. EGM’s claim for the refund of monies paid to the JVCO for the completion of Phase 1 (delivery of hardware and equipment) of the Project to the amount of TL6.195.000 (equivalent to RM9,014,221) was allowed and declared that the JVCO had to return the said amount to EGM with interest.

3. The JVCO to pay TL5.053,84 (equivalent to RM7,354) as compensation for loss suffered by EGM ; and

4. EGM’s claim of TL49.761,53 (equivalent to RM72,407) as expenses arising from their performance of the contract and loss due to the termination was allowed and the JVCO was ordered to pay the said amount as compensation.

JVCO has duly notified its lawyers and is being advised as to the next course of action. The estimated potential liability to the JVCO is limited to the total sum of RM9,093,982 which the ICB Group will be liable for 75% of the above sum.

This announcement is made on 6th February, 2015.

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Announcement Info

Company Name

IRIS CORPORATION BERHAD(ACE Market)

Stock Name

IRIS

Date Announced

6 Feb 2015

Category

General Announcement

Reference No

IC-150206-64606