We refer to the news article entitled "AFFIN sells office tower in Shah Alam" appearing in Focus Malaysia weekly publication for the period 27 May 2017 to 2 June 2017 ("Article").

We wish to clarify that AFFIN Bank Berhad, our wholly-owned subsiadiary, has agreed in principle to dispose Bangunan AFFIN Bank Shah Alam to Serba Dinamik Group Berhad, a wholly-owned subsidiary of Serba Dinamik Holdings Berhad. However, the sale and purchase agreement in relation to the proposed transaction is currently being prepared and has yet to be executed.

Bangunan AFFIN Bank Shah Alam is a 16-storey building with 4-storey basement located in Seksyen 14, Shah Alam, Selangor Darul Ehsan. Its net book value as at 31 December 2016 is RM38,251,419.

The highest percentage ratio applicable pursuant to Paragraph 10.02(g) of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad ("Listing Requirement") is expected to be less than 5%. As such, Part D of Chapter 10 of the Listing Requirements does not apply to the proposed transaction.

This announcement is dated 26 May 2017.