General Announcement
Reference No IC-050225-C51FA

Company Name	:	INDUSTRIAL CONCRETE PRODUCTS BERHAD
Stock Name	:	ICP
Date Announced	:	25/02/2005


Type	:	Announcement
Subject	:	Proposed Bonus Issue of 1:5 and Proposed Share Split

Contents :

1. INTRODUCTION

The Company is pleased to announce the following proposals:-

1. Proposed Bonus Issue of 29,298,742 ordinary shares of RM1 each in the Company on the basis of one (1) new ordinary share for every five (5) ordinary shares held on an entitlement date to be determined later ("Proposed Bonus Issue"); and

2. Proposed Share Split into two (2) ordinary shares of RM0.50 for every one (1) existing ordinary share of RM1 each held in the Company ("Proposed Share Split")

(collectively referred to as "the Proposals").

2. DETAILS OF THE PROPOSALS

2.1 Proposed Bonus Issue

The Proposed Bonus Issue shall involve the issuance of 29,298,742 ordinary shares of RM1 ("Bonus Shares") each in the Company, to be credited as fully paid-up, on the basis of one (1) new ordinary share for every five (5) ordinary shares held by the shareholders of the Company on an entitlement date to be determined by the Directors.

The Proposed Bonus Issue is proposed to be capitalised from the share premium account and retained profits in the following manner:-

(a) RM9,909,000 from the share premium account of the Company; and

(b) RM19,389,742 from the retained profits account of the Company.

The Bonus Shares shall, upon allotment and issue, rank

pari passu

in all respects with the existing ordinary shares of the Company, save and except that they shall not be entitled to participate in any rights, allotments, dividends and/or any other distributions, the entitlement date of which is prior to the date of allotment of the Bonus Shares.

2.2 Proposed Share Split

The Proposed Share Split entails the subdivision of every one (1) existing ordinary share of RM1 each into two (2) ordinary shares of RM0.50 each held by the shareholders of the Company on a date to be determined by the Directors. The Proposed Share Split is proposed to be implemented after the Proposed Bonus Issue.

The subdivided shares, pursuant to the Proposed Share Split, shall rank

pari passu

in all respects with the existing ordinary shares of the Company.

3. RATIONALE

3.1 Proposed Bonus Issue

The Proposed Bonus Issue will increase the capital base of the Company to a level which will provide a better reflection of its scale of operations. The Proposed Bonus Issue will also enable the shareholders of the Company to have a greater participation in the equity of the Company in terms of the number of shares held.

3.2 Proposed Share Split

The Proposed Share Split will reduce the existing par value per share of the Company and increase the liquidity and marketability of shares of the Company.

4. THE EFFECTS OF THE PROPOSALS

4.1 Share Capital

The effects of the Proposals on the issued and paid-up share capital of the Company are set out in Table 1 below.

4.2 Earnings Per Share ("EPS")

The Proposals are not expected to have any effects on the earnings of the Group for the financial period ending 31 March 2005 or the future financial years except that the EPS will be correspondingly reduced as a result of the increase in the number of shares in issued.

4.3 Consolidated Net Tangible Assets ("NTA")

The Proposals will not have any material effect on the consolidated NTA of the Group. However, the consolidated NTA per share of the Group will correspondingly be diluted as a result of the increase in the issued and paid-up share capital of the Company.

4.4 Substantial Shareholding Structure

The Proposals will not have any impact on the shareholding structure of the Company.

5. APPROVALS REQUIRED

The Proposals are subject to the following approvals being obtained:-

i. Securities Commission ("SC") for the Proposed Share Split;

ii. Bursa Malaysia Securities Berhad ("Bursa Securities") for the listing and quotation for the new shares to be issued pursuant to the Proposals; and

iii. shareholders of the Company for the Proposals.

The applications to the SC and the Bursa Securities for the Proposals are expected to be made within one (1) month from the date of this announcement.

6. DIRECTORS' AND MAJOR SHAREHOLDERS' INTERESTS

None of the Directors, major shareholders nor persons connected to the Directors or major shareholders of the Company, is interested, directly or indirectly, in the Proposals save for their respective entitlements in the Proposals as shareholders of the Company.

This announcement is also available for access at http://www.ijm.com/.