The Board of Directors of Pestec International Berhad ("Company") wishes to announce that the Company and its relevant subsidiaries have commenced a civil suit at the Kuala Lumpur High Court vide Civil Suit No. WA-22ICA-27-08/2026 ("Civil Suit") against certain former members of the Company's management and suppliers appointed by the Company's previous management namely Shandong Power Equipment Co Ltd ("SPECO") and Shandong Electrical Engineering & Equipment Group Co ("SDEE").

The Civil Suit concerns claims of fraud, fraudulent misrepresentation and conspiracy involving SPECO, SDEE and certain former members of the Company's management in relation to highly dubious transactions, inflated invoices and exorbitant payments made by the Company to SPECO and/or SDEE. The Company contends amongst others irregularities in the supporting documents and the purported use of an undated and unauthorised Parent Corporate Guarantee to impose liability on the Company and support SPECO's payment claims.

The Company also seeks declarations and/or orders to determine the validity and enforceability of a Parent Guarantee Company purportedly executed by a former member of the Company's previous management and the Company's former secretary under the Company's seal without the approval of the previous Board of Directors at the material time as required under the Constitution of the Company.

Prior to the filing of the Civil Suit, the Company has also lodged police reports following its internal findings on the said irregularities and discrepancies including those relating to the purported Parent Guarantee Company and the involvement of certain former members of the Company's management, SPECO and/or SDEE. The Police have confirmed that the investigations are currently ongoing.

The filing of the Civil Suit and the lodging of the police reports are part of the Company's ongoing efforts to protect its interests and to ascertain its legal rights in respect of the purported Parent Guarantee Company and the underlying transaction.

The Company does not expect any material impact on the financial and operation of the Company arising thereon save for the legal costs and expenses incidental to the proceedings.

The Company will make further announcements as and when there are material developments in the civil suit.

This announcement is dated 20 August 2026.