SUPERLON SET TO ESTABLISH FOOTHOLD IN CHINA

KUALA LUMPUR, June 27 (Bernama) -- Superlon Holdings Bhd is set to establish
a foothold in the Chinese market with a proposed acquisition of a thermal
insulation product manufacturer.

In a filing to Bursa Malaysia (Malaysia's stock exchange) Wednesday,
Superlon said its wholly-owned subsidiary, Superlon Hong Kong Co Ltd, had
entered into a conditional sale and purchase agreement to acquire the entire
stake in Guangzhou Mutian Rubber Goods Ltd (GMR) for US$900,000.

GMR's principal business is that of manufacturing and selling of thermal
insulation products for the heating, ventilation, air-conditioning and
refrigeration industry.

Its factory in Guangzhou, Guangdong, has commenced production for nine
months.

Superlon said the proposed acquisition would enable the company to have an
immediate operating production facility in China with an existing customer base,
and provide a base for its future expansion in China.

"The purchase price was arrived at on a willing buyer-willing seller basis
after taking into consideration the audited net assets of GMR as at Dec 31,
2010, the customer base of GMR, the existing on-going facility of GMR and the
prospects of the China insulation market.

"In addition to the purchase price, the purchaser will reimburse the vendor
for all payments made by the vendor to GMR to increase the investment capital of
GMR from US$302,225.90 only to US$1 million prior to the completion of the
agreement.

"The increase of the investment capital to US$1 million is to comply with
the requirement of the relevant authorities in China on GMR," it said.
-- BERNAMA