The Redeemable Convertible Secured Loan Stocks (RCSLS) holders of Land & General Berhad (L&G) had, at an Extraordinary Meeting held on 15 February 2007, approved a prepayment of 14,785,526 RCSLS with a nominal value of RM1 each.  The prepayment represents 7% of the current outstanding of 214,728,955 RCSLS.  The prepayment is by a cash settlement of RM10,649,851 and waiver of the balance of RM4,135,674.  The said prepayment will be deemed full and final settlement of the 14,785,526 RCSLS.

The source of funds for the prepayment is from the current cash balances in the escrow account and internally generated funds. The transaction is anticipated to be completed by the 4th quarter of the FYE 31 March 2007.  Pursuant to this, total borrowings are expected to be reduced by RM14,785,526. However, the prepayment is not expected to have any material impact on the earnings per share and NTA of the Group for the FYE 31 March 2007.

After the completion of the prepayment and the redemption of the RCSLS B Series 2 with a nominal value of RM20,514,462 completed as of 30 July 2006, the total nominal value of the outstanding RCSLS stands at RM199,943,429.