FACB Industries Incorporated Berhad ("Company" or "FACBI") wishes to announce that it has incorporated a subsidiary named Dreamland Marketing (Shanghai) Co Ltd ("DM") in China with business license dated 22 December 2014 which was received on 4 February 2015.

The main purpose of DM is marketing which includes marketing of bedding products.

The paid up capital of DM is RMB1 million. FACBI's wholly owned subsidiary Dreamland Spring Sdn Bhd directly holds 65% interest in DM. Dreamland Shanghai Pte Ltd, a company which Dreamland Spring Sdn Bhd holds 40% interest, holds 15% in DM, whereas the remaining 20% interest in DM is held by a non-related party in China.

The incorporation is not expected to have any material effect on the earnings, net assets and gearing of FACBI for the current financial year.

None of the Directors or major shareholders of the Company or persons connected with them has any interest, direct or indirect in the incorporation.

This announcement is dated 5 February 2015.