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Rights Issue

01-11-2007

ASDION BERHAD ("ASDION" or "COMPANY")
PROPOSED RENOUNCEABLE RIGHTS ISSUE OF 11,000,000 NEW ORDINARY SHARES OF RM0.10 EACH IN ASDION ("RIGHTS SHARES") WITH 11,000,000 FREE DETACHABLE NEW WARRANTS ("WARRANTS") AND 11,000,000 NEW BONUS SHARES ("BONUS SHARES"), ON THE BASIS OF ONE (1) RIGHTS SHARE WITH ONE (1) WARRANT AND ONE (1) BONUS SHARE FOR EVERY FOUR (4) EXISTING ORDINARY SHARES OF RM0.10 EACH IN ASDION ("ASDION SHARES" OR "SHARES") HELD ON AN ENTILEMENT DATE TO BE DETERMINED AND ANNOUNCED LATER ("PROPOSED RIGHTS ISSUE")

Proposed Rights Issue

The Proposed Rights Issue involves the issuance of 11,000,000 Rights Shares together with11,000,000 Warrants and 11,000,000 Bonus Shares at an issue price to be determined later ona renounceable basis of one (1) Rights Share with one (1) Warrant and one (1) Bonus Share forevery four (4) existing Asdion Shares held by the entitled shareholders of the Company whosenames appear in the Record of Depositors of the Company on an entitlement date to bedetermined and announced later by the Board after obtaining all the relevant approvals.

As at 30 June 2007, the issued and paid-up share capital and share premium of Asdion was RM4,400,000 comprising 44,000,000 Asdion Shares and approximately RM5.46 million respectively. Pursuant to the Proposed Rights Issue, the Bonus Shares will be capitalised from the share premium account of Asdion which will be reduced to approximately RM4.36 million from RM5.46 million.

Upon issue, the Warrants will be immediately detached from the Rights Shares and separately traded. The Warrants will be issued in registered form and constituted by a Deed Poll to be executed by the Company.

The renunciation of the Rights Shares by the entitled shareholders of Asdion will accordingly entail the renunciation of the Warrants and Bonus Shares to be issued together with the Rights Shares pursuant to the Proposed Rights Issue. As such, the shareholders of Asdion who wish to receive the Warrants and Bonus Shares must first subscribe for the Rights Shares in order to be entitled to the Warrants and Bonus Shares.

Any fractional entitlements under the Proposed Rights Issue shall be disregarded and shall be dealt with in such manner as the Board may at its absolute discretion deem fit and expedient and in the best interest of the Company.