News

2. INFORMATION ON SUPPLY OF AUTODESK SOFTWARE & SERVICES

The Government is desirous to:-

(i) raise the standards of IPTA’s teaching, research and learning to international levels and global standards;

(ii) ensure the skills relevancy of graduates for the 21st century;

(iii) reduce the quality discrepancies and divide between high achievers and underperforming students;

(iv) reduce costs associated with IPTA procurement;

(v) make IPTA the institutes of higher learning of choice; and

(vi) drive compliance.

Towards achieving the Government’s mission, PSSB will supply Autodesk software and related value-add services to all IPTA.

3. FINANCIAL EFFECTS

The Supply of Autodesk Software & Services is expected to contribute positively to the future earnings, net assets per share and gearing of Prestariang Group.

The Supply of Autodesk Software & Services will not have any effect on the share capital and substantial shareholders’ shareholding of Prestariang.

4. RISK FACTORS

Competition among operators that are involved in the general distribution of proprietary software licenses is intense. However, the competitive intensity for the management and distribution of proprietary software licenses to government bodies and large organisations is low due to various consideration factors including following: -

(i) the number of operators that are able to manage and distribute to large private and public organisations are few; and

(ii) operators that are able to distribute and manage proprietary software licenses to large organisations are authorised by product owners. Product owners normally authorise only a small number of operators to distribute and manage their proprietary software licenses to large organisations.

The Supply of Autodesk Software & Services is highly dependent on PSSB’s major supplier, Autodesk. PSSB has been dealing with Autodesk for approximately eight (8) years. This indicates a continuing and stable business relationship with Autodesk.

5. DIRECTORS' AND/OR MAJOR SHAREHOLDERS' INTEREST

None of the Directors and/or major shareholders or any person connected to the Directors and/or major shareholders of Prestariang has any interest, either direct or indirect in the Supply of Autodesk Software & Services.

6. DIRECTORS' STATEMENT

The Board of Directors of Prestariang is of the opinion that the Supply of Autodesk Software & Services is in the ordinary course of business and is in the best interests of the Company.

This announcement is dated 7 October 2013.