Additional Investment In Kingsmen Sdn. Bhd.

May 23, 2006

The Board of Directors of Kingsmen Creatives Ltd. ("the Company") wishes to announce that the Company has invested an additional RM597,713.00 in the share capital of Kingsmen Sdn. Bhd. ("KSB"), a subsidiary of the Company, by way of a subscription of 597,713 new ordinary shares of RM1.00 each.

With the above investment, the authorised and issued and paid-up capital of KSB have increased to RM5,000,000.00 and RM2,269,036.00 respectively. The Company holds 71% of the issued share capital of KSB.

The additional investment in KSB was funded through internal resources and is not expected to have a material impact on the earnings per share and the net tangible assets per share of the Company for the financial year ending 31 December 2006.

None of the directors or substantial shareholders of the Company has any interest, direct or indirect, in the investment.