General Announcement
Reference No O&-070611-63068
Submitting Merchant Bank : KENANGA INVESTMENT BANK BERHAD
Company Name : REXIT BERHAD (MESDAQ Market)
Stock Name : REXIT
Date Announced : 11/06/2007


Type : Announcement
Subject : REXIT BERHAD ("REXIT" OR "COMPANY")

APPOINTMENT OF REXIT INTERNATIONAL SDN BHD, A SUBSIDIARY OF REXIT, TO PROVIDE INSURANCE SOFTWARE AND SERVICES TO ASIA INSURANCE COMPANY LIMITED ("APPOINTMENT")

Contents :

We refer to the announcement made on 23 May 2007 in relation to the above.

On behalf of the Board of Directors of Rexit, Kenanga Investment Bank Berhad (formerly known as K & N Kenanga Bhd) wishes to announce that on 11 June 2007, Rexit International Sdn Bhd ("Rexit International"), a subsidiary of Rexit, and Asia Insurance Company Limited ("Asia Insurance"), a wholly owned insurance subsidiary of Asia Financial Holdings Limited ("AFH"), have entered into an agreement to appoint Rexit International to be the lead provider of insurance software and services to Asia Insurance ("Agreement").

Details of the Appointment

Under the Agreement, Rexit International agrees to provide to Asia Insurance integrated insurance software and services covering all aspects of Asia Insurance's operations from quotation and marketing to underwriting, risk management, reinsurance, policy administration, claims management, accounting as well as management information system with a total contract value of approximately HKD7.2 million (approximately RM3.2 million based on an exchange rate of HKD1 to RM0.44) ("Contract Sum"). The delivery of the insurance software and services will span eighteen (18) months from the date of Appointment, or as may be extended upon mutual agreement.

The Appointment represents Rexit International's first overseas contract which will be a showcase implementation for the Hong Kong and China markets and thus offers good potential for the Company's expansion into overseas markets. In addition, the Appointment increases Rexit's major clientele base to eleven insurance companies, four banks and two telecommunication companies, making it a major regional player in the provision of IT software and services to the insurance industry.

About Asia Insurance

Asia Insurance, a subsidiary of AFH which is listed on the Hong Kong Stock Exchange, is among the top five players in the local general insurance market with a turnover of approximately HKD742 million (approximately RM326 million) in 2006 encompassing a portfolio which covers all classes of general insurance i.e. Motor, Fire, Marine, Workmen, Compensation, Bond, Engineering, Miscellaneous Accident, Liability and Personal Accident. Asia Insurance's head office is located in Central with two branch offices in Hong Kong as well as branches in Macau and Taiwan and a representative office in Shenzhen, China.

Effects of the Agreement

The Agreement does not have any effect on the share capital and substantial shareholders shareholdings of the Company. The Agreement is expected to enhance the revenue of the Company and consequently contribute positively to the earnings and net assets of the Company for the future financial years.

Directors and/or substantial shareholders' interests

None of the Directors and/or substantial shareholders and/or persons connected to the Directors and/or substantial shareholders of Rexit has any interest, direct and indirect in the said Appointment.

This announcement is dated 11 June 2007.



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