General Announcement

General Announcement
Reference No O&-080121-31593

Submitting Merchant Bank	:	KENANGA INVESTMENT BANK BERHAD
Company Name	:	REXIT BERHAD (MESDAQ Market)
Stock Name	:	REXIT
Date Announced	:	21/01/2008


Type	:	Announcement
Subject	:	REXIT INTERNATIONAL SDN BHD SIGNS AGREEMENT WITH SOMPO JAPAN INSURANCE INC OF JAPAN TO PROVIDE e-COVER SERVICES

Contents :

We refer to the announcement made on 22 November 2007 in relation to the Letter of Intent (“LOI”) received from Sompo Japan Insurance Inc of Japan (“Sompo Japan”) by Rexit International Sdn Bhd (“Rexit International”), Rexit’s 51%-owned joint venture with Marubeni Corporation of Japan, for the implementation of e-Cover services.

On behalf of the Company, Kenanga Investment Bank Berhad ("Kenanga") is pleased to announce that pursuant to the LOI, Rexit International and Sompo Japan have entered into an agreement to enable Sompo Japan’s insurance business to be processed electronically via the Internet through Rexit’s e-Cover portal (“Agreement”).

1. Details of the Agreement

Under the Agreement, Rexit International agrees to provide to Sompo Japan e-Cover services commencing with its foreign marine cargo insurance business at the agreed fees and terms as specified in the Agreement. The Agreement is valid for twelve (12) months from 9 January 2008 to 8 January 2009 and the term shall be deemed automatically renewed at the expiration of the term for subsequent terms of twelve (12) calendar months each until this Agreement is terminated in accordance with the provisions of the Agreement.

2. About Sompo Japan

Sompo Japan which is listed on the Tokyo, Osaka, Nagoya, Fukuoka and Sapporo Stock Exchanges, is the second largest non-life insurance company in Japan with net written premiums of approximately ¥1,386,663 million (approximately RM42 billion) in 2007 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. Sompo Japan’s Head Office is located at 26-1, Nishi-Shunjuku, 1-Chome, Shinjuku-ku, Tokyo, Japan with subsidiaries and offices in 26 countries.

3. 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.

4. 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 Agreement.

This announcement is dated 21 January 2008.