Proposed New Employees' Share Option Scheme

1. Introduction
The Board of Directors of Landmarks Berhad ("LB/ the Company") is pleased to announce that, following the expiry of the previous employees' share option scheme on 11 November 2000 ("Previous ESOS"), the Company proposes to implement a new employees' share option scheme ("Proposed New ESOS/Scheme") for eligible employees of LB and its non-dormant subsidiaries ("LB Group") and executive directors of LB ("Eligible Employees").

2. Details of the Proposed New ESOS
The Proposed New ESOS will allow the granting of options ("Options") to all Eligible Employees to subscribe for new ordinary shares of RM1.00 each in LB ("LB Shares"), where the aggregate number of new LB Shares allotted and new LB Shares which may be allotted pursuant to the exercise of Options granted under the Scheme shall not exceed 10% of the issued and paid-up share capital of LB at any point in time during the existence of the Scheme, subject to the terms and conditions of the By-Laws governing the Proposed New ESOS.

3. Rationale for the Proposed New ESOS
The Proposed New ESOS is aimed at retaining and motivating Eligible Employees who have contributed to the success of the LB Group, and at the same time instilling a sense of ownership in them with a view to retaining their services and encouraging them to improve their performance, standards and efficiency.

4. Financial effects of the Proposed New ESOS
The Proposed New ESOS will not have an immediate effect on the share capital of the Company. However, assuming that the maximum allowable number of Options are granted, which amount to 10% of the issued and paid-up share capital of LB, and assuming that all Options granted are exercised, the issued and paid-up share capital of LB will increase as shown in Table 1.

The Proposed New ESOS is not expected to have any material effect on the earnings nor net tangible assets of the LB Group, until such time as the Options under the Proposed New ESOS are exercised.