Avillion Hotel Group Sdn Bhd ("AHG") and Avillion Hotels International Sdn Bhd ("AHI") both wholly owned subsidiaries of Reliance Pacific Berhad ("RPB") have jointly incorporated a subsidiary company named PT. Avillion Indonesia in Indonesia.

PT. Avillion Indonesia has an authorised and paid up share capital of US$1,500,000 and US$ 375,000 respectively. AHG is holding 99% of the paid up share capital and AHI is holding 1% of the paid up share capital.

The rationale for the incorporation is to engage in the management and advisory consultancy in hotel, property and tourism industry in Indonesia.

There is no material effect on RPB's group earnings per share and net tangible assets per share for the financial year ended 31 March 2013.

There are no directors' or substantial shareholders' interest in respect of the aforesaid transaction.

There are no government authorities' approval, shareholders' approval and any other approvals required.

This announcement is dated 17 May 2012.