ETA GROUP BERHAD — M&A Activity 2026

May 25, 2026

ETA GROUP BERHAD ("ETA" OR "COMPANY")

ADDITIONAL INFORMATION IN RELATION TO THE PROPOSED ACQUISITION BY ETA DEVELOPMENT SDN BHD, A WHOLLY-OWNED SUBSIDIARY OF ETA, OF ALL THAT PIECE OF FREEHOLD LAND TOGETHER WITH A 5-STOREY OFFICE/ FACTORY BUILDING AND A BASEMENT CARPARK FOR A PURCHASE CONSIDERATION OF RM16.50 MILLION ("PROPOSED ACQUISITION")

Unless otherwise stated, all definitions and terms used in this announcement shall have the same meanings as those defined in the announcement dated 22 May 2026 in relation to the Proposed Acquisition.

Further to the announcement made by the Company on 22 May 2026, the Board of Directors of ETA wishes to provide the following additional information in relation to the Proposed Acquisition:

1. Mode of purchase consideration

The total purchase consideration of RM16.50 million ("Purchase Consideration") shall be satisfied entirely in cash.

1. Valuation methods used in arriving the independent fair opinion by Izrin & Tan Properties Sdn Bhd

An independent fair opinion letter by Izrin & Tan Properties Sdn Bhd dated 12 December 2025, estimating the fair sale price of the Subject Property at approximately RM18.00 million to RM18.50 million derived from a market assessment and comparison with similar properties within the vicinity after considering the following factors:

a. Property's location;
b. Size;
c. Condition;
d. Existing improvements and extensions;
e. Surrounding developments;
f. Recent comparable transactions; and
g. Prevailing market trends in the Bandar Sri Damansara area.

1. Overview and outlook of the Malaysian economy

The Malaysian economy expanded by 5.4% in the first quarter of 2026 (4Q 2025: 6.2%), driven mainly by domestic demand. Household spending remained supported by positive labour market conditions, with the unemployment rate staying low, alongside targeted policy measures. Investment growth was underpinned by continued implementation of multi-year projects by both the private and public sectors, a high realisation rate of approved investments, and the ongoing rollout of national master plans. On the external front, export growth remained strong, driven mainly by continued expansion

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in electrical and electronics ("E&E") exports. Meanwhile, gross import growth moderated amid slower growth in capital, intermediate and consumer goods imports.

As a small and open economy, Malaysia will inevitably face both direct and indirect impact from the ongoing geopolitical conflict in the Middle East. Higher energy prices, supply chain disruptions, and heightened uncertainty are expected to weigh on the external environment. Nevertheless, the Malaysian economy is expected to remain resilient in 2026, with growth expected to come in within the range of 4% - 5%, supported by steady domestic demand and continued expansion in our export performance.

The resilient domestic demand will provide a strong buffer against external headwinds. Household spending will be underpinned by firm labour market conditions and continuous policy support. Investment activity will be driven by the continued progress of multi-year projects in both the private and public sectors, as well as the ongoing implementation of national master plans. Despite the external headwinds, export growth will continue to be supported by the global technology expansion, particularly for E&E goods, reflecting Malaysia's role in global value chains.

(Source: Economic and Financial Developments in Malaysia in the First Quarter of 2026, Bank Negara Malaysia)

4. Documents available for inspection

Copies of the SPA and independent fair opinion letter by Izrin & Tan Properties Sdn Bhd dated 12 December 2025 will be made available for inspection at the registered office at No. 46C, Plaza Damansara, Jalan Medan Setia 2, Bukit Damansara, 50490 Kuala Lumpur, during normal business hours from Mondays to Fridays (except public holidays) for a period of 3 months from the date of this announcement.

This announcement is dated 26 May 2026.