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AirAsia Berhad (“AirAsia” or “the Company”) has today entered into a Sale and Purchase Agreement (“the Agreement”) with SkyServ (M) Sdn Bhd (“SkyServ”) for the Company to purchase from SkyServ a food service outlet currently owned and operated by SkyServ located at the Domestic Departures, Low Cost Airport Terminal at the Kuala Lumpur International Airport (“the Premises”).

Salient Terms of the proposed transaction

Under the transaction, AirAsia shall purchase from SkyServ free from all encumbrances a food service outlet known as Buy & Fly currently owned and operated by SkyServ at the Domestic Departures, Low Cost Airport Terminal for a consideration sum of RM400,000.00.

At the date of completion of the agreement and upon hand over of the outlet, the Company shall reimburse SkyServ the value of all consumables and packaging stocks at net value which shall be ascertained at such time.

SkyServ is currently leasing the outlet from Malaysia Airports (Niaga) Sdn Bhd (“Malaysia Airports”) together with a warehouse space.

The completion of the Agreement is subject to SkyServ obtaining the consent from Malaysia Airports for the novation of the tenancy to the food service outlet as well as the warehouse as identified under the Agreement.

SkyServ agrees to make a representation that the outlet and equipment therein are free from encumbrances and agrees to indemnify the Company if this representation is inaccurate.

Interests in the Transaction

No directors, major shareholders of the Company and/or persons connected with the said directors or major shareholders have any direct or indirect interest in the transaction.

Document available for inspection

The Agreement is available for inspection at the registered office of the Company at 25-5, Block H, Jalan PJU 1/37, Dataran Prima, 47301 Petaling Jaya, Selangor Darul Ehsan, Malaysia during normal business days from Mondays to Fridays (except public holidays) for a period of 3 months from the date of this announcement.
This announcement is dated 5th October, 2007.