In accordance with Bapepam and LK Regulation No. IX.E.1 regarding Affiliated Transaction and Conflict-of-Interest on Certain Transaction, PT Dian Swastatika Sentosa Tbk (“Company”) hereby announces that based on Deed of Statement of Circular Resolutions of Shareholders in lieu of an Extraordinary General Meeting of Shareholders No. 24 dated June 21, 2016, made before Yenny Widjaja, S.H., M.Kn., notary in Jakarta, PT DSSA Mas Sejahtera, Company’s direct subsidiary with ownership more than 99%, increased its issued and paid up capital from Rp. 652,000,000,000 consisting of 652,000 shares to Rp. 669,000,000,000 consisting of 669,000 shares, with issuance of 17,000 new shares, of which all new shares were subscribed by the Company. Shareholding structure of PT DSSA Mas Sejahtera after the above-mentioned capital increase consists of the Company as the owner of 668,990 shares with nominal value of Rp. 668,990,000,000 and PT Sinar Mas Tunggal as the owner of 10 shares with nominal value of Rp. 10,000,000.

The purpose of the above-mentioned action is to strengthen capital structure of the Company’s subsidiary.