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 Shareholders Resolutions No. 28 dated January 29, 2016, made before Yenny Widjaja, SH., M.Kn.., notary in Jakarta, PT Innovate Mas Utama, Company’s indirect subsidiary with effective ownership more than 99%, has increased its issued and paid up capital from Rp. 340,000,000,000 consisting of 340,000 shares to Rp. 341,700,000,000 consisting of 341,700 shares, with issuance of 1,700 new shares of which all new shares were subscribed by PT DSSA Mas Sejahtera, Company’s direct subsidiary with ownership more than 99%. Shareholdering structure of PT Innovate Mas Utama after the above-mentioned capital increase consists of the PT DSSA Mas Sejahtera as the owner of 341,690 shares with nominal value of Rp. 341,690,000,000 and the Company 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.