The Ascott Limited ("Ascott"), a wholly-owned subsidiary of CapitaLand Limited ("CapitaLand"), has recently discovered financial irregularities in its Malaysian operations including unauthorised payments and transfers. Based on available evidence, Ascott has made a police report in Malaysia and commenced legal proceedings in the High Court of Malaya against 3 employees from the Finance and Accounts Department of the Malaysian operations of Ascott and 4 external parties for the recovery of a sum in the region of RM33 million (approximately SGD14 million). Ascott will continue to pursue to the fullest extent, all its rights and remedies against the parties concerned. Immediate steps have been taken to prevent a similar occurrence. Based on current investigations, the amounts involved are not expected to have any material impact on the net tangible assets or earnings per share of the CapitaLand Group for the financial year ending 31 December 2010.