Trio-Tech agrees to sell property in Malaysia

VAN NUYS, USA: Trio-Tech International announced that Trio Tech Malaysia, a 55 percent owned subsidiary, has entered into an agreement to sell a facility in Penang, Malaysia formerly used in the Trio Tech's semiconductor testing operations.

The agreement provides for a purchase price of 3,550,000 Malaysian Ringitt, or approximately $1,179,000 (US) based on the exchange rate as of May 31, 2011 published by the Monetary Authority of Singapore. Under the terms of the agreement, the buyer paid a down payment of 355,000 Malaysian Ringitt to an escrow agent and the balance will be paid as provided in the agreement. The down payment may be non-refundable under the terms set forth in the agreement.

The consummation of the sale of TTM's interest in the real property is subject to certain conditions, including the consent from the Penang Development Authority and the State Authority of Malaysia and payment of the balance of the purchase price. If the required governmental approvals are not obtained within six months, then the parties are free to terminate the agreement.

The agreement is on an "as-is, where-is" basis. The agreement contemplates a consummation date within six months. This agreement does not have any impact on the Company's consolidated statements of operations and comprehensive income of the current quarter.