1. INTRODUCTION 

Further to the announcement dated 1 July 2014 in relation to a joint venture between AirAsia Berhad ("AirAsia" or the Company"), Octave Japan Infrastructure Fund I GK, Rakuten Inc., Noevir Holdings Co. Ltd. and Alpen Co. Ltd., the Company is pleased to announce that it has today through its wholly-owned subsidiary, AirAsia Investment Ltd, completed the subscription of two (2) classes of shares as follow:

(i) 3,174,927 shares of common stock; and

(ii) 3,825,073 shares of non-voting convertible stock, 

at JPY70 per share in AirAsia Japan Co., Ltd (“AirAsia Japan”) at the total price of JPY490,000,000. 

2. INFORMATION ON AIRASIA JAPAN 

AirAsia Japan is a company incorporated under the laws of Japan, having its principal office at 1-4-3 Shiba, Minato-ku, Tokyo, Japan. AirAsia Japan is formed for the purposes of obtaining an Air Operator’s Certificate to operate a low-cost aviation business in Japan. 

3. FINANCIAL EFFECTS OF THE SUBSCRIPTION 

The subscription is not expected to have any material effect on the earnings and net tangible assets of the AirAsia group for the financial year ending 31 December 2014. The joint venture is expected to contribute positively to the future profitability of AirAsia.

4. DIRECTOR'S AND/OR SUBSTANTIAL SHAREHOLDERS' AND/OR PERSONS CONNECTED WITH DIRECTORS’ OR SUBSTANTIAL SHAREHOLDERS' INTEREST 

To the best of the knowledge of the Company, none of the Directors or Substantial Shareholders of the Company and/or persons connected to them has any interest, directly or indirectly, in the above subscription.

This announcement is dated 18 July 2014.