The Board of Directors of AirAsia Berhad (“AirAsia” or “the Company”) wishes to announce that the Company has adopted a dividend policy to pay an annual dividend of up to 20% of the net operating profit earnings per share (per the audited financial statements of the Company), rounded to the nearest whole sen number, provided that such distribution will not be detrimental to the Company’s cash flow requirements. This dividend policy shall commence for the financial year ending 31 December 2013.

The Board of Directors of AirAsia had also recommended a final single tier dividend of 6 sen per ordinary share of RM0.10 in respect of the financial year ended 31 December 2012, payable in cash to the holders of ordinary shares of the Company, subject to the approval of the shareholders at the forthcoming Annual General Meeting of the Company to be convened on a date to be announced later, at the entitlement and payment dates to be determined and announced at a later date.

The single tier dividend is tax exempt in the hands of the shareholders pursuant to paragraph 12B of Schedule 6 of the Income Tax Act, 1967. The notice of dividend entitlement and payment shall be announced and advertised at a later date.

This announcement is dated 26th day of February 2013.