News Updates

Contents :

AMMB Holdings Berhad (“AHB”) and Utama Banking Group Berhad (“UBG”) wish to refer to the article entitled “AHB to have majority stake in new company” in The Star, Business Section dated 2 September, 2000.

AHB also wish to refer to the article entitled “In defence of AMMB-Utama merger” in The Edge, dated 4 September, 2000.

AHB and UBG wish to advise that as a result of the merger, AHB will have controlling stake in the new company (“NewCo”) to be set up to take over the banking subsidiaries of AHB and UBG and have management control of NewCo.

The final shareholding structure of NewCo will be determined based on the net tangible asset value as at 30 September, 2000 times the multiple.

This announcement is dated 4 September, 2000.

Query Letter Contents :

We refer to the above article appearing in The Edge, page 14, on Monday, 4
September 2000, a copy of which is enclosed for your reference.
In particular, we would like to draw your attention to the underlined
sentences, which are reproduced as follows:-
"Sources close to the deal defend it by pointing out that with the latest
structure, AMMB has control of the newco as, at the end of the day, it will
have a stake of about 65 per cent in the newco and Cahya Mata Sarawak (CMS)
which owns 51 per cent of Utama Banking, 12 per cent. Utama Banking minorities
will end up with 12 per cent and AMFB minorities, 11 per cent."


In accordance with the Exchange's Corporate Disclosure Policy, you are
requested to furnish the Exchange with an announcement for public release
confirming or denying the above reported article and in particular the
underlined sentences after due and diligent enquiry with all the directors,
substantial shareholders and all such other persons reasonably familiar with
the matters about which the disclosure is to be made in this respect. In the
event you deny the above sentences or any other part of the above article, you
are required to set forth facts sufficient to clarify any misleading aspects of
the same. In the event you confirm the above sentences or any other part of the
above article, you are required to set forth facts sufficient to support the
same.
Please furnish the Exchange with your reply within one (1) market day from the
date hereof.
Yours faithfully
KUALA LUMPUR STOCK EXCHANGE

Chong Fui Tzy
Manager, Listing Operations
SA/MEM
cc:Securities Commission (via fax)