Contents :

We refer to your letter dated 21st April 2000 in respect of the above :-

We are pleased to furnish you the following information as requested :-

1. The Issue

i) During the years 1995 to 1996, upon the petitioner's request, the subsidiary had rendered civil and structural engineering works.

ii) The petitioner was unable to pay the balance of the contract sum for some time and had agreed to supply goods (steel plates) in lieu to settle the outstanding sum.

iii) Inadvertently, the petitioner had over supplied the said goods to the subsidiary and had made a claim for the differential amount about RM563,808.01 of which is bona-fide in dispute.

Til to-date, the petitioner has still not obtained any judgement against us and the subsidiary for the said amount.

iv) On the even date, we make payment in protest by depositing a cheque for the full outstanding amount with our Counsel pending the outcome of the negotiation with the petitioner's counsel and/or the application to strike out the said petition. Nevertheless, we reserve our rights to counterclaim against the Petitioner for damages and losses suffered as a result of the filing of the Petition which tantamounts to an abuse of legal process and non-compliance of the Winding Up Rules, 1972, if necessary.

2. Except as abovestated, there are no other expected losses arising from this petition.

3. Since payment has been fully made in protest with our Counsel, the Directors believe that there are no operational and financial impacts on the Company and on the Group.

Please contact us should you need further clarification

Thank you.

Yours faithfully,
Lim Kok Wah @ Lum Kok Wah
Director

Query Letter Contents :

We refer to your announcement dated 20 April 2000, in respect of the aforesaid
matter.
In this connection, kindly furnish the Exchange immediately with the following
additional information for public release :
1. The details of the default or circumstances leading to the filing of the
winding-up petition.
2. The expected losses, if any.
3. The operational and financial impact on the Group, if any.


Yours faithfully
KUALA LUMPUR STOCK EXCHANGE


TAN YEW ENG
Senior Manager, Listing Operations
TYE/KRISH
c.c. Securities Commission