Contents :

We refer to your letter dated 6 November 2000 on the above matter.

The petition was served on SHCSB on 23 October 2000 by Oriental Enterprise Sdn Bhd.

The amount claimed for under the petition is as follows :-

• Judgment sum of RM319,518.37
• Damages of RM45,240.30 as at 11 June 1997 and RM79,765.70 from 12 June 1997 till 24 July 2000
• Further damages of RM70.03 per day commencing from 25 July 2000 until full realization

This was a claim made by a sub-contractor for the balance sum due to him by SHCSB. SHCSB disputed this claim based on the enormous defects found on his workmanship. The case was set down for trial in year 1997.

Judgment was obtained on 3 May 2000 against SHCSB for the above stated amount.

A 218 Notice was issued on 24 July 2000 by the plaintiff's solicitors. Special Administrators were appointed on 16 June 2000 by Pengurusan Danaharta Nasional Berhad on Sri Hartamas Berhad under Section 24 of the Pengurusan Danaharta Nasional Berhad Act 1998. SHCSB is a wholly owned subsidiary of Sri Hartamas Construction Sdn Bhd, who in turn is a wholly owned subsidiary of Sri Hartamas Berhad.

The judgment sum of RM440,000.00 has been provided for in the Company's audited accounts as at 30 June 2000.

SHCSB is no longer in operation and therefor there would be little or no operational or financial impact other than the judgment sum.

In respect of the winding up petition, we would not be defending the petition as SHCSB is grossly insolvent and therefore is not able to meet all its liabilities.

Query Letter Contents :

We refer to the above Notice appearing in The Star, Classifieds, Page 32 on
Monday 6 November 2000.
In this connection, kindly furnish the Exchange immediately with the following
additional information for public release:-
1) The date when the petition was served on SHCSB.
2) The amount claimed for under the petition.
3) The details of the default or circumstances leading to the filing of the
winding-up petition.
4) The expected losses, if any.
5) The operational and financial impact on the Group, if any arising from the
aforesaid petition.
6) The steps that your Company will take with regard to the winding-up
petition.

Yours faithfully


INDERJIT SINGH
Senior Manager,
Listing Operations
IS/CMJ