Contents :

We reply to the Exchange inquiry dated 13 April 2001 pertaining to the variance of the group's audited profit before tax and turnover for the year ended 31 October 2000 as compared between actual and forecast which announced by us on 1 March 2000 .

The Group's forecasted increase in turnover of RM 8.0 million derived from the new venture has not been materialized yet due to the effect of world economic slow down which affected particularly the electronics and semi conductor industries.

As per our Projected Profit & Loss Account base on existing businesses ,the Group has achieved the 12% increase in turnover from RM27.6 million to RM 31 million. The pretax profit margin declined slightly to 24.8% against the forecast of 27.5% . This was mainly attributed to the escalating cost of raw materials and cost of labour. As a result , the Group manage to achieve a profit before tax of RM7.7 million instead of the forecast profit before tax of RM 8.5 million .

The Group would like to clarify that we only can reply to the Exchange query today as the re-fax copy of the letter from the Exchange received by us this morning dated 18 April 2001.

The first fax copy of the letter which was faxed to our Company Secretary was not received or might had gone missing during transit.

Query Letter Contents :

We refer to your Company's Annual Report 2000 in respect of the abovecaptioned
matter.
We note that the group's audited profit before tax and turnover for the year
ended 31 October 2000 amount to RM7,706,660 and RM31,044,766 respectively.
However, in your Company's announcement dated 1 March 2000, a consolidated
profit before tax and turnover of RM10.7 million and RM38.9 million
respectively were forecasted for the abovementioned financial period.
In accordance with the Exchange's Listing Requirements, kindly furnish the
Exchange immediately with your detailed explanation on the above difference
for public release.

Yours faithfully

TAN YEW ENG
Senior Manager
Listing Operations

TYE/NMA