Contents :

We refer to the article in "The Edge" for the week of 5 April 2004 and would advise that the Company is presently having preliminary discussions with a third party which may or may not lead to divestment of certain assets within the Group. The Company will make appropriate announcement if and when anything is finalised. Last but not least, the Company wishes to state that it is constantly on the lookout for business opportunities to enhance shareholders' values and the preliminary discussions above is one such opportunity persued by the Company.

Query Letter Contents :

We refer to the above news article appearing in The Edge, Page 63, the week of
5 April 2004, a copy of which is enclosed for your reference.
In particular, we would like to draw your attention to the underlined sentence,
which is reproduced as follows:-
"... possible sale of Sabah Forest Industries Sdn Bhd ... "
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 article and in particular the underlined
sentence after due and diligent enquiry with all the directors, major
shareholders and all such persons reasonably familiar with the matter about
which the disclosure is to be made in this respect. In the event you deny the
above sentence or any other part of the above reported article, you are
required to set forth facts sufficient to clarify any misleading aspects of the
same. In the event you confirm the above sentence or any other part of the
above reported article, you are required to set forth facts sufficient to
support the same.



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Please furnish the Exchange with your reply within one (1) market day from the
date hereof.

Yours faithfully


TAN YEW ENG
Sector Head
Issues & Listing
Group Regulations
TYE/LMN
copy to:- Securities Commission (via fax)