Contents :

In relation to the announcement on 30 July 2003 and the query from the KLSE on the above and specifically to the following sentence of the article in the NST, Business Times section, page B2, on Tuesday 29 July 2003 which is reproduced below:-

" The Group's turnover is expected to increase 10 per cent this year to about RM500 million....",

the Company wishes to further announce that the forecast Group Turnover referred to page 77 of the KPJ prospectus dated 27 June 2003 in relation to the non-renounceable restricted issue of up to 9,600,000 new ordinary shares of RM1.00 each in KPJ was RM536,270,310. The principal bases and assumptions upon which the forecast has been made are set out below:-

(a) There will be no significant changes in the principal activities and structure of the Group.

(b) There will be no significant changes to the prevailing Malaysian and world economic conditions, which may directly or indirectly have a material effect on the forecast result of the Group.

(c) There will be no significant changes in present legislation or government regulations, which will adversely affect the Group, its operations or the market in which it operates.

(d) There will be no significant changes in the inflation rate.

(e) The existing financing facilities will remain available and the level of the interest rates will not change materially from the prevailing rates. The Group will also be able to obtain additional financing facilities at interest rate approximating to those currently available to the Group.

(f) Foreign currency exchange rates will not fluctuate significantly from prevailing exchange rates.

(g) There will be no significant changes in the management structure.

(h) There will be no significant changes in the accounting policies normally adopted by the Group, except for the adoption of MASB Standard 25: Income Taxes, in compliance with the applicable approved accounting standards for financial year ending 31 December 2003. However, the impact to the consolidated profit forecast is insignificant.

(i) There will be no material legal claims, which will adversely affect the performance of the Group.

(j) There will be no major industrial disputes or disruptions in the hospital operations or other abnormal factors, both domestic and overseas, which will adversely affect the activities and performance of the Group.

(k) Capital expenditure and hospital expansion programs for the existing and new hospitals will take place as planned with no material changes in the costs or prices from the forecast levels.

(l) The additional beds for new wards will be made available as schedules and the level of average ward occupancy rate will not change materially from the prevailing rates.

(m) There will be no significant changes to the current mix and numbers of the medical specialists and any new medical specialists will be appointed as planned.

(n) There will be neither material acquisition nor disposal of investment other than those included in the forecast.

(o) There will be no significant changes to the prevailing income tax rate.

(p) There will be no material increase in costs of operations and other related costs, which will adversely affect the performance of the Group.

(q) The demand for medical service renders by the Group will be achieved as forecasted, based on the scheduled rates.

Query Letter Contents :

We refer to the above news article appearing in the New Straits Times, Business
Times section, page B2, on Tuesday, 29 July 2003, 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:-
" 'The group's turnover is expected to increase 10 per cent this year to about
RM500 million,' Muhammad Ali said ... "
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 sentence after due and diligent enquiry with all the directors,
major 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 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, including the relevant bases and assumptions in
arriving at the above forecast. In this respect, you are also required to
confirm whether the accounting bases, calculations and assumptions have been
reviewed by the external auditors.
Please furnish the Exchange with your reply within one (1) market day from the
date hereof.

Yours faithfully


LISA LAM
Senior Manager
Listing Operations
LL/WSW/CY
c.c. Securities Commission (via fax)