Contents :

Utama Banking Group Berhad ("UBG") deny knowledge of the contents of the report published in The Star, Business Section, page 4, on Monday, 14 February 2000 which states:-

"The share price shot up last week, sparked by talks that Utama Banking Group Bhd will
land up with a 25% stake in the enlarged AMMB Holdings Bhd. This will be after the two
banking groups merge."

"There is also talk that Utama Bank, whose operations have been upgraded, is likely to
control the commercial banking operations of the enlarged group, and that all the Arab
Malaysian Bank branches will be under Utama Bank."

"However, the Arab-Malaysian group would control the merchant banking and finance
arms, securities and other units after the merger."

However, following Bank Negara Malaysia's ("BNM") revised directive on 21 October 1999, whereby banking institutions were given the flexibility to form their own merger group and to choose their own anchor bank in each group to lead the merger exercise, UBG had on 25 January 2000 signed a Memorandum of Understanding with AMMB Holdings Berhad ("AHB") to commence negotiations for the proposed merger of its banking subsidiaries, namely Bank Utama (Malaysia) Berhad and Utama Merchant Bank Berhad with AHB's banking subsidiaries namely, Arab-Malaysian Merchant Bank Berhad, Arab-Malaysian Finance Berhad and Arab-Malaysian Bank Berhad. The proposed merger is subject to the approval of BNM.

An announcement to the KLSE on the above event was made on 25 January 2000.

UBG has also received BNM's approval to commence due diligence on the banking subsidiaries of AHB.

Query Letter Contents :

We refer to the above article appearing in The Star, Business Section, page 4,
Monday, 14 February 2000, a copy of which is enclosed for your reference.
In particular, we would like to draw your attention to the underlined
sentences, which are reproduced as follows:-

"The share price shot up last week, sparked by talks that Utama Banking Group
Bhd will land up with a 25% stake in the enlarged AMMB Holdings Bhd. This will
be after the two banking groups merge."
"There is also talk that Utama bank, whose operations have been upgraded, is
likely to control the commercial banking operations of the enlarged group, and
that all the ArabMalaysian Bank branches will be under Utama Bank."
"However, the Arab-Malaysian group would control the merchant banking and
finance arms, securities and other units after the merger."
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 sentences after due and diligent
enquiry with all the directors, substantial 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 reported sentences,
you are required to set forth facts sufficient to clarify any misleading
aspects of the same. In the event you confirm the above reported sentences, you
are required to set forth facts sufficient to support the same.



Please furnish the Exchange with your reply within one (1) market day from the
date hereof.
Yours faithfully
KUALA LUMPUR STOCK EXCHANGE


Lisa Lam
Senior Manager, Listing Operations
SA/IJO
c.c. Securities Commission