Contents :

We refer to the above captions. We apologise for our oversight in stating that no profit forecast was provided when a forecast was made in the Company's Circular to Shareholders dated 3 December 1998. As to the variance between the announcement of the Group's profit after taxation and minority interest of RM37,046,000 for the period ended 31 December 1999 and the forecasted figure of RM47,685,000 the difference can be explained as follows :

Please refer to Appendix 1 as per attachment-1999 Group Results.

As can be seen from the tabulation in Appendix I, turnover for the Group was RM80 million lower than forecasted. The biggest drop was in property development which was RM96 million lower. Correspondingly, the profit after tax and minority interest was reduced to RM14 million. While we expected a downturn in the property market, we did not anticipate its severity. Many purchasers of higher end properties terminated their purchases and switched to the lower end products. During the year, the Company has been focusing on the more affordable properties which contributes towards the lower turnover. The Company also gave attractive discounts to purchasers in line with that practiced during the various Home Ownership Campaign. These have further contributed to a reduced turnover and profits.

The hotelling division also felt the effects of the slow down as can be seen from the reduction in turnover and higher losses. However, the Education Division registered a much higher turnover and profitability than forecasted and this has helped to reduce the variance.

Query Letter Contents :

We refer to your Company's announcement in respect of the abovecaptioned
matter.
We note that the group's profit after taxation and minority interests for the
year ended 31 December 1999 amounts to RM37,046,000.
However, on page 48 of your Company's Circular to Shareholders dated 3 December
1998, a consolidated profit after taxation and minority interests of
RM47,685,000 was forecasted for the abovementioned financial year.
In accordance with Section 58 of the Exchange's Listing Requirements, kindly
furnish the Exchange immediately with your detailed explanation on the above
difference for public release.

Yours faithfully
KUALA LUMPUR STOCK EXCHANGE


LATIFAH HJ MOHD YUSOF INDERJIT SINGH
Senior Vice President, Listing Operations Senior Manager, Listing Operations
WR/KHB