WE DESIGN LOGISTICS

Contents :

This announcement is in reply to Bursa Malaysia Securities Berhad’s ("Bursa Malaysia") letter of query dated 18 June 2004 with regards to the captioned matter and to clarify certain statements made in the Article.

The Board of Directors ("Board") of Malton Berhad ("the Company") has ascertained that the Article appearing in the New Straits Times, Business Times Section, Page B6, on Friday, 18 June 2004, has the following misquotes:-

1. "Malton Bhd plans to buy over 220 ha in Johor for two multi-billion ringgit worth of medium-to-upper-cost residential projects to make Johor its next growth area after the Klang Valley"

We wish to clarify that the Company’s current land bank expansion plans in Johor comprise:

i) the proposed acquisition of the entire issued and paid up share capital of Nasa Land Sdn Bhd ("NLSB") by Bukit Rimau Development Sdn Bhd, a wholly owned subsidiary of the Company ("Proposed NLSB Acquisition"). NLSB owns the development rights to a piece of land measuring approximately 279.547 acres (113 ha) held under master title HS(D) 281735, PTD 84132, Mukim Terbrau, Johor Bahru, Johor. Details of the Proposed NLSB Acquisition are set out in our announcement on 7 November 2003; and

ii) the proposed acquisition of a piece of land measuring approximately 7.24 acres (2.93 ha) held under HS(D) 7473, P.T. No Lot 7207, Mukim of Plentong, District of Johor Bahru, Johor by Kumpulan Gapadu Sdn Bhd, a wholly owned subsidiary of the Company ("Proposed Plentong Land Acquisition"). The details of the Proposed Plentong Land Acquisition are set out in our announcement on 1 April 2004.

Both agreements are pending completion.

The gross development values of the above two pieces of land have not been determined as the development plans have yet to be finalised.

2. "The Company is also in talks to buy over 120 ha from another party, he said, without giving more information on the second possible purchase"

The Company is in continuous discussion with various parties to expand our land bank in Johor via joint ventures and/or acquisitions. However, no proposals have been finalised todate. The Company would make the necessary announcements when such transaction(s) materialise(s).

3. "Malton has sold half of the 138 units of semi-detached houses priced less than RM300,000 a unit offered during its soft launch recently"

We wish to clarify that the 138 units referred to above are 2 and 2 ½ storey link "semi-detached" houses and not semi-detached houses. The link "semi-detached" houses ("Quartet Houses") are indeed landed link houses arranged in a quartet manner, where every unit is a corner unit. Further details and illustrations on the Quartet Houses can be found on our company website at www.malton.com.my.

4. "By September, the company will launch a service apartment project on a 0.31 ha freehold site between the Kuwaiti and Indonesian embassies in Jalan Tun Razak, Kuala Lumpur. It bought the land more than a year ago for RM27 million or RM210 per sq ft."

We wish to clarify that the Company does not own the land but had secured the development rights to the land via a joint venture between the land owner, Lingkungan Setia Sdn Bhd, and Horizontal Promenade Sdn Bhd, a wholly owned subsidiary of the Company. The land area for the service apartment project is approximately 34,630 sq ft (0.795 acres). Details of the joint venture are set out in our announcement on 30 September 2002.

This announcement is dated 22 June 2004.

Query Letter Contents :

We refer to the above news article appearing in The New Straits Times, Business
Times section, Page B6, Friday, 18 June 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:-
"MALTON Bhd plans to buy over 220ha in Johor for two multi-billion ringgit
worth of of medium to upper-cost residential projects....."
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.
Please furnish the Exchange with your reply within one (1) market day from the
date hereof.
Yours faithfully

INDERJIT SINGH
Sector Head, Issues & Listing
Group Regulations
IS/KHB
Copy to: Securities Commission (via fax)