Contents :

Further to our announcement on 15 December 2000 in respect of the above reference, we wish to clarify on the following information:-

1. DHD did not agree with HNCEC with the interpretation of the clause subject to verification in the interim certificate and hence commence the winding-up proceeding. They also did not agree with the amount stated in interim certificate 3A and continued with their legal actions.

2. There will not be any financial loss to the group (Autoways Holdings Berhad) as the paid up capital of HNCEC-AC JV Sdn. Bhd. is RM24,000 only and the 70% subsidiary of the group had incurred accumulated losses amounting to RM9,010,672 as at 31 December 1999. There is no loan outstanding owing to the group by HNCEC as well as any credit facilities extended to HNCEC by any of its creditors against the corporate guarantees of the group.

3. HNCEC has ceased operation since June 1999.

Query Letter Contents :

We refer to your Company's announcement dated 13 December 2000 in respect of
the aforesaid matter.
In this connection, kindly furnish the Exchange immediately with the following
additional information for public release:-
1. The date when the petition was served on HNCEC.
2. The details of the default or circumstances leading to the filing of the
petition.
3. The expected losses, if any, arising from the aforesaid petition.
4. The financial and operational impact on HNCEC and the Group arising from the
aforesaid petition.

Yours faithfully


TAN YEW ENG
Senior Manager, Listing Operations
YYT/LMN
copy to:- Securities Commission (via fax)