Contents :

With reference to the above-captioned article and to your letter to us dated 13 November 2003, DRB-HICOM BERHAD ("the Company") is pleased to state as follows :-

1. On 11 November 2003, the Company received a letter addressed to the Company and EMRAIL SDN. BHD. (“EMRAIL”) from MALAYSIAN MINING CORPORATION BERHAD – GAMUDA JV (“MMC-GAMUDA”) making an offer to the Company/EMRAIL jointly, as sub-contractor to carry out the Design, Construction, Completion, Testing, Commissioning and Maintenance of Infrastructure works between Butterworth-Taiping (Mainline) for both Permanent Works and Temporary works (“the Sub-Contract Works”) being part of the Design, Construction, Completion, Testing, Commissioning and Maintenance of Electrified Double Track Project (Infrastructure Works and Systems Works) Between:-

a. Ipoh-Padang Besar (Nourthern Section); and

b. Seremban-Johor Bahru (Southern Section).

The sub-contract sum offered was a lump sum of Ringgit Malaysia One Billion Eight Hundred Forty Two Million (RM1,842,000,000).

2. On 12 November 2003, the Company together with EMRAIL as Konsortium DRB-HICOM EMRAIL responded to MMC-GAMUDA stating that the Konsortium DRB-HICOM EMRAIL was in principle agreeable to accept the offer to be MMC-GAMUDA’s sub-contractor for the Sub-Contract Works, however clarification and additional information were sought from MMC-GAMUDA pertaining to a list of matters with a view to reviewing the offer with the “Main Contract” details and accordingly a meeting was suggested to be held urgently between the Konsortium and MMC-GAMUDA.

3. On 11 November 2003, the Company received a letter addressed to the Company and HIKMAT ASIA SDN. BHD. (“HIKMAT ASIA”) from MMC-GAMUDA making an offer to the Company / HIKMAT ASIA jointly, as sub-contractor to carry out the Design, Construction, Completion, Testing, Commissioning and Maintenance of Infrastructure works between Kluang-Johor Bahru (Mainline) for both Permanent Works and Temporary works (“the Sub-Contract Works”) being part of the Design, Construction, Completion, Testing, Commissioning and Maintenance of Electrified Double Track Project (Infrastructure Works and Systems Works) Between:-

a. Ipoh-Padang Besar (Nourthern Section); and

b. Seremban-Johor Bahru (Southern Section).

The sub-contract sum offered was a lump sum of Ringgit Malaysia Nine Hundred Ninety Million (RM990,000,000).

4. On 12 November 2003, the Company together with HIKMAT ASIA as DRB-HICOM / HIKMAT ASIA responded to MMC-GAMUDA stating that DRB-HICOM / HIKMAT ASIA was in principle agreeable to accept the offer to be MMC-GAMUDA’s sub-contractor for the Sub-Contract Works, however clarification and additional information were sought from MMC-GAMUDA pertaining to a list of matters with a view to reviewing the offer with the “Main Contract” details and accordingly a meeting was suggested to be held urgently between the DRB-HICOM / HIKMAT ASIA and MMC-GAMUDA.

5. Further negotiations are expected to be held between Konsortium DRB-HICOM EMRAIL and MMC-GAMUDA and between DRB-HICOM / HIKMAT ASIA and MMC-GAMUDA respectively, to move the respective sub-contracts forward.


c.c. Issues and Investment Division
Securities Commission
Fax No. : 62015213

Query Letter Contents :

We refer to the above news article appearing in The Malay Mail, Mail Money,
page 2, Thursday, 13 November 2003, 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 government-nominated subcontractors to help undertake a RM14.5
billion high speed rail project linking Johor Baru and Padang Besar ... "
" The government-nominated subcontractors for the project are DRB-HICOM Bhd ...
"
" ... RM1.1 billion for DRB-HICOM ... of the job in the Southern line,
connecting Johor Baru and Seremban."
" For the Northern portion, linking Ipoh to Padang Besar, the costing is about
RM1.9 billion ... The 30 per cent portion was offered to DRB-HICOM ... "
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 sentences after due and diligent enquiry with all the directors,
major shareholders and all such other persons reasonably familiar with the
matter about which the disclosure is to be made in this respect. In the event
you deny the above sentences 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

KOAY LEAN LEE
Senior Manager
Issues & Listing
KLL/GTH
c.c. Securities Commission (via fax)