Contents :

Your letter dated 17 October 2000 refers.

With reference to the article referred to in your letter aforesaid, the Board of Directors of the Company wish to inform as follows:-

(a) The Company has written to Idris Hydraulic (Malaysia) Berhad (“IHMB”) seeking their clarification on the same and by fax dated 18 October 2000 received a reply from IHMB at approximately 3.14 p.m. (a copy of the reply is attached herewith); and

(b) As at the time of this response, the Board of Directors of the Company has not received any actual notification from IHMB of their intentions which according to IHMB will be made known to you today.

Should we receive any further information, we shall notify you accordingly.

Query Letter Contents :

We refer to the above news article appearing in The Star, Business Section,
pages 1 and 3 , on Tuesday, 17 October 2000, a copy of which is enclosed for
your reference.
In particular, we would like to draw your attention to the underlined sentence,
which are reproduced as follows:-
"Idris, he said, was also against the reelection of Datuk Mohd Ghazali@Fauzi
Yacub, Datuk Kamaruddin Hamzah and Lim Eng Hoe as directors."
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,
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 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
KUALA LUMPUR STOCK EXCHANGE


LISA LAM
Senior Manager, Listing Operations
LL/ASL/ZOOS
c.c. Securities Commission (via fax)