Contents :

We refer to the query raised by the Kuala Lumpur Stock Exchange ("KLSE") in its letter dated 9 February 2001 in relation to the article appearing in The Asian Wall Street Journal on the same date. The KLSE has made specific reference to the following sentence that appeared in the said article:-

Kuala Lumpur- Local and foreign creditors of listed investment holding company Gadek Bhd. have decided to initiate legal action against the Malaysian company for failing to honor financial commitments in a large bond issue that falls due in mid-March."

Further to the announcement dated 22 January 2001, we wish to confirm that Messrs Shook Lin & Bok, the legal counsel for Commerce International Merchant Bankers Berhad ("CIMB"), the agent and security agent in connection with the Guarantee Facility Agreement and the Security Sharing Agreement, both dated 18 March 1996 which were executed between Gadek, CIMB and the guarantor banks, had on 23 January 2001 written to demand for the payment of cash collateral of RM728,600,000/-.

We wish to inform that as at todate, Gadek has not been served with any documents of legal proceedings as aforesaid.

We are currently finalising the debt restructuring scheme with the guarantor banks under the purview of the Corporate Debt Restructuring Committee.

cc. Issues and Investment Division

Securities Commission

(Fax No. 03-62015213)

Query Letter Contents :

We refer to the above news article appearing on page M3, The Asian Wall Street
Journal, Friday/Saturday/Sunday, on 9 February 2001, 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:-
"KUALA LUMPUR-Local and foreign creditors of listed investment holding company
Gadek Bhd. have decided to initiate legal action against the Malaysian company
for failing to honor financial commitments in a large bond issue that falls due
in mid-March."

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

Chong Fui Tzy
Manager, Listing Operations
YYT/MZM
c.c:Securities Commission