Contents :

We refer to KLSE's fax dated 27th February 2001 and to the above news article appearing in The Sun, Sun Biz, page 20 on 27th February 2001.

We wish to inform that on 23rd February 2001, the Senior Assistant Registrar of the Kuala Lumpur High Court has issued a judgement in favour of Badrul Zaman bin P S Md Zakariah against Sistem Televisyen Malaysia Berhad (STMB) in the sum of RM100,000,000 together with interest and costs.

We also wish to inform that Messrs Zaid Ibrahim & Co, the solicitors acting on behalf of STMB have applied and obtained a stay of execution on the judgement in default of defence yesterday and hearing for the Company's application to set aside the judgement has been fixed for 7th March 2001. Since the case is still pending, STMB is unable to provide any further information on the case as the matter is sub judice.

Query Letter Contents :

We refer to the above news article appearing in The Sun, Sun Biz, page 20, on
Tuesday, 27 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:-
"... the High Court has ordered the broadcasting company to pay businessman
Badrul Zaman RM100 million for defamation."
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 by today.
Yours faithfully


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