Contents :

We refer to your query dated 20 April 2001 quoting news article appearing in Business Times, Companies & Markets Section, page 15, on Friday/Saturday, 20 & 21 April 2001 in particular the sentences that read as follows :

1. "Asked on the status of its merger proposal with EON Bank Bhd, Sulaiman said as far as Utama is concerned, it is still officially on the cards despite earlier reports that both parties have mutually ended their negotiations."

2. "He said there has been no official termination of the approval given by Bank Negara Malaysia to UBG to begin merger talks with EON."

3. "We have conveyed our decision to Bank Negara that at the moment we have enough on our plate. We have also conveyed this to our board and it has been agreed upon that we are no longer pursuing or following up on talks with Utama."

We wish to advise that EON Bank Berhad has verbally indicated to the Utama Banking Group (UBG) that it is not proceeding with the proposed merger with UBG.

Query Letter Contents :

We refer to the above news article appearing in Business Times, Companies &
Markets Section, page 15, on Friday/Saturday, 20 & 21 April 2001, a copy of
which is enclosed for your reference.
In particular, we would like to draw your attention to the underlined
paragraphs, which are reproduced as follows:-
1. "Asked on the status of its merger proposal with EON Bank Bhd, Sulaiman said
as far as Utama is concerned, it is still officially on the cards despite
earlier reports that both parties have mutually ended their negotiations."


2. "He said there has been no official termination of the approval given by Bank
Negara Malaysia to UBG to begin merger talks with EON."


3. " 'We have conveyed our decision to Bank Negara that at the moment we have
enough on our plate. We have also conveyed this to our board and it has been
agreed upon that we are no longer pursuing or following up on talks with
Utama.' "


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 paragraphs 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 paragraphs or any other part of the above article, you
are required to set forth facts sufficient to clarify any misleading aspects of
the same. In the event you confirm the above paragraphs or any other part of
the above 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


LISA LAM
Senior Manager, Listing Operations

KLL/YYT/ASL/SW
cc:Securities Commission (via fax)