Contents :

We refer to your query dated 23 June 2000 pertaining to the article in The New Straits Times dated 23 June 2000 with a heading entitled "Guthrie to acquire 200,000 hectares in Sumatra".

The article in The New Straits Times reflects the comments made by the Group Chief Executive, YBhg. Tan Sri Dato' Abdul Khalid Ibrahim, at the press conference held immediately after the Annual General Meeting and Extraordinary General Meeting of Kumpulan Guthrie Berhad (Kumpulan Guthrie) on 22 June 2000.

It is a well known fact that the Kumpulan Guthrie Group, via a joint-venture company, P.T Guthrie Pecconina Indonesia (GPI), has undertaken oil palm plantation operations in Indonesia, specifically in Palembang, Sumatra. The original approval given to GPI was to develop 60,000 hectares. To date, GPI has planted 11,000 hectares as reported in the said article and the first phase of planting is now being harvested. Kumpulan Guthrie plans to increase the planted hectarage by another 3,000 hectares by the end of this year as part of its continuing oil palm plantation operations in Sumatra, Indonesia.

Kumpulan Guthrie regards investments in oil palm plantation operations in Indonesia as a long-term investment and is, therefore, continually seeking opportunities to further expand investments in this sector. The statement by the Group Chief Executive at the press conference was a general statement of intent of Kumpulan Guthrie to expand its plantation operations in Indonesia by up to 200,000 hectares. This matter is still in the exploratory stage. Should it culminate into a successfully concluded agreement, Kumpulan Guthrie will make the appropriate announcement.

Query Letter Contents :

We refer to the above article appearing in The News Straits Times, page 23 on
23 June 2000, 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:-

"Kumpulan Guthrie Bhd plans to acquire 200,000 hectares of plantation land in
Sumatra, Indonesia, within a year for crude palm oil production, in an effort
to increase earnings from its plantations division."
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,
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 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 sentences 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


Inderjit Singh
Senior Manager, Listing Operations

SA/THY
c.c. Securities Commission