Contents :

We refer to the above matter and your fax dated 29 August 2000 on the same.

• Paragraph 5 Line 1 "The group is also seeking the Securities Commission's approval to re-allocate the RM 3 million earmarked for acquiring a factory in Kemaman, Terengganu, for a factory in Shah Alam instead."

The Group has submitted for approval a proposal to the Securities Commission dated 2 August 2000 on the change in utilizing its rights proceeds of RM3.03 million for a plant in the East Coast to its recent acquisition of a readily built factory in Shah Alam costing RM 4.90 million. The differential of RM 1.87 million will be financed through internally generated funds. At present, the Group is still awaiting the Securities Commission's approval.

• Paragraph 20 Line 6 "...the Company can double its turnover and profits for the financial year ending April 30 2002."

With the addition of two recycling plants, the Group will be able to increase its recovery and recycling capacities from its two existing plants in Nilai and Shah Alam. On maturity, these two additional recycling plants will be able to match the revenues and profits being generated currently from the two existing plants.

Query Letter Contents :

We refer to the above news article appearing on Business Times, Page 14, on
Tuesday, 29 August 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:-
"The group is also seeking the Securities Commission's approval to re-allocate
the RM3 million earmarked for acquiring a factory in Kemaman, Terengganu, for a
factory in Shah Alam instead."
"...the company can double its turnover and profits for the financial year
ending April 30 2002."
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 article and in particular the underlined
sentences after due and diligent enquiry with all the directors, substantial
shareholders and all such persons reasonably familiar with the matter 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, including the relevant basis and assumptions in arriving at
the above forecast.
Please furnish the Exchange with your reply within one (1) market day from the
date hereof.

Yours faithfully

Tan Yew Eng
Senior Manager
Listing Operations
ASL/LPY/zm
c.c Securities Commission