Contents :

1. As per our reply dated 3 November 200 to the Exchange in response to query dated 2 November 2000 (your ref.: PL-001102-39553), we maintain that we are not aware nor have been informed of any arrangement being worked out. We will revert to the Exchange once we have information on the same.

2. We wish to advise that we have approached Tenaga Insurance (M) Bhd, Malaysia & Nippon Insurans Bhd, The Peoples' Insurance Co (M) Sdn Bhd and Arab-Malaysian Assurance Berhad on the possible acquisition / merger with our wholly-owned subsidiary Talasco Insurance Berhad.
We have written to Bank Negara Malaysia ("BNM") for its approval to proceed. As of todate, we have yet to receive approval from BNM. We will revert in due course.

Query Letter Contents :

We refer to the above news articles both appearing in New Straits Times,
Business section, cover page, on 3 November 2000, a copy each is enclosed for
your reference.
In particular, we would like to draw your attention to the underlined sentences
which are reproduced as follows:-
"IHMB, UJSB tussle over - Both parties believed to have re-negotiated technical
clauses"
"The tussle between Idris Hydraulic (Malaysia) Bhd and Utusan Jutabina Sdn Bhd
for the 30.02 per cent controlling stake in Prime Utilities Bhd is believed to
be over."
"IHMB, controlled by Datuk Annuar Senawi, has agreed to let go the 30.02 per
cent stake it holds in PUB to UJSB for RM110 million as stated in an initial
agreement, ..."
"Talasco closing deal with Tenaga Insurance"
"Idris Hydraulic (Malaysia) Bhd is expected to conclude a deal soon with Asian
Pac Holdings Bhd for the acquisition of the latter's insurance arm Tenaga
Insurance (M) Bhd."
"A source said Talasco will acquire the entire issued and paid-up share
capital of KL-based Tenaga Insurance for about RM100 million."
"Talasco is also negotiating with two other companies - Malaysian Nippon
Insurance Bhd and The People's Insurance Co (M) Bhd."






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


CHONG FUI TZY
Manager, Listing Operations
YYT/TPL
c.c. Securities Commission (via fax)