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With reference to the article entitled "Parit Perak to sell assets to reduce huge debt" appearing in The Sun on 25 November 2000, the Board of Parit Perak Holdings Berhad ("PPHB/the Company") wish to clarify that PPHB's subsidiary, Capital Dynasty Sdn Bhd owns the completed shopping complex in Johor Bahru known as the Kemayan City Shopping Mall. The shopping mall was completed in 1999 and the certificate of fitness was obtained in March 2000. There is approximately 500,000 square feet of retail space remaining to be sold. As the building is completed and "with the Certificate of Fitness secured, the Group would be in a better position to sell the remaining retail space" (extract from the Chairman's Statement in the Annual Report 2000). The disposal of retail space is in the ordinary course of business and the proceeds from the sales are applied towards the redemption of the bridging loans. Furthermore, as stated in the Proposed Debt Restructuring Scheme announced on 8 August 2000, the remaining space in Kemayan City is to be disposed and proceeds from the sales would be applied towards the redemption of the Redeemable Convertible Secured Loan Stock A.

The Group owns 1,526 acres of agricultural land and this land bank is to be disposed according to an annual planned redemption schedule to redeem the Redeemable Convertible Secured Loan Stock B as stated in the Proposed Debt Restructuring Scheme announced on 8 August 2000.

As the core business of PPHB is in property development, it follows that the Company continues to seek new assets, in particular landed property, to complement its core business. The Board draws attention to the Chairman's Statement wherein it was stated that "Although the Group has been actively seeking and evaluating new ventures for acquisition, the prospect of securing a suitable business venture is difficult in view of the current market conditions. Nevertheless, the Group continues to evaluate all viable business proposals." In this respect, assets to be acquired by the Company would have to sufficiently large (perhaps a "few hundred acres") to complement the existing core business.

Query Letter Contents :

We refer to the above news article appearing in The Sun, Sun Biz, Page 2 on
Saturday, 25 November 2000.
In particular, we would like to draw your attention to the following sentences
of the above article which are reproduced as follows:-
" .........Parit Perak Holdings Bhd is firming up plans to dispose existing
assets in a bid to reduce its huge debt."
" The company is currently negotiating with potential parties to sell its
properties including the Kemayan City Shopping Mall in Johor Baru and some land
bank...."
" .....it is also negotiating to acquire "a few hundred acres" of
development land to beef up its assets base,..."
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 above
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

INDERJIT SINGH
Senior Manager,
Listing Operations
ASL /CMJ
Copy to: Securities Commission (via fax)