Contents :

The Board of Directors of Amsteel Corporation Berhad ("Amsteel") refers to the query from the Kuala Lumpur Stock Exchange ("KLSE") dated 19 March 2001 regarding the above matter and wishes to state the following for public announcement:

1. Amsteel had announced on 12 February 2001 the termination of the Sale and Purchase Agreement dated 27 July 2000 entered into between Amsteel's wholly-owned subsidiary, Exuniq Sdn. Bhd. ("Exuniq") and Allianz Aktiengesellschaft ("Allianz") pertaining to the proposed disposal of 16,906,666 ordinary shares of RM1.00 each (the "said Shares") in Malaysia British Assurance Berhad ("MBA").

2. Subsequent thereto, Allianz had on 21 February 2001 made an offer to acquire the said Shares at RM7.65 per said Share via a proposed voluntary general offer ("Proposed VGO").

3. Pursuant thereto, Exuniq had by a letter dated 21 February 2001 applied for Bank Negara Malaysia's ("BNM") approval to dispose of the said Shares at RM7.65 per said Share to Allianz via the Proposed VGO ("Proposed Disposal Via VGO").

4. By a letter dated 19 March 2001, BNM informed Exuniq that the Proposed Disposal Via VGO has been approved.

5. As at 22 March 2001, Exuniq has been informed by Allianz that:

5.1 BNM, vide its letter of 19 March 2001 to Allianz, approved the Proposed VGO subject to several conditions ("Conditions"); and

5.2 Allianz is seeking clarification from BNM on the Conditions.

6. Amsteel will keep the KLSE informed of further developments on this matter in due course.

7. The KLSE has informed Amsteel that the KLSE had imposed a suspension on the trading of Amsteel shares following an application dated 22 March 2001 from MBA to the KLSE to request for a suspension on the trading of MBA shares in connection with Exuniq’s Proposed Disposal Via VGO.

Query Letter Contents :

We refer to the above news article appearing in The Star, Business Section, on
Monday, 19 March 2001, a copy of which is enclosed for your reference.
In particular, we would like to draw your attention to the underlined sentence,
which is reproduced as follows:-
"... Allianz was still keen on the stake in MBA and would soon make the MGO."

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 sentence 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 sentence 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 sentence 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

LL/ASL/SW
c.c. Securities Commission (via fax)