Date: 21 May 2008

- ARTICLE ENTITLED: "RCE to provide for small CLO loss"

We refer to the facsimile received from Bursa Malaysia Securities Berhad on 20 May 2008 in relation to above titled article appearing in The Edge Business & Investment Weekly (19 May-25 May 2008).

RCE Group had participated in a Collateralised Loan Obligation ("CLO") Programme to secure a term loan of RM40 million in 2006. As a condition to the CLO Programme, the Group was required to subscribe to RM4 million of the CLO Programme's subordinated bonds. We have been informed by the trustees for the bondholders that a few of the other participants in the CLO Programme have recently defaulted in meeting their debt obligations and as a result, the repayment of a portion of the subordinated bonds is doubtful.

RCE Group has not defaulted on any of its obligations, including its obligations under the CLO Programme. The Group is taking the above under advice to decide on any prudent measures of impairment, and where necessary, the relevant provisions will be made under normal accounting rules and disclosed accordingly.

The above provisions of up to a maximum of RM4 million are considered as part of the imputed total funding cost for the term loan and will not have a material impact on the Group's financial position.

This announcement is dated 21 May 2008.