Contents :

We refer to your letter dated 22 February 2000 which was received by us on 24 February 2000, and wish to inform that Diversified Resources Berhad ("DRB") is in the advanced stage of negotiations with the Government of Malaysia ("the Government") for the proposed Electrified Double Tracking Train Project between Rawang and Ipoh - Infrastructure Package. An announcement to the KLSE will be made immediately after the contract is executed between DRB and the Government.

c.c. Issues and Investment Division

Securities Commission

(Fax No. : 03-6515213)

Query Letter Contents :

We refer to the above article appearing in The Star, page 6, Tuesday, 22
February 2000, 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:-

"The Electrified Double Tracking Project between Rawang and Ipoh has been
awarded to Diversified Resources 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 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 reported sentence, you
are required to set forth facts sufficient to clarify any misleading aspects of
the same. In the event you confirm the above reported sentence, 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
KUALA LUMPUR STOCK EXCHANGE


Tan Yew Eng
Senior Manager, Listing Operations
SA/IJO
c.c. Securities Commission