Contents :

With refer to your letter of 3rd April, 2000 regarding the captioned matter, we wish to advise as follows :-

1. As part of Nikko Electronics Bhd's ("NIKKO") on-going business development programme, Nikko together with its associates (which includes Nikko Japan) are currently exploring the development and production of several Internet-related products which includes a product similar to the MP3 Walkman as disclosed in Nikko's prospectus dated 9th December, 1999;

2. Todate, Nikko has completed working models for testing by potential contracting parties which include Maxwood Technology (Hong Kong), I-Jam MultiMedia and Microsoft Corp. of U.S.A. However, nothing has been concluded todate and accordingly, Nikko is not aware of the circumstances leading to the article being written and is therefore not in a position to comment; and

3. Nikko will make the appropriate announcement to keep its shareholders informed in due course once there is any material development on the above in line with the KLSE listing requirements

Query Letter Contents :

We refer to the above article appearing in The Edge, page C1, on 3 April 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:-
" ...is rumoured to be a front-runner to procuring a contract from Microsoft
to manufacture the X-Box, a videogame console that is expected to rival Sony's
PlayStation2."
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 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 sentence 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
KUALA LUMPUR STOCK EXCHANGE


Chong Fui Tzy
Manager, Listing Operations
YYT/TPL
c.c. Securities Commission