Contents :

We refer to your faxed letter of 9 March 2000 on the above matter.

Please be informed that we do not have any knowledge of and deny the following statements that were reported in the article appearing on page 2, Sin Chew Business Section, Sin Chew Jit Poh on Wednesday, 8 March 2000:-

"Rumuor said Kumpulan Fima Berhad will announce its corporate exercises soon, among the possible plans include merger and acquisition of stockbroking firm..."

"...the Company will announce a proposal on placement of shares which will be issued at an issue price of RM3 per share."

Please be further informed that in accordance with Section 338 of the Listing Requirements on the Corporate Disclosure policy on Response to Unusual Market Action, there has been no material development in the Company's business and affairs not previously disclosed, no impending change in the major shareholders nor to our knowledge any other reasons to account for the unusual market action that occured on the 7th, 8th and 9th March 2000.

We also wish to declare that to our knowledge, none of the listed situations/events under Section 335 of the KLSE's Listing Requirements contributed to the unusual market activities in the Company's shares during the period in question.

Query Letter Contents :

We refer to the above article appearing on page 2, Sin Chew Business
Section,Sin Chew Jit Poh, on Wednesday,8 March 2000, a copy of which is
enclosed for your reference.
In particular, we would like to draw your attention to the underlined
sentences, which are reproduced as follows:-
"Rumour said Kumpulan Fima Berhad will announce its corporate exercises
soon, among the
possible plans include merger and acquisition of stockbroking firm..."
"...the Company will announce a proposal on placement of shares which will be
issued at an issue
price of RM3 per share."


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 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 reported sentences,
you are required to set forth facts sufficient to clarify any misleading
aspects of the same. In the event you confirm the above reported sentences, 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
ASL/HTH/TFM
c.c. Securities Commision