Contents :

1. Setting up of Venture Capital Company

On 25th April 2000, the Board of Directors of Kuala Lumpur City Corporation Berhad (KLCCB) had announced the acquisition of two shelf companies, KLCity Ventures Sdn Bhd and KLCity Research Sdn Bhd. The rationale for the acquisitions were for contingency purposes at that time.

In view of the advent of e-commerce and the government's efforts to promote a dynamic and innovative financial system to support the country's economic transformation from a P(Production)-economy to a K(Knowledge)-economy, KLCCB group is studying various ways of participation in that transformation.

In line with the responsibility given to Securities Commission to develop the venture capital industry, KLCCB is looking steps to be a part of that growth area. The Board now plans to commence venture capital activities through KLCity Ventures Sdn Bhd within the near future.

2. MESDAQ Membership

Kuala Lumpur City Securities Sdn Bhd, a wholly owned subsidiary of KLCCB intends to apply to MESDAQ for membership. At present the application has not been made yet. KLCCB believes that MESDAQ serves as an alternative financing avenue for growth and technology companies and also serves as an exit mechanism for venture capital companies.

3. Acquisition of Amanah Saham MIC-TPG Berhad

We had made the necessary announcements on the above on 31st May 1999. Kindly refer to our announcement dated 31 May 1999.

We hope the above clarifies the matters raised in your letter.

Query Letter Contents :

We refer to the above article appearing in Business Times, page 6, on
Wednesday, 3 May 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:-
"With the potential of lucrative returns from investing in technology
companies, Mohd Nasir said the group had set up a venture capital company and
was getting Mesdaq membership."
"... the group is awaiting approval from the Securities Commission to take
over Amanah Saham MIC-TPG Bhd."
"We are buying a controlling stake ... 50 per cent interest and one
controlling 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 article and in particular the
underlined 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 sentences 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 sentences 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
ASL/TPL
c.c. Securities Commission