Contents :

We refer to your letter dated 24 July 2000 on the qualifications stated in the Auditors’ Report of our 1999 Annual Report.

The above qualifications are similar to those stated in the Auditors’ Report of our 1998 Annual Report. The detailed explanation have been given vide our letter dated 4 June 2000 to the Exchange setting out the explanation for the previous year’s qualifications.

Essentially, the qualifications arose from the inherent uncertainties facing the Global Carriers Berhad group of companies in the light of the group’s restructuring exercise pursuant to Section 176 of the Companies Act, 1965.

It would therefore be appropriate to advise the Exchange on the tentative timing leading to the completion of the Section 176 restructuring exercise. In this respect, an application to seek the approval of the Securities Commission had been made on 27 March 2000. This was followed by a supplementary application to the Securities Commission on 30 June 2000. The company is expected to despatch a circular in August 2000 seeking the approval of the shareholders for the schemes. Barring unforeseen circumstances, the exercise is expected to be completed by end 2000.

Query Letter Contents :

We refer to your Company's Annual Report 1999.
In accordance with the Exchange's requirements, kindly furnish the Exchange
immediately with your detailed explanation(s) on the qualification stated in
the Auditors' Report of your Annual Report 1999 for public release.

Yours faithfully
KUALA LUMPUR STOCK EXCHANGE



LATIFAH HJ MOHD YUSOF TAN YEW ENG
Senior Vice President, Listing Operations Senior Manager, Listing Operations
/nz
Copy : Securities Commission