Contents :

We refer to your letter dated 11 September 2000 pertaining to the article entitled "Merger exercise well under way" in the New Straits Times, Business Section, page 21, on Monday, 11 September 2000.

The Board of Directors of Cahya Mata Sarawak Berhad (CMSB) wishes to deny that Sarawak Securities Sdn Bhd, a subsidiary of CMSB, is "expected to merge" with Arab-Malaysian Securities following the agreement entered by Utama Banking Group Berhad with AMMB Holdings Berhad on 30 August 2000 to merge their banking subsidiaries, as stated in the above article.

The Board of Directors of CMSB further advises that it is not in any merger discussions with Arab-Malaysian Securities but is presently in preliminary merger discussions with a number of stockbroking companies. The merger of Sarawak Securities Sdn Bhd with Utama Securities Sdn Bhd, completed in 1999, has been approved by the Securities Commission as a merger for achieving 'Universal Broker' status under the policy framework for consolidation of the stockbroking industry.

Query Letter Contents :

We refer to the above article appearing in the New Straits Times, Business
Section, page 21, on Monday, 11 September 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:-
"Arab-Malaysian Securities is expected to merge with Sarawak Securities as a
result of a merger
between their banking groups..."


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 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 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/TFM
cc:Securities Commission