Contents :

In response to the query from the KLSE under cover of the letter dated 8 March 2000, Perusahaan Otomobil Nasional Berhad ("PROTON") wishes to state as follows:

QUOTE

In the light of intense global competition, PROTON is keeping an open policy on technology acquisition to enhance its capability. PROTON does not discount collaborating with any party in acquiring technology. In the past two years, PROTON has been approached by many companies from the United States, Europe, South Korea and Japan, seeking possible co-operation and collaboration in technology and product development. Ford Motor Company is one of them.

UNQUOTE

Query Letter Contents :

We refer to the above article appearing in The New Straits Times, Business
Section, cover page 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:-

"TALKS of global automotive manufacturers possibly forming tie-ups with Proton
have
resurfaced with Ford Motor Company said to be most likely the national car
maker's new
foreign partner in the new century.
Industry observers said Proton was now talking with Ford, thus
continuing their
negotiations which were first speculated to have started early last year.
An industry watcher said Proton was continuously in talks with Ford and other
global
players to put its competitiveness in a higher gear.
"They are constantly talking to global automotive players including Ford,
Mercedes
Benz ( owned by DaimlerChrysler AG ) and Toyota with a view to
increase their
competitiveness and be able to compete at international level."


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/TFM
c.c. Securities Commission