Contents :

We refer to your query relating to the above article on EON Bank Berhad's proposal to acquire 70 percent stake in Leong & Company Sdn Bhd, which appeared in The Edge, page 10, dated 7 August 200.

We wish to advise that the statements referred to in The Edge are factually incorrect. We also wish to advise that Bank Negara Malaysia ("BNM") had not declined the acquisition proposal mentioned above as EON Bank Berhad had not submitted any application to BNM to acquire Leong & Company Sdn Bhd.

EON Bank Berhad, as an anchor bank, is currently evaluating various strategies to become a more efficient and competitive financial services provider. However, we would like to highlight that disclosure on any potential acquisition is premature at this stage and that any announcement will be made at the appropriate time.

Query Letter Contents :

We refer to the above news article appearing in The Edge, page 10, on Monday, 7
August 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:-
"Sources say EON Bank has submitted a proposal to Bank Negara to acquire a 70
per cent stake in Kuala Lumpur-based securities house, Leong & Co Bhd."
"However, Bank Negara has not approved the proposal, citing regulations that
were effected in June last year as the reason."
"Sources say EON is appealing the central bank's decision."
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 article and in particular the underlined
sentences after due and diligent enquiry with all the directors, substantial
shareholders and all such persons reasonably familiar with the matter about
which the disclosure is to be made in this respect. 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. 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.
Please furnish the Exchange with your reply within one (1) market day from the
date hereof.

Yours faithfully

Lisa Lam
Senior Manager
Listing Operations
ASL/KLL/H
copy: Securities Commission