Date : 06 October 2004

Article entitled "KNM investing RM90m"

KNM GROUP BERHAD

Type

Reply to query
Reply to Query Letter by KLSE reference IDMN-041006-51849
SubjectArticle entitled "KNM investing RM90m"

Contents :

We refer to the letter dated 6 October 2004 by Bursa Malaysia Securities Berhad on the article appearing in page 3 of The Sun Financial Daily on 6 October 2004, in particular the following statement -


expansion would help boost earnings by 20% to 30% in the financial year ending Dec 31 2005.”

We wish to clarify that with the expansion of manufacturing capacity arising from KNM Group’s proposed acquisition of 50% of FBM-KNM FZCO, the joint venture company between KNM International Sdn Bhd (KNMI) and FBM Hudson Italiana SpA, coupled with the Guaranteed Dividends to be received by KNMI pursuant to the Proposed Acquisition, the additional contribution to the earnings of KNM Group is expected to be between 20% to 30% for the financial year ending 31 December 2005.

We trust the above meets your requirement.


Contents of query letter -

We refer to the above article appearing in The Sun Financial Daily, page 3, on Wednesday, 6 October 2004, 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 follow:

“expansion would help boost earnings by 20% to 30% in the financial year ending Dec 31, 2005.”

In accordance with Bursa Securities Corporate Disclosure Policy, you are requested to furnish Bursa Securities with an announcement for public release confirming or denying the above reported article in particular the underlined sentence after due and diligent enquiry with all the directors, major 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 sentence or any other part of the article, you are required to set forth facts sufficient to clarify any misleading aspects of the same. In the event you confirm the above reported sentence or any other part of the article, you are required to set forth facts sufficient to support the same, including the relevant basis and assumptions in arriving at the above forecast. In this respect, you are required to confirm whether the accounting bases, calculations and assumptions have been reviewed by the external auditors.

Please furnish Bursa Securities with your reply within one (1) market day from the date hereof.


Yours faithfully


TAN YEW ENG
Section Head
Issues & Listing
Group Regulations

TYE/LMN

cc: Securities Commission

Query Letter Contents :

We refer to the above article appearing in The Sun FinancialDaily, page 3, on
Wednesday, 6 October 2004, 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 :
"... expansion would help boost earnings by 20% to 30% in the financial year
ending Dec 31, 2005."
In accordance with Bursa Securities' Corporate Disclosure Policy, you are
requested to furnish Bursa Securities with an announcement for public release
confirming or denying the above reported article in particular the underlined
sentence after due and diligent enquiry with all the directors, major
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 sentence or any other part of the article, you are required
to set forth facts sufficient to clarify any misleading aspects of the same. In
the event you confirm the above reported sentence or any other part of the
article, you are required to set forth facts sufficient to support the same,
including the relevant basis and assumptions in arriving at the above forecast.
In this respect, you are required to confirm whether the accounting bases,
calculations and assumptions have been reviewed by the external auditors.



Page 2/-

Please furnish Bursa Securities with your reply within one (1) market day from
the date hereof.

Yours faithfully


TAN YEW ENG
Sector Head
Issues & Listing
Group Regulations
TYE/LMN
cc: Securities Commission



Announcement Info

Company NameKNM GROUP BERHAD  
Stock Name KNM    
Date Announced6 Oct 2004  
CategoryGeneral Announcement
Reference NoKG-041006-68884
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