Contents :

Reference is made to your letter dated 10 May 2001 in relation to your query on the variance between the Company’s unaudited results after tax of RM59,227,000 announced on 27 February 2001 and the Company’s audited results after tax of RM79,630,960 as per our Annual Audited Accounts for 2000 received by you on 30 April 2001 showing a variance of RM20,403,960.

We append below the detail breakdown of the variance as per your request:-

RM’000
Balance of product development cost written off 19,432
(these costs may not be recovered from future revenue)

Additional provision for doubtful debts 576

Additional share of associate company’s loss & tax 381

Other audit adjustments 14
---------
20,403
=====
Thank you.



Yours faithfully
Trans Capital Holding Bhd




Tan Say Choon
CEO cum Managing Director

Query Letter Contents :

We refer to your Company's Annual Audited Accounts 2000 received on 30 April
2001.
We note that the group's loss after taxation for the year ended 31 December
2000 amounts to RM79,630,960.
However, your Company's announcement of unaudited results dated 27 February
2001 showed a consolidated loss after taxation of RM59,227,000 for the
abovementioned financial year.
In accordance with the Exchange's Listing Requirements, kindly furnish the
Exchange immediately with your detailed explanation of the above difference for
public release.

Yours faithfully


TAN YEW ENG
Senior Manager, Listing Operations
MBP/nz