Contents :

Further to our announcement dated 17 January 2003 regarding the above subject matter, Federal Furniture Holdings (M) Berhad wishes to announce that the writ of summon was served on the subsidiary company on 16 January 2003. The Writ has no operational impact on the group. The financial impact will depend on the outcome of the legal action. The potential losses, assuming the Company fails to defend the action is RM1,496,494.04 plus interest and such costs as may be awarded by the High Court.

Query Letter Contents :

We refer to your announcement dated 17 January 2003, in respect of the
aforesaid matter.
In this connection, kindly furnish the Exchange with the following additional
information for public release: -
1. The date the Writ of Summons ("Writ") was served on the Company.
2. The financial and operational impact of the Writ on the group.
3. The expected losses, if any arising from the Writ.
Please furnish the Exchange with your reply within two (2) market days from the
date hereof.

Yours faithfully


CHONG FUI TZY
Senior Manager
Listing Operations
HTH/WSW/GK
c.c. Securities Commission (via fax)