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We refer to your letter dated 17 March 2003 in relation to the above.

We wish to inform the Exchange that the decision by Ramatex Berhad to terminate the Sale of Shares Agreement and foreclose the entire equity shares of Tai Wah Garments Industry Sdn Bhd ("TWGI") pursuant to their rights under the Share Charge Agreement dated 8 October 2001 would obviously affect the cash settlement to the scheme creditors under the Proposed Debt Settlement. The settlement to scheme creditors comprises of part cash from the Proposed Disposals to Ramatex Berhad and part shares from the Reverse Take Over ("RTO") Scheme with Versatile Paper Boxes Sdn Bhd ("Versatile").

As of now, Versatile is still committed to the shares settlement to the scheme creditors subject to the approval from the authorities. TWGB has met with the secured creditors on 12 March 2003 to inform them of the impact on the above and they are still deliberating on the issue. TWGB will be meeting with its unsecured creditors soon to discuss the same issue.

TWGB is appealing to its scheme creditors to proceed with the RTO scheme with Versatile whilst at the same time pursuing any action against Ramatex, if at all possible.

This announcement is made on 19 March 2003.

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