KNM - NOTICE OF BONUS ENTITLEMENT

LISTING'S CIRCULAR NO. L/Q : 26427 OF 2004

1) SHARE SPLIT OF EACH ORDINARY SHARE OF RM1.00 EACH IN KNM GROUP BERHAD ("KNM") INTO TWO (2) ORDINARY SHARES OF RM0.50 EACH IN KNM ("SHARE SPLIT") AND

2) BONUS ISSUE OF UP TO 55,660,000 NEW ORDINARY SHARES OF RM0.50 EACH IN KNM ("SUBDIVIDED KNM SHARE") ("BONUS SHARES") ON THE BASIS OF ONE (1) BONUS SHARE FOR EVERY TWO SUBDIVIDED KNM SHARES TO BE ALLOTTED AND ISSUED PURSUANT TO THE SHARE SPLIT ("BONUS ISSUE").

Kindly be advised of the following :

1) The above Company's securities will be traded and quoted [ "Ex - All" ]
as from : [ 30 August 2004 ]

2) The last date of lodgement : [ 2 September 2004 ]

3) Retention Money : Where securities are not delivered in time for registration by the seller, then the brokers concerned :-

a) Selling Broker to deduct [ 1/3 ] , of the Selling Price against the Selling Client.

b) Buying Broker to deduct [ 33.33% ] of the Purchase Price against the Buying Client.

c) Between Broker and Broker, the deduction of [ 1/3 ] of the Transacted Price is applicable.