Contents :

Your letter dated 18th October 2001 refers.

the Board of Directors, after due inquiry, wishes to advise the Exchange that the Company is not aware of:

• Any material development in the Company's business and affairs not previously disclosed;
• Any impending change in the major shareholders; or
• Any reasons to account for the unusual market action.

The Board after due inquiry also declare that none of the events/situations contemplated under Paragraphs 9.03, 9.04 & 9.07 of the Listing Requirement contributed toward the unusual market activity.

However, reports on the global anthrax scare could have in a way, fanned interest in latex gloves, one of the Group's major products.

Query Letter Contents :

We draw your attention to the sharp increase in price and volume in your
Companys shares recently.
In accordance with Paragraph 9.11 of the Listing Requirements on the Corporate
Disclosure Policy on Response to Unusual Market Activity, kindly advise the
Exchange immediately the following for public release upon due inquiry:-
1. whether there is any material development in your Companys business and
affairs not previously disclosed.
2. whether there is any impending change in the major shareholders.
3. whether in your knowledge, any other reasons to account for the unusual
market action.
You are reminded that pursuant to Paragraphs 9.03, 9.04 and 9.07 of the KLSEs
Listing Requirements, the following situations/events (which are not
exhaustive) require prompt disclosure:
the entry into a joint venture agreement or merger;
the acquisition or loss of a contract, franchise or distributorship rights;
the introduction of a new product or discovery;
a change in management;
the borrowing of funds
the commencement of or the involvement in litigation and any material
development arising therefrom;
the commencement of arbitration proceedings or proceedings involving
alternative dispute resolution methods;
the purchase or sale of an asset;
a change in capital investment plans;
the occurrence of a labour dispute or disputes with sub-contractors or
suppliers;



the making of a tender offer for another companys securities;
the occurrence of an event of default on interest and/or principal payments in
respect of loans;
a change in general business direction;
a change of intellectual property rights;
the entry into a memorandum of understanding; or
the entry into any call or put option or financial futures contract.
If the MOU is not intended to be a legally binding document at this stage, you
are required to disclose the expected time in which a legally binding
agreement will be executed by the relevant parties.
Kindly declare that none of the above listed situations/events contributed to
the unusual market action activities in your Companys shares during the period
in question upon due inquiry.
You are also reminded that if you are aware or become aware of any rumour or
report (whether true or false) which contains information which is likely to
have an effect on the trading of your companys securities, you are
required to publicly clarify the rumour or report as soon as possible.

Your reply should be in conformity with the Exchanges Corporate Disclosure
Policy, in particular, Paragraphs 9.08, 9.16 and 9.17 of the KLSEs Listing
Requirements and is to reach the Exchange within one(1) market day from the
date of this letter via KLSE Listing Information Network (KLSE LINK).

Yours faithfully



TAN CHUN WENG
Senior Vice President
Financial Review & Surveillance
Listing Group