Contents :

Your letter dated 4th September 2001 and the article in the New Straits Times dated 3rd September 2001 referred.

We wish to inform that current discussion on the above matter is very preliminary and the outcome of which is uncertain. Accordingly, no announcement was made through the Exchange for public release.

We wish to assure the Exchange should the current discussion results in either an MOU or a Sale and Purchase Agreement, an immediate annoucement will be made through the Exchange for public release.

We wish to assure the Exchange that we had and always will abide by the Rules and Regulations of the Exchange.

Query Letter Contents :

We refer to the above article appearing in the New Straits Times, Business
Section, page 21, on Monday, 3 September 2001, a copy of which is enclosed for
your reference.
In particular, we would like to draw your attention to the underlined sentence
which is reproduced as follows:
"Kossan Rubber industries Bhd plans to acquire two more companies by end of
this year to help synergise its efforts towards manufacturing high-end rubber
products for industrial and construction use."
In accordance with the Exchange's Corporate Disclosure Policy, you are
requested to furnish the Exchange with an announcement for public release
confirming or denying the above reported article and in particular the
underlined sentence after due and diligent enquiry with all the directors,
substantial shareholders and all such other persons reasonably familiar with
the matters about which the disclosure is to be made in this respect. In the
event you deny the above sentence or any other part of the above reported
article, you are required to set forth facts sufficient to clarify any
misleading aspects of the same. In the event you confirm the above sentence or
any other part of the above reported article, you are required to set forth
facts sufficient to support the same.
Please furnish the Exchange with your reply within one (1) market day from the
date hereof.
Yours faithfully
KUALA LUMPUR STOCK EXCHANGE

TAN YEW ENG
Senior Manager, Listing Operations
TYE/CS/KRISH
Copy to: Securities Commission (via fax)