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1. INTRODUCTION

The Board of Directors of NTPM Holdings Berhad (NTPM or the Company) is pleased to announce that it has on 17 September 2004 acquired 25,223 ordinary shares of RM1.00 each in the capital of NTPM Paper Products Sdn Bhd (formerly known as Klynx Paper Products (M) Sdn Bhd) (NTPM PP) representing its entire issued and paid up capital from the following vendors who are also Directors and substantial shareholders of the Company, for a total cash consideration of Ringgit Malaysia Two Thousand (RM2,000.00) only.




Name of Vendors	No. of shares in NTPM PP acquired from the Vendors	Consideration (RM)
Mr. Lee See Jin	25,222	1,999.00
Mr. Lee Chong Choon	1	1.00


2. INFORMATION ON NTPM PAPER PRODUCTS SDN BHD

NTPM PP is a company incorporated in Malaysia with a total issued and paid-up capital of RM25,223.00 comprising of 25,233 ordinary shares of RM1.00 each. NTPM PPs principal activity is trading and dealing in paper products. NTPM PP has yet to commence operation since its incorporation.

3. BASIS OF VALUATION AND FUNDING

The total purchase consideration of RM2,000.00 was arrived at on a willing buyer-willing seller basis and will be funded by internal funds.

The original cost of investment of the Vendors was RM25,233.00.

4. RATIONALE FOR THE ACQUISITION AND FUTURE PROSPECTS

NTPM PP will be used as a research and developement base, mainly to conduct research and developement activities on the production technology, biotechnology and recycling of waste materials related to paper industry.

Such activities will enchance and complement the core business of the NTPM Group which is in the manufacturing of paper and tissue products.

5. EFFECTS OF THE ACQUISITION
a) Earnings

The acquisition is not expected to have a material impact on the earnings of NTPM for the financial year ending 30th April 2005.

b) Net Tangible Assets, Share Capital and Substantial Shareholders
Shareholding

The acquisition does not have an impact on the net tangible assets, share capital of the Company as well as the shareholding of its substantial shareholders.

6. CONDITION OF THE ACQUISITION

The above acquisition is not subject to the approval of shareholders and the relevant government authorities in Malaysia.

7. SECURITIES COMMISSION GUIDELINES

The above acquisition has not departed from the Securities Commission Policies and Guidelines on Issue / Offer of Securities.

8. DIRECTORS AND SUBSTANTIAL SHAREHOLDERS INTEREST

Save for Mr. Lee See Jin and Mr. Lee Chong Choon who are also Directors and shareholders of the Company and NTPM PP, the other Directors and substantial shareholdings and persons connected to them are not interested in the above transaction.

Mr. Lee See Jin and Mr. Lee Chong Choon, being interested parties in the above transaction, had abstained themselves from deliberation and voting on the said transaction.

9. DIRECTORS STATEMENT

The Board of NTPM with the exception of those Directors, who were interested, after careful deliberation, is of the opinion that the acquisition is in the best interest of the Company.

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