Contents :

We refer to the query letter from Bursa Malaysia Securities Berhad dated 22 January 2007 ("Query Letter") in relation to an article appearing in The Edge Malaysia, page 30, on Monday, 22 January 2007 ("Said Article")

Sanichi wishes to clarify the following statements contained in the Said Article pursuant to the Query Letter:

(i) "Gwee says Simoldes will initially award a RM20 million contract to Sanichi in the first year and RM40 million the next."

As announced on 22 January 2007, Asia Pinnacle Sdn Bhd, a wholly-owned subsidiary company of Sanichi, has entered into a Memorandum of Understanding ("MOU") with IGM Industria Global De Moldes ("IGM") on 21 January 2007 outlining the intention of IGM to appoint APSB as their sole plastic injection mould fabricator in Malaysia. The MOU sets out, amongst others, that IGM commits to purchase not less than RM20 million for the first year and not less than RM30 million for the second year worth of plastic injection moulds from APSB.

(ii) "Simoldes intends to appoint us as its sole Asia-Pacific mould manufacturer. We are talking about a RM200 million joint venture (JV) eventually".

"He says the JV will possibly see Simoldes taking a 45% stake with Sanichi holding the majority share".

The MOU sets out that IGM is desirous of appointing APSB to be their sole plastic injection mould fabricator in Malaysia. Pursuant to the business collaboration explored under the MOU, APSB and IGM are also in preliminary discussions to evaluate further business opportunities which also includes a JV.

This announcement is dated 23 January 2007

Query Letter Contents :

We refer to the above news article appearing in The Edge Malaysia ,page 30, on
Monday, 22 January 2007 , a copy of which is enclosed for your reference.
In particular, we would like to draw your attention to the underlined
sentences, which are reproduced as follows:-
"Gwee says Simoldes will initially award a RM20 million contract to Sanichi in
the first year, and RM40 million the next."
" 'Simoldes intends to appoint us as its sole Asia-Pacific mould manufacturer.
We are talking about a RM200 million joint venture (JV) eventually'."
"He says the JV will possibly see Simoldes taking a 45% stake with Sanichi
holding the majority share."
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 sentences after due and diligent enquiry with all the directors,
major 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 sentences 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 sentences 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

WAN CHOON YEN
Senior Manager, Issuers
Listing Division,Group Regulations