Contents :

We refer to the Bursa Malaysia Securities Berhad (Bursa Securities) letter dated 5 June 2006 on its inquiry regarding the sharp increase in price and high volume in Sersol Technologies Berhad's (Sersol or the Company) shares recently.

In accordance with Part IV of the Guidance Notes 1 of the Listing Requirements of Bursa Malaysia Securities Berhad for the MESDAQ Market (Bursa Securities MMLR) on Response to Unusual Market Activity, the Board of Directors of Sersol (the Board), after making due enquiry and to the best of its knowledge, wishes to confirm the following:

1. There is no corporate development relating to Sersol, its subsidiaries and its associated companies's (Sersol
Group) businesses and affairs that has not been previously announced that may account for the unusual market
activity.
2. There was an article in the Biznews Databank's website www.biznewsdb.com on 5 June 2006 citing that "Shares of
Sersol were higher on rumours that the company will be making a major announcement today". In this respect,
pursuant to Part III of the Guidance Notes 1 of the Bursa Securities MMLR, the Board firmly deny of such rumours that
the Company will be making any major announcement on 5 June 2006. Infact, the Company did not make major
announcement on 5 June 2006. Save as disclosed in this paragraph, the Board is not aware of any other rumour or
report concerning the businesses and affairs of the Group that may account for the unusual market activity;
3 The Board is not aware of any other possible explanation to account for the unusual market activity; and
4. The Board is fully aware of its obligations to comply with the Bursa Securities MMLR, in particular Part IV of Chapter
7 of the Bursa Securities MMLR on immediate disclosure requirements and will adhere to the same.

The Board also wishes to state that the Company is constantly pusuing new activities and business opportunities in the ordinary course of its business and will make the necessary announcements as required pursuant to Part IV of Chapter 7 of the Bursa Securities MMLR.

This announcement is dated 6 June 2006 and shall supersede the announcement made to the Bursa Securities on 5 June 2006 on the subject, "Response to Report Contained in the Biznews Databank Entitled "Sersol Higher on Rumours of Major Announcement" dated 5 June 2006

Query Letter Contents :

We draw your attention to the sharp increase in price and high volume in your
Companys shares today.
In accordance with the Part IV of Guidance Notes 1 of the Listing Requirements
of the Bursa Malaysia Securities Berhad for MESDAQ Market (Bursa Securities
MMLR) on Response To Unusual Market Activity, you are requested to furnish
Bursa Malaysia Securities Berhad (Bursa Securities) with an announcement for
public release after making a due enquiry seeking the cause of the unusual
market activity in the Companys securities.
In this respect, you are also required to publicly confirm, amongst others, the
following:-
1. whether there is any corporate development relating to your Groups
business and affairs that has not been previously announced that may account
for the unusual market activity including those in the stage of negotiation /
discussion. If yes, kindly provide the details including status of the
corporate development to enable investors to make informed investment decision;
2. whether there is any rumour or report concerning the business and affairs of
the group that may account for the unusual market activity and in this respect,
you are required to comply with Part III of Guidance Notes 1 of the Bursa
Securities MMLR;
3. whether you are aware of any other possible explanation to account for the
unusual market activity; and
4. your compliance with the Bursa Securities MMLR, in particular Part IV of
Chapter 7 of the Bursa Securities MMLR on immediate disclosure obligations.





Please note that the contents of the announcement must be endorsed by the Board
of Directors of the Company and the announcement must reach Bursa Securities
within one (1) market day via Bursa LINK.

Yours faithfully


JOSEPHINE EDWARD
Sector Head, Listing Compliance
Group Regulations