Contents :

We refer to the letter dated 14 October 2004 from Bursa Malaysia Securities Berhad in relation to the articles which appears in The Star, Starbiz, Page 3, Wednesday, 13 October 2004 and in particular the following sentence:

"Sersol Technologies Bhd ....... expects up to 15% growth in sales this year from RM26 mil in the year ended Dec 31, 2003."

On behalf of the Board of Directors of STB, SIBB wishes to clarify that the 15% growth in sales refers to the growth for the financial year ending 31 December 2005 and not for the financial year ending 31 December 2004. According to the management of STB, the expected growth of 15% in sales for the financial year ending 31 December 2005 is based on the following:

(i) Commercialisation of new products;

(ii) Further expansion in Indonesia; and

(iii) Penetration into Thailand market.

We would like to further clarify that the statement of expected growth in sales is based on the above basis and the external auditors have not reviewed the basis, calculations and assumptions for the statement.

This announcement is dated 15 October 2004.

Query Letter Contents :

We refer to the above news article appearing in The Star, StarBiz, Page 3,
Wednesday, 13 October 2004, 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:-
"Sersol Technologies Bhd...expects up to 15% growth in sales this year from
RM26mil in the year ended Dec 31, 2003."

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 article and in particular the underlined
sentence after due and diligent enquiry with all the directors, substantial
shareholders and all such persons reasonably familiar with the matter 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, including the relevant basis and assumptions in arriving at
the above forecast. In this respect, you are also required to confirm whether
the accounting bases, calculations and assumptions have been reviewed by the
external auditors.
Please furnish the Exchange with your reply within one (1) market day from the
date hereof.
Yours faithfully

Tan Yew Eng
Sector Head, Issues & Listing
LPY/zm
c.c Securities Commission