Press Release 30 June 1998

JOINT ANNOUNCEMENT
30 JUNE 1998

TERMINATION OF SHAREHOLDERS' AGREEMENT FOR THE JOINT ESTABLISHMENT OF PALM-BASED PROCESSING FACILITIES

The Board of Directors of Asiatic Development Berhad, Kuala Sidim Berhad, Hap Seng Consolidated Berhad and IJM Plantations Sdn Bhd (collectively referred to as the "Parties") wish to announce that the Parties have mutually agreed to terminate the Shareholders' Agreement dated 30 April, 1997 which agreement was entered into by the Parties for the joint establishment of palm-based processing facilities in Sandakan, Sabah (the "Project").

The Parties have decided not to proceed with the Project following the sudden and severe change in the economic conditions, notably the tight liquidity situation, rising interest costs and escalating costs of imported machineries, which is expected to adversely affect the overall viability of the Project.

The termination of the above agreement will not have any material impact on the earnings and net tangible assets of the Parties.