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The Board of Directors of Asiatic Development Berhad ("the Company") wish to announce that the Company, had on 3 August 2000, entered into a Sale and Purchase Agreement ("the Agreement") with the following parties:

(a) Gredit Industry Limited; and
(b) China Grains and Oils Group Corp

for the proposed disposal of the Company's entire equity interest of 55% in Dongguan New Asiatic Oils & Fats Co. Ltd ("DNA") for a cash consideration of USD1.6 million equivalent to RM6.08 million ("Disposal Price") subject to approvals being obtained from relevant authorities in The People's Republic of China and Hong Kong ("Proposed Disposal"). The Disposal Price was arrived at on "a willing buyer-willing seller" basis.

The Disposal Price shall be satisfied as follows:

(i) payment of USD160,000 within 7 days of execution of the Agreement;
(ii) payment of USD640,000 within 7 days upon approval by the Ministry of Foreign Trade & Economics Co-operation, China for the Proposed Disposal;
(iii) payment of USD800,000 within 7 days of fulfillment of conditions precedent or within 60 days from the date of the Agreement whichever is earlier.

DNA was registered in 1993 for the establishment of palm oil refinery, bulking installation, oil blending plant and margarine production facility in the Province of Guangdong, China with equity participation of 55% by the Company and 45% by Dongguan City Zhong Yue Xin Sha Port Oils & Fats Storage Transportation Co. (China).

The Proposed Disposal would result in an exceptional gain of approximately RM6.0 million as the entire investment cost of RM25.0 million was written off in 1997.

The Proposed Disposal is expected to increase the earnings and net tangible assets value of the Company by 0.81 sen per share for the financial year ending 31 December 2000.

None of the Directors and substantial shareholders of the Company and persons connected with them have any interest, direct or indirect, in the Proposed Disposal.



TAN SRI MOHD AMIN BIN OSMAN
Chairman
ASIATIC DEVELOPMENT BERHAD