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We refer to the letter from Kuala Lumpur Stock Exchange dated 3 July 2001 requesting for the following additional information for public release.

(1) Salient features of the sale and purchase agreement

We wish to inform that the salient features of the sale and purchase agreement with regards to the purchase consideration, timing of payment of the purchase consideration and the conditions precedent for the completion of the Proposed Acquisition are as stated in our announcement made on 20 June 2001. Apart from these key provisions, the others are standard terms and conditions generally found in similar land purchase transaction. The sale and purchase agreement is available for inspection at the registered office of the Company during office hours on any working day for a period of one month commencing on 20 June 2001.

(2) The prospects and risk factor of the land to be acquired

The Proposed Acquisition will expand Asiatic's land bank by 22% to over 49,800 hectares or 123,000 acres, thus enlarging the existing operation to benefit from economies of scale whilst widening Asiatic's earning base to improve profitability.

Whilst it is expected to contribute positively towards the earnings of the Asiatic Group in the future, we acknowledge that the Asiatic Group is operating in an ever changing environment and is susceptible to certain business risks inherent in the oil palm industry. The risk factors which include amongst others, are the following:

• Fluctuation in prices of crude palm oil and palm kernel;
• Unfavourable local and global weather patterns which affect the production of fresh fruit bunches;
• Constraints and rising costs of labour supply;
• Threat of substitute products;
• Diseases or crop pests;
• More stringent environmental and conservation regulations; and
• Changes in political, economic and legislative condition.

(3) The estimated time frame for the completion of the Proposed Acquisition

The Proposed Acquisition is expected to be completed within a period of 6 months from the date of the sale and purchase agreement.

(4) Whether any valuation was carried out on the land; if so, the name of the independent registered valuer, date and method of valution and quantification of the market value;

The Company has not conducted any valuation exercise on the land. The purchase consideration for the Proposed Acquisition is arrived at on a "willing-buyer-willing-seller" basis.

(5) The net book value of the land based on latest audited accounts;

The net book value of the land based on the latest audited accounts as at 31 January 2001 is RM24.4 million.

(6) Identification of the land by lot, title numbers, etc

The title number of the land is CL 095330724.