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Further to the announcements dated 20 June 2001 and 4 July 2001 in connection with the Proposed Acquisition, the Board of Directors of Asiatic Development Berhad ("Asiatic" or "the Company") is pleased to announce that Tanjung Bahagia Sdn Bhd, a wholly owned subsidiary of Asiatic, has obtained the approval from the Foreign Investment Committee for the Proposed Acquisition.

The Proposed Acquisition is now subject to the following approvals being obtained within 6 months from the date of the Sale and Purchase Agreement, namely 20 June 2001 or such extended period as mutually agreed by Hap Seng Consolidated Berhad and Asiatic:

• the consent and permission from the Director of Lands and Surveys Department, Sabah, for the transfer of the Land to Asiatic; and
• any other approvals from the relevant authorities as may be required by any directives, regulations or requirements.

TAN SRI MOHD AMIN BIN OSMAN
Chairman
Asiatic Development Berhad