Contents :

The Board of Directors is pleased to announce that the Company has acquired 1,620,000 ordinary shares of RM1/- each representing 81% of the issued and paid-up capital of Asiatic Green Tech Sdn Bhd ("AGT") for a cash consideration of RM1/- ("the Proposed Acquisition"). The Proposed Acquisition was arrived at on a willing-buyer-willing-seller basis and shall be financed from internally generated funds.

AGT, a private limited company incorporated in Malaysia, is currently dormant. Upon completion of the Proposed Acquisition, AGT shall become a wholly-owned subsidiary of the Company.

The Proposed Acquisition will not have any material impact on the net tangible assets of the Group based on its audited accounts for the financial year ended 31 December 2001 and is not expected to have any material effect on the earnings of the Group for the current financial year ending 31 December 2002. With AGT's current dormant position, the Proposed Acquisition is not expected to contribute significantly towards the earnings of the Group in the near future.

The Proposed Acquisition is conditional upon approval of the Foreign Investment Committee and any other relevant authorities.

None of the directors or substantial shareholders of the Company has any interest in the Proposed Acquisition.


TAN SRI MOHD AMIN BIN OSMAN
Chairman
Asiatic Development Berhad