Contents :

1. INTRODUCTION

The Board of Directors of Asiatic wishes to announce that the Company had entered or will enter into recurrent related party transactions of a revenue or trading nature, which are necessary for its day-to-day operations with certain related parties of Asiatic ("Recurrent Transactions").

2. DETAILS OF THE RECURRENT TRANSACTIONS

Asiatic is principally involved in plantation and investment holding whilst the principal activities of its subsidiaries include plantation and property development. Asiatic and its subsidiaries ("the Asiatic Group" or the "Group") in the ordinary course of business, enter into recurrent related party transactions of a revenue or trading nature, which are necessary for the day-to-day operations with certain related parties of the Asiatic Group. Such Recurrent Transactions are carried out or will be carried out on an arm's length basis and on commercial terms which are not more favourable to the related parties than those generally available to the public and which will not be detrimental to the minority shareholders of the Company. The Recurrent Transactions are disclosed in Table 1.

3. FINANCIAL EFFECTS OF THE RECURRENT TRANSACTIONS

The Recurrent Transactions will not have any effect on the issued and paid-up share capital and substantial shareholders' shareholdings of Asiatic, and is not expected to have a material effect on the net tangible assets per share and earnings per share of the Asiatic Group.

4. DIRECTORS' AND MAJOR SHAREHOLDERS' INTERESTS

The interests of the Directors and major shareholders of Asiatic who have interest in the Recurrent Transactions are set out in Table 1. Save as disclosed in Table 1 and as far as the Directors are aware, none of the other Directors or major shareholders of Asiatic or persons connected to them has any interest, direct or indirect, in the Recurrent Transactions.

5. DIRECTORS' RECOMMENDATION

The Directors, after due consideration of all aspects of the Recurrent Transactions, are of the opinion that the Recurrent Transactions are in the best interests of the Company.

TAN SRI MOHD AMIN BIN OSMAN
Chairman
Asiatic Development Berhad