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We refer to our announcement on 23 July 1999 pertaining to the above captioned matter. We would like to amend our announcement as follows :-

a) the remarks for 1(b) should be "criticality pending Y2K consultants' confirmation" instead of "critically pending Y2K consultants' confirmation"

b) for point (2), to delete "X" and replace by "-".

Below is duly amended disclosure for your attention.

We apologise for any inconvenience caused.
1. Details of your company and subsidiaries’ progress in relation to its activities to address the Y2K issue.

Y2K Ready

Non Y2K Ready

X

(To provide the information listed below)

Description of Non Y2K System	Criticality of system (critical or not critical)	Status of readiness (at which stage & percentage of completion)	Estimated date being Y2K Ready	Remarks
a) Stand alone PCs b) Factory PlCs (some)	Not critical Not so critical	Testing & remediation stages 50% completed Testing & remediation stages 50% completed	21.12.1999 21.12.1999	Nil Criticality pending Y2K consultants’ confirmation

2. The impact of the Y2K issue if your company and/or subsidiaries fail to be Y2K Ready or are unable to achieve full readiness by the estimated date(s) mentioned above.

No impact	-	(State the reason(s) below)
Yes	-	(State the details of the impact below, particularly on the business,

  financial position and prospects)

Impact if any is expected to be nil or minimal as all critical operations have been identified and attended to for Y2K readiness.

3. The exposure of your company and/or subsidiaries to third parties who have material business relationships with your company or subsidiaries in relation to the third parties’ Y2K readiness.

No exposure		(State the reason(s) below)
Yes	X	(State the details of the exposure, how material the exposure is

  to your company and/or subsidiaries and the measures taken
to address the impact of the exposure)

The exposure relates to supplies of materials and machinery parts, and services rendered from 3rd parties, and the materiality is dependent on their Y2K readiness, the impact of which is pending their confirmation to our request for their Y2K compliance status to date.

4. The total cost your company and subsidiaries have incurred or is expected to incur to address the Y2K issue.

  Total cost is expected not to exceed RM200,000

5. Describe your company and subsidiaries’ contingency plans in relation to the Y2K issue to ensure continued operations.

No contingency plans	X	(State the reason(s) why contingency plans are not needed)
Yes		(State the details of the contingency plans)

  KKB Engineering Bhd Group is in the process of finalising its Contingency & Business Recovery Plan which is expected to be put into place by October 1999.