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This is to notify the Exchange that following the announcements made on the acquisition of Harum Bidang Sdn Bhd and Optima Line Engineering Sdn Bhd on 23 December 1999 and 3 December 1999 respectively, conditional approvals from authorities for early commencement of construction of the proposed steel-pipes manufacturing plant has been obtained. Accordingly, preliminary construction works have commenced on the said lands. This is in line with KKB Engineering Bhd's plans to further diversify into steel related manufacturing activities. Total capital investment would be in the region of RM10 Million.

The components of the steel-pipes are steel, cement and bitumen which will be locally sourced.

The said plant is planned for commissioning by end 2000. It is anticipated that this division will contribute positively to the Group's turnover and profits in the coming years.

Kindly also be notified that paid-up and authorised capital of KKB Engineering Bhd's wholly-owned subsidiary, Harum Bidang Sdn Bhd has been increased on 24 March 2000. The paid-up capital is increased from RM100,000.00 divided into 100,000 ordinary shares of RM1.00 each to RM1,630,000.00 divided into 1,630,000 ordinary shares of RM1.00 each.

The authorised capital is also increased from RM500,000.00 divided into 500,000 ordinary shares of RM1.00 each to RM5,000,000.00 divided into 5,000,000 ordinary shares of RM1.00 each by creation of 4,500,000 addtional ordinary shares of RM1.00 each.