Contents :

The Board of Directors of KKB Engineering Berhad (KKBEB) is pleased to announce that as at 21 December 2001, the equity structure of its wholly-owned subsidiary, Harum Bidang Sdn Bhd (HBSB) has been divested as a result of the issuance of new ordinary shares of RM1-00 each to the following :-

Name of allottees No. of shares Consideration sum (RM)

KKB Engineering Berhad 770,000 770,000
Serira Sdn Bhd 600,000 600,000

Thereby, HBSB is now 80% owned by KKBEB instead of 100% owned.

DIRECTORS' STATEMENT

None of the Directors and major shareholders and persons connected to them is interested in the above transaction. The Directors are of the opinion that the divestment is in the best interest of the Company and not to the detriment of the minority shareholders.