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Further to the announcement on 27 February 2003, AmMerchant Bank Berhad (formerly known as Arab-Malaysian Merchant Bank Berhad) , on behalf of the Board of KKB, is pleased to announce that the Securities Commission ("SC") had, vide its letter dated 16 April 2003, approved the Proposed New ESOS.

The approval of the SC is subject to the condition, inter-alia, that the Proposed New ESOS can only be implemented after the expiry date of the existing ESOS of the Company on 9 October 2003.

The Proposed New ESOS is still pending the approval of the shareholders of the Company at an Annual General Meeting to be convened and the approval of the Kuala Lumpur Stock Exchange for the new shares to be issued pursuant to the Proposed New ESOS.

This announcement is dated 18 April 2003.