Details of Announcement

Contents :

On behalf of KLB, Aseambankers Malaysia Berhad is pleased to announce that the Securities Commission ("SC") has vide its letter dated 17 February 2000 and 13 July 2000 approved the abovementioned Private Placement of KLB and the allocation of placement shares to the placees respectively.

The 4,050,000 new ordinary shares of RM1.00 each in KLB will be placed out on 20 July 2000 at the issue price of RM1.73.

The issue price for the Private Placement shares was at a discount of approximately 9.90% from the weighted average market price of KLB for the immediate five (5) market days ended 18 July 2000 (including 18 July 2000) which was RM1.92.

The issued and paid-up share capital of KLB after the Private Placement is provided in Table 1 below.

The SC has also vide its aforesaid letter approved the utilisation of the proceeds from the Private Placement as provided in Table 2 below. The proceeds of RM5.508 million as indicated in Table 2 below is based on a discount of approximately 9.90% from the weighted average market price for the past five (5) days from 14 December 1999 to 20 December 1999 of RM1.51 per share as per our application letter to SC dated 29 December 1999.

The issue price of the placement shares is now fixed at RM1.73 after taking into account the weighted average market price of KLB for the past five (5) market days ended 18 July 2000 (including 18 July 2000). The higher placement price will result in higher proceeds of RM7.006 million. As a result, a revision on the utilisation of proceeds is made as provided in Table 3 below.

The above revision of utilisation of proceeds from the Private Placement is still subject to SC's approval.

None of the directors or substantial shareholders of KLB or any person connected to them will benefit whether directly or indirectly, from the Private Placement.



Table 1

	No. Of Ordinary Shares	RM
Existing issued and paid-up ordinary share capital	40,500,000	40,500,000
Shares issued pursuant to the Private Placement	4,050,000	4,050,000
Total	44,550,000	44,550,000

Table 2

	Indicative Utilisation RM'000
(i) Repayment of bank borrowings	3,000
(ii) Working capital for KLB Group	2,302
(iii) Expenses incurred for Private Placement	206
Total	5,508

Table 3

	Revised Utilisation RM'000
(i) Repayment of bank borrowings	3,000
(ii) Working capital for KLB Group	3,800
(iii) Expenses incurred for Private Placement	206
Total	7,006