Details of Announcement

General Announcement

Reference No C&-011214-1E4D2

Company Name	:	KIA LIM BERHAD
Stock Name	:	KIALIM
Date Announced	:	14/12/2001


Type	:	Reply to query
Reply to Query Letter by KLSE reference ID	:	VC-011213-66012
Subject	:	Unusual market activity

Contents :

Your letter dated 13 December 2001 pertaining to the abovementioned refers. The Board of Directors of Kia Lim Berhad ("KLB") wishes to advise you of the following:-

1. That there is no material development in the Company's business and affairs not previously disclosed;
2. That there is no impending change in the major shareholders; and
3. That in the knowledge of the Company there is no other reasons to account for the unusual market action.

Further to that, the Directors of KLB wish to inform that none of the situations/events listed in your aforesaid letter contributed to the unusual market activities in the Company's shares during the period in question.

The Directors are also not aware of any other rumour or report (whether true or false) which contains information which has or likely to have an effect in the trading of the Company's securities.

However, the pre-emptive measure and persistent stimulus from the Government to focus on the construction of infrastructure and social amenities, the building materials and industrial sector has been showing signs of recovery.

Query Letter content :
We draw your attention to the sharp increase in price and volume in your
Company’s shares recently.
In accordance with Paragraph 9.11 of the Listing Requirements on the Corporate
Disclosure Policy on Response to Unusual Market Activity, kindly advise the
Exchange immediately the following for public release upon due inquiry:-
1. whether there is any material development in your Company’s business and
affairs not previously disclosed.
2. whether there is any impending change in the major shareholders.
3. whether in your knowledge, any other reasons to account for the unusual
market action.
You are reminded that pursuant to Paragraphs 9.03, 9.04 and 9.07 of the KLSE’s
Listing Requirements, the following situations/events (which are not
exhaustive) require prompt disclosure:
the entry into a joint venture agreement or merger;
the acquisition or loss of a contract, franchise or distributorship rights;
the introduction of a new product or discovery;
a change in management;
the borrowing of funds
the commencement of or the involvement in litigation and any material
development arising therefrom;
the commencement of arbitration proceedings or proceedings involving
alternative dispute resolution methods;
the purchase or sale of an asset;
a change in capital investment plans;
the occurrence of a labour dispute or disputes with sub-contractors or
suppliers;

Our Ref : VC-011213-66012
UNUSUAL MARKET ACTIVITY
________________________________________________________________________________
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the making of a tender offer for another company’s securities;
the occurrence of an event of default on interest and/or principal payments in
respect of loans;
a change in general business direction;
a change of intellectual property rights;
the entry into a memorandum of understanding; or
the entry into any call or put option or financial futures contract.
If the MOU is not intended to be a legally binding document at this stage, you
are required to disclose the expected time in which a legally binding
agreement will be executed by the relevant parties.
Kindly declare that none of the above listed situations/events contributed to
the unusual market action activities in your Company’s shares during the period
in question upon due inquiry.
You are also reminded that if you are aware or become aware of any rumour or
report (whether true or false) which contains information which is likely to
have an effect on the trading of your company’s securities, you are
required to publicly clarify the rumour or report as soon as possible.

Your reply should be in conformity with the Exchange’s Corporate Disclosure
Policy, in particular, Paragraphs 9.08, 9.16 and 9.17 of the KLSE’s Listing
Requirements and is to reach the Exchange within one(1) market day from the
date of this letter via KLSE Listing Information Network
(“KLSE LINK”).

Yours faithfully

TAN CHUN WENG
Senior Vice President
Financial Review & Surveillance
Listing Group

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