Details of Announcement

General Announcement

Reference No C&-030703-4CBD5

Company Name	:	KIA LIM BERHAD
Stock Name	:	KIALIM
Date Announced	:	03/07/2003


Type	:	Announcement
Subject	:	KIA LIM BERHAD("KIA LIM") PROPOSED RENEWAL OF SHAREHOLDERS' MANDATE FOR RECURRENT RELATED PARTY TRANSACTIONS OF A REVENUE OR TRADING NATURE PROPOSED SHAREHOLDERS' MANDATE FOR NEW RECURRENT RELATED PARTY TRANSACTIONS OF A REVENUE OR TRADING NATURE

Contents :

Introduction

Pursuant to Paragraph 10.08 - Related Party Transaction of the Listing Requirements of the Kuala Lumpur Stock Exchange ("KLSE"), the Board of Directors of KIA LIM wishes to announce that Messrs. Lee Perara & Tan ("LPT") has been appointed by the Board as the solicitors in respect of the Proposed Renewal of Shareholders' Mandate for Recurrent Related Party Transactions of a revenue or trading nature and Proposed Shareholders' Mandate for new Recurrent Related Party Transactions of a revenue or trading nature (hereinafter known as "Proposals").

Details of the related party transactions

LPT, a company incorporated in Malaysia and having its place of business address at 55, Jalan Thambapillai, Off Jalan Tun Sambanthan, 50470 Kuala Lumpur. The nature of business of LPT is advocates and solicitors.

The professional fees ("the said fees") excluding out of pocket expenses and service tax payable for the legal services to be rendered shall not exceed RM5,000-00 was derived based on the estimated time and costs to be incurred by LPT.

Approvals required

The said fees to be paid does not exceed 5% of any of the percentage ratios prescribed under Chapter 10 of the Listing Requirements of the KLSE and accordingly is not subject to shareholders' approval.

Interest of director

Mr. Tan Seng Kee who is an independent director and a member of the audit committee of KIA LIM, is also the senior partner of Messrs Lee, Parara & Tan. The Board has noted Mr. Tan Seng Kee's disclosure of interest. Mr. Tan Seng Kee had abstained and will continue to abstain from the Board's deliberations and voting on resolutions related to the appointment of LPT for the Proposals. The legal services to be provided by LPT are advisory in nature and are not expected to result in any conflict of interest.

The Board of Directors of KIA LIM, is in the opinion, that the appointment of LPT is in the best interest to the Company.

Effect of the related party transactions

The appointment of LPT as the solicitors in relation to the Proposals was done at arms length and is not expected to have any material financial impact of KIA LIM's earnings per share, net tangible assets, share capital and substantial shareholdings of KIA LIM.

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