Details of Announcement

General Announcement

Reference No MM-040310-50319

Submitting Merchant Bank	:	AMMERCHANT BANK BERHAD
Company Name	:	KIA LIM BERHAD
Stock Name	:	KIALIM
Date Announced	:	10/03/2004


Type	:	Announcement
Subject	:	KIA LIM BERHAD (“KIA LIM” OR “COMPANY”)

Contents :

- PROPOSED RENOUNCEABLE TWO-CALL RIGHTS ISSUE WITH WARRANTS OF UP TO 16,948,750 NEW ORDINARY SHARES OF RM1.00 EACH IN THE COMPANY (“RIGHTS SHARES”) TOGETHER WITH UP TO 16,948,750 NEW FREE DETACHABLE WARRANTS (“WARRANTS”) AT A PROPOSED ISSUE PRICE OF RM1.00 FOR ONE (1) RIGHTS SHARE TOGETHER WITH ONE (1) WARRANT ON THE BASIS OF SEVEN (7) RIGHTS SHARES TOGETHER WITH SEVEN (7) WARRANTS FOR EVERY TWENTY (20) EXISTING ORDINARY SHARES HELD ON AN ENTITLEMENT DATE TO BE DETERMINED (“PROPOSED TWO-CALL RIGHTS ISSUE WITH WARRANTS”)

- PROPOSED DEBT RESTRUCTURING SCHEME (“PROPOSED DRS”) INVOLVING THE SETTLEMENT OF OUTSTANDING PRINCIPAL AS AT 31 DECEMBER 2002 (“CUT-OFF DATE”) AND OUTSTANDING INTEREST AS AT CUT OFF DATE UP TO 31 DECEMBER 2003, WITH A COMBINED TOTAL OF RM44,667,924 OWING BY THE SUBSIDIARIES OF KIA LIM TO THE PARTICIPATING BANKERS (“DEFINED HEREIN”) BY WAY OF:
(a) SETTLEMENT OF 40% OF OUTSTANDING PRINCIPAL AS AT CUT-OFF DATE BY THE ISSUANCE OF RM15,716,000 NOMINAL VALUE OF 4%, 10-YEAR REDEEMABLE CONVERTIBLE SECURED LOAN STOCKS OF RM1.00 EACH TO BE ISSUED AT 100% OF ITS NOMINAL VALUE TO THE PARTICIPATING BANKERS;

(b) THE RESTRUCTURING OF 40% OF THE OUTSTANDING PRINCIPAL AS AT CUT-OFF DATE; AND

(c) THE SETTLEMENT OF 20% OF OUTSTANDING PRINCIPAL AS AT CUT-OFF DATE AND OUTSTANDING INTEREST AS AT CUT-OFF DATE UP TO 31 DECEMBER 2003 BY THE ISSUANCE AND ALLOTMENT OF 13,235,924 NEW ORDINARY SHARES OF RM1.00 EACH TO THE PARTICIPATING BANKERS; AND

- PROPOSED INCREASE IN THE AUTHORISED SHARE CAPITAL OF KIA LIM FROM RM100,000,000 TO RM200,000,000 BY THE CREATION OF AN ADDITIONAL 100,000,000 NEW SHARES OF RM1.00 EACH (“PROPOSED IASC”)

(COLLECTIVELY REFERRED TO AS THE "PROPOSALS")

This announcement is dated 10 March 2004.

We refer to our announcement dated 29 October 2003 pertaining to the Proposals.

On behalf of the Board of Directors of Kia Lim, we are pleased to announce that the Ministry of International Trade and Industry (“MITI”) had, vide their letter dated 2 March 2004, informed that it has no objection to the Proposed Two-Call Rights Issue with Warrants, Proposed DRS and Proposed IASC subject to approval from the Securities Commission for the Proposals and in respect of the Malaysian Code on Takeovers and Mergers, 1998.

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