Details of Announcement

Contents :

(i) Renounceable rights issue with warrants of 4,122,527 new ordinary shares of RM1.00 each (“Rights Shares”) together with 4,122,527 new free detachable warrants (“Warrants”) at an issue price of RM1.00 for one (1) Rights Share together with one (1) Warrant on the basis of one (1) Rights Share together with one (1) Warrant for every five (5) existing ordinary shares held (“Rights Issue with Warrants”);

(ii) Debt restructuring scheme involving the settlement of outstanding principal as at 31 December 2002 (“Cut-Off Date”) amounting to RM39,290,000 and outstanding interest as at Cut-Off Date up to 31 December 2003 amounting to RM5,377,924 owing by the subsidiaries of KIALIM to the participating bankers 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 (“RCSLS”) of RM1.00 each comprising RCSLS-A, RCSLS-B and RCSLS-C, 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 share of RM1.00 each at an issue price of RM1.00 per share to the participating bankers
(“Debt Restructuring Scheme”)


Kindly be advised that the abovementioned Company's:-

(a) 4,122,527 Warrants will be admitted to the Official List of the Exchange and the listing and quotation of the Warrants on the Main Board under the "Loans" sector, on a "Ready" basis pursuant to the Rules of the Exchange will be granted with effect from 9.00 a.m., Wednesday, 15 February 2006;

(b) 4,122,527 Rights Shares issued pursuant to the Rights Issue with Warrants will be granted listing and quotation with effect from 9.00 a.m., Wednesday, 15 February 2006; and

(c) 13,235,924 new ordinary shares of RM1.00 each issued pursuant to the Debt Restructuring Scheme will be granted listing and quotation with effect from 9.00 a.m., Wednesday, 15 February 2006.

The Stock Short Name, Stock Number and ISIN Code of the the Warrants are "KIALIM-WA", "6211WA" and "MYL6211WAQ27" respectively.

Please refer to the Company's announcement dated 7 February 2006 for the salient terms of the Warrants.

Kindly also be advised that the Warrants are prescribed securities. Dealings in the Warrants should be carried out in accordance with the Securities Industry (Central Depositories) Act, 1991 and the Rules of Bursa Malaysia Depository Sdn Bhd.