Details of Announcement

Contents :

On behalf of Kia Lim Berhad (“Kia Lim” or the “Company”), AmMerchant Bank Berhad (a member of the AmInvestment Group) is pleased to announce the following: -


1. Bursa Securities Malaysia Berhad’s (“Bursa Securities”) Approval
On 27 April 2005, Bursa Securities granted Kia Lim an extension of time to comply with paragraph 8.16A of the Bursa Securities’ Listing Requirements pertaining to minimum issued and paid-up capital requirements as a continuous listing obligation.

The extension is granted up to the time frame or extended time frame stipulated by the relevant authorities for Kia Lim to implement its Proposed Rights Issue with Warrants and Proposed Debt Restructuring Scheme (collectively referred to as the “Proposals”), details of which have previously been announced on 21 February 2005.

2. Steps Proposed to be Taken for Compliance
Kia Lim’s paid-up share capital is RM44,579,000 as at 31 December 2004, which is below the minimum paid-up share capital requirement of RM60,000,000 for companies listed on the Main Board of the Bursa Securities pursuant to the Bursa Securities’ Listing Requirements. Upon implementation of its Proposals, as detailed in our announcement dated 21 February 2005, Kia Lim’s share capital would increase to above RM60,000,000, thereby achieving compliance with paragraph 8.16A of the Bursa Securities’ Listing Requirements.


3. Tentative Timeline to Achieve Compliance
The Company anticipates achieving compliance by 15 August 2005, in line with the timeframe accorded pursuant to the Securities Commission’s approval dated 16 February 2005.
4. Status of Implementation

The Company is currently in the process of finalising the debt restructuring agreement of the Proposed Debt Restructuring Scheme with the relevant financial institutions. The Company has obtained the approvals of the Ministry of International Trade and Industry and the Securities Commission on 2 March 2004 and 16 February 2005 respectively while the approval of the Foreign Investment Committee is pending. Shareholders’ approval is also pending an Extraordinary General Meeting to be convened.