Kuala Lumpur Kepong

Shares Acquisition

Kuala Lumpur Kepong Berhad
29 October 2004


KUALA LUMPUR KEPONG BERHAD ('KLK')
TRANSACTION OF SHARES IN LADANG PERBADANAN-FIMA BERHAD ('LPF')

Pursuant to the requirements of paragraph 9.19(25) of the Bursa Malaysia
Securities Berhad Listing Requirements, KLK wishes to announce that it has on 29
October 2004 through its wholly-owned subsidiary, Ablington Holdings Sdn. Bhd.
('the Purchaser'), acquired from Kuda Sejati Sdn. Bhd. ('the Vendor') a 15.39%
equity stake, comprising 17,600,000 ordinary shares of RM1.00 each in LPF ('Sale
Shares') for a total cash consideration of RM50,160,000 or RM2.85 per Sale Share
('the Transaction').

The Transaction was completed via a Direct-Business-Transaction in accordance
with the rules and regulations of Bursa Malaysia Securities Berhad.

Call and Put Option

Following the completion of the Transaction, the Vendor and the Purchaser will
enter into a Call and Put Option Agreement ('the Option Agreement'). The Call
and Put Options therein are exercisable in respect of a maximum of 17,600,000
and a minimum of 11,543,860 ordinary shares in LPF ('the Option Shares'), at the
Option Price of RM2.85 per share. The Call and Put Options are exercisable by
either Party by service of an Option Notice, but only in the event of
termination of the Sale and Purchase Agreement dated 6 August 2004 ('Fima SPA')
between Kumpulan Fima Berhad ('KFB') and Glamour Green Sdn. Bhd. in respect of
KFB's entire shareholding of 26,496,000 ordinary shares in LPF ('Option Exercise
Event').

The Call and Put Options are valid for 90 days from the date of the Option
Agreement and if exercised on the happening of the Option Exercise Event, the
Option Shares will be sold seven (7) days from the Option Notice.

Other Information

LPF is a company listed on the Main Board of Bursa Malaysia and has an issued
and fully paid-up share capital of RM114,300,000 comprising 114,300,000 ordinary
shares of RM1.00 each.

LPF is a plantation company owning and operating oil palm estates. It has a
total land area of approximately 8,171 hectares and a palm oil mill, all located
in Perak.

The Vendor is a wholly-owned subsidiary of the Perak State Economic Development
Corporation.

The purchase consideration for the Sale Shares of RM50,160,000 was arrived at on
a willing-buyer, willing-seller basis. The purchase consideration will be
financed from KLK's internally generated funds.

Rationale for the Transaction

The Sale Shares are intended to be held by the Purchaser for the longer term and
will be an investment holding for the KLK Group in LPF.

The Transaction was entered into on the premise that KFB will no longer be a
major shareholder of LPF following the disposal of KFB's entire shareholding in
LPF. Accordingly, the Option Agreement was executed at the request of the
Vendor, and its purpose is to preserve flexibility for the Vendor in the event
the Fima SPA is terminated and the expected change in major shareholding
composition in LPF does not materialize.

Effects of the Transaction

The Transaction will not have any effect on the share capital and shareholding
structure of KLK. Further, it will not have any material effect on the net
tangible assets and earnings of the KLK Group for the current financial year
ending 30 September 2005.

Directors' and Substantial Shareholders' Interests

None of the Directors nor substantial shareholders of KLK or any person
connected to the Directors and substantial shareholders has any interest, direct
or indirect, in the Transaction.

/ska


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