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Kuala Lumpur Kepong (KLK)

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Monday 17 May, 2004

Kuala Lumpur Kepong

Interim Results

Kuala Lumpur Kepong Berhad
17 May 2004



                           KUALA LUMPUR KEPONG BERHAD
                                   (15043-V)
                           (Incorporated in Malaysia)

                    Condensed Consolidated Income Statement
                   For the second quarter ended 31 March 2004
                      (The figures have not been audited.)

                             Individual Quarter            Cumulative Quarter
                               3 months ended                6 months ended
                                  31 March                       31 March
                               2004       2003             2004             2003
                              RM'000     RM'000          RM'000           RM'000
Revenue                     934,176    754,111        1,926,810        1,631,968
--------------------------    -------    ------- ---     -------- ---     --------
Operating expenses         (802,686)  (658,749)      (1,633,672)      (1,378,658)
--------------------------    -------    ------- ---     -------- ---     --------
Other operating
income                        8,697      3,690           14,401            9,321
--------------------------    -------    ------- ---     -------- ---     --------
Operating profit            140,187     99,052          307,539          262,631
--------------------------    -------    ------- ---     -------- ---     --------
Finance cost                 (1,181)    (1,136)          (3,134)          (2,523)
--------------------------    -------    ------- ---     -------- ---     --------
Share of results of
associated companies         18,211     21,561           23,068           26,741
--------------------------    -------    ------- ---     -------- ---     --------
Profit before
taxation                    157,217    119,477          327,473          286,849
--------------------------    -------    ------- ---     -------- ---     --------
Tax expense                 (44,676)   (39,478)         (86,638)         (74,884)
--------------------------    -------    ------- ---     -------- ---     --------
Profit after
taxation                    112,541     79,999          240,835          211,965
--------------------------    -------    ------- ---     -------- ---     --------
Minority interests           (4,562)    (2,860)         (11,709)          (6,625)
--------------------------    -------    ------- ---     -------- ---     --------
Net profit for the
period                      107,979     77,139          229,126          205,340
--------------------------    =======    ======= ---     ======== ---     ========
                                Sen        Sen            Sen              Sen
Earnings per share -
Basic                         15.21      10.86            32.27            28.92
--------------------------    =======    ======= ---     ======== ---     ========
- Diluted                      N/A        N/A            N/A              N/A
--------------------------    =======    =======    --- ========     --- ========

N/A - Not applicable



The Condensed Consolidated Income Statement should be read in conjunction with
the Annual Financial Report for the year ended 30 September 2003.

                           KUALA LUMPUR KEPONG BERHAD
                                   (15043-V)
                           (Incorporated in Malaysia)

                      Condensed Consolidated Balance Sheet
                              As at 31 March 2004
                      (The figures have not been audited.)
                                                  31 March        30 September
                                                      2004                2003
                                                    RM'000              RM'000
Property, plant and equipment                    2,300,765           2,273,656
---------------------------------                  ---------           ---------
Property development                                54,652              54,652
---------------------------------                  ---------           ---------
Associated companies                               516,671             497,020
---------------------------------                  ---------           ---------
Other investments                                   82,153              82,473
---------------------------------                  ---------           ---------
Deferred tax assets                                  5,434               9,490
---------------------------------                  ---------           ---------
Intangible assets                                   20,004              18,837
---------------------------------                  ---------           ---------
Goodwill on consolidation                           60,369              60,369
---------------------------------                  ---------           ---------
                                                 3,040,048           2,996,497
Current assets
---------------------------------                  ---------           ---------
Inventories                                        467,768             478,133
---------------------------------                  ---------           ---------
Trade and other receivables                        627,431             419,981
---------------------------------                  ---------           ---------
Property development                                22,776              23,286
---------------------------------                  ---------           ---------
Cash and cash equivalents                          524,281             606,545
---------------------------------                  ---------           ---------
                                                 1,642,256           1,527,945

Current liabilities
---------------------------------                  ---------           ---------
Trade and other payables                           297,747             277,368
---------------------------------                  ---------           ---------
Taxation                                            41,010              38,197
---------------------------------                  ---------           ---------
Borrowings                                         105,562             139,098
---------------------------------                  ---------           ---------
Finance leases                                         222                 260
---------------------------------                  ---------           ---------
                                                   444,541             454,923

Net current assets                               1,197,715           1,073,022
---------------------------------                  ---------           ---------
                                                 4,237,763           4,069,519

Share capital                                      712,516             712,516
---------------------------------                  ---------           ---------
Reserves                                         3,227,996           3,076,762
---------------------------------                  ---------           ---------
                                                 3,940,512           3,789,278

Less: Cost of treasury shares                      (13,447)            (13,447)
---------------------------------                  ---------           ---------
Shareholders' equity                             3,927,065           3,775,831
---------------------------------                  ---------           ---------
Minority interests                                 132,752             125,078
---------------------------------                  ---------           ---------
Long term and deferred liabilities
---------------------------------                  ---------           ---------
Deferred tax liabilities                           148,128             135,876
---------------------------------                  ---------           ---------
Provision for retirement benefits                   13,421              13,429
---------------------------------                  ---------           ---------
Finance leases                                         320                 367
---------------------------------                  ---------           ---------
Borrowings                                          16,077              18,938
---------------------------------                  ---------           ---------
                                                   177,946             168,610
           ---------------------------------       ---------           ---------
                                                 4,237,763           4,069,519
           ---------------------------------       =========           =========

Net tangible assets per share (RM)                      5.42              5.21



The Condensed Consolidated Balance Sheet should be read in conjunction with the
Annual Financial Report for the year ended 30 September 2003.

                           KUALA LUMPUR KEPONG BERHAD
                                   (15043-V)
                           (Incorporated in Malaysia)

             Condensed Consolidated Statement of Changes in Equity
                   For the second quarter ended 31 March 2004
                      (The figures have not been audited.)


            Share     Capital     Revaluation Capital    Exchange    General   Revenue     Treasury      Total
            capital   reserve     reserve     redemption fluctuation reserve   reserve     shares
                                              reserve    reserve
            RM'000    RM'000      RM'000      RM'000     RM'000      RM'000    RM'000      RM'000    RM'000

At 1
October     712,516   1,158,255      49,745     11,735      97,626    14,337   1,745,064   (13,447)  3,775,831
2003
Net
(loss)/gain
not               -         (29)          -         32      30,711         -     (11,481)        -      19,233
recognised
in the
income
statement
Net profit
for               -           -           -          -           -         -     229,126         -     229,126
the year
Dividends         -           -           -          -           -         -     (97,125)        -     (97,125)
paid
Transfer
from
revenue
reserve to
capital           -       6,172           -          -           -         -      (6,172)        -           -
reserve       -------     -------    --------   --------    --------   -------     -------    ------     -------
At 31 March
2004        712,516   1,164,398      49,745     11,767     128,337    14,337   1,859,412   (13,447)  3,927,065
              =======     =======    ========   ========    ========   =======     =======    ======     =======

At 1
October     712,516   1,155,919      53,345     10,385      43,604    14,337   1,515,329   (13,447)  3,491,988
2002
Effect of
adopting
MASB              -           -      (3,600)         -           -         -     (42,481)        -     (46,081)
25            -------     -------    --------   --------    --------   -------     -------    ------     -------
As          712,516   1,155,919      49,745     10,385      43,604    14,337   1,472,848   (13,447)  3,445,907
restated
Net
gain/(loss)
not               -      10,257           -          -      10,501         -      (2,564)        -      18,194
recognised
in the
income
statement
Net profit
for               -           -           -          -           -         -     205,340         -     205,340
the period
Dividends         -           -           -          -           -         -     (71,566)        -     (71,566)
paid
Transfer
from
capital
reserve to
revenue           -        (958)          -          -           -         -         958         -           -
reserve       -------     -------    --------   --------    --------   -------     -------    ------     -------
At 31 March
2003        712,516   1,165,218      49,745     10,385      54,105    14,337   1,605,016   (13,447)  3,597,875
              =======     =======    ========   ========    ========   =======     =======    ======     =======




The Condensed Consolidated Statement of Changes in Equity should be read in
conjunction with the Annual Financial Report for the year ended 30 September
2003.


                           KUALA LUMPUR KEPONG BERHAD
                                   (15043-V)
                           (Incorporated in Malaysia)

                   Condensed Consolidated Cash Flow Statement
                   For the second quarter ended 31 March 2004
                      (The figures have not been audited.)

                                          6 months ended 31    6 months ended 31
                                                   March                March
                                                    2004                 2003
                                                  RM'000               RM'000
Cash Flows from Operating
Activities                                         -------              -------
-------------------------------------
Profit before taxation                           327,473              286,849
-------------------------------------              -------              -------
Adjustment for non-cash flow :-
-------------------------------------              -------              -------
Non-cash items                                    25,739               21,094
-------------------------------------              -------              -------
Non-operating items                               (8,230)              (5,746)
-------------------------------------              -------              -------
Operating profit before
working capital changes                          344,982              302,197
-------------------------------------              -------              -------
Working capital changes :-
-------------------------------------              -------              -------
Net change in current
assets                                          (167,832)             (47,115)
-------------------------------------              -------              -------
Net change in current
liabilities                                       20,399                3,187
-------------------------------------              -------              -------
Cash generated from
operations                                       197,549              258,269
-------------------------------------              -------              -------
Interest paid                                     (3,134)              (2,523)
-------------------------------------              -------              -------
Tax paid                                         (54,605)             (28,545)
-------------------------------------              -------              -------
Retirement benefits paid                          (2,129)                (386)
-------------------------------------              -------              -------
Net cash generated from
operating activities                             137,681              226,815
-------------------------------------              =======              =======
Cash Flow from Investing Activities
-------------------------------------              -------              -------
Equity investments                                22,184               (5,121)
-------------------------------------              -------              -------
Other investments                                (91,907)             (71,279)
-------------------------------------              -------              -------
Net cash used in investing
activities                                       (69,723)             (76,400)
-------------------------------------              =======              =======
Cash Flow from Financing Activities
-------------------------------------              -------              -------
Bank borrowings                                  (26,888)             (20,728)
-------------------------------------              -------              -------
Transactions with owners
as owners                                        (97,125)             (75,858)
-------------------------------------              -------              -------
Dividends paid to minority
shareholders                                      (3,991)                   -
-------------------------------------              -------              -------
Net cash used in financing
activities                                      (128,004)             (96,586)
-------------------------------------              =======              =======
Net (decrease)/increase in
cash and cash equivalents                        (60,046)              53,829
-------------------------------------              -------              -------
Cash and cash equivalents
at 1 October                                     581,962              383,536
-------------------------------------              -------              -------
                                                 521,916              437,365
-------------------------------------              -------              -------
Foreign exchange
difference on opening
balance                                           (3,997)              (3,379)
-------------------------------------              -------              -------
Cash and cash equivalents
at 31 March                                      517,919              433,986
-------------------------------------              =======              =======







The Condensed Consolidated Cash Flow Statement should be read in conjunction
with the Annual Financial Report for the year ended 30 September 2003.

                           KUALA LUMPUR KEPONG BERHAD
                                   (15043-V)
                           (Incorporated in Malaysia)

                       Notes to Interim Financial Report

A     Explanatory Notes as required by MASB 26

A1.   Accounting Policies
      The interim financial report is unaudited and has been prepared in
      compliance with Malaysian Accounting Standards Board Standard 26 - Interim
      Financial Reporting.

  The accounting policies and methods of computation adopted by the Group in
  this interim financial report are consistent with those adopted in the
  financial statements for the year ended 30 September 2003 except for the
  adoption of a new approved accounting standard, MASB 29 - Employee Benefits.
  The adoption of MASB 29 does not have any material impact on the results of
  the Group for the financial period.

A2.   Audit Report
      The audit report for the financial year ended 30 September 2003 was not
      subject to any qualifications.
A3.   Seasonal and Cyclical Factors
      The Group's plantation operations are affected by seasonal crop
      production, weather conditions and fluctuating commodity prices. The
      business of its retailing sector is subject to seasonal sales.

A4.   Unusual Items
      There were no items affecting the assets, liabilities, equity, net income,
      or cash flows that are unusual because of their nature, size, or
      incidence.

A5.   Changes in Estimates
      There were no significant changes in the amount of estimates reported in
      prior interim periods or prior financial years that have a material effect
      in the current interim period.

A6.   Issuance or Repayment of Debts and Equity Securities
      There were no issuance and repayment of debts and equity securities, share
      buy-backs, share cancellation, shares held as treasury shares or resale of
      treasury shares for the current financial year to-date.

A7.   Dividends Paid
                                                           6 months ended 31 March
                                                             2004             2003
                                                           RM'000           RM'000
      Final paid                                           46,007           46,007
      2003 - 9 sen per share less tax
      (2002 - 9 sen per share less tax)
                                                           --------         --------
      Special paid                                         51,118           25,559
      2003 - 10 sen per share less tax
      (2002 - 5 sen per share less tax)
                                                           --------         --------
                                                           97,125           71,566
                                                           ========         ========


A8.   Segment Information
      Segment information is presented in respect of the Group's business
      segments.
      Inter-segment pricing is determined based on prevailing market prices.

                                            6 months ended 31 March
                           Revenue                             Profit/(Loss)
                                                                 before tax
                              2004            2003          2004          2003
                            RM'000          RM'000        RM'000        RM'000
Plantation                 820,822         670,139       208,308       180,624
----------------------      -------- ---    -------- ---   ------- ---   -------
Manufacturing              679,825         593,191        46,872        49,996
----------------------      -------- ---    -------- ---   ------- ---   -------
Retailing                  422,231         375,093        32,019        25,753
----------------------      -------- ---    -------- ---   ------- ---   -------
Property development        22,178          14,222         5,823         2,069
----------------------      -------- ---    -------- ---   ------- ---   -------
Investment holding          55,963          21,055        11,364         8,268
----------------------      -------- ---    -------- ---   ------- ---   -------
Others                      14,302           8,092         3,634           712
----------------------      -------- ---    -------- ---   ------- ---   -------
                         2,015,321       1,681,792       308,020       267,422
  ----------------------    -------- ---    -------- ---   ------- ---   -------
Inter-segment              (88,511)        (49,824)            -             -
elimination                 -------- ---    -------- ---   ------- ---   -------
----------------------
                         1,926,810       1,631,968       308,020       267,422
  ----------------------    ======== ---    ======== ---   ------- ---   -------
Corporate                                                   (481)       (4,791)
----------------------      -------- ---    -------- ---   ------- ---   -------
                                                         307,539       262,631
  ----------------------    -------- ---    -------- ---   ------- ---   -------
Finance cost                                              (3,134)       (2,523)
----------------------      -------- ---    -------- ---   ------- ---   -------
Share of results of
associated companies                                      23,068        26,741
----------------------      -------- ---    -------- ---   ------- ---   -------
                                                         327,473       286,849
  ----------------------    -------- ---    -------- ---   ======= ---   =======

A9.   Valuations of Property, Plant and Equipment
      The valuations of land and plantation development have been brought
      forward without amendment from the previous financial statement.

A10.   Events Subsequent to Balance Sheet Date
       In the interval between the end of the reporting period and the date of
       this report, no material events have arisen which have not been reflected
       in the interim financial statements.

A11.   Changes in the Composition of the Group
       A wholly-owned subsidiary, KLK Premier Capital Limited, has on 30 January
       2004 subscribed for 90% equity interest in a new company, Taiko Palm-Oleo
       (Zhangjiagang) Co Ltd ('TPOZ'), a company incorporated as a foreign-owned
       enterprise in the People's Republic of China.
       TPOZ is a limited liability company which will eventually have a
       registered capital of USD25.0 million and will undertake oleochemicals
       manufacturing in China.
       The incorporation of TPOZ will not have any material effect on the net
       tangible assets and earnings of the Group for the current financial year
       ending 30 September 2004.

A12.   Changes in Contingent Liabilities and Contingent Assets
       There were no contingent liabilities or contingent assets since the last
       annual balance sheet date.





B     Explanatory Notes as required by the BMSB Revised Listing Requirements

B1.   Review of Performance
      For the current quarter, the Group posted a profit before taxation of
      RM157.2 million which was 31.6% higher compared to RM119.5 million
      achieved in the same quarter last year. Increased plantation profits due
      to favourable commodity prices contributed to the higher pre-tax profit.
      For the 6 months under review, the Group's pre-tax profit improved 14.2%
      to RM327.5 million when compared to the preceding year's same period. The
      bulk of the increase in profit came from the plantation sector which
      benefited from buoyant commodity prices and higher FFB production. Whilst
      higher raw material costs have squeezed the margins of the oleochemical
      division in the manufacturing sector, the other business sectors
      registered higher earnings.

B2.   Variation of Results to Preceding Quarter
      The Group's second quarter's pre-tax profit was 7.7% lower compared to
      RM170.3 million of the previous quarter. Although the plantation sector
      recorded improved earnings, the decline in profit was attributed to the
      seasonal loss from the retailing sector.

B3   Current Year Prospects
     The Directors are of the opinion that the Group's profit for the current
     financial year will be higher than that of the preceding year on account of
     the current favourable commodity prices coupled together with expected
     higher FFB production. Other business sectors within the Group are
     anticipated to perform satisfactorily.

B4.   Profit Forecast and Profit Guarantee
      The Group did not issue any profit forecast or profit guarantee during the
      current financial year to-date.

B5.   Tax Expense
                                       Individual            Cumulative
                                       Quarter               Quarter
                                       ------------          ------------
                                       3 months ended        6 months ended
                                       31 March              31 March
                                         2004       2003       2004       2003
                                       RM'000     RM'000     RM'000     RM'000

      Malaysian taxation               20,878     16,390     40,503     34,407
      Overseas taxation                 7,217     (1,009)    17,354      4,315
      Transfer to deferred taxation     6,394      6,886     16,128     17,375
                                         ------     ------     ------     ------
                                       34,489     22,267     73,985     56,097
      (Over)/Under provision in            (2)     6,311      1,432      6,320
      respect of previous years          ------     ------     ------     ------
                                       34,487     28,578     75,417     62,417
      Share of associated companies'   10,189     10,900     11,221     12,467
      taxation                           ------     ------     ------     ------
                                       44,676     39,478     86,638     74,884
                                         ======     ======     ======     ======

  The effective tax rate for the financial year to-date is lower than the
  statutory tax rate due principally to the tax exempt income and availability
  of tax incentives.





B6.   Sale of Unquoted Investments and Properties
      (a) There was no sale of unquoted investments during the financial quarter
          ended 31 March 2004 (31 March 2003 : Nil).

(b)   Sale of properties         Individual Quarter        Cumulative Quarter
                                 3 months ended            6 months ended
                                 31 March                  31 March
                                   2004         2003         2004         2003
                                 RM'000       RM'000       RM'000       RM'000
      Surplus arising from           23            -           23        3,044
      government
      acquisitions of land
                                                                          ------
      Surplus on sale of              -            -            -          542
      property                     ====== ---   ====== ---   ====== ---   ======
      
B7.   Quoted Securities
      (a) Purchases and sales of quoted securities other than securities in
          existing subsidiaries for the current quarter and financial year
          to-date :-
                                        Individual            Cumulative
                                        Quarter               Quarter
                                        3 months ended        6 months ended
                                        31 March              31 March
                                          2004       2003       2004       2003
                                        RM'000     RM'000     RM'000     RM'000

          Purchases of quoted            5,125      4,827     15,117     19,574
          securities                      ======     ======     ======     ======

          Sales proceeds of quoted      11,992      5,150     22,154      5,150
          securities                      ======     ======     ======     ======

          Surplus on sales of quoted     3,995        705      6,149        705
          securities                      ======     ======     ======     ======

  (b) Investments in quoted securities other than securities in existing
      subsidiaries as at end of the reporting period were as follows :-


                                                31 March     30 September 2003
                                                    2004
                                                  RM'000                RM'000
      At cost
      Associated companies                       156,322               156,322
      Other investments                           81,098                81,802
                                                 ---------             ---------
                                                 237,420               238,124
                                                 =========             =========
      At carrying value less
      allowance
      Associated companies                       432,163               419,552
      Other investments                           77,055                77,759
                                                 ---------             ---------
                                                 509,218               497,311
                                                 =========             =========
      At market value
      Associated companies                       516,916               581,260
      Other investments                          109,293                92,091
                                                 ---------             ---------
                                                 626,209               673,351
                                                 =========             =========

B8.   Status of Corporate Proposals Announced
      There were no corporate proposals announced but not completed at the date
      of this report.

B9.   Group Borrowings
      As at the end of the reporting period, the Group's borrowings were as
      follows :-

                                             31 March 2004             30 September 2003
                                                   Amount in                     Amount in
                                                     Foreign                       Foreign
                                                    Currency                      Currency
                                        RM'000          '000         RM'000           '000
(a)    Repayable within 12 months :
                                                                                
       (i)   Term Loans
 ----- ----- ----------------           ------- ---    -------- ---   ------- ---   --------
             - Secured                 40,065       GBP5,764         48,940       GBP7,732
-----  ----- ----------------           ------- --- --------    ---   ------- --- --------
                                        1,515       CAD520            1,456       CAD517
-----  -----         ----------------   ------- --- --------    ---   ------- --- --------
                                       7,172       HKD14,692         6,684       HKD13,615
----- -----         ----------------   ------- --- --------    ---   ------- --- --------
                                           -                         5,152       AUD2,000
----- -----         ----------------   ------- ---    -------- ---   ------- --- --------
                                           -                        24,743       USD6,500
----- -----         ----------------   ------- ---    -------- ---   ------- --- --------
                                      48,752                        86,975
----- -----         ----------------   ------- ---    -------- ---   ------- ---    --------
            - Unsecured               32,448       Rmb70,692        27,540       Rmb60,000
----- ----- ----------------           ------- --- --------    ---   ------- --- --------
                                      81,200                       114,515

(ii)    Bank Overdraft
        - Secured                      3,837   USD1,008      5,216   USD1,370
  ----- ----------------               ------- --------      ------- --------
                                           -                 4,120   GBP651
  -----             ----------------   -------    --------   ------- --------
                                           -                11,134   CAD3,962
  -----             ----------------   -------    --------   ------- --------
                                           -                   886   HKD1,806
  -----             ----------------   -------    --------   ------- --------
                                       3,837                21,356
  -----             ----------------   -------    --------   -------    --------
        - Unsecured                    1,173                     -
  ----- ----------------               -------    --------   -------    --------
                                       1,352   GBP195        3,227   GBP510
  -----             ----------------   ------- --------      ------- --------
                                       6,362                24,583
  -----             ----------------   =======    --------   =======    --------

(iii)   Export Credit Refinancing     18,000                     -
        Loan
        - Unsecured
Total                                105,562               139,098

(b)   Repayable after 12 months :-
----- -------------------              -------    --------   -------    --------
      Term Loans
----- -------------------              -------    --------   -------    --------
      - Secured                        1,603   CAD550        1,374   CAD490
----- -------------------              ------- --------      ------- --------
                                      13,206   GBP1,900     16,203   GBP2,560
-----            -------------------   ------- --------      ------- --------
                                       1,268   HKD2,597      1,361   HKD2,759
-----            -------------------   ------- --------      ------- --------
                                      16,077                18,938
-----            -------------------   =======    --------   =======    --------

B10.   Financial Instruments with Off Balance Sheet Risk
       The forward exchange contracts entered into by the Group as at 10 May
       2004 (being a date not earlier than 7 days from the date of this report)
       were as follows :-

                   Currency   Contract   Equivalent   Mature       Mature in the
                                                      within One   Second Year
                                                      Year
                                Amount        Amount
                               Million    RM million   RM million   RM million
(a)   Sale         GBP             9.1         63.8         63.8             -
----- contracts    --------      -------    ---------    ---------      --------
                   AUD             1.3          3.8          3.8             -
----- ------------ --------      -------    ---------    ---------      --------
                   NZD             2.0          5.0          5.0             -
----- ------------ --------      -------    ---------    ---------      --------
                   EURO            3.4         15.9         15.7           0.2
----- ------------ --------      -------    ---------    ---------      --------
                   USD           120.4        459.7        414.5          45.2
----- ------------ --------     ========    =========    =========      ========
(b)   Purchase     USD             2.7         10.1          8.9           1.2
----- contracts    --------      -------    ---------    ---------      --------
                   GBP             6.0         39.3         34.3           5.0
----- ------------ --------      -------    ---------    ---------      --------
                   CHF             0.7          2.1          2.1             -
----- ------------ --------      -------    ---------    ---------      --------
                   EURO            0.1          0.5          0.5             -
----- ------------ --------      =======    =========    =========      ========

  The contracts were entered into by the Group as hedges for committed sales and
  purchases denominated in foreign currencies. The hedging of the foreign
  currencies is to minimise the exposure of the Group to fluctuations in foreign
  exchange on receipts and payments.

  The transactions in foreign currencies which are hedged by forward foreign
  exchange contracts are recorded in the books at the contracted rates. Any
  gains or losses arising from forward contracts are recognised in the Income
  Statement upon maturity.

  There is minimal credit risk for the forward foreign exchange contracts
  because these contracts are entered into with licensed financial
  institutions.

B11.   Material Litigation
       There is no pending material litigation as at the date of this report.

B12.   Dividend
       (a) (i)   An interim ordinary dividend has been declared;

           (ii)  The amount per share : 6 sen per share tax exempt;

           (iii) The previous corresponding period :-

                 Interim Dividend : 6 sen per share less 28% Malaysian income
                 tax
           (iv)  The date payable : 9 August 2004 to shareholders registered on
                 the Company's Register as at 15 July 2004;
           (v)   A Depositor with the Malaysian Central Depository shall qualify
                 for entitlement to the dividend only in respect of :-
                 (a) Shares deposited into the Depositor's securities account
                     before 12.30 p.m. on 13 July 2004 in respect of shares
                     which are exempted from mandatory deposit;
                 (b) Shares transferred into the Depositor's securities account
                     before 4.00 p.m. on 15 July 2004 in respect of transfers;
                     and
                 (c) Shares bought on the Bursa Malaysia Securities Berhad on a
                     cum entitlement basis according to the Rules of the Bursa
                     Malaysia Securities Berhad.

      Registrable transfers received by the Company's Branch Registrar in United
      Kingdom on or before 15 July 2004 will be registered for entitlements to
      the dividend payment.


  (b) The total dividend for the current financial year is 6 sen per share tax
      exempt (2003 : 6 sen per share less 28% Malaysian income tax).

B13.   Earnings Per Share
       Basic earnings per share
       The earnings per share is calculated by dividing the net profit for the
       period by the weighted average number of shares of the Company in issue
       during the period.
                                Individual Quarter              Cumulative Quarter
                          3 months ended                6 months ended
                              31 March                        31 March
                                 2004          2003              2004              2003
(a)   Net profit for the      107,979        77,139           229,126           205,340
----- period (RM'000)           =======      ======== ---      ======== ---      ========

(b)   Weighted average    709,977,128   709,977,128       709,977,128       709,977,128
----- number of shares         ========      ======== ---      ======== ---      ========

(c)    Earnings per share (sen) 15.21         10.86             32.27             28.92

By Order of the Board
J. C. LIM
FAN CHEE KUM
Company Secretaries

17 May 2004




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