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The Board of Directors is pleased to announce that the Company has acquired the entire issued and paid-up capital of Kinavest Sdn Bhd ("Kinavest") for a cash consideration of RM1.33 million less all outstanding liabilities of Kinavest as at the date of completion of the Proposed Acquisition ("the Purchase Consideration"). The Purchase Consideration was arrived at on a willing-buyer-willing-seller basis and shall be financed from internally generated funds.

Kinavest, a private limited company incorporated in Malaysia, has been alienated a piece of agricultural land measuring approximately 192.4 hectares in Tenegang, District of Kinabatangan, Sabah ("the Land"). Upon completion of the Proposed Acquisition, the Group undertakes to develop the Land into an oil palm plantation over a period of 3 to 4 years at an estimated total investment of RM2.85 million including land costs. The Land is situated adjacent to one of our estates in the same locality and in view of this proximity, the Group hopes to benefit from economies of scale and other cost savings arising therefrom.

The Proposed Acquisition will not have any material impact on the net tangible assets of the Group based on its audited accounts for the financial year ended 31 December 2000 and is not expected to have any material effect on the earnings of the Group for the current financial year ending 31 December 2001. The Proposal is, however, expected to contribute positively towards the earnings of the Group in the future. 

The Proposed Acquisition is conditional upon approval of the Foreign Investment Committee and any other relevant authorities.

None of the directors or substantial shareholders of the Company has any interest in the Proposed Acquisition.

TAN SRI MOHD AMIN BIN OSMAN
Chairman
Asiatic Development Berhad