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       T R O U B L E D   C O M P A N Y   R E P O R T E R

                   A S I A   P A C I F I C

           Friday, July 13, 2001, Vol. 4, No. 136


                         Headlines

A U S T R A L I A

131 SHOP.COM.AU: Lodges Issue Prospectus
131 SHOP.COM.AU: Issues Invitation For Shares Acquisition
131 SHOP.COM.AU: Roscious Withdraws Substantial Holding
131 SHOP.COM.AU: Suspended From Quotation
BRIDGE INFORMATION: Changes Holding In BridgeDFS
BULONG OPERATIONS: Preston Reports Production For May 2001
ISIS COMMUNICATION: Issues New Securities
ISP LIMITED: Administrators Report To Creditors
ISP LIMITED: Provides Company History
ISP LIMITED: Proposes Deed Of Company Arrangement
MTM ENTERTAINMENT: Babcock & Brown Changes Holding
MTM ENTERTAINMENT: Babcock & Brown Raises Holding To 44.63%
MTM ENTERTAINMENT: Sunderton Meets Macquarie Requirements
PRESTON RESOURCES: Cowan Resigns As Director


C H I N A   &   H O N G  K O N G

CHEUNG FUNG: Winding Up Petition Hearing Set
CIL HOLDINGS: Enters Shares Sale Deal With Law
CIL HOLDINGS: Winding Up Petition Hearing Adjourned
LUNG TIN INTERNATIONAL: Winding Up Petition To Be Heard
PACIFIC MARBLE: Hearing of Winding Up Petition Set
SENA PROPERTIES: Petition To Wind Up Scheduled
SINOPEC CORP: Gets CSRC Approval On A Share Issue
STAREX TRADING: Winding Up Petition Set For Hearing


I N D O N E S I A

BANK INTERNASIONAL: Fitch Affirms B- Rating, Negative Outlook


J A P A N

CHIBA BANK: Ratings For Downgrade, Says Moody's
NISSAN MOTOR: Debt Ratings Set For Possible Downgrade


K O R E A

DAEWOO ELECTRONICS: Creditors Mull Over Debt Swap
DAEWOO MOTOR: Talks With GM Nearing End
KOREA LIFE: Sale Will Speed Ahead In September
SSANGYONG CEMENT: Cuts Workforce By 100 More


M A L A Y S I A

ACTACORP HOLDINGS: Winding Up Petition Served
FEDERAL FURNITURE: Seeking Submission Extension Approval
JUTAJAYA HOLDING: Clarifies Auditors' Emphasis On Debt Due
NCK CORP: Unit Faces Winding Up Petition
NOSTALGIC PROPERTIES: Defaulted On Interest Payment
PARIT PERAK: Vendors Refuse To Extend Negotiation Period
TIMBERMASTER INDUSTRIES: Enters Shares Sale & Purchase Deal


P H I L I P P I N E S

ORIENT COMMERCIAL: Court Lifts Order Against Ever Accounts
PILIPINO TELEPHONE: Signs Subscription Deal With PLDT
RFM CORP: SMC Clarifies News Article Re Acquisition Deal
RFM CORP: Bondholders To Receive Payment


S I N G A P O R E

ACMA LIMITED: Exchange OKs Rights Issue
ACMA LIMITED: Unit Sells MAE Engineering Shares
NATSTEEL LIMITED: Requests For Trading Suspension
NATSTEEL LIMITED: Losses Expected Due To Restructuring


T H A I L A N D

MODERN PLASTIC: Business Reorganization Filed In Civil Court
PRASIT PATANA: Court Approves Plan
THAI INDUSTRIAL: Advisor Offers Opinion Of SKTY Tender Offer



=================
A U S T R A L I A
=================


131 SHOP.COM.AU: Lodges Issue Prospectus
----------------------------------------
The Directors of 131 Shop.com.au Limited (131 Shop) [ASX:OTO]
announce that they have lodged a Prospectus for the issue of up
to 7 million shares at an Issue price of $0.25 cents to raise up
to $1.75 million before costs and for an offer of TIG options
and shares pursuant to the TIG offer and for an offer of shares
pursuant to the Redstar offer, with the ASIC.

Prospectus

For an offer of up to 7 million shares at $0.25 each to raise up
to $1.75 million before costs pursuant to the Public Offer and
for an offer of TIG Options and Shares pursuant to the TIG Offer
and for an Offer of Shares pursuant to the Redstar Offer.

The Offers are subject to the receipt of the Shareholder
Approvals.


131 SHOP.COM.AU: Issues Invitation For Shares Acquisition
---------------------------------------------------------
Chairman W M Bos of 131 Shop.com.au released his invitation to
prospective investors to become a Shareholder in 131Shop.com
Limited (131 Shop). He wrote:

"Over recent months the Board has refocused the operations of
131 Shop to embrace the business-to-business (B2B) collaborative
commerce market commencing with the acquisitions of TIG
International Pty Ltd (TIG), Redstar ITC Pty Ltd (Redstar), and
an option over a stake in Mincom Limited (Mincom). TIG
specializes in supply chain management, Redstar's expertise lies
in B2B catalogue management and Mincom is a global solutions
provider for capital-intensive industries.

"To mirror this repositioning, the Company proposes to change
its name to Focus Technologies Limited. This new focus enables
the Company to exploit opportunities in a collaborative manner
delivering solutions spanning competencies that empower
businesses to optimize their return on investment in new trading
technologies.

"Redstar has been a leading supplier of commercial interactive
electronic catalogues for well over a decade, and in that time
has played a key role in more than 50 major electronic commerce
initiatives throughout Australasia.

"Redstar specializes in the development of online product and
service catalogues that promote electronic trading between
businesses and provide end-to-end electronic trading and
management solutions with dynamic website back up.

"TIG specializes in the integration of wireless computing and
data capture solutions with enterprise and Internet systems. As
the electronic age impacts more on the way businesses collect
and process information, the wireless era will play a critical
role in enabling remotely located input sources to communicate
transactions with their headquarters.

"Offering software, technical and support services including
integration, software application development and mobile
computing hardware. TIG delivers total mobile solutions to such
organizations as Mayne Logistics, Australia Post, Sony, Boots
Healthcare, OPSM, Orica, Reebok and a number of Government
Departments and agencies at the Federal and State levels.

"Through the Public Offer under this Prospectus, 131 Shop is
offering up to 7 million ordinary shares at an Issue Price of
$0.25 per Share to raise up to $1.75 million. Upon completion of
the Public Offer, the TIG Offer and the Redstar Offer, the
Company will have a market capitalization of up to $10.1 million
based on the Public Offer Issue Price.

"The funds raised by the Public Offer will provide the company
with the capital required to complete the proposed acquisitions
of TIG and Redstar, to build the TIG and Redstar businesses and
build returns for Shareholders.

"This Prospectus contains detailed information about your
opportunity to become a Shareholder in this dynamic company and
the possible risks associated with such an investment. I urge
you to consider the information contained in this Offer
carefully prior to making a commitment and, if necessary, to
seek the counsel of your financial adviser or stockbroker."

Summary Of The Offers

The Offers are subject to the receipt of the Shareholder
Approvals referred to in Section 1.2 that are being sought at
the Company's General Meeting to be held on 10 July 2001.

If the Shareholder Approvals are not obtained the Offers will
not proceed and no Shares or Options will be allotted. In
addition, the Public Offer is conditional upon the Minimum
Subscription set out in Section 2.8.

The Company is currently admitted to the official list of ASX.
It is anticipated that the Company will be suspended from
trading on ASX as of the date of the General Meeting on 10 July
2001 and will remain suspended until completion of the Public
Offer.

In addition to raising working capital, this Prospectus is
prepared for the purpose of complying with ASX's listing
criteria and for the purposes of the TIG Offer to the TIG
vendors and the Redstar offer to the Redstar Vendors.

The Company proposes to make a significant change to the nature
of its activities by entering into the Tomorrow Transaction and
acquiring TIG and Redstar. Details of these transactions are set
out in Sections 1.4, 4 and 9.3.

In addition to obtaining the Shareholder Approvals, the Company
must meet the requirements in Chapters 1 and 2 of the ASX
Listing Rules as if the Company was applying for admission to
the Official List. Condition 3 of Listing Rule 1.1 requires that
a prospectus must be issued and lodged with ASIC in order for
the ASX to consider reinstating the Company's Shares to
quotation.

The Offers

This Prospectus is issued for the purposes of offering for
subscription:

   (a) up to 7 million Shares to the public at a price of $0.25
each to  raise $1.75 million (Public Offer);

   (b) the Shares and TIG Options to the TIG Vendors as
described in the TIG Agreement (TIG Offer); and

   (c) the Shares to the Redstar Vendors as described in the
Redstar Agreement (Redstar Offer).

No brokerage or stamp duty is payable by the investors under the
Offers. The Shares offered under this Prospectus will rank
equally with all other existing issued fully paid ordinary
shares.

The Offers are subject to the receipt of the Shareholder
Approvals.

Minimum Allocation and Application Monies

Applications for Shares under the Public Offer should be for a
minimum of 8,000 Shares and thereafter in multiples of 2,000
Shares.

Applications for less than 8,000 Shares by existing Shareholders
may be accepted at the discretion of the Directors where the
number of Shares applied for, combined with the existing number
of Shares held by the applicant would result in a parcel of
8,000 Shares or more.

Application Monies in relation to the Public Offer will be
returned as soon as practicable if the Shareholder Approvals are
not obtained or the Minimum Subscription is not reached.
Interest will not be paid on refunded Application Monies. Any
interest earned on Application Monies will be the property of
the Company.

Key Dates For The Public Offer

Public Offer opens            18 July 2001

Public Offer closes           1 August 2001

Expected date for allotment of Shares  6 August 2001

Expected date for dispatch of shareholder
statements                   7 August 2001

Expected date for reinstatement of Shares to
quotation                    14 August 2001

These dates are indicative only. The Company reserves the right
to vary the dates and times of the Public Offer without prior
notice, which may have a consequential affect on the other
dates. Applicants for the Public Offer are therefore encouraged
to submit their Applications as early as possible.

Purpose Of The Offers and Use Of Proceeds

The purposes of the Offers are to:

   (a) enable the Company to comply with the ASX Listing Rules;

   (b) acquire 100 percent of the share capital of TIG and
Redstar; and

   (c) provide working capital for the ongoing operation of the
Company's activities.

Offer Periods

The Public Offer will open at 9:00am Brisbane time on 18 July
2001 and will remain open until 5:00pm Brisbane time on 1 August
2001, subject to the right of the Company to close the Public
Offer at any time or to extend the Closing Date for
applications, in each case without prior notice.

The TIG Offer and the Redstar Offer will open at 9:00am on 18
July 2001 and will remain open until the Company elects to close
these offers in accordance with the Corporations Law.


131 SHOP.COM.AU: Roscious Withdraws Substantial Holding
-------------------------------------------------------
Roscious Pty Ltd ceased to be a substantial shareholder in 131
Shop.Com.Au Limited on 5 July 2001.


131 SHOP.COM.AU: Suspended From Quotation
-----------------------------------------
The securities of 131 Shop.com.au Limited (the Company) will be
suspended from quotation prior to the commencement of trading
Wednesday, 11 July 2001, following shareholder approval of the
issue of options to Tomorrow Corporation Pty Limited, the
acquisition of TIG International Pty Ltd and Redstar ITC Limited
and the issue of shares under a prospectus.

In accordance with ASX's requirements for compliance with
Chapter 11 of the Listing Rules, the Company's securities will
remain suspended until the Company has complied with Chapters 1
and 2 of the Listing Rules.

Security Codes:    OTO
                   OTOOA
                   OTODA
                   OTODB


BRIDGE INFORMATION: Changes Holding In BridgeDFS
------------------------------------------------
Bridge Information Systems America, Inc changed its relevant
interest in BridgeDFS Limited on 9 July 2001, from 55,000,000
ordinary shares (55 percent) to 0 ordinary shares (0 percent).


BULONG OPERATIONS: Preston Reports Production For May 2001
----------------------------------------------------------
Bulong Operations Pty Limited's parent firm Preston Resources
Limited announces that the Nickel production from the Bulong
plant increased by 21 percent in May, compared to April.

Nickel production was 674 tons and cobalt production 34 tons.
Cobalt production was hampered by reduced recovery due to crud
in the cobalt solvent extraction circuit.

A total of 45,565 tons of leach feed was processed at an average
rate of 88.6 dry tons per hour.

Operating costs, before cobalt credits were approximately
US$2.58 per pound. Leach plant operating costs were again under
budget.

Safety and Environment

The overall safety performance was improved this month, with the
significant injury frequency rate at 60 percent of the year to
date average. Also encouraging is a significant drop in minor
injuries.

The Department of Environmental Protection (DEP) conducted the
statutory annual environmental inspection on 16 May.

The new evaporation pond came on-line on 18 May after approval
was granted from the DME.

Production

Production statistics for the month of May are shown in the
table below:

This Month:

UNIT        ACTUAL       PLAN         VARIANCE       VARIANCE
                                                        (%)

INPUTS
Leach Feed (t)   45,565  47,054       -1,489           -3.2%
Ni Grade   (%)   1.80    1.84         -0.04            -2.3%
Co Grade   (%)   0.15    0.14          0.01             6.5%

OUTPUTS
Ni         (t)   673.58  810          -136.42          -16.8%
Co         (t)   33.78   61           -27.22           -44.6%


YTD

UNIT             ACTUAL   PLAN         VARIANCE       VARIANCE
                                                         (%)

INPUTS
Leach Feed (t)   390,959  416,260      -25,301           -6.1%
Ni Grade   (%)   1.86     1.84          0.02              1.0%
Co Grade   (%)   0.15     0.14          0.01              4.6%

OUTPUTS
Ni         (t)  5,768.81 6,901        -1,132.09        -16.4%
Co         (t)  370.80   507          -135.90          -26.8%


Nickel production totaled 673.58 tons for the month. This was
below budget mainly due to lower recovery but also due to lower
than budgeted throughput and grade.

Total cobalt production for May was 33.78 tons, 7.58 tons as
cobalt metal and 26.20 tons of cobalt contained in sulfide. The
main contribution to the shortfall was lower than budgeted
recovery and circuit stock increases.

Mining

Mine production activities were carried out in the Federal and
Albion 2 pits with ore and waste mining.

A total movement of 132,950 bulk cubic meters (BCM) was achieved
compared to a budget of 212,284 BCM. Single shift production
activity compared to budgeted double shift was the main reason
for the material movement variance.

A surveyed 66,363 BCM of waste was mined and backfilled into the
Albion 1B pit area with access via the completed in pit haul
ramp.

Beginning 1 June, mining will resume on a double shift
production basis with a resulting 17% cost reduction in unit
rates.

Grade control activities comprised trenching in the Gala pit
with mining in the Federal and Albion 2 cutback pits.

The 380RL bench in Federal pit was near completion at month end.
The Albion 2 cutback continued with bulk waste mining down to
the 362RL. A close spaced 10 x 10m grade control drilling
pattern commenced and was half complete by month end. Drilling
will be used as an alternative to full coverage trenching, which
will also provide multiple bench coverage and aid in mine
scheduling.

This method of data collection will reduce grade control costs
over the twelve-month life of the Albion 2 pit development.

With approximately 80 percent of the Federal pit 380RL bench
completed at month end, the trend of in increase in total high-
grade material compared to reserve has continued.

Grade control estimates of feed stockpile grades (1.79% Ni,
0.14% Co) showed a favorable comparison with the estimation from
the leach sampling data for the belt weightometer (1.81% Ni and
0.13% Co) and the autoclave feed (1.77% Ni and 0.14% Co).

The metallurgical calculated autoclave feed grade was 1.80
percent Ni and 0.15 percent Co.

Leach Plant

During May, the ore preparation circuit ran for 598 hours,
processing 52,934 dry tons of ore at an average of 88.6 dry tons
per operating hour. This resulted in 45,579 dry tons being
advanced to pressure leach.

Worn teeth on the mineral sizer reduced throughput to pressure
leach for approximately 5 days. The abnormal wear was caused by
the unusually high silica content of the high-grade material
being processed.

Rejection of logwasher product as scalping screen oversize
averaged 13.9 percent.

A total of 45,579 dry tons was processed through the leach
autoclave giving an average feed rate of 67.8 dry tons per hour.

The rate was down on April throughput due to Partial
Neutralization
(PN) performance and the reduced feed rates due to worn teeth on
the mineral sizer.

The autoclave nickel extraction was 92.2 percent once again
reflecting higher Lewa (acid pump) availability. The Lewa pumps
were operational for 97.5 percent of the 672 hours the Gebo
(autoclave feed) pumps were operating. This potentially equates
to 2.4 percent loss in leach recovery.

A total of 88 hours production was lost during the month, which
resulted in the leach plant achieving 88.1% availability and
85.7 utilization.

The break-up of the downtime is as follows:

   * Unscheduled maintenance (45 hours, 6% of available hours).
Major contributions to downtime were:

      33.9 hours due to a hole in the autoclave discharge pipe.
6.76 hours repairing an instrument air line on the Lewa block
valve.

   * Scheduled maintenance (39 hours, 5.2 percent of available
hours).
Temporary repairs to the corrosion affected areas of the
scrubber were completed.

   *Operations: (1 hour, 0.1 percent of available hours). Due to
level control problems in the heater train.

   * Heat up: (3 hours, 0.4 percent available hours) post
autoclave discharge pipe repairs.

Counter current decantation (CCD)/PN wash recovery was 91.5
percent increasing from last month's wash recovery of 90.3
percent. CCD/PN recovery remains the major metallurgical focus.

The other main maintenance issues affecting the plant during the
month were heater pump mechanical seals and Gebo valves. In
total, seven mechanical seals were replaced during the month and
all of the heater pump glands were replaced. Plant trials are
currently under way with various seal manufacturers to extend
the poor life on these seals.

Metallurgical Performance

The table below shows an estimate of the total plant
metallurgical balance.

OVERALL PLANT METAL BALANCE      ACTUAL          OPTIMUM
                          NICKEL   COBALT   NICKEL      COBALT

Plant Feed Grade (%)     1.80      0.15    1.90         0.13
Plant Inputs(t)          819.0     67.9   889.3         60.8
Plant Recovery (%)       79.1      59.1    92.9         91.6
Plant Stock Increase (t)-25.9      6.4     0.0          0.0
Product (t)             673.6      33.8   826.1         55.7
Stock Increase/Product (t)647.7    40.2   826.1         55.7

Overall Plant
Utilization (%)                   85.7                 88.2

NB: Plant Inputs x Plant Recovery - Plant Stock Increase +
Product
Availability = Lewa hours/Total hours

Nickel and cobalt recoveries were 79.1 percent and 59.1 percent
respectively. Nickel recoveries were slightly better than the
previous month, while cobalt recovery decreased significantly
from 64.9 percent in April. Crud in cobalt solvent extraction
(CoSX) was the main cause of the decrease in cobalt recovery.

A large percentage of cobalt was shipped as sulfide due to the
crud problems in CoSX. The crud caused the chloride level in the
cobalt sulfide (coS) to rise above the level acceptable as CoS
autoclave feed. Cobalt recovery was also low due to iron levels
in the feed and poor performance of the CoS filter press.

Nickel inventory decreased by 26 tons during May. Cobalt
inventory was very low at the beginning of the month due to the
impurity levels in cobalt refinery had returned to normal
operating mode by the end of the month. Cobalt inventory
subsequently increased.

Refinery

The refinery produced 673.58 tons of nickel at 90.9 percent
recovery and 33.78 tons of cobalt at 66.4 percent recovery. The
major reasons were a shortage of feed from leach and a very poor
cobalt recovery through CoSX, discussed below.

CoSX averaged 82 percent cobalt recovery at 92.5 percent
availability.

Nickel solvent extraction (NiSX) averaged 91.7 percent nickel
recovery at 90.4 percent availability. The low recovery was
caused by poor organic flow control, due to gypsum scale in the
organic pump and flow meter.

Replacement isolation valves are to be installed in June to
enable the flow meter to be cleared on the run.

There was one planned shutdown for gypsum cleaning during the
month. Problem areas were targeted, with major growth being
encountered in the pregnant liquor storage (PLS)/sand bed filter
area, cobalt and nickel extraction 2 to 4 and SX feed pumps.

The anode replacement program was on hold during the month while
awaiting the delivery of more anodes and the initiation of the
anode painting contract. More anodes are due for delivery in
early June, and will be painted and installed in mid-June.

The cathode bag replacement program was completed during May and
a trial initiated on bags supplied by a local manufacturer.

Ni quality was again slightly below optimum specification in
May. The major impurity was cobalt, which was caused by the crud
problems in CoSx. The situation had improved by month end and
cobalt levels were decreasing.

The general quality of cobalt cathode has improved over the
year, however certain impurities remain high. Nickel and iron
have increased compared to the previous month because of the
crud problems in CoSX resulting in large impurity entrainment.
The downward trend for copper is encouraging. Lead levels remain
too high and should improve with the installation of the lead
removal stage.

Operating Costs

The tables summarize the breakdown of costs for the month of
May.

Mining costs. The main cost variance, as previously reported, is
due to single shift production activity against budgeted double
shift.

Variances from the mine schedule have resulted in cost
differences in the areas of ore and waste material movement.
Budget haulroad construction costs of $350,000 were not accrued
due to the work not being undertaken.

Grade control costs were above budget due to the up front
accrual of costs for the grade control drilling program in
Albion 2 and increased activity for Federal trenching.

The backlog of assay data was also partly released during the
period which resulted in an increased cost for May.

Leach plant costs. Total leach operating costs were 24 percent
below budget at $2,008,000. This falls below the year to date
(YTD) average of 17 percent below budget.

One area of increased cost was hydrogen peroxide consumption
(+$40,000) which is used to control iron in the PLS. Reductions
are expected in late June following modifications to the closing
system.

Refinery costs. Refinery costs were over budget this month,
however the over-expenditure has decreased compared to the year
to date performance (8.8 versus 22 percent YTD).

A Breakdown Of Key Expenditure Area Is Provided Below:

Labor: Labor was 34 percent overspent for the month, compared to
51 percent for April. The refinery is over-compliment, however
the refinery numbers have decreased from a high of 96 in
February to 81 by the end of May.

The main gains have been made in the tankhouse. More automation
in the tankhouse is planned to further reduce numbers.

Reagents: Reagents were only 1 percent overbudget in May. The
major over-expenditures were:

   * Diluent required for the new diluent wash settler.

   * Boric acid, sodium sulphate, and sulphuric, acid which are
associated with the high Ni SX bleed rates.

   * Sodium hydroxide, which is now used on the Co precipitation
reactors for safety reasons.

   * Oxygen, a large amount is being vented to atmosphere. This
is being investigated.

   * Ionol required by the poor SX conditions early in the
month.

Consumables: Consumables were 49 percent overspent, the main
contributors were:

   * Cathode bags are required to complete the change-out.

   * Cathode frames.

   * Starter sheets, $15,450 were spent on mild steel starters
to enable harvest schedules to be maintained, during periods of
low nickel starter sheet stocks.

Maintenance costs. Costs for the month totaled $1.319 million,
which was slightly less than $300,000 over the budget of $1.023
million.

Under-accruals from the major shutdown in March were included in
this month's costs. These accruals totaled $370,000 and
essentially explain all of the cost over run.

Other areas where costs were higher than expected for the month
were in feed preparation, leaching, CCD/PN and CoSX. The
majority of these costs were related to works completed in the
24-hour shutdown, including sizer teeth, scrubber repairs,
titanium pipeline replacement and the replacement of various
valves in both the leaching and SX circuits.

Production Services costs. Costs in Mine Services were low due
to lack of drilling activities associated with Mine Development.

Metallurgical service costs were considerably under budget due
to the metallurgical restructure and deferment of project work.

Commercial Costs. Breakdown as follows:

Supply: Costs for the month are $34,000 over budget. The Major
variance occurred in product freight ($42,000 over) and was due
to a $22,000 charge for April not taken up in that month and the
increased cost associated with weekend deliveries from site.

Site Administration: Costs for the month were $85,000 over
budget. As stated in previous months, insurance and audit fee
costs were in excess of the original budget. In May, these two
costs alone caused the actual costs to vary from budget by
$180,000 ($140,000 insurance and $40,000 for audit). Motor
vehicle hire costs were $47,000 below budget

Revenue
                                         MAY-2001
                                         A$'000

Nickel sales                           10,533,000
Cobalt sales                           1,125,000

Metal Production

Estimates of quarterly metal output, through to March 2002 are
shown in the table below.

QUARTER ENDING               NICKEL          COBALT
                                  (IN TONNES)

September 30, 2001           1,750            180
December 31, 2001            2,105            191
March 31, 2002               2,007            158

Outlook

Construction of a dedicated diluent wash circuit in cobalt
solvent extraction proceeded to plan. This, together with
upgraded crud handling facilities and re-commissioning of the
fifth cobalt extraction stage is scheduled for completion in
June. Those measures should result in improved metal quality and
improve revenue per unit of base metal recovered.

Information in this report that relates to Mineral Resources or
Ore Reserves is based on information complied by Lindsay Cahill
who is a Member of the Australian Institute of Mining and
Metallurgy.

Lindsay Cahill is a full time employee of Preston Resources Ltd
and has sufficient experience relating to the style of
mineralization and type of deposits under consideration and to
the activity undertaken to qualify as a competent person as
defined in the 1999 Edition of the "Australasian Code for
Reporting of Mineral Resources and Ore Reserves".


ISIS COMMUNICATION: Issues New Securities
-----------------------------------------
Isis Communications Limited announces its new securities issue,
as a result of its acquisition of business and assets and
provision of services. The details are as follows:

Name of Entity
ISIS Communications Limited

ACN or ARBN
083 269 701

Isis (the entity) announce the following information.

Part 1 - All Issues

1. Class of securities issued     Ordinary fully paid (ISC)
   or to be issued                Options (ISCOA)

2. Number of securities issued    ISC
   or to be issued (if known)     90,000 (Allotment)
   or maximum number which        126,994 (Allotment)
   may be issued                  122,988 (Infochoice offer)
                                  365,240 (Option conversion)

                                  705,222 (Total ISC)

                                  ISCOA
                                  122,988 (Total ISCOA)

3. Principal terms of the securities ISC - Ordinary fully paid
   (eg, if options, exercise price   shares
   and expiry date; if partly paid
   securities, the amount            ISCOA - Expiry Date Dec
2002
   outstanding and due dates for     (further details in
attachment)
   payment; if convertible securities,
   the conversion price and dates
   for conversion)

4. Do the securities rank equally  Yes
   in all respects from the date   Ordinary shares ISC
   of allotment with an existing
   class of quoted securities      Yes
                                   Options ISCOA

   If the additional securities
   do not rank equally, please
   state:
   * the date from which they do
   * the extent to which they
     participate for the next
     dividend, (in the case of
     a trust, distribution) or
     interest payment
   * the extent to which they do
     not rank equally, other than
     in relation to the next
     dividend, distribution or
     interest payment

5. Issue price or consideration   90,000 (Allotment) -
                                  11/05/2001 - $0.074
                                  126,994 (Allotment) -
                                  01/06/2001 - $0.05
                                  122,988 (Infochoice offer)
                                  as per attachment
                                  365,240 (Option conversion) -
                                  31/12/2000 - $0.17

6. Purpose of the issue (if       Allotments were as a result
   issued as consideration for    of acquisition of business
   the acquisition of assets,     and assets and provision of
   clearly identify those         services.
   assets)
                                  Infochoice offer was a result
                                  of acquisition of shares in
                                  listed entity.

7. Dates of entering securities   11 July 2001
   into uncertified holdings
   or despatch of certificates

                               Number  Class
8. Number and class of all   91,170,530  ISC Ordinary fully
   securities quoted on                 paid
   ASX (including the        408,877  ISCOA
   securities in clause
   2 if applicable)

                              Number  Class
9. Number and class of all   75,615,933  ISCAI ordinary fully
   securities not quoted                  paid
   on ASX (including the    72,400  ISCAW ordinary fully
   securities in clause 2                 paid
   if applicable)           Less correction
                            to ISCAW of
                             20,000
                            75,668,333 total

10.Dividend policy (in the case        N/A
   of a trust, distribution
   policy) on the increased
   capital (interests)

Part 2 - Bonus Issue Or Pro Rata Issue

Items 11 to 33 are Not Applicable

Part 3 - Quotation Of Securities

    Items 34 to 37 are Not Applicable

    Entities that have Ticked Box 34 (b)

    Items 38 to 42 are Not Applicable

All Entities

Fees

43. Payment method (tick one)

       Cheque attached

       Electronic payment made
       Note: Payment may be made electronically if Appendix 3B
is
             given to ASX electronically at the same time.

    x  Periodic payment as agreed with the home branch has been
       arranged
       Note: Arrangements can be made for employee incentive
             schemes that involve frequent issues of securities.

Quotation Agreement

1. Quotation of our additional securities is in ASX's absolute
discretion. ASX may quote the securities on any conditions it
decides.

2.  We warrant to ASX that the issue of the securities to be
quoted    complies with the law and is not for an illegal
purpose, and that     there is no reason why those securities
should not be granted     quotation. We warrant to ASX that an
offer of the securities for     sale within 12 months after
their issue will not require disclosure under section 707(3) of
the Corporations Law.

3.  We will indemnify ASX to the fullest extent permitted by law
in     respect of any claim, action or expense arising from or
connected    with any breach of the warranties in this
agreement.

4.  We give ASX the information and documents required by this
form.    If any information or document not available now, will
give it to    ASX before quotation of the securities begins. We
acknowledge that    ASX is relying on the information and
documents. We warrant that    they are (will be) true and
complete.

ALLOTMENT ALLOTMENT CLOSING PRICE   CONSIDERATION  SHARES   OPT
NO         DATE    ON PREVIOUS DAY  PRICE AT 1:3  ALLOTTED
ALLOTTED
1      21/12/2000    0.19            0.063      128464    128464
2      02/01/2001    0.17            0.057       91434     91434
3      08/01/2001    0.165           0.055       14497     14497
4      15/01/2001    0.205           0.068        6665      6665
5      22/01/2001    0.225           0.075       39825     39825
6      29/01/2001    0.235           0.078       38165     38165
7      05/02/2001    0.21            0.07        35329     35329
8      12/02/2001    0.19            0.063        1333      1333
9      19/02/2001    0.18            0.06        17332     17332
10     26/02/2001    0.16            0.053        4999      4999
11     05/03/2001    0.16            0.053        9332      9332
12     12/03/2001    0.15            0.05         5666      5666
13     19/03/2001    0.12            0.04         3333      3333
14     26/03/2001    0.135           0.045        5666      5666
15     02/04/2001    0.125           0.042        4333      4333

                                                     406377


ISP LIMITED: Administrators Report To Creditors
-----------------------------------------------
Hall Chadwick, chartered accountants and business advisers, as
administrators of ISP Limited reports the following:

"Further to their initial notification to creditors dated 28 May
2001, creditors will be aware that Geoffrey McDonald and I were
appointed
Administrators of the abovenamed company on the 25 May 2001,
pursuant to Section 436A of the Corporations Law.

"As detailed in my report to creditors dated 25 June 2001,
pursuant to Section 439A of the Corporations Law, an
Administrator is obliged to convene a major meeting of creditors
within 21 days of the date of his or her appointment and to hold
such a meeting within five business days after the end of the
convening period. As noted in my aforementioned report, at that
point in time I had insufficient information to provide to
creditors, in order for creditors to make an informed decision
as to the future of the company.

"Accordingly, I applied to the Supreme Court of New South Wales,
pursuant to Section 439A(b) of the Corporations Law, for an
extension of the convening period. The purpose of the extension
of the convening period was to allow sufficient time to complete
my investigations into the affairs of the company and continue
negotiations with possible investors, which would allow a
proposal to be put forward to the creditors of the company. I
advise that the court approved my application and extended the
convening period by 21 days.

"Accordingly, the major meeting of creditors has been convened
for Thursday 12 July 2001 at 10.00am. A Formal Notice of the
Meeting and Proxy Form are attached for your attention.

"At that meeting, creditors will be asked to resolve whether the
company should enter into a Deed of Company Arrangement as
detailed later in this report, or, place the company into
liquidation, or, return the company to the directors. Creditors
will note, as detailed later in this report, that I recommend
that creditors accept the Deed of Company Arrangement as
proposed. If that Deed proposal is accepted it will be binding
on all creditors as set out in this report.

"Alternatively, creditors may resolve to adjourn the meeting for
up to 60 days.

"The following sections of this report titled History of the
Company and Assets and Liabilities form the report by the
Administrators required pursuant to Section 439A(4)(a) of the
Corporations Law about the company's business, property, affairs
and financial circumstances which is required to accompany the
Notice of Meeting.

"1. Objects of the Law

"The stated purposes of the provisions of the Corporations Law
regarding Voluntary Administrations is for the affairs of the
company to be administered in such a way that:

   a) maximizes the chances of the company, or as much as
possible of its business, continuing in existence; or

   b) if it is not possible for the company or its business to
continue in existence - results in a better return for the
company's creditors and members than would result from an
immediate winding up of the company.

"2. Initial Meeting of Creditors

"An initial meeting of creditors was held at the Hilton Hotel,
Sydney on 1 June 2001 at which the creditors endorsed my
appointment. Creditors resolved to form a committee of creditors
and appointed the following parties to the committee:

   Greg Young - representing Telstra Corporation Limited

   Kris Knauer - representing Tricom Equities Limited

   Amanda Wilson - representing Samsara Pty Limited

"Creditors were requested to provide me with any information
which may assist in my investigations into the affairs of the
company."


ISP LIMITED: Provides Company History
-------------------------------------
ISP Limited was incorporated on 12 March 1940 in Victoria as
North Hustlers Gold Mining Company No Liability. The company
changed its name to Leader Resources NL in 1986 and to Golden
Tiger Resources NL in 1996.

The company again changed its name to ISP NL on 2nd August 1999
when it was acquired by the `current Directors' and its trading
activity was changed from a mining company to its current
principal business activity, that being an Internet Service
Provider (ISP).

The company's name was subsequently changed in September 1999 to
ISP Limited.

The company is listed on the Perth Stock Exchange, although its
share trading is currently suspended. The company is also listed
on the Berlin Stock Exchange and I understand that share trading
has been suspended. The company was previously listed on the
Vancouver Stock Exchange.

The company's principal place of business is located at Level 2,
30 Atchison Street, St Leonards, New South Wales.

A company search of the Australian Securities & Investments
Commission (ASIC) database indicates that the Directors of the
company over the past twelve months have been as follows:

Name                      Appointment      Resignation

Richard Frawley          1 July 1999       30 June 2000
Ludger David Kohmascher  2 June 1999       Current
Michael John Hoy         2 August 1999     Current
Thomas Peter Koltai      2 August 1999     Current
Stephen Kong             1 December 2000   Current

Koltai has been responsible for the day-to-day management of the
company since 1999, although Stephen Kong has played an active
role in the management of the affairs of the company over the
past six months. It is noted that Eric Kam, the company
secretary was also responsible for the management of the company
from late March 2001, till the date of my appointment.

It is advised that prior to August 1999, the company operated as
a mining company. On the aforementioned date the company was
acquired as a back door listing and has been operating as an ISP
since that time.

The ISP Limited business model has been one of growth, by
acquisition of small to medium ISP's in regional and
metropolitan centers throughout Australia. In this respect the
following ISP's have been acquired since 1999.

   * Batemans Bay Internet Services

   * Geko Internet Services (55%)

   * World Wire

   * BlazeNet

   * Austel Communications Pty Limited

   * Macrotec Internet

Attached here is a copy, marked Annexure A, of the
organisational chart of ISP Limited.

The company concentrated on the provision of high levels of
personalized service with anticipations of providing the
following range of services:

Internet Access                 Long Distance Calls
Electronic Shopping             Family and Community
Mobile Access                     concentric SMS
Local Call Access

The growth by acquisition business plan of the company was to
improve profitability by cutting costs of duplicated services
and staffing overheads thus reducing the marginal cost per
customer.

This model proved to be successful in the first six months of
operation, although the worldwide revaluation of Internet
related stocks in May 2000 severally hampered the company's
ability to raise funds and thus prevented future acquisitions.

It would appear that the company's growth stalled and a fund
raising exercise commenced for the next twelve months. This
obviously took the focus away from the core business of the
company as the Directors focused on raising equity.

As a result it would further appear that service, being the
major focus of the company, suffered. It would appear that the
company has lacked management focus for approximately six to
twelve months prior to my appointment.

As a result of the company being unable to raise further capital
and the financial predicament of the company, a number of
Directors had differing opinions as to the future direction of
the company.

As a result the company lacked management direction at a time
when it was obviously most needed. A tight control on expenses
and a clear business plan was required in order to provide focus
for the staff and company to ensure its future viability. This
has been lacking over the past 6-8 months, obviously to the
detriment of the company.

I note that my appointment arose primarily due to the ASIC
commencing action against the company for breaches of the
Corporation Law. This issue is discussed further in this report.

GEKO INTERNET SERVICES PTY LIMITED (GEKO)

It is advised that Geko is a related company of ISP Limited,
whereby ISP Limited holds 55 percent of the shares of Geko and
Tom Koltai holds the remaining 45 percent stake. I note that the
trading of Geko and ISP Limited are so intertwined that they are
effectively traded as one entity.

ISP Limited holds a Fixed and Floating charge over the assets of
Geko. It is further noted that there was an intercompany loan of
approximately $850,000 to ISP Limited from Geko as at the date
of my appointment. Koltai has disputed this debt and has
indicated that the inter-company loan is approximately $200,000
to 250,000.

As the business of Geko and ISP Limited are so intertwined and
the assets of Geko were diminishing as the business of the
company was trading at a loss, Geoffrey McDonald and the
Administrators entered into possession of Geko pursuant to the
charge in order, to protect the position of creditors.

AUSTEL INC - US SUBSIDIARY

In January 2000 the company acquired a firm in the United States
(US) known as Austel Inc. This company was formed by a merger
with Frank Drilling Limited and NSI Telecommunications (NSI).

Discussions with the Directors and other parties after my
appointment indicated that there were significant assets in the
US and a potential for this company to be sold as a going
concern.

Although the only person familiar with the US operations was
Tom Koltai, who had been in the US for approximately one month
prior to my appointment in an attempt to broker a sale
agreement.

It was deemed prudent that I attend the US in order to finalize
a sale or close the operations due to its cash drain on ISP
Limited.

Attached to this, marked Annexure B, is an email from Koltai,
detailing potential 'deals' in the US. It is noted that to date
nothing has come to fruition.

The company operates as a co-location network operation center,
essentially a hi-tech landlord hosting equipment for companies
providing internet services. It does not provide internet access
to homes although is capable of this.

Austel Inc was a start up company and significant funds were
required from Australia in order for the US company to be
operational. It is noted that approximately $560,000 has been
sent from Australia to US. Thus causing a severe drain on the
cash flow of ISP Limited. It would also appear Austel Inc has
been lacking management support and direction from the Sydney
office.

Austel Inc has had major problems in retaining customers with
most leaving after 2 - 3 months due to a lack of customer
support and technical problems.

Sydney manages the technical area and due to the time difference
between the US and Australia, ISP Limited is unable to provide
daytime support to customers and are unable to fix technical
problems on a timely basis.

A financial analysis of the trading operations of the US
operations would indicate that the company is in severe
financial distress, with a net assets deficiency of
approximately US$400,000. It is advised that the Administrators
are in the process of closing the US operations and will be
attempting to realize the assets for the benefit of creditors.

It would appear that the idea was right in establishing a
worldwide presence, although the timing was wrong in the
worldwide correction of internet related stocks.

Other Operations

Although Internet Services is the core business focus of ISP
Limited, the company is also involved in the following
operations:

Phone Cards

The US operations are currently in a joint venture arrangement
with respect to the provisions of pre-paid phone cards in the
United States, primarily in relation to access to the
Philippines.

The company is able to provide per minute access at a rate,
which is significantly cheaper than any competitors. Another
aspect of these cards is that they can effectively be used as
charge cards in the provision of credit, being pre paid. This
may be attractive to gambling operations due to the high level
of credit card fraud in the US.

In order to pursue this business further, significant funds
would be required along with a presence in the US. As previously
noted, due to the financial distress of ISP Limited, it was
decided to close the US operations. Accordingly a joint venture
will not be pursued.

Mining Operations

As previously advised, prior to August 1999 the company was
involved in mining operations. The company still has some
involvement in the following mines:

   * Wallbrook Hill Joint Venture

   * Duketon Project

   * Warrida Well

   * South McClune

   * Prospect 9991

The Administrators understand that these are not operational and
accordingly are not affecting the cash flow of the company.
Accordingly it is unlikely that these mines have any commercial
value for the creditors in their current state.

The Administrators advise that the shares of ISP Limited had
been suspended from trading on 26 February 2001, due to a number
of suspected breaches of the Corporations Law. As at that date
the company shares were trading at $0.04.

Furthermore, the ASIC had commenced action against the company
for its failure to comply with Section 320 of the Corporations
Law, requiring a disclosing entity to lodge half-year reports
with ASIC.

This report is to be lodged within 75 days after the end of the
half-year, being 16th March 2001. The ASIC has indicated that
the company had failed to lodge the half-yearly report within
the required time frame and accordingly took action pursuant to
Section 321(1) of the Corporations Law requiring the company to
lodge its half-yearly reports with ASIC by Tuesday 17 April
2001.

This date was subsequently revised to 19 April 2001. Financial
reports had been lodged on 30 March 2001 although they did not
comply with Section 302 of the Corporations Law, in that they
did not contain auditors report and a Director's report. These
reports had been signed by Mr Koltai as being reviewed by our
Auditor. These accounts had not been reviewed by the company's
auditors. Accordingly, action was commenced against the company
pursuant to the aforementioned sections.

The ASIC has also advised the Administrators of the following
concerns they have in respect to the trading of the company.

1. Section 286: Obligation To Keep Financial Records

      Under the Corporations Law, a company is required to keep
sufficient financial records to......."enable true and fair
financial statements to be prepared and audited." The ASIC have
indicated that they have concerns as to the company's compliance
with this Section. I note that this issue is discussed further
in this report.

   2. Section 251A Minutes.

      Discussions with the officers of the company and the ASIC
have indicated that Minutes of Directors meetings were not kept
between the periods November 2000 to March 2001, in
contravention of the above section. This has been confirmed from
a review of the company records. Upon the appointment of Mr Eric
Kam as secretary of the company, I note that Directors minutes
have been maintained.

As a result of the aforementioned breaches, the Australian Stock
Exchange (ASX) has put the company on notice of suspension and
impending revocation of CHESS approval should sufficient reasons
not be provided to the ASX as to why approval should not be
revoked.

The revocation of CHESS approval will be effective close of
business Friday 7 September 2001.

The Administrators note that discussions are continuing with the
ASIC and the ASX in order to rectify the above breaches and to
have the company relisted.

Financial History

Also attached in here, marked Annexure D, is a copy of the last
audited Financial Reports for the company in respect to the
Financial Year ended 30 June 2000. I note that this report was
supplied by the company's auditors, Arthur Anderson. This report
shows net assets of $2,060,310 as at 30 June 2000. This consists
primarily of cash holdings of $1,020,443 and intangibles of
$1,254,413. The report shows a net trading loss of $3,834,896
for the 2000 financial year.

This represents a net loss of 12.86 cents a share. As at 30 June
2000 the company's shares were trading at approximately $0.18. I
have been advised by Arthur Anderson, that this audit was
conducted in September/November 2000 and that the report
highlighted an "Inherent Uncertainty regarding Continuation as a
Going Concern".

The basis of this opinion is, "...there is significant
uncertainty whether ISP Limited will be able to continue as a
going concern and therefore whether it will realize its assets
and extinguish its debts in the normal course of business and at
the amounts stated in the financial report."

The latest financial report for the company as at 31 March 2001
is attached and marked Annexure E. I advise that this is an
internal financial management report, which I understand has not
been audited.

This report shows consolidated net assets of $586,841. These
financials list intangibles as an asset in the amount of
$1,177,325. This is the acquisition costs of a number of ISP's
which had been written off prior to my appointment. These
amounts were written off as a result of advice from the
company's Auditor, in a report attached and marked Annexure F,
after a review of the December accounts.

Books And Records

Creditors would be aware, that the Administrators are required
to conduct an investigation into the affairs of the company. To
do so requires a review of the books and records of the company.
The operations of ISP and related companies, particularly Geko
Internet Pty Limited are so intertwined that it is difficult to
differentiate between each company. In this respect, I have
treated all trading as being under the operations of ISP
Limited.

The last audited financial report was for the June 2000
financial statements, although management reports have been
prepared since that date.

It is the Administrators' opinion that the books and records of
the company are in such disarray that it would be difficult to
prepare financial statements with a high degree of accuracy,
although they may be prepared the Administrators have concerns
as to how accurate the records may be.

Section 286 of the Corporations Law provides that: "A company
must keep written financial records, that correctly record and
explain its transactions and financial position and
performance."

In this respect the Administrators are of the opinion that the
company has not complied with Section 286 of the Corporations
Law.

4. Assets and Liabilities

Company Financial Details

Set out hereunder are the Assets, Liabilities of the company as
at the date of the appointment of the Administrators. This
information has been complied by the staff of the Administrators
from information supplied from the company, Directors and third
parties.

                                       ESTIMATED
                        GOING          REALISABLE       PROPOSAL
                       CONCERN           VALUE-         FOR DCA
                                       LIQUIDATION
                          $                $              $
ASSETS

Cash at Bank             9,086             N/A            N/A
Debtors                 93,749            9500          9,500
Plant & Equipment      629,971         161,091        161,091
Customer Base          Unknown          55,000         55,000
Mining Operations      Unknown             NIL            N/A
Related party loans  1,789,587             NIL            N/A
Deed Contribution          N/A             N/A        400,000

Total Assets         2,522,393         225,591        625,591

LIABILITIES

Priority Creditors
Administrator Fees                     150,000        150,000
- Deed Administrator's                    N/A         45,000
Fees
- Liquidator's Fees                   100,000            N/A
-Employee                              70,755         70,755
Entitlements
- Administrator's                     150,000        150,000
trading liabilities
- Lease liabilities                 1,042,840            N/A
   (approx)

Total                                1,513,595        415,755

Amount available to                 (1,288,071)       209,836
unsecured creditors

Unsecured creditors                  1,318,067      1,318,067
claims

Estimated                           (2,606,071)    (1,108,231)
Deficiency

Return cents in $                          NIL      15.9 cents

Each of the above group of assets and liabilities are discussed
separately below.

   4.1 Assets

   Cash At Bank

      As at the date of my appointment cash at bank was $9,086.
I note that this amount has been used in the trading of the
company.

   Debtors

      As at the date of my appointment company debtors were
approximately $93,749. I note approximately 10 percent of these
debts have been referred to a collection agency and are unlikely
to be collectable. In a liquidation scenario I would estimate
approximately 10% of these debts would be collectable being
$9,500.

   Plant & Equipment

      The company has plant and equipment with a written down
cost of $725,660 as at 31 March 2001. As at the date of my
appointment I commissioned Hymans Auctioneers and Valuers to
conduct a valuation of this equipment. The valuation indicated a
going concern value of $610,071 and an auction value of $112,148
for the unencumbered plant and equipment. There has been a
number of difficulties in identifying which assets are leased
and those that are unencumbered due to the state of the company
records. I understand that the above figures are correct
although further details are required from the company and
leasing company to determine.

   These amounts can be broken up by location as follows:

  LOCATION             GOING CONCERN               AUCTION

St Leonards              320,846                  64,134

Melbourne                195,175                  31,824

Bateman's Bay             11,450                   3,990

Canberra                   2,200                     800

Brisbane                  40,100                   6,250

Alexandria Hills           4,100                     700

Adelaide                  33,500                   3,350

Perth                      2,700                   1,100

Total                    610,071                 112,148

   Customer Base

      The company had approximately 5,500 customers as at the
date of the appointment of the Administrators. These customers
are on a variety of plans. The Administrators have been in
contact with a number of ISP's who had initially expressed
interest in purchasing the customer base. Due to the state of
ISP's in the current economic climate the highest valuation the
Administrators were able to obtain was $10.00 per customer.
Accordingly, the Administrators have valued the customer base of
the company at $55,000, should the company be placed into
liquidation at the forthcoming meeting of creditors.

   Mining Operations

      As previously advised, the company has an interest in a
number of mining operations, although it is understood that
these mines are not currently operational, thus have no
commercial value to creditors in their current state.

   Related Party Loans

   The company had the following related party loans as at 31
March
2001:

Gecko                        $852,094
NSI                          $937,493
                           $1,789,587

   These amounts had been written off prior to my appointment as
per the advice of the company Auditor.

   4.2 Liabilities

   Administration, Deed Administration and Liquidators Fees

   The Administrators have sought to estimate their professional
costs in this matter, as detailed in Section 7 of this report.

   Employee Entitlements

   Employee entitlements as at the date of my appointment are
estimated at $70,755. This amount is broken up as follows:

Annual leave                                   15,000
Superannuation                                 40,716
Redundancy Payments                            15,039

Total                                          70,755

Pursuant to Section 556 of the Corporations Law, employee
entitlement rank as a priority creditor. These entitlements will
need to be paid in full prior to a distribution to unsecured
creditors.

   Partly Secured Creditors

   The only lease held with the company is with Lucent
Technology. The payout figure in respect to this lease is
approximately $1,042,840. Due to the state of the company
records it has been difficult to reconcile the leased assets. A
number of the assets subject to the Lucent lease are held in the
US.

   Unsecured Creditors

   As at the date of my appointment unsecured creditors were
approximately $1,318,067, which consists primarily of trade
creditors. Telstra is the largest creditor in the amount of
$524,827.

   Return To Creditors

   Based on the information as noted above if the company is
placed into Liquidation at the foregoing meeting of creditors it
is expected that insufficient funds will be realized to enable a
distribution to unsecured creditors of the company.

   The only potential distribution among unsecured creditors of
the company would be as a result of the recovery of any voidable
transactions. These include preferential payments recovered from
creditors and/or action against the Directors for Insolvent
Trading or breach of Directors duties. These issues are
discussed further in this report.


ISP LIMITED: Proposes Deed Of Company Arrangement
-------------------------------------------------
Pursuant to Section 439A(4)(c) of the Corporations Law, the
Administrators of ISP Limited post their proposal for the
company to execute a Deed of Company Arrangement.

The statement sets out the details of the proposal. At the
meeting to be held on yesterday 12 July 2001 creditors were to
resolve whether to accept the proposal to execute a Deed of
Company Arrangement.

It is advised that the proposal for the company to execute a
Deed of Company Arrangement as proposed by an Investor Syndicate
provides that all employee entitlements, the fees and
disbursements of the Administrator and Deed Administrator and
the trading liabilities of the Administration are to be paid in
full.

Furthermore, it provides for a return to unsecured creditors in
the amount of approximately 15.9 cents in the dollar, (subject
to the priority payments).

The essential components of the Deed, attached and marked
Annexure F, are as follows:

   1. The Investor Syndicate is to provide a Deed Contribution
of $400,000 for the benefit of creditors.

   2. The assets of the company, excluding the mining operations
are to be made available for the creditors.

   3. The distribution of these funds is in accordance with
Division 6 of Part 5.6 of the Corporations Law, as if the
reference to a winding up where a reference to the Deed of
Company Arrangement.

   4. An amount of $35,000 is to be paid upon acceptance of the
Deed of Company Arrangement with the remainder, $365,000 to be
held in trust pending the approval of shareholders.

   5. the assets of the company to be advertised by the
Administrator and sold as a going concern to form part of the
Deed fund.

It is noted that the aforementioned proposal in subject to the
approval of the shareholders of the company, as it will involve
a further capital raising of $500,000 which will result in a
dilution of shares.

It is advised that the Deed provides for a return to unsecured
creditors of approximately 15 cents in the dollar, subject to
the claims by unsecured creditors, the realizations of the
company assets and the quantum of the lease liabilities.

Should Lucent Technologies prove as an unsecured creditor for
their full payout figure, the distribution to unsecured
creditors will reduce to approximately 8 cents in the dollar.

Voidable Transactions

   This discussion on voidable transactions together with the
following section titled 'Opinion' comprise the statement
required pursuant to Section 439A(4)(b) to accompany the notice
of meeting. The information provided in this statement is based
on the Administrators' investigations during the short period of
their appointment and further detailed investigation would be
required.

Pursuant to Section 439A(4)(b) and Regulation 5.3A.02 of the
Corporations Law, an Administrator in convening a meeting under
Section 439A of the Corporations Law must specify whether there
are any transactions which appear to be voidable transactions.
Any such transactions are not recoverable by an Administrator or
by a Deed Administrator but may be recoverable by a Liquidator.

These transactions generally fall into two categories, being
preferential payments and insolvent trading, although
technically the regulations do not require an Administrator to
comment on the latter. It is the Administrators' opinion that it
would assist creditors if the issue was discussed.

Insolvent Trading

   Pursuant to Sections 588G and 588M of the Corporations Law,
the Liquidator can recover from the Directors of the company for
any debts incurred by the company after a time that is shown
that a reasonable person would have suspected that the company
could not pay its debts as and when they fell due.

   The issue arises in every administration.

   The Administrators' investigations have revealed that there
are certain aspects of the company's activities to suggest that
the company may have traded while Insolvent. They have formed
this view based on the following reasons:

   1) A Formal Proof of Debt submitted by Telstra Corporation
Limited, being the largest creditor of ISP Limited, has
indicated that there are debts outstanding from June 1999. There
has been an ongoing dispute with Telstra in respect to their
account although a reconciliation of same indicates that 25
percent of their debt is over 8 months old.

   2) A Formal Proof of Debt submitted by the Australian
Taxation Office has indicated that Goods and Services Tax for
the December 2000 quarter remains unpaid.

   3) I note that the Superannuation Guarantee Levy for the 2000
Financial year has remained outstanding, which is to be paid
prior to 28 July 2000.

   4) A review of the aged creditors for the company indicates
that approximately 40 percent of the company debts are over 6
months.

   While they believe that there are reasonable grounds to agree
that the company traded whilst insolvent, there is no guarantee
that an action would be successful and that any funds would then
become available for unsecured creditors.

   Creditors need to appreciate that pursuant to Section 588H of
the
Corporations Law, a director has statutory defenses against any
action commenced by a Liquidator for insolvent trading. These
defenses include that the directors had reasonable grounds to
expect that the company was solvent at the time that a debt was
incurred or relied upon a competent person to provide adequate
information about whether the company was solvent.

   If the matter was pursued, a Liquidator would be required to
present sufficient evidence to show that the company was
insolvent and secondly to refute any statutory defense provided
by the director.

   Any court action against the directors for insolvent trading
would in all likelihood take well over 12 months to be finalized
and would involve substantial legal and accounting fees being
incurred. These costs would not be recovered in full.

   A Liquidator would be without sufficient funds to undertake
such an action to its full conclusion and as such creditors
would be asked to provide the funds to cover all such
professional costs.

   Such action would only be brought against the directors by a
Liquidator if a benefit would accrue to creditors from doing so.

Unfortunately, the uncertainties of any complex litigation does
not allow the Administrators to provide any greater guidance to
creditors on this issue at this time.

There is the ability to obtain an indication form the
organization known as Insolvency Management Fund, which is a
company which will purchase the right to sue for money. The cost
of receiving this indication will vary, depending upon the
amount of information needed by IMF to form its opinion.

Unfortunately, there is insufficient time to obtain any
meaningful indication before this report had to be prepared.

Preferential Payments

   Pursuant to Section 588FA and associated provisions of the
Law, a
Liquidator is able to recover from creditors any payments,
preferences or advantages obtained by them from the company.
This law generally relates to a period of six months prior to
the commencement of the winding up which in this case would be
the 25 December 2000.

   A preliminary review of the company's books and records
suggests that some payments may fall into this category. This
amount is approximately $128,500 in total comprising of payments
between $30,000 and $10,000.

   For a preference claim to be successful, a Liquidator needs
to prove that the recipient of the preference payment suspected
(or should have suspected) that the company was insolvent.

   Difficulties with pursing preferences may include:

      1. Legal fees could be substantial and the matter my take
some time to resolve.

      2. The company may have a valid defense.

      3. The company may not be in a position to pay back those
monies if and when a favorable judgment is received.

      4. It is difficult to sustain a claim against a creditor
therefore receipt of a preferential payment as the issue of
suspicion of insolvency can be disputed.

   The recovery of preferential payments is extremely
inconsistent and again a Liquidator would have insufficient
funds to pursue the payment. A Liquidator would look to
creditors or an insurer to fund such an action.

Other Actions

  It should be noted that the Administrators have conducted
investigations into any other possible actions a Liquidator may
take against Directors or related parties for recovery of the
debts. In particular, it was investigated the possible breach of
Director's duties in accordance with Section 180 of the
Corporations Law.

   Section 180 of the Corporations Law provides that a:

      "A Director of a corporation must exercise their powers
and discharge their duties with the degree of care and diligence
that a reasonable person would exercise."

   Initial investigations reveal that a Liquidator may have a
claim against the Director's of the company in respect to a
potential breach of this section. This action may be successful
but would result in protracted litigation, which would again
require a substantial amount of funds to proceed.

   As with insolvent trading action or the recovery of
preferential payment, creditors should take into account that a
Liquidator would be unfounded in this matter and may request
that creditors fund any action to be undertaken by a Liquidator.

Activities And Fees Of The Administrator

   Since the date of my appointment, the Administrators have had
to be in control of the affairs of the company and have
conducted investigations relevant to their statutory
responsibilities and the preparation of this report.

   The work, to the extent possible, has been conducted by staff
other than senior persons and partners, but under the
supervision of senior staff and partners.

   In particular the Administrator's staff and the
Administrators have been involved in:

      * Meeting with the Directors of the company regarding the
placing of the company into Administration, the company
structure generally, background in relation to the affairs of
the company, the alternatives available to the Directors
regarding dealing with the major creditors and creditors whom
the directors have provided personal guarantees and
considerations regarding the appropriate appointment.

      * Preparation of notice for the appointment of the
Administrator and meeting with the Directors for the execution
of the relevant documents.

      * Preparation of documentation to the Directors of the
company regarding the requirement to lodge a Report as to
Affairs and books and records with the Administrator in
accordance with the Corporations Law.

      * Preparation and dispatch of Notice to the Landlords of
the company.

      * Preparation of dispatch of notifications to taxation
authorities (both State and Federal).

      * Preparation and dispatch of notification to ASIC of the
appointment of the Administrator.

      * Preparation and dispatch of correspondence to trade
suppliers.

      * Preparation and dispatch of correspondence to essential
service suppliers.

      * Preparation and dispatch of Notice to Creditors advising
them of the appointment and of the initial meeting of creditors.

      * Preparation and dispatch of advertisements for the
meeting of creditors, in accordance with the Corporations Law.

      * Conducting the initial meeting of creditors and the
preparation of the minutes of the meeting, in accordance with
the Corporations Law.

      * Securing company assets and arrange for valuation of
assets by Auctioneers and Valuers.

      * Meetings' and continued correspondence with potential
investors.

      * Attend and meet with staff and potential investors in
respect to the United States Operations.

      * Meetings and briefs with solicitors regarding the
extension of the convening period.

      * Preparation and dispatch of Notice to Creditors advising
them of the extension to the convening period.

      * Proceeding to open the relevant "Administrator
Appointed" bank accounts.

      * Dealing with inquiries from creditors.

      * Continued discussions with landlords in respect to the
leases for the premises.

      * Establishing procedures for the purchase of supplies for
the business.

      * Monitored the daily trading operations of the company by
requiring the company to report daily, analyzing purchases and
recording sales performance.

      * General administration of the company's affairs in
accordance with the obligations of the Administrator and
Liquidator pursuant to the Corporations Law and generally.

      * Continuing to monitor and control the company's
operations until the end of my Administration period and if a
Deed is drawn until the date the Deed is executed.

      * Conducting an investigation into the company's business
property, affairs and financial circumstances as required under
the
Corporations Law.

As detailed earlier in this report at the forthcoming meeting
the Administrators will be seeking the approval of the fees as
Administrators fixed in the amount of $150,000, plus GST.

Additionally the Administrators are required to seek the
approval of the future fees of the Deed Administrator at the
forthcoming meeting. It is anticipated that the Deed
Administrator will be required to conduct the following:

   * Drafting and execution of the Deed of Company Arrangement.

   * Preparation and dispatch of notice of execution of Deed of
Company
Arrangement.

   * Collating and dealing with creditors Formal Proof of Debts.

   * Monitor company compliance with the terms of the Deed of
Company
Arrangement.

   * Declare and distribute dividends to creditors.

   * Compliance with relevant Corporations Law provisions and
regulations.

At the forthcoming meeting the Administrators will be seeking
approval of my fees as Deed Administrator fixed in the amount of
$45,000, plus GST.

Opinion

Pursuant to Section 439A(4)(b), an Administrator must set out
his or her opinion and the reasons for that opinion as to
whether it would be in the creditors interests for:

   1. The company to execute a deed of company arrangement; or

   2. The Administration to end; or

   3. The company to be wound up.

Under Section 439C of the Law, creditors may pass a resolution
in terms of any one of the above alternatives. Alternatively,
under Section 439B of the Law, a meeting can be adjourned for up
to 60 days.

Dealing with each of the above alternatives, I advise as
follows:

Deed of Company Arrangement

On the basis of the assets and liabilities position disclosed to
the Administrator and discussed in this report it is evident
that a proposal for the company to execute a Deed of Company
Arrangement would allow greater funds to become available for
distribution to unsecured creditors.

Creditors should take into account however, the potential
realizations from voidable transactions which may become
available if the company was placed into Liquidation.

The benefit to creditors from the proposal for the company to
execute a Deed of Company Arrangement is that it provides a
greater opportunity for the unsecured creditor to receive a
distribution.

As stated earlier, the likely distribution to unsecured
creditors is 15 cents in the dollar subject to the claims by
creditors, the realizations of the assets and the quantum of the
lease liability. It is extremely unlikely that any greater
distribution would become available for unsecured creditors
should the company be placed into Liquidation.

For this reason it is the Administrators' opinion that it is in
the interest of creditors for the company to execute a Deed of
Company Arrangement.

The Administration To End

It is referred to the company's schedule of assets and
liabilities earlier in this report and note that the company is
insolvent. There is no reason to recommend to creditors that the
Administration should end and the company be handed back to the
Director.

Accordingly, it is not in the interest of creditors for the
Administration to end.

The Company To Be Wound Up

If the company was placed into liquidation it is unlikely that
there would be a distribution to unsecured creditors. Any
dividend would be dependent upon funds being realized by the
liquidator from the recovery of voidable transactions.

In these circumstances, based upon the greater expected return
under a Deed of Company Arrangement, it is the Administrator's
opinion that it is not in the interest of creditors for the
company to be wound up.


MTM ENTERTAINMENT: Babcock & Brown Changes Holding
--------------------------------------------------
Babcock & Brown Group increased its relevant interest in MTM
Entertainment Trust on 10 July 2001, from 30,349,514 ordinary
units (37.94 percent) to 34,700,091 ordinary units (43.38
percent).


MTM ENTERTAINMENT: Babcock & Brown Raises Holding To 44.63%
-----------------------------------------------------------
Babcock & Brown Group increased its relevant interest in MTM
Entertainment Trust on 11 July 2001, from 34,700,091 ordinary
units (43.38 percent) to 35,705,587 ordinary units (44.63
percent).


MTM ENTERTAINMENT: Sunderton Meets Macquarie Requirements
---------------------------------------------------------
Sunderton Pty Ltd advises that it has complied with the
Macquarie Bank requirements for an extension of their current
facility to MTM Funds Management Ltd (MTM) as responsible entity
for MME. The Macquarie Bank requirements were included in the
supplementary bidder's statement sent to the Australian Stock
Exchange (ASX) on 2 July 2001.

On 10 July 2001 Sunderton acquired the MTM shares of Inanda
Associates
Pty Ltd for a purchase price of $800,000 on basis of net assets
of $1. This purchase price will be adjusted for actual net
assets at this date.

For any questions please call Director R Topfer at 9229 1800.


PRESTON RESOURCES: Cowan Resigns As Director
--------------------------------------------
The Board of Directors of Preston Resources Limited says it has
received the resignation of Chris Cowan as a Director from all
Preston Group Companies. The resignation was effective 8 July
2001.

The Board has appointed Trevor Mathews as a Director of the
following companies.

Preston Resources Ltd
Preston Nickel Holdings Pty Ltd
Bulong Operations Pty Ltd
Bulong Nickel Pty Ltd
Marlborough Nickel Pty Ltd

Trevor will retain his role as Company Secretary for entities
within the Preston Group.

The Board, says Managing Director A Griffin, would like to thank
Chris for his contributions and wish him well for the future.


================================
C H I N A   &   H O N G  K O N G
================================


CHEUNG FUNG: Winding Up Petition Hearing Set
--------------------------------------------
The petition to wind up Cheung Fung Scientific Company Limited
is scheduled for hearing before the High Court of Hong Kong on
August 1, 2001 at 9:30 am. The petition was filed with the court
on May 29, 2001 by The National Commercial Bank Limited, Hong
Kong Branch whose principal place of business in Hong Kong is
situated at 1-3 Wyndham Street, Central, Hong Kong.


CIL HOLDINGS: Enters Shares Sale Deal With Law
----------------------------------------------
CIL Holdings Limited announces that on 10 July 2001, a
conditional agreement (the Agreement) was entered into between
the Law Kwok Sum (the Vendor) and the Company pursuant to which
the parties have agreed on the sale of the Sale Shares.

The consideration for the sale of the Sale Shares is
HK$39,200,000, which is to be satisfied by the allotment and
issue of the Consideration Shares.

The transaction contemplated under the Agreement constitutes a
discloseable transaction and share transaction of the Company
under Chapter 14 of the Listing Rules.

The Agreement Dated 10 July 2001

Parties: (1) The Vendor, an Independent Third Party

    (2) the Company

Summary: On 10 July 2001, the Agreement was entered into between
the Vendor and the Company pursuant to which the parties have
agreed on the sale of the Sale Shares. The consideration for the
sale of the Sale Shares is HK$39,200,000. The remaining shares
in Morning Star Travel and Tours (MSTT) is owned by Kemayan
Hotels and Leisure Limited, a company which shares are listed on
the Australian Stock Exchange.

The consideration of HK$39,200,000 under the Agreement is to be
satisfied by the allotment and issue of the Consideration
Shares, credited as fully paid.

The transaction contemplated under the Agreement constitutes a
discloseable transaction of the Company under Chapter 14 of the
Listing Rules.

It also constitutes a share transaction of the Company under
Chapter 14 of the Listing Rules as a result of the issue and
allotment of the Consideration Shares as consideration for the
sale of the Sale Shares.

Conditions: The Agreement is conditional upon, amongst other
things, fulfillment of all the following conditions:

   (a) legal and financial due diligence on the affairs of MSTT
to be conducted at the cost and to the satisfaction of the
Company;

   (b) the delivery by the Vendor the Audited Accounts and the
financial position of MSTT as revealed in the Audited Accounts
shall not be less favorable than those shown in the Proforma
Balance Sheet, and for the avoidance of doubt, the assets and
liabilities as shown in the Audited Accounts may be different
from these shown in the Proforma Balance Sheet;

   (c) valuation of MSTT being obtained by the Company at the
costs and expenses and to the satisfaction of the Company having
regard to the consideration and the Audited Accounts; and

   (d) approval from the Stock Exchange having been obtained for
listing of and permission to deal with the Consideration Shares.

Completion: Subject to the fulfillment of the above conditions
or the waiver thereof by the Company, Completion shall take
place on 10 September 2001 or such other day as shall be agreed
by the parties in writing.

On Completion, two persons as the Company may designate shall be
appointed as additional directors of MSTT with effect from
Completion.

Consideration: The consideration of HK$39,200,000 is to be
satisfied by the Company at Completion by the allotment and
issue of fully paid Consideration Shares, credited as fully
paid.

The Consideration has been determined after arm's length
negotiations between the parties by reference to the net
tangible assets value of MSTT which as at 31 May, 2001 was
P271,317,307.62 (equivalent to HK$40,495,120.54), the value of
the cash on hand and in bank in the amount of P140,236,550.85
(equivalent to HK$20,930,828), the profit guarantee under the
Agreement, the future prospect of MSTT and the potential synergy
between the business of the CIL group and the business of MSTT.

The Consideration Shares will be issued under the current
general mandate granted in the special general meeting of the
Company held on 21 May 2001.

A circular containing details of the Acquisition will be
dispatched to the shareholders of the Company as soon as
practicable.

The Consideration Shares will when issued rank pari passu with
the Shares then in issue and have the same rights to dividends
the record date for which falls on or after the date of the
Agreement.

Other terms: Vendor's representations, warranties and
undertakings:

The Vendor warrants and undertakes that MSTT will for each year
in the two year's period following Completion have a
distributable net profit of P42,880,000 (equivalent to
HK$6,400,000.00) and the distributable net profit attributable
to the Sale Shares for each said year shall be P21,011,200
(equivalent to HK$3,136,000.00).

To secure the warranties and undertakings of the Vendor as
mentioned above, the Vendor shall:

   (a) on Completion, pay to the Company or as it shall direct
the sum of HK$3,136,000.00 (being equivalent to P21,011,200);

   (b) if the distributable net profit attributable to the Sale
Shares for the second year following Completion as revealed in
the audited accounts of MSTT for the second year shall be less
than P21,011,200  (equivalent to HK$3,136,000.00), pay to the
Company the shortfall within 14 days after finalization of the
audited accounts of MSTT.

The Company shall:

   (a) if the distributable net profit attributable to the Sale
Shares as shown in the audited accounts of MSTT for the first
year following Completion shall be P21,011,200 or more, re-pay
to the Vendor the sum of HK$3,136,000.00 referred to in (a)
above within 14 days after finalization of the audited accounts
for the said first year after Completion.

   (b) if the distributable net profit attributable to the Sale
Shares as shown in the audited accounts of MSTT for the first
year following Completion shall be less than P21,011,200, re-pay
to the Vendor the amount of the actual distributable profit
payable to the Company pursuant to its holding of the Sale
Shares, and which is shown in the said audited accounts in Hong
Kong dollars at the conversion rate of HK$1.00 to P6.7 within 14
days after finalization of the audited accounts for the first
year after Completion.

The issue price for the Consideration Shares is HK$0.01. The
closing price per Share quoted on the Stock Exchange on 6 July
2001 is HK$0.01. The average closing price of the Share as
quoted on the Stock Exchange for the 10 trading days of the
Shares ended on 6 July 2001 is HK$0.01. At the moment 77.77
percent of the issued share capital of the Company is held by
the public.

The Consideration Shares represent approximately 15 percent of
the existing issued share capital of 26,094,700,246 Shares and
approximately 13 percent of the enlarged issued share capital
after the issue of the Consideration Shares.

MSTT

The principal business of MSTT is to provide travel agency
business. The net income of MSTT after tax based on the interim
statement of income and retained earnings for the five months
starting from 1 January 2001 to 31 May 2001 was P8,965,191.77
(equivalent to HK$1,338,088) and the net asset value of MSTT as
at 31 May 2001 accordingly to its interim balance sheet as at 31
May 2001 was P301,317,307.62 (equivalent to HK$ 44,972,732).

Reasons for and benefits of the Acquisition

The principal activities of the CIL group are investment
holdings and contracting in interior decoration and renovation,
building and construction services, electrical and mechanical
engineering and trading of building and interior decoration
materials and the design and manufacturing of multi-media and
digital communication products, broadband multi-media set-top
boxes, Code-Division Multiple Access (CDMA) mobile phones and
Digital Versatile Disk (DVD) players in the PRC.

The Directors intend to continue to diversify the CIL group's
core businesses so as to broaden and strengthen its asset and
income base as well as strengthen its core-business.

The Company has acquired an interest in Goldhill Merchandising
Inc. (GMI) recently, which business is the provision of retail
premises, leasing facilities and equipment and exclusive
wholesale supply of merchandise to 18 convenience stores in the
Philippines.

The Directors are of the view that the business of MSTT will
provide synergy also to the business of GMI. The plan of the
Company is to arrange for certain travel agency services to be
available through the 18 convenience stores owned by GMI, for
example, air-tickets may be sold in these convenience stores.

The Company has the intention to acquire the remaining 51% of
the issued shares of MSTT. A further announcement will be made
by the Company if and when it decides to enter into an agreement
to make such acquisition.

General

This announcement appears for information purposes only and does
not constitute an invitation of offer to acquire, purchase or
subscribe for securities of the Company. Application will be
made to the Stock Exchange for listing of and permission to deal
in the Consideration Shares.

A circular containing details of the Acquisition will be
dispatched to the shareholders of the Company as soon as
practicable.

Definitions

In this announcement, the following terms have the following
meanings:

Acquisition - the acquisition of the Sale Shares between the
Vendor and the Company;

Agreement - conditional agreement dated 10 July 2001 between the
Vendor and the Company for the Acquisition;

Audited Accounts - the audited financial statements of MSTT
prepared for the period ended on the Audited Accounts Date;

Audited Account Date - 30 June 2001 such other date as shall he
agreed between the parties in writing;

Completion - completion of the sale and purchase of the Sale
Shares pursuant to the terms of the Agreement;

Consideration - the sum of HK$39,200,000 to be satisfied by the
Company at Completion by the allotment and issue of
Consideration Shares credited as fully paid in accordance with
the terms of the Agreement;

Consideration Shares - 3,920,000,000 new Shares to be issued
upon Completion on satisfaction for the consideration of the
Sale Shares;

Directors - the directors of the Company;

MSTT - Morning Star Travel and Tours, Inc., a company
incorporated under the laws of the Republic of Philippines
having an authorized capital stock of P10,000,000 divided into
1,000,000shares of stock with a par value of ten peso each of
which 880,000 shares have been issued;

Independent Third Party - an independent third party not
connected with the Directors, chief executive or substantial
shareholders of the Company or any of its subsidiaries or their
respective associates as defined in the Listing Rules;

Listing Rules - The Rules governing the Listing of Securities on
the Stock Exchange;

Proforma Balance Sheet - the proforma balance sheet of the
Company as of 31 May 2001;

Sale Shares - 431,199 shares representing 49% of the issued
shares of MSTT;

Share(s) - share(s) of HK$0.01 each in the share capital of the
Company;

Stock Exchange - The Stock Exchange of Hong Kong Limited; and

Vendor - Mr. Law Kwok Sum, an Independent Third Party


CIL HOLDINGS: Winding Up Petition Hearing Adjourned
---------------------------------------------------
The hearing of the winding-up petition served by Sin Hua Bank
Limited against CIL Holdings Limited was ordered to be further
adjourned to 30 July 2001.

Also American Design Associated Limited informed the Court of
its intention to withdraw its winding-up petition against the
Company and would apply to be substituted as a petitioner if the
former was to be dismissed.

Trading in the shares was suspended from 10:00 a.m. on 9 July
2001 at the request of the Company pending release of this
announcement and application has been made to the Stock Exchange
for the resumption of trading of the shares from 10:00 a.m. on
12 July 2001.

During the adjourned hearing of the First Petition held on 9
July 2001, the Justice ordered the hearing of the First Petition
to be further adjourned to 30 July 2001.

Since the Second Petition was scheduled to be heard on 25 July
2001, the Justice then indicated that she was not prepared to
allow the existence of two petitions against one company. Having
considered the learned Justice's indication, the Counsel for
American Design informed the Court of its intention to withdraw
the Second Petition and would apply to be substituted as a
petitioner if the First Petition was to be dismissed.

The Company is now in process of settlement negotiation with Sin
Hua and American Design and will issue further announcement as
and when appropriate.

Trading in the shares was suspended from 10:00 a.m. on 9 July
2001 at the request of the Company pending release of this
announcement and application has been made to the Stock Exchange
for the resumption of trading of the shares from 10:00 a.m. on
12 July 2001.


LUNG TIN INTERNATIONAL: Winding Up Petition To Be Heard
-------------------------------------------------------
The petition to wind up Lung Tin International Engineering
Limited is scheduled to be heard before the High Court of Hong
Kong on August 22, 2001 at 9:30 am. The petition was filed with
the court on June 8, 2001 by Wang Mingjun of 72D, Hop Yick Road,
Yuen Long, New Territories, Hong Kong.


PACIFIC MARBLE: Hearing of Winding Up Petition Set
--------------------------------------------------
The petition to wind up Pacific Marble & Granite (China) Limited
is scheduled to be heard before the High Court of Hong Kong on
July 18, 2001 at 9:30 am. The petition was filed with the court
on April 20, 2001 by PT. Pancayasa Primatangguh of JL Arteri
Rays Sisi Tol (Pejuangn), Komplers Prisma Kedoya Plaza, Block A
26, Jakarta Barat, Indonesia.


SENA PROPERTIES: Petition To Wind Up Scheduled
----------------------------------------------
The petition to wind up Sena Properties Limited is set for
hearing before the High Court of Hong Kong on August 15, 2001 at
9:30 am. The petition was filed with the court on June 4, 2001
by Po Sang Bank Limited of 71 Des Voeux Road Central, Hong Kong.


SINOPEC CORP: Gets CSRC Approval On A Share Issue
-------------------------------------------------
Sinopec Corporation, also known as China Petroleum & Chemical
Corporation, has obtained the approval of the CSRC (Zheng Jian
Fa Xing Zi) [2001] No. 38 in relation to the A Share Issue.

The number of A Shares to be issued by Sinopec Corp. under the A
Share Issue has been fixed at 2.8 billion A Shares, and the
issue price of A Shares (the "Issue Price") has been determined
by Sinopec Corp. at RMB4.22 per A Share.

The application of the A Share Issue outside the system network
of the Shanghai Stock Exchange which is connected to the sales
department of each securities company ("Network") closed on 9
July 2001 and the application of the A Share Issue within the
Network will start on 16 July 2001.

An Announcement regarding the A Share Issue within the Network
and a summary of the prospectus for the A Share Issue were
published in the newspapers in the PRC on 12 July 2001.

The full prospectus for the A Share Issue can be found on the
website of Shanghai Stock Exchange (www.sse.com.cn).

Announcements regarding the application results of the A Share
Issue within and outside the Network will be published in the
newspapers in the PRC on 19, 20 and 23 July 2001, which will
include the ratio of successful application within the Network,
the successful application numbers and the result of placing
outside the Network.

The ballot of the A Share Issue within the Network is scheduled
to take place on 19 July 2001.

An announcement of the ballot results of the A Share Issue
within the Network is scheduled to be published in the
newspapers in the PRC on 20 July 2001.


STAREX TRADING: Winding Up Petition Set For Hearing
---------------------------------------------------
The petition to wind up Starex Trading Limited is set for
hearing before the High Court of Hong Kong on August 15, 2001 at
9:30 am.  The petition was filed with the court on June 6, 2001
by Kincheng Banking Corporation, a banking corporation duly
incorporated in the People's Republic of China and having a
branch office at No. 55 Des Voeux Road Central, Hong Kong.


=================
I N D O N E S I A
=================


BANK INTERNASIONAL: Fitch Affirms B- Rating, Negative Outlook
-------------------------------------------------------------
Following Bank Mandiri announcing its intention to acquire Bank
Internasional Indonesia, Fitch has affirmed its ratings for
these two banks at Support '4T' for Mandiri and, for BII, Local
Currency Long-term 'B-', Foreign Currency Long-term 'B-' (B
minus), both with a Negative Outlook, Foreign Currency Short-
term 'B', Support '5T').

Mandiri's acquisition of BII (which is expected to be
consummated at end-September 2001) was apparently at the behest
of the Indonesian government as a means to rescue BII given its
high level of exposure to the Asia Pulp & Paper Group (APP). The
latter suspended the payment of its principal and interest
obligations in January 2001.

At this stage, the details of the acquisition have yet to be
announced, including that in regards to price, structure, and
the treatment of BII's exposure to APP.

Structurally, it is not clear whether BII will be merged into
Mandiri or become a subsidiary. Indications are that the
Indonesian Bank Restructuring Agency will assume BII's exposure
to APP and in return provide BII/Mandiri with a mix of
government bonds and restructured loans.

Apart from gaining BII's reasonable consumer franchise, where
Mandiri is weak, Fitch sees little upside for Mandiri. In fact
it is Fitch's estimate that even under a best-case scenario
whereby Mandiri acquired BII for a nominal amount and the APP
exposure was entirely replaced with government bonds, there
would still be a slight deterioration in the Mandiri's financial
standing.

A greater level of deterioration would be involved if Mandiri
paid any substantial amount for BII and/or if the APP exposure
was predominantly replaced with restructured loans of
questionable quality.


=========
J A P A N
=========


CHIBA BANK: Ratings For Downgrade, Says Moody's
-----------------------------------------------
Moody's Investors Service has placed Chiba Bank's (Chiba) A3
long-term deposit rating, A3 issuer rating, D bank financial
strength rating, Baa1 subordinated debt rating, and Baa2 junior
subordinated debt rating under review for possible downgrade.

The Prime-2 short-term deposit rating will not be included in
the review process. The prospective rating for senior unsecured
debt of (P) A3 will be included in the review process.

This review was prompted by Moody's concern about the
sustainability of Chiba's future pre-provision profits, its
ability to rebuild the comparatively lower economic
capitalization in a timely manner, and the impact of additional
credit costs.

Although Chiba is currently enjoying strong operating earnings,
Moody's will examine their likely sustainability given the
increasingly competitive housing loan market, and weak bank
financing demand in the local middle market. At the same time,
the review will focus upon the bank's ability to control
additional credit costs arising from the weak state of the
regional economy.

The following ratings have been placed under review for possible
downgrade:

Chiba Bank, Limited - A3 long-term deposit rating, A3 issuer
rating, D bank financial strength rating, Baa1 subordinated debt
rating, Baa2 junior subordinated debt rating, and the
prospective rating for senior unsecured debt of (P) A3.

Chiba Capital Funding (Cayman), Limited - Baa1 subordinated debt
rating and Baa2 junior subordinated debt rating.


NISSAN MOTOR: Debt Ratings Set For Possible Downgrade
-----------------------------------------------------
Moody's Investors Service has placed the short and long term
debt ratings of Nissan Motor Co., Ltd. (Nissan) and its
supported subsidiaries on review for possible upgrade.

The review reflects Moody's acknowledgment of Nissan's
successful cost and debt reduction in the first phase of its
restructuring plan, the Nissan Revival Plan.

Moody's notes that Nissan has cut procurement costs, sold assets
and closed plants in order to achieve the desired positive
impact on its financial performance.

Moody's review will focus on Nissan's ability to return to long
term profitability and its capacity to further improve operating
cash flow. In addition, Moody's will evaluate Nissan's new model
plan over the coming years, as well as the company's sensitivity
to foreign exchange rates.

Nissan's financial performance in North America, which
historically has been an important contributor to earnings, will
also be reviewed. In particularly Moody's will assess the impact
of a slowdown in US sales volume, and Nissan's ability to ride
out this downturn.

The ratings under review include:

Nissan Motor Co., Ltd: Ba1 for long term debt securities

Nissan Motor Acceptance Corporation: Ba1 for long term debt
securities

Nissan Capital of America, Inc: Ba1 for long term debt
securities and Not Prime for commercial paper program

Nissan International Finance (Netherlands) BV: Ba1 for long term
debt securities and Not Prime for commercial paper program

Nissan Motor Co., Ltd., headquartered in Tokyo, Japan, is a
leading global automobile manufacturer.


=========
K O R E A
=========


DAEWOO ELECTRONICS: Creditors Mull Over Debt Swap
-------------------------------------------------
Creditors of Daewoo Electronics Company are still considering
the extent they could grant the company in the proposed debt-
for-equity swap, for them to take over the company's control and
consequently, sell the company to a third party, Bloomberg
reported Thursday.

Park Kang Seok of Hanvit, one of the creditor banks of the
company, was quoted as saying, "The size of the (debt-for-
equity) swap will be decided either [Thursday] or [Friday] and
we will send our proposal to the main creditors for a vote."

Daewoo Electronics, a unit of the collapsed Daewoo Group, has
debts totaling W5.4 trillion, almost twice as much as its total
assets as of December 31, 2000.


DAEWOO MOTOR: Talks With GM Nearing End
---------------------------------------
The sale talks between insolvent Daewoo Motor and American
carmaker General Motors Corp (GM), which started on July 4, are
already nearing completion, with the latter offering W800
billion to take over the Korean automaker, Bloomberg reported
yesterday, citing Finance and Economy Minister Jin Nyum.

Wednesday, Daewoo Motor announced that the company booked an
operating profit of W21.9 billion in the second quarter, as
opposed to a loss of W46.4 billion in the preceding quarter this
year.


KOREA LIFE: Sale Will Speed Ahead In September
----------------------------------------------
When the due diligence audit of Korea Life Insurance is
completed by end of August, it is expected that the government
will speed up the sale of the state life insurer by September,
The Korea Herald reports Wednesday, citing an official at the
Ministry of Finance and Economy.

Completion of the sale is expected in December, the report says,
but only if the sale timetable will be followed successfully.

Merrill Lynch is lead-managing the sale, while a Hong Kong
actuary firm is conducting the due diligence audit, under the
commission of the former, the report says.


SSANGYONG CEMENT: Cuts Workforce By 100 More
--------------------------------------------
Ssangyong Cement has further reduced its workforce, as 100
workers availed themselves this month of the company's voluntary
resignation program, The Digital Chosun reported Thursday.

The number includes 70 middle-level managers.

The program is part of the company's aim to reduce its workforce
to about 1,400.

Ssangyong Cement has shed a total of 2,460 workers already for
the last four years.

Ssangyong Cement's financial health is recuperating, owing to a
W1.4-trillion debt-for-equity swap and a W300-billion fresh
investment from Taiheiyo Cement of Japan.

The cement maker inked an MoU in early this year to let go of
its holding of 3.84 million shares, comprising 71 percent stake,
in the Ssangyong affiliate. The sell-off was originally priced
at W316.8 billion.


===============
M A L A Y S I A
===============


ACTACORP HOLDINGS: Winding Up Petition Served
---------------------------------------------
Actacorp Holdings Berhad has been served with a winding-up
petition, details of which are as follows:

   1. Date Petition served: 10 July 2001

   2. Amount claimed: RM766,947.17

   3. Details of default: The claim is based on sub-contract
agreement entered into between the Tenaga M.E.C. Sdn Bhd (TMEC)
and Teknik Cekap Sdn Bhd (TCSB), a wholly owned subsidiary of
the Company, dated 27 April 1996 for the Fire Protection
Services, Air Conditioning Ventilation Services & Electrical
Services at Technology Park Malaysia, Sungai Besi. The reason
which led to the filing of the winding-up petition is based on
claim that TCSB owed them RM669,406.00 in progress payment of
which judgment was obtained. The winding-up petition is
scheduled to be heard on 11 September 2001.

   4. The expected loss: - NIL -

   5. Operational and financial
      impact on the Group: - NIL -

   6. Steps taken: The Company is already in communication with
TMEC to resolve the matter prior to the hearing date of 11
September 2001.

Meanwhile, TCSB's has instructed its solicitor's to file an
application to strike off the petition.

Background

The Actacorp Group is a one-stop construction concern.
Construction and engineering activities are undertaken by
flagship companies Teknik Cekap, V-Pile Sistem and Noble
Concepts. Teknik Cekap is a Class "A" Contractor approved to
undertake government projects with no limit in size and value.

The Group started out as manufacturers and distributors of
agricultural chemicals and organic fertilizers. In 1991,
activities were enhanced through diversification into
engineering and construction. Participation in property
development followed in 1994.

The Group is currently in an advanced stage of negotiation of a
restructuring exercise under the purview of the CDRC. The
proposed restructuring exercise is intended to revitalize the
Group's financial position.


FEDERAL FURNITURE: Seeking Submission Extension Approval
--------------------------------------------------------
Federal Furniture Holdings (Malaysia) Berhad is currently
awaiting the written approval from some of the creditor banks
who are parties to the Debt Restructuring Agreement signed on 11
October 2000, to extend the stipulated period for the
fulfillment of the conditions precedent therein, before the
Submissions can be made.

Federal Furniture Holdings (Malaysia) Berhad (FFHB) announced in
May that the submissions of the company's proposed rights issue
with warrants and proposed debt restructuring are expected to be
made within two months of May 12, 2001.

The company is currently awaiting the written approval from some
of the creditor banks who are parties to the Debt Restructuring
Agreement signed on October 11, 2000, to extend the stipulated
period for the fulfillment of the conditions precedent therein,
which had expired on April 11, 2001 before the submissions could
be made.

Background

The Group's involvement in the furniture industry began 30 years
ago as a small family concern under the stewardship of Choy Fook
On. The Group has three principal operating business units
consisting of manufacturing and export of furniture, trading and
retailing of furniture and renovations and interior fit-outs.

The manufacturing and export division manufactures wooden dining
sets and case goods for the export markets. The plant, which is
located in Banting, has a capacity to produce about 40, 40-foot
containers a month. The export markets are the US, Korea, Japan,
UK, Ireland, Singapore, Greece, Russia, Germany and Turkey.

The trading operations source furniture products consisting
mainly of dining sets, bedroom sets, antique reproductions and
outdoor furniture for customers in the US and Europe. These
products are sourced from manufacturers in Malaysia, China and
Indonesia.

Retailing operations have a showroom in the Klang valley that
specialize in home interior design and renovations and retailing
of high-end furniture, light fittings and fabric for home
furnishings.

The renovation and interior fit-out operations carry out
renovations and interior fit-outs of hotels and corporate
offices in the private and government sectors. The main market
for this division is in Malaysia although it has recently
secured projects overseas. The operations also import high-end
Italian office and home furniture for the local market.

The company had, on June 28, 2000, obtained bilateral short term
loan (STL) facility agreements with the guarantor banks for its
5-year 2.5 percent redeemable bank guaranteed bonds 1995/2000
amounting up to RM40 million, for the purpose of redeeming the
bonds upon maturity on June 29, 2000.

Subsequently, a proposed fund raising and debt restructuring
exercise involving the company and some financial institution
lenders of the company shall be undertaken.


JUTAJAYA HOLDING: Clarifies Auditors' Emphasis On Debt Due
----------------------------------------------------------
Jutajaya Holding Berhad clarified that there was no
qualification in the Auditors' Report in our Annual Report 2000.
It was merely an emphasis of matter by the Company's Auditors.

The emphasis of matter by the Auditors refers to a debt due from
a third party, which is currently undergoing a debt
restructuring scheme, the outcome of which is not known as at
the date.

The Board of Directors had adopted a prudent approach by
providing 25 percent of the outstanding amount as at 31 December
2000, totaling RM9,713,000.00.


NCK CORP: Unit Faces Winding Up Petition
----------------------------------------
NCK-Astarlite Sdn Bhd (NCKASB), a subsidiary of NCK Corporation
Berhad (Special Administrators Appointed), was served with a
petition of winding up on 11 July 2001 by Meridian Star Sdn Bhd
pursuant to the Judgement entered in the Kuala Lumpur High Court
Suit No. D7-22-557-2000.

On 11 June 2001, NCKASB was presented with a winding-up petition
and subsequently, the winding-up petition was served on 11 July
2001.

NCKASB is indebted to Meridian Star Sdn Bhd in the sum of
RM557,423.50 together with an interest rate of 8 percent per
annum from 28 March 2000 to the date of realization with costs
to be taxed or by consent between both parties. NCKASB has
insufficient funds to meet its financial obligations, which has
resulted the filing of the winding-up petition.

The Company through its subsidiary, NCK Metal Sdn Bhd holds 65
percent equity (487,500 ordinary shares of RM1.00 each) in
NCKASB and the cost of investment is RM708,000.00

The winding up proceedings does not have any operational or
financial impact on the group as NCKASB ceased its business
operations in March 2000.

Other that the non-recoverability of inter company loans
totaling RM2.53 million as at 30 June 2001 made to NCKASB, the
group is not likely to incur further losses arising from the
winding up proceedings.

Finally, the Management has instructed the solicitors to defend
the matter.


NOSTALGIC PROPERTIES: Defaulted On Interest Payment
---------------------------------------------------
Nostalgic Properties Sdn Bhd, a wholly owned subsidiary of Man
Yau Holdings Berhad (MYHB), has defaulted on its interest
servicing obligation amounting to RM6,803,456.23 (as at June
2001) in respect of its RM70.0 million Term Loan facilities (the
Loan) from Arab-Malaysian Bank Berhad (AMBB), which comprised
the following:

   - Term Loan facility of RM12.0 million (TL 1)

- Term Loan facility of RM52.0 million (TL 2)

   - Term Loan facility of RM6.0 million (TL 3)

The Loan is secured by the following:

   (i) 6 charges over 2 adjoining pieces of freehold land owned
by NPSB.

   (ii) A debenture over the fixed and floating assets of NPSB.

   (iii) Corporate guarantees by MYHB.

The default is due principally to the absence of sufficient
sales transacted on Northam Tower, the office building being
built on the above-mentioned freehold land.

Measures Taken By NPSB

The measures taken by NPSB include the following:

   (a) A request to AMBB for further deferment of the interest
servicing until after sufficient funds are raised from the sale
proceeds of Northam Tower.

   (b) The sale of office units in Northam Tower, from which the
sale proceeds shall be used to redeem the Loan and service the
interest payments due.

Legal & Financial Implication

Non-payment of interest constitutes an event of default by NPSB.
The default empowers AMBB to appoint a receiver or receiver and
manager.

The default in payment does not constitute an event of default
under a different agreement for indebtedness (cross default) as
the indebtedness of MYHB and its other subsidiaries are already
in default and is currently being resolved under MYHB's proposed
Capital and Debt Restructuring Scheme.

MYHB has made regular and timely announcements on the progress
of its proposed Capital and Debt Restructuring Scheme and
continues to do so on a monthly basis in compliance with
Practice Note No. 4/2001.

In the meantime, NPSB is negotiating with AMMB for a further
deferment of its interest-servicing obligation.


PARIT PERAK: Vendors Refuse To Extend Negotiation Period
--------------------------------------------------------
Parit Perak Holdings Berhad (PPHB) on 11 July 2001, through its
solicitor, received a letter from solicitor of Bentaniaga Sdn.
Bhd. and Desa Lestari Sdn. Bhd. (the Vendors) dated 5 July 2001
stating that the Vendors are not agreeable to extend the
negotiation period. Consequently, the Master Agreement is
considered to have lapsed.

The Board of Directors of PPHB is still actively in negotiation
with the lenders of PPHB Group and seeking suitable viable
assets/businesses for acquisition with the main objective to
rescue PPHB Group and return it to a secure financial footing
and profitability.

PPHB on 3 April 2001 entered into a Master Agreement with
Bentaniaga Sdn. Bhd. and Desa Lestari Sdn. Bhd. (Vendors) on a
tentative scheme of reconstruction of PPHB and its subsidiaries
(PPHB Group) and that the Company had on 2 July 2001 written to
the Vendors to request that the negotiation period of the Master
Agreement which would lapse on 2 July 2001 be extended to 31
July 2001.

Background

Initially the Company carried out rubber planting activities,
but its business has changed to that of an investment holding
concern. Via a restructuring scheme undertaken in 1994, the
Company divested its plantation interests and re-invested
principally into property development activities. Its main
development is the Kemayan City project in Johor Bahru, where
the Kemayan City Shopping Complex was completed in February
1999.

In February 2000, the Company sought the assistance of the CDRC
in mediating a scheme to restructure the Group's debts and
borrowings. On 8 August 2000, a restructuring scheme was
unveiled which comprises a proposed capital reduction and
consolidation, rights issue, acquisition of a shopping complex
in Seremban and a debt restructuring scheme. The proposals are
expected to be submitted to the SC within six months from 30
November 2000.

Meanwhile, the Company has been appointed the main turnkey
contractor to complete the construction of the podium block of
the largest shopping center in Seremban, known as Kemayan Square
Shopping Mall. The shopping center is targeted to reach
practical completion by the end of 2001. The Group also plans to
re-position itself in the property development sector by
constructing apartments on top of the Kemayan City shopping
podium in Johor Bahru instead of the present approved plans for
three office towers and a hotel.


TIMBERMASTER INDUSTRIES: Enters Shares Sale & Purchase Deal
-----------------------------------------------------------
Timbermaster Industries Berhad (TMIB) (Special Administrators
appointed) stated the following:

   1) On 7 July 2001, TMIB has entered into a Sale and Purchase
of Shares Agreement (SPA) with Foowood for the sale of 100
percent issued and paid up capital of Perkayuan T.M. (Malaysia)
Sdn Bhd (PTM) (Special Administrators appointed) for the
purchase consideration of RM5.8 million cash. PTM is a 100
percent owned subsidiary of TMIB.

   2) The principal activity of PTM was manufacturing of solid
wooden doors and, door and window frames. The key assets of PTM
are land and buildings, and plant and machinery.

   3) Foowood's offer of RM5.8 million for the purchase of PTM
is arrived at based on 'willing buyer and willing seller' basis
and also based on the open market value (OMV) of the land and
buildings, and plant and machinery of PTM. The key payment terms
are as follows:

      * Security Deposit of RM1.8 million upon signing of the
SPA

      * 4 monthly installments of RM1 million each at the end of
month 1 to 4 after signing of SPA (total RM4 million)

   4) Based on PTM's audited accounts for the financial year
ended 31 December 2000, PTM's net loss for year was RM9,599,589,
and PTM's net tangible assets as at 31 December 2000 was
(RM19,370,844).

   5) The effect of the sale of PTM on TMIB in respect of
earnings per share, net tangible assets per share, share
capital, and substantial shareholders' shareholding of TMIB,
calculated based on the respective audited accounts for
financial year ended 31 December 2000, are summarized as
follows:

Effect on TMIB:
                             Pre-sale of PTM    Post-sale of PTM
Earnings per share (EPS)* (342) sen  (334) sen

Net tangible assets (NTA) per share^ RM(5.82)   RM(5.82)

Share capital 65,842,272  65,842,272

Substantial shareholders'shareholding n/a         n/a

Note: * The EPS is based on the results of TMIB (company's
level). The sale of PTM is expected to result in an exceptional
gain of RM5.8 million to TMIB.

* The NTA per share is based on the results of TMIB (company's
level). The sale of PTM is not expected to affect the NTA per
share of TMIB as the proceeds from the sale of PTM would be
utilized to repay the creditors of PTM. T

   6) TMIB has provided a 100 percent diminution in the value of
TMIB's shareholding in PTM of RM1,808,194 in its audited
accounts for the financial year ended 31 December 2000.
Therefore, the disposal of 100 percent interest in PTM is
expected to result in an exceptional gain of RM5.8 million.

   7) The proceeds from the sale of PTM would be dealt with
under the workout proposal to be developed by the Special
Administrators of PTM and TMIB pursuant to Section 44 of the
Pengurusan Danaharta Nasional Berhad Act 1998.

   8) As PTM is subject to a special administration under the
Danaharta Act, the SPA is subject to the approvals of Danaharta
and the Secured Creditors. The SPA is also subject to the
approvals of the Ministry of International Trade and Industry
("MITI"), Danaharta and Securities Commission ("SC") ("the
Authorities"). The SPA is not subject to the approval of
shareholders in an EGM.

   9) A director of TMIB is related to a director of Foowood.
However, the SPA was entered into by the Special Administrators
and Foowood. The director of TMIB concerned was not involved in
the negotiations and execution of the SPA.

   10) The rationale for the sale of PTM to Foowood are as
follows:

       * Foowood's offer of RM5.8 million is the highest offer
available;

       * Payment term of 100% cash; and

       * Further delay in the sale of PTM and/or its assets may
have an adverse effect on its value.

   11) The completion of the SPA is expected to be completed
upon:

       * Approvals being obtained from the Authorities; and

       * Successful transfer of Land to PTM.


=====================
P H I L I P P I N E S
=====================


ORIENT COMMERCIAL: Court Lifts Order Against Ever Accounts
----------------------------------------------------------
Ever Gotesco Resources and Holdings, Inc. (the Company) informed
the Exchange that it received a photocopy of the decision of the
Court of Appeals in the case of Orient Commercial Banking
Corporation, Jose C. Go, et al., vs. Judge Rosmari Carandang, et
al., (CA-GR SP No. 60509) on 18 June 2001, lifting the
Preliminary Attachment Order against the accounts of EVER, among
others. The Company was also informed that the Order is not yet
final and executory.

To clarify the case, EVER provided the Exchange the following
additional information with regard to the aforementioned matter:

Background and Nature of Case

   1. On 14 February 1998, Orient Commercial Banking Corporation
(Orient) declared a bank holiday.

   2. Subsequent attempts to rehabilitate Orient proved futile.

   3. On 14 October 1998, the Bangko Sentral ng Pilipinas (BSP)
placed Orient under receivership and designated the Philippine
Deposit Insurance Corporation (PDIC) as receiver. Thereafter,
PDIC, as receiver, took over all the assets, properties,
obligations and operations of Orient.

   4. In turn, Orient together with several biggest stockholders
of Orient, namely, Jose C. Go, Ever Electrical Manufacturing,
Inc. and Go Tong Electrical Supply, Inc. filed with the RTC
Manila Branch 44, a petition for certiorari, prohibition and
mandamus against the Monetary Board of the BSP and PDIC.

   5. Subsequently, while the case (No. 4 above) was pending
with the Court, BSP resolved and directed PDIC to proceed with
the liquidation of Orient. Pursuant to the BSP directive, PDIC
filed with the RTC Manila Branch 51, Special Proceedings in re:
Petition for Assistance in the liquidation of Orient.

   6. While the two cases mentioned above were pending before
RTC Manila Branch 44 and 51, the BSP, on 10 December 1999 filed
with the RTC Manila Branch 12, a civil case for sums of money
(collection case) with prayer for preliminary attachments
against Orient, including Ever Gotesco Resources and Holdings,
Inc. (EVER), among others. On 14 January 2000, RTC Manila Branch
12 issued a Preliminary Attachment Order against the properties
of Orient and other defendants including EVER. Motions for
reconsideration were denied.

   7. Hence, Orient, et. al. including EVER filed with the Court
of Appeals (CA GR. SP No. 60509) a Petition for Certiorari,
Prohibition and Mandamus with prayer for preliminary injunction
and that thereafter judgment be rendered voiding the orders of
the respondent judge of RTC Manila Branch 12, among others.

   8. One of the issues raised by petitioners Orient, et. al. is
`may the questioned writ of preliminary attachment issue against
the properties of the corporations on the basis alone of being
considered as related interest?'

   9. The decision of the Court of Appeals in regard to the
lifting of the order attachments were already reported to the
PSE and SEC.

Possible Effect Of Lifting The Preliminary Attachment

In the event the attachment order becomes final and executory,
EVER will be able to get back to its normal financial and
operating tract. Simply stated, cash flow shall improve as a
result of:

   1. cash windfall from collections of rental arrearages from
tenants;

   2. release of cash collections held in escrow by the Court
and frozen bank accounts;

   3. normalization of EVER's periodic revenue and cash flow
stream.

thus enabling EVER to better service its trade creditors and
debt obligations.

Further, EVER says that the Bangko Sentral ng Pilipinas filed a
Petition with the Supreme Court For Certiorari with prayer for
the issuance of a writ of Preliminary Injunction and a Temporary
Restraining Order versus the Honorable Court of Appeals, Orient
Commercial Banking Corporation and others, including Ever
Gotesco Resources and Holdings, Inc., `EVER' as one of the
respondents relative to the decision of the Court of Appeals in
CA-GR SP No. 60509 lifting the Preliminary Attachment Order
against EVER, among others.


PILIPINO TELEPHONE: Signs Subscription Deal With PLDT
-----------------------------------------------------
Philippine Long Distance Telephone Company (PLDT) announces that
it signed a Subscription Agreement with Pilipino Telephone
Corporation (Piltel) on 9 July 2001.

This is pursuant to which PLTL subscribed for additional 543,165
shares of Series J Class I Preferred Stock out of the authorized
and unissued shares of the capital stock of the Company, at the
subscription price of PhP1,000.00 per share or an aggregate
subscription price of P1,000.00 per share or an aggregate
subscription price of P543,165,000.00, payable in full upon
subscription.


RFM CORP: SMC Clarifies News Article Re Acquisition Deal
--------------------------------------------------------
RFM released statements regarding the following news articles:

1. "RFM nears deal to sell Cosmos" published in the 10 July 2001
issue of the Philippine Daily Inquirer which reported that
"...RFM was now leaning toward closing a deal with San Miguel,
and an acquisition price of at least PhP14.5 billion was being
considered...."; and

2. "Buy rumors boost Cosmos, RFM shares in stock mart" published
in the 10 July 2001 issue of the Business World which reported
that "...Shares of the Concepcion-owned company and subsidiary,
Cosmos Bottling Corp. (CBC), soared yesterday at the stock
exchange at the back of talk the parent firm has already
finalized a deal with food and beverage giant San Miguel Corp.
(SMC) for the acquisition of its soft-drink unit. The market
reacted positively to the unconfirmed news that started
circulating last Friday when RFM and SMC allegedly signed the
agreement. ... Talk has it that SMC finally agreed to acquire
majority stake in the RFM-owned soft-drink company for PhP14.5
billion, or for PhP565 per share, involving 85% of CBC's capital
stock. ...".

San Miguel Corporation explains that it is in discussions with
RFM for the acquisition of RFM's entire stake in Cosmos Bottling
Corporation. No agreements have been reached, as to price,
structure or other details.


RFM CORP: Bondholders To Receive Payment
----------------------------------------
RFM Corporation and its wholly owned subsidiary, RFM Capital
Ltd., disclosed that it has started initial discussions with
bondholders, where RFM gave the assurance that it shall fully
meet its obligations to the bondholders, and that it shall
immediately allocate.

This will be made through an escrow fund in favor of the
bondholders, the proceeds from the recent sale of its shares in
Consumer Bank and Psi Technologies and its Tuna brand which
should total to around $38 million.

According to RFM CFO Meldin Al G. Roy, RFM currently estimates
the outstanding bond obligation at $56 million, which includes
the put premium. RFM indicated that it was able to work earlier
on a reduction of its obligation through bonds buy-back and
refinancing arrangements.

Roy said that with the $38 million funds it has now, it will be
able to settle around 68 percent of its current obligation. The
balance of $18 million should be very manageable amount that
will be mainly sourced from operating cashflows.

Roy added that the repayment plan for the remaining $18 million
obligation is currently being worked out with the bondholders
and they expect to successfully conclude very soon a mutually
beneficial arrangement and timetable.


=================
S I N G A P O R E
=================


ACMA LIMITED: Exchange OKs Rights Issue
---------------------------------------

The Board of Directors of Acma Limited said that on 10 July
2001, in-principle approval was granted by the Singapore
Exchange Securities Trading Limited (the SGX-ST) for the listing
of and quotation for the Rights Shares, the Warrants 2004 and
the New Shares on the Official List of the SGX-ST.

The SGX-ST's in-principle approval is not an indication of the
merits of the Rights Issue, the Rights Shares, the Warrants
2004, the New Shares, the Company or any of its subsidiaries.

The Rights Issue is subject to Shareholders' approval at an
Extraordinary General Meeting (EGM) to be convened on 30 July
2001.

A Circular to Shareholders dated 7 July 2001 setting out details
of the Rights Issue together with a notice of EGM was sent to
Shareholders on 7 July 2001.


ACMA LIMITED: Unit Sells MAE Engineering Shares
-----------------------------------------------
Acma Limited revealed its wholly owned subsidiary, State
Superior Limited (SSL), has agreed to sell through UOB Kay Hian
Private Limited, 17,107,209 ordinary shares of $0.05 each in the
capital of Acma's associated company, MAE Engineering Ltd (MAE),
at an agreed price of 16.5 cents per share.

Completion of the sale will take place as soon practicable after
the share certificates relating to these shares are deposited by
SSL into the Central Depository (Pte) Ltd (CDP) scripless
system.

The Shares sold represents 14.67 percent of the total paid up
share capital of MAE which is listed on SESDAQ. Upon completion
of the sale, MAE will cease to be an associated company of Acma
as its interest in MAE will fall below 20 percent.

SSL and UOB Kay Hian have also today signed a Call and Put
Option Agreement whereby UOB Kay Hian is granted an option to
purchase, and SSL is granted an option to sell, 11,900,000
ordinary shares in MAE representing 10.21 percent of the total
paid up capital of MAE. As these shares held by SSL are subject
to a sale moratorium, the call and put options can only be
exercised after the expiry of the moratorium in April 2002.

The moratorium was given by SSL to the Singapore Exchange
Securities Trading Ltd in March 2000 in conjunction with the
listing of MAE.

Under the terms of the moratorium, SSL did not dispose or
realize its then 36,527,280 ordinary shares in MAE for a period
of 12 months from listing. SSL retained its interest for the
next 12-month period, with GTS Benjamin Holdings Pte Ltd, in
aggregate at least 51 percent of the total issued and paid up
capital of MAE.

The moratorium in respect of the 17,107,209 shares has expired
and in respect of the 11,900,000 shares, will expire in April
2002. If the options are fully exercised, SSL will sell these
shares to UOB Kay Hian and/or their nominees at 16.5 cents per
share plus an agreed adjustment of 5 percent per annum.

The above transactions are not expected have a material impact
on either Acma's profits for the current financial year or its
net tangible asset backing. Rai Rajen, the Managing Director of
Acma, is a non-executive director of MAE. Except for the
aforesaid, none of the Directors or substantial shareholders of
Acma have any interest in any of the above transactions.


NATSTEEL LIMITED: Requests For Trading Suspension
-------------------------------------------------
NatSteel Limited wishes to request for a suspension in the
trading of all its securities from 9 am to 9: 20 am on Thursday,
12 July 2001 to permit proper dissemination of its announcement
made Thursday morning at 8.20 am.


NATSTEEL LIMITED: Losses Expected Due To Restructuring
------------------------------------------------------
NatSteel announced yesterday that due to the continued weakness
in the domestic construction sector and restructuring measures
being taken, the Group will post a loss for the half year ended
30 June 2001.

The Group's Singapore steel operations, in particular, have been
impacted by lower selling prices and by electricity tariffs some
35 percent higher than the corresponding period last year.

The Group has taken decisive steps to address the pressure on
margins through efforts to reduce costs and improve operational
efficiencies. Having undertaken an intensive review of its
Singapore steel operations, the Group has today implemented a
restructuring exercise to reduce its steel-making capacity in
its Singapore plant by 35 percent.

The goal is to reduce both fixed and variable costs and allow
the Group to take advantage of cheaper imported semi-finished
steel to cater to its Singapore market requirements.

The reduction in plant capacity has necessitated a retrenchment
exercise affecting 125 of NatSteel's Singapore steel plant's 650
employees. This leaner plant configuration is a necessary step
in the Group's effort to remain competitive in a difficult
trading environment.

In addition to the mandatory compensation entitlements of those
affected by the retrenchment exercise the Group has paid
additional ex-gratia payments totaling approximately S$600,000.

The Group is also conducting a thorough review to further
rationalize its non-core operations.

The write-down of steel production assets and other
rationalization measures for non-core businesses are expected to
result in a financial provision in the region of S$130 million.
This provision will be fully reflected in the half-year results
to be announced in August 2001.

Ang Kong Hua, President of NatSteel, commented: "The measures we
have outlined today enable us to position ourselves both to cope
with continuing weak market conditions in the region, as well as
reap the benefits of an upswing when the trading environment
improves.

"NatSteel remains in a strong financial position and we have
leading positions in many of the markets in which we compete. We
will continue to explore other opportunities to further improve
and strengthen our competitive position both in Singapore and
overseas."


===============
T H A I L A N D
===============


MODERN PLASTIC: Business Reorganization Filed In Civil Court
------------------------------------------------------------
Thai Modern Plastic Industry Public Company Limited (the Debtor)
is engaged in Manufacturing and Sale of Packaging Products
Issuance and Disposition of Security under Security and Exchange
Act.

The Petition for Business Reorganisation was filed to the Civil
Court:

   Black Case Number Lor.Phor. 3/2541

   Red Case Number Lor.Phor. 3/2541

Petitioner:

   :Credit Agricole Indosuez Bank

   :ING Bank N.V. Bangkok International Banking Facility

   :The Development Bank of Singapore Limited Banking Facility

   :Schroder International Merchant Bankers

   :Thai Danu Bank Public Company Limited

Proposed Planner: South Sathorn Planner Company Limited

Debts Owed to the Petitioning Creditors: Bt736,213,679.11

Date of Court Acceptance of the Petitioner: August 5, 1998

Court Order for Business Reorganization and Appointment of
Planner: August 27, 1998

The creditors' meeting passed a special resolution accepted the
amended plan and established the creditors' committee which is
comprised of:

   1. I N G BANK N.V.P.I.B.F (creditor number 96)

   2. THE DEVELOPMENT BANK OF SINGAPORE LIMITED (creditor number
167)

   3. A B N AMRO N.V. BANK (creditor number 173)

   4. BANGKOK BANK COMPANY LIMITED (creditor number 109)

The Civil Court set the date for the consideration of the plan:
April 20, 1999

On April 20, 1999, the Civil Court issued an order accepting the
reorganization plan of the debtor pursuant to Section 90/58
paragraph 1 of the Bankruptcy Act B.E. 2483 and appointed South
Sathorn Planner Company Limited to be a plan administrator.

Contact: Mr. Chanin, Tel. 6792512


PRASIT PATANA: Court Approves Plan
----------------------------------
PricewaterhouseCoopers Corporate Restructuring Limited, as Plan
Administrator of Prasit Patana Public Company Limited, announces
that the Central Bankruptcy Court has considered the Plan and
issued court order approving the Plan on 9 July 2001 at 2:30
p.m. at the Central Bankruptcy Court.


THAI INDUSTRIAL: Advisor Offers Opinion Of SKTY Tender Offer
------------------------------------------------------------
SKTY (Thailand) Limited (the Offeror) has made a tender offer to
purchase all the issued and outstanding ordinary shares of Thai
Industrial Gases Public Company Limited (the Company or TIG) as
given in its submission of Tender Offer Statement dated June 15,
2001.

BankThai Public Company Limited (Advisor), says Kittisak
Amornchairojkul of BankThai, has been appointed as an
independent financial advisor for the shareholders to give an
opinion on the tender offer for ordinary shares of TIG. An
Independent advisor is required to give opinion on the terms of
the tender offer, the tender offer price and the impact of the
tender offer on TIG and its shareholders. This opinion is based
on the Tender Offer Statement (Form 247-4) date June 15, 2001,
review of the management and Annual Registration Statement (Form
56-1), the details are as follows.

1. Transaction

According to the Tender Offer Statement of the Offeror dated
June 15,2001, the transaction entails offer to purchase
7,803,685 ordinary shares of TIG representing 7.53 percent of
total issued and fully paid-up ordinary shares at the offer
price of Bt34 per share. The Seller of TIG shares will have to
pay a commission at the rate of 0.25 percent of the offer price
plus 7 percent value-added-tax (VAT) on such commission.
Therefore, the net price received by sellers will be Bt33.90 per
share. The tender offer period will be between 9.00 a.m. and
4.30 p.m. during working days of ING Baring Securities
(Thailand) Limited beginning from June 18, 2001 to July 23,
2001, in total 25 days. The offer price and offer period are
final and will not be amended.

The Offeror, SKTY (Thailand) Limited, with reference to the
information from the Annual Registration Statement (Form 56-1)
as on September 30, 2000 held 13.08 percent of the total issued
and fully paid-up ordinary shares in TIG and it further
purchased ordinary shares including shares from 3 other major
shareholders of the company, Siam Cement Public Company Limited,
Siam Commercial Bank Public Company Limited and CPB Equity
Company Limited on June 5,2001 which resulted in Offeror
shareholding in the company increasing to 45.44 percent of total
issued and fully paid-up ordinary shares.

Further, BOC Gases Australia Limited, a major shareholder
holding 49 per cent of total issued ordinary shares in the
Offeror, is also a major shareholder in the company holding
47.04 per cent of total issued and fully paid-up shares.

Therefore, BOC Gases Australia Limited and the Offeror, SKTY
(Thailand) Limited, together hold 95,876,315 ordinary shares,
which is equivalent to 92.47 percent of the total issued and
fully paid-up ordinary shares of TIG.

The Offeror has made tender offer to purchase all the remaining
shares in order to comply with the regulatory conditions set
forth in the notification of the Securities and Exchange
Commision No. Kor Kor 4/2538 on the Rules, Conditions and
Procedures for Acquisition of Securities for Business Takeover,
dated March 6,1995.

The Offeror, in compliance with SEC rules, has made a tender
offer to purchase all of the remaining issued ordinary shares
7,803,685 representing 7.53 percent of the total issued and
fully paid-up ordinary shares of TIG.

2. Opinion on TIG Historical Performance

Thai Industrial Gases Public Company Limited was established on
March 4,1970 as a joint venture between BOC Gases Australia
Limited, a company in BOC Group (Britain), the Siam Commercial
Bank Public Company Limited and The Crown Property Bureau. The
company was established with an objective to produce, import and
distribute industrial gases for industrial application, medical
gases, as well as providing related services and equipment
installation.

Type of Business

Main business of TIG and its subsidiaries is to produce and
distribute gases such as Oxygen, Nitrogen, Argon in gas and in
liquid form. Further, TIG imports special gases from overseas
for distribution to customers in industrial and medical and,
also sells and provides equipment installation service.

Type of Customer

The company mainly distributes and supplies gases directly to
its customer. The major customers are manufacturing industries
from various sectors, like Petrochemicals, Frozen food, Metals
and others. Further, gases supplied for Medical use are
distributed directly or through agents mainly to the Government
Hospitals and Private Hospitals. The gases are distributed and
supplied to customers through 3 major channels: Deliver gas by
pipeline, Deliver liquid gas in bulk through road tankers,
Deliver compressed gas in cylinders.

TIG's subsidiaries and affiliates

TIG, its subsidiaries and affiliates are all in the business of
producing and distributing a variety of gases. Currently, TIG
has 3 subsidiaries, 4 direct affiliates and 1 indirect
affiliates, in total 8 operating companies in the group. The
gases are produced through setting-up air separation units which
have many steps in the production process. The plants are in 16
locations within Thailand.

The subsidiaries and affiliates of TIG are given below:

Name     Nature of Business Paid-up Capital % Held  Book Value
                                                    (Btmillion)
by TIG March 31,2001

(Million Baht)

Subsidiaries

1.TIG AirChemical Ltd.  Manufacturer and trader 100.00 96.00
98.10
   ( TIGAC )            of Carbon Dioxide and
                        dry ice

2.Rayong Acetylene Ltd. Manufacturer and trader

   ( RAC )              of Acetylene
                            115.00       86.96       68.13

3. T.I.G. Trading Ltd.  Trader of welding and
   ( TIGT )            safety equipment and
                       compressed gases
                        162.50      100.00      396.79

Direct Affiliates

4. Electronic Gases    Manufacturer and trader
   ( Thailand ) Ltd.   of Oxygen, Nitrogen,
      ( EGT )          Argon and other gases
                      62.50       50.00        15.96

5.Map Ta Phut Industrial  Manufacturer and trader
  Gases Ltd. ( MIG )      of Oxygen, Nitrogen,
                          Argon and other gases
                      305.00      39.99        27.79

6.Rayong Industrial    Manufacturer and trader
  Gases Ltd. ( RIG )   of Oxygen, Nitrogen,
                       Argon and other gases
                     2.50       30.00        0.75

7.Eastern Industrial   Manufacturer and trader
  Gases Ltd. ( EIG )   of Oxygen, Nitrogen,
                       Argon and other gases
                            387.50     49.99        184.91

Indirect Affiliates (Held by TIGT)

8. ESAB Welding Products  Manufacturer and trader
   ( Thailand ) Ltd.      of electric welding
   (ESABW)                equipment and cutting machine
                       46.79     20.00         9.36

Total                   1,181.79                 801.79

Source: Annual Report for the year 2000 of Thai Industrial Gases
Public Company Limited

Summary of consolidated financial statements of Thai Industrial
Gases Public
Company Limited and Subsidiaries
                                     Unit: Million Baht
                Financial Statements as on September 30

Particulars       Half Year ending  2000     1999     1998
                    March 31,2001

Total revenue        1,288.61      2,452.64  2,269.41 1,702.42
Net profit (loss)     166.01        161.60  67.41        0.79
Earning per share (Baht) 1.60       1.56     0.65        0.01
Dividend per share (Baht) -         0.55     0.20          -

Total assets      4,866.23     5,036.17  5,184.99   5,389.36
Total liabilities 1,803.24     2,083.06  2,245.45   2,646.45
Shareholders' equity 3,062.99  2,953.11  2,939.54   2,742.91
Book value per share (Baht)29.54 28.48    28.35       26.45

During the years 1998 to 2000, despite facing difficulty from
economic recession, TIG reported continuing sales growth. The
strategy was to expand its sales and distribution to the
customers in potential growth businesses e.g. Frozen food
industry. The company improved operating efficiency and further,
capacity expansion helped in reducing production costs per unit
and selling and administrative expenses ratio. Further, downward
movement of interest rates was regarded as major positive factor
in improving the company's performance.

Negative performance in year 1997 which also effected
performance in year 1998, resulted from write down in
investments due to the cancellation of a project of its
affiliate, Electronic Gases (Thailand) Limited (EGT), which was
affected by the domino impact from the failure of its only
customer. The company turned profitable again in the year 1999
with a net profit of Bt67.41 million, which further increased to
Bt161.60 million in the year 2000. The dividends paid were
approximately 31 percent and approximately 35 percent of net
profit for the years 1999 and 2000 respectively.

For the first half of year 2001, the company sales growth was 9
percent compared to that of the previous year while net profit
for the year increased by 44 percent.

The reasons stated for this are improvement in performance of
the company and its subsidiaries. Further, the reduction in
interest expense due to repayment of loan principal during the
year.

3. Opinion on the Tender Offeror

SKTY (Thailand) Limited, "The Offeror", was established under
the laws of Thailand on November 19, 1997 with a registered
capital of Bt343 million. Its main business is holding of
investments in TIG at 45.44 percent. SKTY (Thailand) Limited was
formed as a joint venture between BOC Gases Australia Limited
holding 49 percent of total issued ordinary shares and KTPV
(Thailand) Limited holding 50.99 percent of total issued
ordinary shares. The remaining shareholding is with minorities.

BOC Gases Australia Limited is registered in Australia to
produce and distribute industrial and other gases. The major
shareholders of BOC Gases Australia Limited are BOC AIP LP
Company and BOC Australia PTY Limited, which are group companies
of the BOC Group (Britain) which is regarded as one of the
leading producer and distributor of industrial gases and
provider of technology and related equipment in more than 60
countries worldwide. Total sales per year of BOC Group (Britain)
are more than GB Pound 3,800 million and Net profit more than GB
Pound 300 million.

The BOC Group Public Company Limited is listed on the London
Stock Exchange and New York Stock Exchange.

KTPV (Thailand) Limited was established under the laws of
Thailand, the major shareholders are BOC Gases Australia Limited
representing 48.99 percent and Thai investor, Mr. Kasemsan
Kiangsiri representing 51 percent of total shares.

The remaining shareholding is with minorities.

The Offeror, is an affiliate of BOC Group which is a leading
operator in the industrial gases segment worldwide. BOC Group
has provided technology and management support to TIG
continuously.

4. Opinion on the Source of Funds to Finance the Tender Offer

The Offeror has available funds Bt265 million to purchase
7,803,685 ordinary shares tendered at an offer price of Bt34 per
share. The Offeror will use its existing working capital of
approximately Bt323 million deposited in its saving account with
Siam Commercial Bank Public Company Limited. The Offeror has a
letter of confirmation issued by Siam Commercial Bank Public
Company Limited attached in appendix 3 of the Tender Offer (form
247-4) dated June 15, 2001.

5. Opinion on the Tender Offer Price

In advising on the Tender Offer Price, Advisor has applied
various methods in the valuation of TIG shares for comparison to
the Tender Offer price. The valuation methods used are as
follows.

   5.1 Historical Market Price

     TIG's historical market price before the Offeror submitted
the statement of firm intention to make a tender offer (Form
247-3) on June 6, 2001, are as follows:

Particulars        Period                 Price (Baht per
Share)*

Average Price

Past 360 days    June 12, 2000 - June 6, 2001        19.63

Past 180 days    December 9, 2000 - June 6, 2001     20.52

Past  90 days     March 9, 2001 - June 6, 2001       20.87

High               On  June 4, 2001                  33.75

Low               On  August 1, 2000                 12.00

Source: Analyst Software Reuters
        *Weighted Average Price for calendar days

According to the above table, the average market price for the
previous 90 to
360 days was in the range of Bt19.63 to Bt20.87 per share which
is 38.61 to 42.26 percent lower than the Tender Offer price of
Bt34 per share.

   5.2 Comparable Company Analysis

     The valuation method uses financial ratio of other
companies listed in the same sector as TIG on the Securities
Exchange of Thailand (SET) for comparison purposes. TIG is a
listed company in the energy sector wherein companies listed are
operating in various types of businesses. There is no listed
company on the SET doing the same business as TIG. Certain
companies, due to there specific business operations, have
higher financial ratios compared to others.

     However, Advisor is of the opinion that TIG business has
features of energy sector and therefore, has selected the sector
for valuation approach with comparable listed companies.

     5.2.1 Price per Earning Ratio

         In using this approach, Advisor has applied price
earnings multiple of TIG to compare with  price earning multiple
of  energy sector on SET. The average price earning multiple for
360 days prior to the statement of firm intention to make a
tender offer (Form 247-3) on June 6, 2001, has been calculated
for the comparison.

        The average price earning multiple of energy sector is
12.08 times, while the average price earning multiple of TIG is
8.37 times for the given period.

Ratio          Average P/E ratio for 360 days (Times)
                    TIG              Energy Sector*
P/E                 8.37                  12.08

Source: Analyst Software, Reuters
         *Data for all listed companies in the energy sector

Average Price Earning Multiple for the Energy sector    = 12.08
Times
Actual EPS  for last 4 Quarters ending March 31, 2001   =
Bt2.05
Price per share =  Bt24.76

>From the calculation above, the valuation of TIG by price per
earning multiple is Bt24.76 per share, which is 27.18 percent
lower than the tender offer price.

      5.2.2 Price per Book Value Ratio

         In using this approach, Advisor has applied price per
book value of TIG to compare with price per book value of energy
sector on SET. The average price per book ratio for 360 days
prior to the date of the statement of firm intention to make a
tender offer (Form 247-3) on June 6,2001, has been calculated
for the comparison purpose. Average ratio of energy sector is
1.58 times, while the average of price per book value ratio of
TIG is 0.50 times for the given period.

Ratio         Average price per book ratio 360 days (times)
                    TIG                Energy Sector*
P/BV                0.50                    1.58

Source : Analyst Software, Reuters
         *Data for all listed companies in the energy sector

Average Price per Book Value Ratio for the Energy sector =  1.58
Times
Book value of TIG for 4 Quarters ended March 31,01   =  Bt29.54
Price per share = Bt46.67

>From the calculation above, the valuation of TIG by Price per
Book Value Ratio approach is Bt46.67 per share, which is 37.26
percent higher than the tender offer price.

   5.3 Discounted Free Cashflow Approach

     Free Cash Flow to the Firm was prepared by using the
following sources of data;

     1. Audited Consolidated Financial Statements of the company
for the years ended September 30,1998 to September 30, 2000 and
Reviewed Interim Consolidated Financial Statement of the company
for the six-months ending on March 31, 2001

     2. Annual Registration Statement (Form 56-1) for the year
2000

     3. Management interview

     4. Financial forecast of the company for the year 2001
2006 based on assumptions provided by the management of TIG

     The main assumptions provided by the company are:

    1) Sales Revenue

      Sales revenue for the year 2001 was budgeted to increase
by 12 per cent but actual sales growth achieved in the first
half of the year ending March 31, 2001, is 8 percent over the
corresponding period. For the future years it is projected to
achieve 6 percent sales growth per annum. The projected sales
growth rate is based on Gross Domestic Product and Inflation
growth rates for the given period.

    2) Gross Margin

       Gross Margin is projected to increase from 32 percent in
the year 2000 to approximately 34 percent in the projection
period. The increase in gross margin results from higher
capacity utilization for increasing sales of high margin
products e.g. Compressed Gas in Cylinders.

    3) Selling and Administrative Expenses

       The selling and administration expenses are forecasted to
be approximately 16 percent of sales revenue each year which is
close to the actual ratio for year 2000.

    4) Capital Expenditure

      Capital expenditure during the year 2001-2006 is
forecasted to be 10-11 percent of the sales for each year for
the purposes of plant, equipment and fleet maintenance and
replacement.

     5) Corporate Tax

        The company and its subsidiaries have been granted
corporate tax exemption privileges by BOI at different times
which will gradually expire over the forecast period. The
corporate tax rate during the year 2001 - 2005 will be
approximately 15 percent and will increase to 25 percent 30
percent in the years onward.

    6) Projected Free Cash Flow

       Base on projected capital expenditure for each year
projected Free Cash Flow will be ranging around Bt600 million
between the year 2001-2006.

    7) Terminal Growth Rate

      Terminal growth rate of 1 percent on free cashflow from
year 2006 onwards. The forecast is based on conservatism
considering internal projections of the company for future
investments. The assumed rate gives terminal value at 4 times
EBITDA for the year 2006.

    8) Weighted Average Cost of Capital: WACC

       Derived from taking Cost of Capital ( Ke)  using Capital
Asset Pricing Model (CAPM) of 13.52 percent and Cost of Debt
(Kd) of 9.10 percent

   Ke  was derived  from ;
Cost of Capital  ( Ke )       = Rf + B( Rm-Rf )
Risk Free Rate  ( Rf )        = 6.50% which equals to 15 year
tenor-Government Bond
Beta ( B )                    = 0.78 times market relative,using
the past one year data
Market Risk Premium  (Rm-Rf)  = 9.00%
Cost of Capital  ( Ke )       = 13.52%

   In calculating the present value of the operating free
cashflow mentioned above, we used the weighted average cost of
capital  ( WACC ) for each year based on changes in debt-equity
ratio  each year as a discount rate. Summary of share prices
calculated by Discounted Free Cashflow  approach at each level
of WACC are as illustrated:

        WACC (per cent)             Price per share ( Baht )
             13.52                            30.37
             12.52                            32.19
             11.52                            34.13

The share price is in the range of Bt30.37 to Bt34.13. The share
price of
Bt30.37 is 10.68 percent lower than the tender offer price
while, the price of Bt34.13 is 0.38 percent higher than the
tender offer price.


   5.4. Dividend Discount Model

     The method values shares of a company based on expected
dividend per share in the future by investor. The company has
been inconsistent in its dividend pay-outs in the past few years
resulting in difficulty in forecasting dividend pay-outs in the
future. However, we have used 35 per cent dividend pay-out ratio
for valuation purpose and discounted by the company's Cost of
Capital (Ke). The result is illustrated below:

      Cost of Capital (per cent)       Price per share ( Baht )
                14.52                          20.86
                13.52                          21.83
                12.52                          22.87

The share price is in the range of Bt20.86 to Bt22.87 which is
32.73 percent to 38.65 percent lower than the tender offer
price.

   5.5 Net Asset Value Approach
The net asset value approach depends on the market price of
assets appraised by an independent appraisal. The book value of
assets will be adjusted using appraised value to revise value of
assets which are then used to calculate value of shares by this
approach. However, this share valuation approach does not
incorporated future company performance, competitive advantage
and industry trend.

>From the consolidated financial statement as of March 31,2001
the net asset value (before adjusting for market price) was
equal to Bt29.54 per share. But, TIG's assets have not been
appraised recently, so advisor could not value TIG's assets by
this approach. It should be noted that the tender offer price is
Bt34 per share representing a premium of approximately 13.12
percent over net asset value per share before appraisal or
adjustment to market value.

6. Opinion on the Impact on the Minor Shareholders

   Apart from the Tender Offer price, there are other factors
that TIG's shareholders should consider before making a decision
whether to accept or reject this Tender Offer:

   Considerations in accepting the Tender Offer

      1. Listing Status of the Company after the Tender Offer

      With reference to the reason and objectives of the Tender
Offer in topic 9.1.1 that the offer is to comply with the
regulatory conditions set forth in the Notification of the
Securities and Exchange Commission No. Kor Kor 4/2538 on the
Rules, Conditions and  Procedures for acquisition of Securities
for Business Takeover, dated March 6, 1995. Reference to, the
Offeror purchasing ordinary shares held by other major
shareholders of the company, Siam Cement Public Company Limited,
Siam Commercial Bank Public Company Limited and CPB Equity
Company Limited on June 5,2001 which triggered tender offer
requirements wherein, Offeror has to offer to purchase all the
outstanding shares of the company.

      The Offeror has stated plans to propose the business for
considering and approving delisting of the ordinary shares of
TIG from the Stock Exchange of Thailand. To comply with the
regulations of the Stock Exchange of Thailand on Delisting of
Securities, 1999, dated December 9,1999, the resolution for
delisting of shares can be passed by getting approval of
shareholders holding at least 75 percent of the total number of
paid-up shares and should not be opposed by shareholders holding
more than 10 percent of total number of paid-up shares.

      Further, at the time of Tender Offer, the Offeror, SKTY
(Thailand) Limited, and BOC Gases Australia Limited together
hold 92.47 percent of the total issued and fully paid-up
ordinary shares of TIG. The delisting of ordinary shares of TIG
from the Stock Exchange of Thailand will be subject to approval
by vote and they already have sufficient majority to approve
delisting. On approval of delisting, another tender offer would
be required to purchase ordinary shares from remaining
shareholders to comply with SET rules.

      2. Effect on Shareholders

      After completion of Tender Offer major shareholders has a
plan to propose delisting of ordinary shares from the SET, which
will result in the following impact on shareholders:

        2.1 Lack of Secondary Market

        The shareholders who continue to hold shares after
delisting from SET will face illiquid situation as there will be
lack of an indicative price and secondary market.

        Therefore, the shareholders may have difficulty in
selling their shares because of illiquidity.

        2.2 Change in Return on Investment

        Return on investment will change to be mainly in form of
dividends. It is likely that chance to realize capital gains
will be reduced because of lack of the secondary market as
mentioned. Furthermore, for individuals capital gains from sale
of share will be subject to personal income tax which is exempt
for realized capital gains from listed company.

        TIG has a dividend payout policy of 30-40 percent,
however, it is difficult to predict dividend policy in the
future as shareholding structure will change.

        2.3 Less Disclosure of Information on Company

        After delisting, shareholders may receive less
information from the Company as an unlisted company does not
have to comply with SET disclosure regulations. The information
on operations may be available only in the shareholders' meeting
such as minutes of shareholders meeting, annual report and from
the news in newspaper.

Considerations in rejecting the Tender Offer

   1. Industry Potential

      Despite facing economic recession, the industry in which
the company operates has continued to grow. The product is
necessary as it is used as an input in other industries. Due to
the demand of product as input in the manufacturing sectors
which have potential growth, like hospitals, frozen food
industry and etc. Therefore, the industry may be considered to
have potential.

   2. The Offeror plans to continue operations and is an
affiliate of a recognized operator in the industry SKTY
(Thailand) Limited, the Offeror, is an affiliate of The BOC
Group which is recognized as one of the world's leading producer
of industrial gases.

      BOC Gases Australia Limited, who holds 47.04 percent of
the total issued and fully paid-up shares, has provided
engineering services and management to TIG. The agreement was
signed since 1974, to commit the aforementioned services and
requires to pay 2 to 5 percent of annual sales. The agreement
has been extended over the years with same conditions and the
next expiration date is December 31, 2001.

      Under prudent management of BOC Group, despite facing
economic recession which resulted in negative performance in
year 1997, TIG has improved efficiency, reduced costs and added
diversified lines for potential growth of business. TIG turned
to be profitable in the year 1999.

Summary

    Summary of results from aforementioned valuation methods

Approach         Price per share   Higher/(Lower) than Offer
Price
                      (Baht)              (percent)
Historical Market Price Approach 19.63-20.87  (38.61)-(42.26)
Price per Earning Ratio          24.76        (27.18)
Price per Book Value Ratio       46.67         37.26
Discounted Free Cash Flow Approach 30.37-34.13 (10.68)-0.38
Dividend Discount Model          20.86-22.87  (32.73)-(38.65)
Net Asset Value Approach         N.A.          N.A.

According to the summary table of valuation above, of the 2
methods show price to be higher than the Tender Offer Price at
Bt34. The Price per Book Value Approach shows the price at
Bt46.67 per share which is 37.26 percent higher than the tender
Offer Price. However, as previously stated this method took the
listed company in Energy sector for comparison purpose, wherein,
the companies listed in the sector are engaged in various kinds
of business. The sector ratio is effected by some companies
which have higher hidden value, like PTTEP.

Therefore, the sector ratio is effected by its weightage which
is much higher than that of TIG. Further, the price from
Discounted Free Cash Flow Approach at Bt34.13 which is 0.38
percent higher than the tender offer price.

In conclusion, the tender offer price can be considered as
reasonable. However, in considering whether to accept or reject
the tender offer, shareholders should take into consideration
listing status, liquidity of shares and pattern of return on the
investment.

BankThai Public Company Limited hereby states that its opinion
was prepared with prudence, in compliance with professional
standards and in the best interests of the shareholders.


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