TCRAP_Public/040730.mbx         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 30, 2004, Vol. 7, No. 150

                            Headlines

A U S T R A L I A

GYMPIE GOLD: Releases Outcome of Adjourned Creditors Meeting
WOODSIDE PETROLEUM: CEO Heads to East Timor This Week


C H I N A  &  H O N G  K O N G

401 HOLDINGS: Unveils Directors' Resignations
CHINA AIR: Enters Winding Up Proceedings
JINHUI HOLDINGS: Unit Sells Two Ships After Losses
NEW SPRING: FY04 Net Loss Widens to HK$18.8M
SHUI WING: Winding Up Hearing Set August 25

SUPER GLORY: SFC Prosecutes Firm for Market Manipulation


I N D O N E S I A

INDOFOOD SUKSES: Pefindo Revises Ratings To AA
MERPATI NUSANTARA: To Launch Rights Issue
PERTAMINA: Commissioners Replacement Planned


J A P A N

ALL NIPPON: Signs Contract For 50 7E7 Jets
MITSUBISHI MOTORS: S&P Gives Negative Outlook
MITSUBISHI MOTORS: Holds Third Business Ethics Committee Meeting
UFJ HOLDINGS: Admits To Falsifying Documents
UFJ HOLDINGS: Appeals Tokyo Court Ruling On Mitsubishi Merger

UFJ HOLDINGS: Management Integration with MTFG Unchanged
UFJ HOLDINGS: Submits Business Improvement Plans To FSA


K O R E A

HYNIX SEMICONDUCTOR: Becomes Second-Largest Memory Chipmaker
KOOKMIN BANK: Expects Better 2H Performance
LG CARD: Creditors OK Business Reorganization Plan
SSANGYONG MOTOR: Not Moving Production Facilities to China


M A L A Y S I A

AKTIF LIFESTYLE: Discloses Restructuring Update
BOUSTEAD HOLDINGS: Issues Additional 172,000 Ordinary Shares
CHG INDUSTRIES: Securities Suspension Pending
GULA PERAK: Grants Listing of 10,800 Ordinary Shares
KILANG PAPAN: MITI OKs Revised Restructuring Scheme

KUMPULAN BELTON: Releases Default Status Update
LANKHORST BERHAD: Unveils Private Placement Proposal
MANGIUM INDUSTRIES: Unit Issues Default in Payments
MANGIUM INDUSTRIES: Posts Monthly Production Figure for June
METACORP BERHAD: Seeks Shareholder's Mandate Approval

MTD CAPITAL: Issues Additional 39,000 Ordinary Shares
MWE HOLDINGS: Releases Notice of Director's Interests
OSK HOLDINGS: Releases Notice of Shares Buy Back
PAN PACIFIC: Issues Restructuring Scheme Update
PARK MAY: Proposes Restructuring Scheme

RNC CORPORATION: Extends Moratorium Period
TANJONG PUBLIC: Receives Notification on Listing Requirements


P H I L I P P I N E S

ABS-CBN BROADCASTING: To Pay 64-Centavo Cash Dividend Per Share
ABS-CBN BROADCASTING: Issues News Article Clarification
BENPRES HOLDINGS: Clarifies News Article on Philippine Star
NATIONAL POWER: Job Cuts Could Generate PHP250Mln In Savings
NATIONAL POWER: 14 SPUGs Open For Privatization

PHILIPPINE NATIONAL: First Semester Growth Performance On Track
PRYCE CORPORATION: Furnishes PSE With Court Order Copy
SEMIRARA MINING: Clarifies News Article


S I N G A P O R E

CHARME LUNETTES: Court Issues Winding Up Order
DAR HARNQ: Creditors To Submit Claims on August 23
DAVIN INDUSTRIES: Winding Up Order Made
KIN YUEN: Releases Winding Up Order Notice
REED GROUP: Announces Annual General Meeting Result


T H A I L A N D

BANGKOK MASS: Not For Sale, CEO Insists
KRUNG THAI: Issues Explanation on Increased NPLs
NFC FERTILIZER: Releases Opinion of the Business on Tender Offer
THAI PETROCHEMICAL: Revised Rehab Plan Faces Problems Anew
* Large Companies With Insolvent Balance Sheets

     -  -  -  -  -  -  -  -

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


GYMPIE GOLD: Releases Outcome of Adjourned Creditors Meeting
------------------------------------------------------------
In a company press release, Gympie Gold Ltd. (GGL) said the
adjourned second creditors meeting continued in Sydney on
Wednesday. At this meeting and in the absence of any other
suitable alternative, the creditors of GGL, Southland Mining
Limited (SM), Southland Coal Pty Limited (SC) and Gympie
Eldorado Gold Mines Pty Limited (GEGM) resolved that each of the
companies be wound up, and that Murray Smith and Joseph Hayes be
appointed as the Liquidators of each company.

The creditors also appointed members of a committee of
inspection for each of GGL, GEGM and SC.

Further developments regarding the realization of the companies'
assets by the Receivers and Managers will be advised in due
course.

Meanwhile, effective 1 July 2004, the Corporate Recovery
division of KPMG separated to form an independent entity,
McGrathNicol+Partners.

Please note the revised contact details.

Creditors who wish to discuss any aspects of the above should
please contact Nick Lawry or Chania Rodwell of our staff on (02)
9338 2635 or (02) 9338 2657.

CONTACT:

Gympie Gold Ltd.
Suite 303 , 3 Spring Street,
SYDNEY , NSW, AUSTRALIA, 2000
Head Office Telephone: 02 8249 4479
Head Office Fax: 02 8249 4001
Website: http://www.gympiegold.com.au/


WOODSIDE PETROLEUM: CEO Heads to East Timor This Week
-----------------------------------------------------
Don Voelte, Woodside Petroleum Ltd. (WPL) chief executive is set
to visit East Timor this week to give the nation encouragement
to approve the stalled pact for sharing revenue of the $6.6
billion Greater Sunrise undersea gas project, according to the
Advertiser.

Woodside said the pact should be ratified by the end of this
year to allow key timetables, including first commercial
production of liquefied natural gas (LNG), to be met.

"We need ratification by the end of the year for Sunrise to
maintain momentum," a Woodside spokesman said. "Without it
Sunrise will stall."

Woodside plans to move the said project into a $60 million
engineering and design phase, but they would not want to commit
shareholder funds of that magnitude while the Sunrise pact is
still unclear.

CONTACT:

Woodside Petroleum Ltd.
Woodside Plaza , 240 St Georges Terrace
PERTH, AUSTRALIA, 6000
Head Office Telephone: (08) 9348 4000
Head Office Fax: (08) 9214 2777
Website: http://www.woodside.com.au/


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


401 HOLDINGS: Unveils Directors' Resignations
---------------------------------------------
The Board of Directors of 401 Holdings Limited announced that
Mr. Leung Tze Hang David (Mr. Leung) and Mr. Ha Kee Choy Eugene
(Mr. Ha) resigned as Managing Director and Executive Director of
the Company respectively with effect from 27th July 2004 due to
personal reasons. Mr. Wan Ngar Yin David (Mr. Wan), Mr. Yeung
Kong Dominic (Mr. Yeung) and Mr. Shiu Shu Ming (Mr. Shiu)
resigned as independent non-executive directors of the Company
with effect from 28th July 2004. Mr. Wan resigned for personal
reasons while Mr. Yeung resigned as a result of his decision to
devote more time on his personal business.

The resignation of Mr. Shiu is due to his busy engagement in
other business ventures. Mr. Leung, Mr. Ha, Mr. Wan, Mr. Yeung
and Mr. Shiu (collectively the Resigning Directors) and the
Board confirmed that there is no mutual disagreement between
them. The Resigning Directors also confirmed that there is no
other matter relating to their resignation that needs to be
brought to the attention of the shareholders of the Company.

As at the date hereof, the executive directors of the Company
are Mr. Wong Chong Kwong, Derek, Mr. Po Kam Hi, John, Mr. Lau
Cheuk Hung, Terence, Mr. Au-Yeung Yok Cho and the non-executive
director of the Company is Mr. Wu Chi Lok.

On 21 July 2004, a winding-up petition and summons for the
appointment of provisional liquidators were filed against 401
Holdings Limited by China Units Enterprises Limited, TCR-AP
reported in its 148th edition.

CONTACT:

401 Holdings Limited
Shun Tak Centre, 200 Connaught Road
Central, Hong Kong
Tel: +852 2363 8301
Tel: +852 2363 8192


CHINA AIR: Enters Winding Up Proceedings
----------------------------------------
Notice is hereby given that a petition for the winding up of
China Air International Travel Service (HK) Limited by the High
Court of Hong Kong was on the 19 July 2004 presented to the said
Court by Tsui Lai San Teresa of Room 2114, Shing Yat House, Kwai
Shing East Estate, New Territories, Hong Kong. The said petition
is directed to be heard before the Court at 9:30 a.m. on 25
August 2004.

Any creditor or contributory of the said company desirous to
support or oppose the making of an order on the said petition
may appear at the time of hearing by himself or his counsel for
that purpose. A copy of the petition will be furnished to any
creditor or contributory of the said company requiring the same
by the undersigned on payment of the regulated charge for the
same.

Ms. ADA CHAU MING WAI
For Director of Legal Aid
34th Floor, Hopewell Centre
183 Queen's Road East, Wanchai
Hong Kong

Note: Any person who intends to appear at the hearing of the
said petition must serve on or send by post to the above named,
notice in writing of his intention to do so. The Notice must
state the name and address of the person, or if a firm, the name
and address of the firm, and must be signed by the person or
firm or his or their Solicitor (if any) and must be served, or
if posted, must be sent by post in sufficient time to reach the
above named not later than six o'clock in the afternoon of the
24th day of August 2004.


JINHUI HOLDINGS: Unit Sells Two Ships After Losses
--------------------------------------------------
Jinhui Holdings Co. Limited announced that its unit Jinhui
Shipping and Transportation has agreed to sell two vessels
following losses of about US$70 million (HK$546 million) from
forward freight agreements, the Standard reports.

Jinhui Shipping will sell Jin Tai and Jin Kang for a total of
US$56.5 million by the end of this month, which will raise the
unit's pro forma first-quarter profits by 56.5 percent to
US$42.7 million.

Jinhui Holdings earlier estimated its shipping unit lost US$60
million to US$70 million in forward freight agreements as the
rates of the dry bulk shipping market dropped since February.

SHK Research analyst Oscar Choi said the disposal gain would not
be able to cover the losses resulting from the forward freight
agreements.

CONTACT:

Jinhui Holdings Co. Limited
1-6 Connaught Road West
Hong Kong
Tel: +852 2545 0951
Tel: +852 2541 9794


NEW SPRING: FY04 Net Loss Widens to HK$18.8M
--------------------------------------------
New Spring Holdings Limited announced its audited consolidated
results for the year ended 31 March 2004 together with the
comparative figures for the corresponding period in last year as
follows:

Currency: HKD
Auditors' Report: Unqualified

                                                      (Audited)
                                     (Audited)        Last
                                     Current
Corresponding
                                     Period           Period
                                     from 01/04/2003  from
01/04/2002
                                     to 31/03/2004    to
31/03/2003
                               Note  ('000)           ('000)

Turnover                           : 146,239            156,042
Profit/(Loss) from Operations      : (7,929)            (556)
Finance cost                       : (5,799)            (3,474)
Share of Profit/(Loss) of
  Associates                       : N/A                N/A
Share of Profit/(Loss) of
  Jointly Controlled Entities      : N/A                N/A
Profit/(Loss) after Tax & MI       : (18,880)           (5,384)
% Change over Last Period          : N/A       %
EPS/(LPS)-Basic (in dollars)       : (0.105)            (0.03)
         -Diluted (in dollars)     : N/A                N/A
Extraordinary (ETD) Gain/(Loss)    : N/A                N/A
Profit/(Loss) after ETD Items      : (18,880)           (5,384)
Final Dividend                     : NIL                NIL
  per Share
(Specify if with other             : N/A                N/A
  options)
B/C Dates for
  Final Dividend                   : N/A
Payable Date                       : N/A
B/C Dates for (-)
  General Meeting                  : N/A
Other Distribution for             : N/A
  Current Period

B/C Dates for Other
  Distribution                     : N/A

The calculation of basic loss per share (2003: loss per share)
is based on the Group's loss attributable to shareholders of
HK$18,880,000 (2003: loss of HK$5,384,000) and of 180,000,000
shares (2003: 180,000,000 shares) in issue during the year.


SHUI WING: Winding Up Hearing Set August 25
-------------------------------------------
Notice is hereby given that a petition for the winding up of
Shui Wing Construction Engineering Limited by the High Court of
Hong Kong was on the 19th day of July 2004 presented to the said
Court by Lo Po Yu of Room 1121, Kai Lok House, Kai Yip Estate,
Kowloon Bay, Kowloon, Hong Kong. The said Petition is directed
to be heard before the Court at 9:30 am on the 25th day of
August 2004. Any creditor or contributory of the said company
desirous to support or oppose the making of an order on the said
petition may appear at the time of hearing by himself or his
counsel for that purpose.  A copy of the petition will be
furnished to any creditor or contributory of the said company
requiring the same by the undersigned on payment of the
regulated charge for the same.

Ms. ADA CHAU MING WAI
For Director of Legal Aid
34th Floor, Hopewell Centre
183 Queen's Road East, Wanchai
Hong Kong

Note: Any person who intends to appear at the hearing of the
said petition must serve on or send by post to the above named,
notice in writing of his intention so to do.  The Notice must
state the name and address of the person, or if a firm or his or
their Solicitor (if any) and must be served or if posted, must
be sent by post in sufficient time to reach the above named not
later than six o'clock in the afternoon of the 24th day of
August 2004.


SUPER GLORY: SFC Prosecutes Firm for Market Manipulation
--------------------------------------------------------
The Securities and Futures Commission (SFC) successfully
prosecuted Han Sze Chao Richard & Super Glory International Ltd
for intentionally creating a false market in the shares of
Fortuna International Holdings Limited, the SFC announced on its
Web site.

Mr. Han pleaded guilty on behalf of Super Glory and himself
before Mr. Anthony Yuen, a Magistrate at Eastern Magistracy.
They were fined a total of $50,000 and ordered to pay
investigation costs of $29,276 to the SFC.

In passing sentence, His worship Mr. Yuen noted that market
manipulation was a very serious offence and a custodial sentence
would normally be imposed. In this instance he elected to fine
Mr. Han and Super Glory having taken into account the guilty
pleas, the mitigation that Han would face SFC's disciplinary
action with a real possibility of losing his license (Note 1),
and that Mr. Han co-operated in the SFC's investigation.

The SFC investigation found that Mr. Han, who had an interest in
a large number of Fortuna shares, had on numerous occasions
between January and May 2002 caused small and/or single board
lots to be placed to stabilize and/or peg the price of this
stock just before the closing time of the market. This
aggressive strategy had effectively pegged the price of Fortuna
shares at around $0.30 over an extended period.

An SFC spokesman said: "We welcome the court's view that market
manipulation is a serious offence. Participating in or
facilitating market manipulation by SFC licensees is
unacceptable. Those involved can expect stern disciplinary
action."


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


INDOFOOD SUKSES: Pefindo Revises Ratings To AA
----------------------------------------------
Pefindo revised the ratings of PT Indofood Sukses Makmur Tbk.
(INDF or the Company) as well as its Bond I/2000 of IDR1
trillion and Bond II/2003 of IDR1.5 trillion to "idAA" from
"idAA+" and at the same time assigned a rating of "idAA" to its
proposed Bond III/2004 of IDR1 trillion that will be fully used
to refinance its existing bank loans, of which 75% were USD
loans.

The ratings revision is based on the Company's weakening
profitability and financial coverage ratios, however, the
favorable ratings are supported by INDF's superior position in
food industry, highly diversified business portfolio and high
vertically-integrated operations.

INDF has nine business lines namely noodles, flour, edible oils
and fats (EOF), plantation, snack foods, baby foods, food
seasonings, distribution, and packaging, but the four main
divisions (noodles, flour, EOF and distribution) contributed
95.0% of the total Company's revenue in 2003. As to date, INDF's
major shareholder is CAB Holdings Ltd. with 51.53% ownership.

CONTACT:

Gedung Ariobimo Sentral,
12th Fl., Jl. H.R. Rasuna Said X-2 Kav
Jakarta 12950,
Indonesia
Phone: +62-21-522-8822
Fax: +62-021-522-6014


MERPATI NUSANTARA: To Launch Rights Issue
-----------------------------------------
In order to raise fresh funds, Merpati Nusantara Airlines plans
to issue around 49 percent of its shares to foreign investors or
51 percent to local investors, reports Asia Pulse.

The state-owned carrier expects the rights issue to generate
around IDR600 billion (US$66.66 million), which will be used to
refinance debts and purchase new aircraft.

Merpati President Hotashi Nababan declared that the rights issue
would kick off upon parliament's approval. He added that the
firm had already invited applications for financial advisers and
will start the tender for strategic investors later.

CONTACT:

Jl. Angkasa Blok B-15 Kav. 2-3
Jakarta 10720 - Indonesia
Tel: (021) 6548888
Fax: (021) 6540620
E-mail: marketing@merpati.co.id


PERTAMINA: Commissioners Replacement Planned
--------------------------------------------
The Indonesian government will soon replace PT Pertamina's
(PTM.YY) commissioners, Dow Jones Newswires reports, citing
Minister of State Enterprises Laksama Sukardi.

The officials, who were appointed in October following
Pertamina's conversion into a limited liability firm, will soon
vacate their seats as they have already "completed their task of
transforming the company from an unclear entity into a
corporation."

Speculations abound that the former head of the defunct
Indonesian Bank Restructuring Agency (IBRA), Edwin Gerungan,
will likely take over Mr. Laksamana as Pertamina's president
commissioner.

Last month, Petromine Watch Indonesia (PWI) Chairman Pontas
Limbong urged Mr. Laksama to resign from Pertamina because of a
conflict of interest between his post at the state oil firm and
his position as minister for state enterprise.

CONTACT:

Jalan Merdeka
Timur No. 1 A
Jakarta 10110
Tel: (62)(21)3815111
Fax: 3846865/ 3843882
www.pertamina.com


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


ALL NIPPON: Signs Contract For 50 7E7 Jets
------------------------------------------
All Nippon Airways (ANA) has signed a contract with US-based
Boeing for 50 7E7 airplanes valued at US$6 billion, reports The
Associated Press.

The order consists of 30 short-range 7E7-3 models and 20 long-
range 7E7-8 models.

Boeing will deliver the first six 7E7-8s in April 2008 and
another six in 2009. ANA will receive its first 7E7-3 jet in
2010.

CONTACT:

All Nippon Airways Co. Ltd.
5-10 Hanedakuko 3-Chome
Ohta-Ku 144-0041, Tokyo 100-6027
JAPAN
Tel: +81 3 5756 5665/+81 3 5756 5679
www.anaskyweb.com


MITSUBISHI MOTORS: S&P Gives Negative Outlook
---------------------------------------------
Standard & Poor's Ratings Services on Thursday raised its long-
term corporate credit rating on Mitsubishi Motors Corp. (MMC) to
'CCC+' from 'SD', and its rating on the company's senior
unsecured bonds to 'B-' from 'CCC+'. The outlook on the
corporate credit rating is negative.

"The upgrade of MMC reflects the lower possibility of near-term
default by the company following the recent completion of a
capital enhancement," said Chizuko Satsukawa, a credit analyst
at Standard & Poor's.

On June 28, 2004, the corporate credit rating on MMC was lowered
to 'SD' after the company completed a transaction tantamount to
a debt-for-equity swap on its bank loans. On July 15, 2004, the
company issued common and preferred shares to Phoenix Capital
and J.P. Morgan, completing a capital enhancement totaling 496
billion, slightly exceeding the planned amount.

MMC expects its interest-bearing debt to have fallen to about
737 billion at the end of June 2004, down by about 325 billion
from the end of March 2004.

Although Standard & Poor's believes the capital enhancement has
lowered the possibility of immediate default by the company, it
is not optimistic about MMC's viability, given the damage to the
carmaker's brand image and plummeting domestic sales. The
company's vehicle sales in Japan (including minivehicles) fell
by nearly 50% in June 2004 compared with June 2003, following a
decrease of about 40% in May 2004. In the U.S., its sales
performance is also deteriorating: light vehicle sales decreased
by about 50% in June 2004, compared with a year earlier. Given
the challenge of restoring consumer confidence in vehicle
safety, plus increasingly fierce competition in key global
vehicle markets, it remains unclear whether pending operational
and financial restructuring measures will be sufficient to
ensure MMC's survival.

The rating on MMC's senior unsecured debt is higher than that on
the issuer by one notch, reflecting the better protection for
bondholders than bank lenders, given the likelihood of support
by key creditor banks through loan waivers if the company were
to again face financial distress (see Standard & Poor's report
"Rating Implications of Loan Waivers for Japanese Corporates"
published on Sept. 23, 2003.)

This rating was initiated by Standard & Poor's and may be based
solely on publicly available information and without the
participation of the issuer's management. Standard & Poor's has
used information from sources believed to be reliable, but does
not guarantee the accuracy, adequacy or completeness of any
information used. Ratings are statements of opinion, not
statements of fact or recommendations to buy, hold, or sell any
securities. Other analytic services performed by Standard &
Poor's may be based on information that was not available for
this rating and this report.

A Japanese-language version of this media release is available
via Standard & Poor's CreditWire Japan on Bloomberg Professional
at SPCJ .

Complete ratings information is available to subscribers of
RatingsDirect, Standard & Poor's Web-based credit analysis
system, at www.ratingsdirect.com.

All ratings affected by this rating action can be found on
Standard & Poor's public Web site at www.standardandpoors.com.

CONTACT:

Mitsubishi Motors Corporation
2-16-4 Konan, Minato-ku
Tokyo, 108-8410, Japan
Phone: +81-3-6719-2111
Fax: +81-3-6719-0014
http://www.mitsubishi-motors.co.jp


MITSUBISHI MOTORS: Holds Third Business Ethics Committee Meeting
----------------------------------------------------------------
The Business Ethics Committee, an advisory body for the
Mitsubishi Motors board of directors, met for the third time on
July 28, 2004. The third meeting, attended by all committee
members, was held at Mitsubishi Motors' Okazaki plant.

After observing development (design, engineering, testing),
production preparations, and production processes, the committee
members joined the first business ethics seminar at the plant to
see firsthand the company's efforts to promote compliance on the
factory floor. The committee members also had the chance to talk
with the Women's Evaluation Team, a special group of female
employees formed to include the opinion of women in car
manufacturing.

The committee members then visited the Quality Affairs Office to
check the documents involved and process conducted from when
product information reports are drawn up to when the company
decides to submit a recall. Discussions were also held with
employees involved in investigating the Company's recall
problems.

Some comments offered by committee members today include:

Even though the company has decided to close the factory, I felt
morale on the factory floor seemed to be still high and the
factory is competent as ever. Industrial housekeeping seems to
be fully implemented too.

Business ethics start in the workplace. Looking at the data of
the percentage of good products yielded by the manufacturing
process the first time through, it is worth noting that
organization on the factory floor has not eroded.

I can see that development systems are gradually improving. But
I think there wasn't enough invested in testing and developing
in the past and the company needs to continue its improvements.

The fact that female employees proactively offer their opinion
is a very positive step towards ensuring total compliance
throughout the company. But I still feel that executive
positions for females are far too few.

It is important to include the opinions and sense of female
employees to come up with unique designs and concepts. I hope
the company can gather these opinions together and act on them
more to give female employees a chance to show some leadership
and train other females working below them.

I was able to see how the process for determining recalls is
done systematically using electronic data for product
information reports and technical letters. But I think you
should make the process as simple as possible. Also, you should
revise the process to include the opinion of departments other
than the Quality Affairs Office.

I was able to get a good understanding of the enormous amount of
work being done in the investigations related to repair
directives. I made a strong point to not stop here and continue
the investigations.

The next committee meeting is scheduled for August following a
report on the company's extended investigations.

Noboru Matsuda
Business Ethics Committee Chairman


UFJ HOLDINGS: Admits To Falsifying Documents
--------------------------------------------
UFJ Holdings Inc. has admitted on Wednesday that the group
systematically concealed data about the business conditions of
corporate borrowers and submitted forged documents to the
Financial Services Agency (FSA), Japan Today reveals.

In a news conference, UFJ Bank president Takamune Okihara
disclosed that the fake reports were submitted with the approval
of the firm's board members in charge of the matter and the
section chiefs responsible for evaluating the loan eligibility
of the borrowers.

CONTACT:

UFJ Holdings, Inc.
5-6, Fushimimachi 3-chome,
Chuo-ku, Osaka-shi,
Osaka 541-0044,
Japan
www.ufj.co.jp


UFJ HOLDINGS: Appeals Tokyo Court Ruling On Mitsubishi Merger
-------------------------------------------------------------
Struggling UFJ Holdings Inc. is appealing a court ruling that
halted its merger negotiations with Mitsubishi Tokyo Financial
Group (MTFG), Japan Times reports.

On Tuesday, the Tokyo District Court ordered UFJ Holdings to
suspend the sale of its trust banking business to MTFG and
upheld the exclusive negotiation rights of Sumitomo Trust &
Banking Co., which agreed to acquire UFJ's trust bank unit prior
to UFJ and MTFG's merger decision.

UFJ Holdings President Ryosuke Tamakoshi declared in a news
conference that the firm has no intention to pursue the merger
talks without its trust-banking unit. Likewise, it ruled out
plans to pay compensation to Sumitomo Trust for a quick
settlement of the dispute.

UFJ expects the recent court ruling to delay the merger plan,
which would form the world's largest banking group with JPY190
trillion assets, exceeding Mizuho Financial Group Inc.'s JPY135
trillion.


UFJ HOLDINGS: Management Integration with MTFG Unchanged
--------------------------------------------------------
UFJ Holdings, Inc. announced in a press release that it had
signed a memorandum of understanding with Mitsubishi Tokyo
Financial Group, Inc. (MTFG) on July 16, 2004, regarding a
possible management integration, and the two groups have been
making discussions aiming to reach a basic agreement by the end
of this month.

In response to the decision by Tokyo District Court to grant
Sumitomo Trust & Banking Co. Ltd a preliminary injunction, which
was made yesterday, we filed an objection against the injunction
with the court today.

Although our discussions with MTFG must be in compliance with
the injunction, we have not changed our basic stance to aim at a
management integration with MTFG as an entire group.


UFJ HOLDINGS: Submits Business Improvement Plans To FSA
-------------------------------------------------------
UFJ Holdings, Inc. and UFJ Bank Limited settled on concrete
measures to aggressively reinforce their corporate governance
systems in response to the administrative actions announced by
the Financial Services Agency (FSA) on June 18, 2004.

In accordance with these measures, UFJ submitted business
improvement plans to the FSA, responding to the administrative
actions as outlined by the FSA regarding:

-UFJ response to the FSA's inspections

-Stance on loans to small- and medium-sized enterprises (SMEs)

-Large difference between the revised financial forecast and the
financial results

UFJ intends to submit another business improvement plan, in
response to the additional administrative action, announced by
the FSA, regarding "The follow-up of the capital injected bank
(the so-called '30% rule')", aiming to submit this report during
the first half of September 2004. UFJ needs to carefully
consider the impact of

(1) the outlook of business integration with Mitsubishi Tokyo
Financial Group, Inc., and (2) UFJ's aggressive actions toward
the final resolution of its problem loans, in preparing this
plan.

(1) Executive Summary

As detailed below, in terms of its response to the FSA's
inspections, UFJ came to recognize, based on the results of an
investigation and evaluation conducted by a third party, that
there were deeds which are considered to be evasions of
inspections. UFJ deeply regrets that its investigations of these
issues were inadequate and inappropriate judgment was exercised.
UFJ sincerely accepts the indications given by the FSA.

In addition, UFJ apologizes that the deeds, which were deemed to
be evasions of inspections, substantially hampered efficient
implementation of the inspections, and obstructed the regulatory
purposes such as securing trust and order, protecting
depositors, and maintaining smooth finance.

UFJ regrets and sincerely apologizes for this and the concern
amongst its customers and shareholders. It makes a commitment to
reform its corporate governance framework and internal control
systems, such as credit risk management, through the completion
of the improvement plans. The top management will lead various
activities to improve management, aiming at restoring confidence
in UFJ as quickly as possible.

(2) Concrete business improvement measures

"The problems indicated in the administrative action", "UFJ's
current understanding of the problems", and "the measures to
prevent recurrence" for the respective business improvement
plans are as follows:

(I. Business improvement plan regarding responses to the FSA's
inspections)

(1) Problems indicated in the administrative action

The administrative action indicated that, in the course of the
FSA's inspections to UFJ Bank, the bank conducted a number of
inappropriate deeds as follows, including those considered to be
evasions of inspections:

1) Concealment of documents

-Documents were moved and concealed in rooms separated from
regular working spaces.

2) Concealment of data

-Important data was hidden by moving it to the server of an
already-abolished section and therefore made virtually
undetectable.

3) Systematic approach of (1) and (2)

-The deeds described in (1) and (2) were systematically
conducted prior to the FSA's inspections under instructions
given, including instructions given at a series of internal
meetings.

4) False response to inspectors' inquiry

-In response to inspectors' inquiry whether or not there existed
separated rooms from regular working spaces in order to store
documents, a false reply was given that such rooms did not
exist.

5) Destruction of documents

-Some documents were torn up in the presence of inspectors.

6) Submission of forged minutes of meetings to inspectors

-The bank forged minutes of meetings in which executives
evaluated large borrowers and submitted them to inspectors
during the inspections as authentic minutes.

7) Submission of forged documents to inspectors

-After receiving inspectors' request for documents concerning a
specific borrower, the bank forged related documents and
submitted them to inspectors during the inspections as authentic
documents.

8) Management's involvement in (6) and (7)

-The deeds described in (6) and (7) were conducted in a
systematic manner with management involvement.

9) Concealing information and giving false explanations to
inspectors

-The bank gave inspectors false explanations on business
climates and financial conditions of some borrowers, as it
concealed documents and data.

(2) UFJ's current understanding of the problems

UFJ determined that an investigation conducted by a third party
was needed to take appropriate measures to prevent recurrence,
since there were substantial differences between the indications
shown in the administrative action and UFJ's understanding. In
order to ensure fairness, the investigation was assigned to an
investigation committee headed by Mr. Kunihisa Hama (attorney at
law, former Administrative Vice Minister of the Ministry of
Justice, former Head of the Tokyo High Public Prosecutors
Office), and a committee consisting of attorneys at law, who
were not counsel for UFJ. In addition, the examination sessions
were conducted excluding UFJ personnel.

Although UFJ made a statement on June 18 that "the actions could
have been construed as violations of laws and ordinances,
although they were not so intended", UFJ currently has a totally
different understanding, based on the investigation results,
that there were deeds which were deemed to be evasions of
inspections as follows:

-In terms of the "concealment of documents and data", the "false
reply", and the "destruction of documents", UFJ believes it is
reasonable to recognize that certain sections systematically
conducted deeds with the intention to evade inspections.

-In terms of the "forgery of minutes and documents", UFJ
believes it is reasonable to recognize that certain sections
systematically forged minutes and documents, as pointed out in
the administrative order, with the intention to evade
inspections.

-In terms of the "concealment of information and false
explanations to inspectors", UFJ recognizes that false
explanations on business climates and financial conditions of
some borrowers were made, as pointed out in the administrative
order, and that some of these responses were conducted
systematically.

(3) Measures to prevent recurrence

UFJ Bank will take the following measures:

1) Reconstruction of corporate governance framework centering on
external directors

-More than one non-executive director, independent from UFJ, and
possessing the necessary expertise, will be appointed as non-
executive directors and will be in charge of supervising the
management.

-The board of directors will appropriately monitor management
and make important decisions, including strengthening
involvement in extension of credit for large borrowers.

2) Aggressive reorganization of the Audit & Compliance Committee

-Newly appointed external directors will become the chairperson
and other members of this committee.

-In addition, in order to rigidly ensure its independence, the
committee will entirely consist of external members, including
the chairperson, other external directors, and the external
specialists, who will be appointed by the chairperson.

-All authority to supervise and direct the internal auditing
divisions will be given to the committee.

-The committee, independent from management, will report on the
status of UFJ's risk management, compliance, and internal
auditing to the board of directors as well as to the FSA.

3) Reinforcement of compliance system

-The President & CEO, executive directors, and executive
officers will submit "oaths", with respect to compliance, to the
Audit and Compliance Committee.

-The President & CEO will govern the Compliance Department and
lead compliance activities.

-The bank will heighten employees' awareness of compliance and
develop its monitoring function through a "Compliance Hotline".

4) Realignment of organization to strengthen internal control

-The bank will establish the Internal Audit Planning Office,
which will govern and supervise the Internal Audit Department as
the executive office for the Audit and Compliance Committee.
This department will be in charge of internal audit planning.

-The Internal Audit Department will be reinforced, aiming to
strengthen its auditing functions at the sections in the
headquarters and to develop auditing systems further, centering
on assessment of assets.

-The bank has established the Financial Accounting Department
and the Credit Risk Management Committee in order to reinforce
its internal control framework including credit risk management.

5) Appropriate control on conduct related to inspections

-The Compliance Department, responsible for inspections, will
strengthen monitoring of conduct with regard to inspections and
heighten the awareness of the appropriate stance in relation to
inspections.

-The chairman of the Audit & Compliance Committee will have a
meeting with inspectors at the beginning of inspections, aiming
to improve UFJ's conduct related to inspections.

(II. Business improvement plan regarding loans to small- and
medium-size enterprises (SMEs))

(1) Major problems indicated in the administrative action

The administrative action indicated that, UFJ's procedures to
monitor and verify SME lending was deemed to be inadequate by
the FSA, and that the FSA deemed this to be "a case where a bank
is deemed not to properly comply with the plan to revitalize
management", which was stated in the "administrative treatment
related to follow up of the capital injected banks".

(2) UFJ's current understanding of the problems

At UFJ, the procedure to manage SME lending, an important item
in the plan to revitalize management has not adequately
functioned.

Specifically, the rules for registering customer information
(industries, capital, number of employees etc.) for segmenting
purposes and extraction of individual loans for businesses in
accord with definitions were not adequate. Moreover, examination
of accuracy in segmentation and registration was inadequate. As
a result, the bank counted some loans to large corporations as
lending to SMEs, and missed some SME lending.

In addition, since there were inadequacies in the measures taken
by the headquarters, the instructions given to branches, and the
framework to supervise and monitor branches, the bank reported a
certain amount of short-term lending at the fiscal year end,
which did not necessarily fit the purpose of Law No.5 relating
to Emergency Measures for Early Reconstruction of Financial
Systems (Early Reconstruction Law).

The revised actual figures, which UFJ is now examining, will be
announced soon after these are finalized, and will be included
in the progress report on the plan to revitalize management.

(3) Measures to prevent recurrence

Based on the current understanding stated above, UFJ will
develop and reinforce its framework to manage and promote SME
lending, in accordance with the purpose of the Early
Reconstruction Law.

1) Improvement in organizational structure

The Group Planning Department of UFJ Holdings and the Corporate
Planning Department of UFJ Bank will take responsibility for
reinforcing UFJ's internal control systems related to SME
lending, reconsidering the inadequate efforts in the past.

-At UFJ Bank, the Corporate Planning Department will be in
charge of monitoring progress in all related sections.

-The bank aims to strengthen the secondary checking functions.
The Internal Audit Department will audit headquarters and
branches to examine implementation of the measures to be taken,
and will require the sections to correct inappropriate
behaviors.

2) Reinforcement of database management

UFJ will increase the accuracy of databases through reforming
its database management, including revision of rules for
registration and maintenance of customer information
(industries, capital, number of employees etc.). At the same
time, it will develop an appropriate reporting framework.

-UFJ Bank will improve the accuracy of databases by establishing
rules for initial registration and periodic revision of customer
information, and for developing computer systems.

-The bank will heighten employees' awareness of the importance
of database management through rigid application of the rules
and provision of instructions about the rules for branches.

-The bank will clarify and unify the definitions and counting
standards related to SME lending in order to establish systems
to report accurate figures.

3) Improvement in abilities to recognize reality

At UFJ Bank, branches will promote SME lending, and the
headquarters will develop strategies and give instructions to
the branches in a proper manner, in accordance with the
objective of the Early Reconstruction Law.

-The bank will again recognize the objective of the law:
provision of sufficient funds in response to the financing needs
of healthy SMEs.

-The bank will adopt a well-balanced evaluation system for
business performance, aiming at promotion of "loans which fit
the objective of the law" as well as avoidance of "loans largely
against the objective of the law".

-The bank will prevent a recurrence of provision of loans, which
do not fit the objective of the law, by monitoring short-term
lending at the fiscal year end.

4) Promotion of SME lending

UFJ Bank will continue promoting reform in its lending business,
aiming to increase loans to SMEs. This will include aggressive
promotion of "UFJ Business Loan", which is a loan product for
small businesses, "Basic Mode", which is a credit assessment
method for SME lending, and the "industrial credit standard",
which is a credit assessment method for medium-sized companies.
At the same time, it will increase its marketing force,
specializing in the extension of lending to new SME customers.

5) Reinforcement of internal control

At UFJ Bank, in addition to the monitoring conducted by the
sections in charge of business promotion or risk management, the
Internal Audit Department will examine the measures to be taken
to prevent recurrence through auditing the headquarters and
branches.

(III. Business improvement plan regarding large difference
between the revised financial forecast and the financial
results)

(1) Major problems indicated in the administrative action:

The administrative action indicated that the FSA found a
critical imperfection in UFJ's internal control framework,
including inadequacy regarding appropriate procedures to manage
credit risk and intersectional monitoring functions. The
imperfection was demonstrated by the fact that provisions were
increased by YEN500 billion, when UFJ announced its financial
results. This increase was deemed necessary, as UFJ did not make
a management decision to revise earnings forecasts for fiscal
2003, based on an adequate review of provisions.

(2) UFJ's current understanding of the problems

In considering measures to calculate provisions and the stance
on reserves for large troubled borrowers, UFJ did not adequately
take into account the uncertainty related to unexpected
additional credit costs, which it might incur in the course of
reducing the amount of problem loans under the Financial
Reconstruction Law.

UFJ understands that such a lack of deliberate and conservative
judgment was due to the problems in its "internal control
systems" including the credit risk management system and the
mutual monitoring functions, and its "corporate governance
systems", which should govern and supervise these systems.

(3) Measures to prevent recurrence

Based on this understanding, UFJ's management aims to show its
solid intention toward credit risk management by taking the
following measures:

1) Reinforcement of the board of directors' functions

-The board of directors will strengthen its involvement in
credit risk management through expanding the scope of its
discussions related to write-offs, provisions, and large
troubled borrowers.

2) Reinforcement of the headquarters' functions

-UFJ Bank will ensure appropriateness in the process of credit
risk management, such as the development, application, and
examination of standards through the following measures:

-It will ensure objectivity and transparency of standards by
establishing the Credit Risk Management Committee, which will be
composed entirely of external specialists.

-It will ensure independence, appropriateness, and transparency
of its financial results and disclosure by establishing the
Financial Accounting Department, separating the accounting and
tax planning team from the Corporate Planning Department.

-It will improve accuracy in internal credit ratings and self-
assessment by the establishment of an instruction team in the
Credit Policy & Planning Department, which will provide
instructions for branches and credit assessment departments.

3) Clarification of executive officers' responsibilities

-UFJ Bank will improve credit risk management and monitoring
functions of each executive officer by clarifying
responsibilities of each officer, related to credit risk.

4) Development of mutual monitoring functions

-In terms of the establishment and revisions of standards for
write-offs and provisions, internal credit ratings and self-
assessment framework, and credit risk management for large
troubled borrowers, UFJ will aim at developing primary checking
functions performed by executive divisions in charge of credit
risk management.

-The Internal Audit Department will be under the immediate
control of the Audit & Compliance Committee in order to
reinforce the monitoring functions of executive sections by
being independent from management.

-UFJ Bank will appropriately understand and examine credit risks
related to each large borrower by establishing a specialized
team for large borrowers in the Internal Audit Department.

-The bank will improve its auditing functions through
establishing the "Internal Audit Planning Office", which will be
responsible for governing, supervising and planning of internal
audits, under the Audit & Compliance Committee.

-Collaborating with the Credit Risk Management Committee and the
specialized team for large borrowers, the corporate auditors
will examine the establishment and revisions of the standards
for write-offs and provisions and will improve the effectiveness
of auditing through timely and appropriate exchange of opinions
with the Internal Audit Department and accountants. In addition,
the corporate auditors will examine whether the new auditing
systems function well.

-From the standpoint of group management, UFJ Holdings, as the
holding company, will examine the framework of corporate
governance and internal controls at UFJ Bank and other
subsidiaries.

3. Clarification of responsibilities

In response to the series of administrative actions, UFJ
clarified responsibilities of related directors and executive
officers, and employees.

Though UFJ had already punished the directors and executive
officers before June 18, UFJ revised the punishment related to
"UFJ's response to the FSA's inspections", as stated in the
attachment. This was revised because UFJ came to recognize that
"there were deeds which were deemed to be evasions of
inspections", based on the investigation conducted by the third
party.

In addition, UFJ punished the employees as attached, based on
its current understanding about the series of the administrative
orders.

Furthermore, UFJ clarified responsibilities, as stated in the
attachment, in terms of its previous wrong understandings
related to the administrative orders, which it announced on June
18, without conducting appropriate investigation.

4. Corporate governance in the future

We would like to reiterate that the UFJ Group takes the
administrative actions by FSA very seriously and is committed to
deliver its Business Improvement Plan. By doing so, the UFJ
Group is committed to re-establish its corporate governance and
internal controls, including credit management.

Disciplinary Punishment

In response to the administrative orders *, UFJ already
disciplinarily punished directors and executive officers on June
18, 2004 as follows:

(1) The former top management of UFJ (the Presidents of UFJ
Holdings, UFJ Bank and UFJ Trust Bank) resigned their positions,
due to the net loss and suspension of dividend in the fiscal
2003 and the failure to meet the profit target regarding
"follow-up of the capital injected bank (so-called '30% rule')".

(2) The directors and executive officers, who had supervised the
areas where the FSA took administrative actions on UFJ, were
disciplinarily punished as follows:

- Resignation
-- Two senior executive officers resigned due to "inspections",
"30% rule", "SME lending", and "revision".
-- A representative director & deputy president, and an
executive officer resigned due to "inspections" and "revision".
-- A representative director & deputy president, a senior
executive officer, and an executive officer resigned due to
"inspections".

- Reduction in monthly compensation
-- The monthly compensation of a senior executive officer has
been reduced by 10% due to "30% rule" and "revision".
-- The monthly compensation of a senior executive officer and
an executive officer has been reduced by 5% due to "SME
lending".

Based on the results of the third-party investigation, which
stated there were deeds that could be deemed evasions of
inspections, UFJ decided to change the disciplinary punishment
for Kazumi Okazaki (representative director & deputy president),
Sen Hayakawa (senior executive officer), and Masayuki Inaba
(executive officer) to "dismissal".

In response to the series of administrative actions, UFJ applied
rigid disciplinarily punishments (demotion etc.) to 78 employees
due to "inspection" and 3 employees due to "SME lending".

All directors, executive officers, and corporate auditors of UFJ
Holdings and UFJ Bank have been and will receive, for the time
being, a 50% reduction in their monthly compensation due to the
net loss and suspension of dividend in the fiscal 2003.

UFJ will additionally cut the monthly compensation by 30% for
Ryosuke Tamakoshi (President of UFJ Holdings) and Takamune
Okihara (President of UFJ Bank), and by 20% for Toshihide Mizuno
(senior executive officer of UFJ Bank), for the time being.


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


HYNIX SEMICONDUCTOR: Becomes Second-Largest Memory Chipmaker
------------------------------------------------------------
Hynix Semiconductor Inc. outpaced rival Micron Technology Inc.
in the second quarter of this year to become the world's second-
largest dynamic random access memory (DRAM) supplier, market
researcher iSuppli Corporation announced on its Web site.

This represents another market-share triumph for Hynix of South
Korea, which retook the number-three DRAM ranking from Infineon
Technologies AG in the fourth quarter of 2003.

Hynix in the second quarter of 2004 boosted its DRAM revenue by
23 percent compared to the first quarter. In contrast, Micron's
DRAM sales increased by a modest 2 percent.

Although Micron has been shifting its DRAM manufacturing
capacity to produce other parts -- a move that opened the door
for its competitors to take some of its market share -- this
remains an impressive achievement for the long-suffering Hynix.
After resolving questions concerning its ownership situation,
its financial performance and its continued viability as an
independent company, Hynix still faces a trade dispute. The
United States and the European Union have slapped countervailing
duties on imported Hynix DRAMs.

Despite these challenges, Hynix in the second quarter accounted
for 16.9 percent of worldwide DRAM sales, second only to fellow
South Korean memory maker Samsung Electronics Ltd., which
controlled 27.7 percent of global revenue. Micron fell to third
place with a 15.3 percent share of global sales, 1.6 percentage
points less than Hynix.

The table below presents revenue market share rankings for the
world's top ten DRAM makers.

Even more impressive than Hynix's market share achievement was
its accomplishment in DRAM operating margin in the second
quarter.

Due to aggressive cost-cutting efforts, Hynix's operating margin
equaled approximately 40 percent in the second quarter, iSuppli
estimates. This number is not far behind Samsung, whose DRAM
margin is perennially the highest in the industry.

By leveraging its diverse product line, which includes products
ranging from graphics memories to legacy SDRAMs, Hynix achieved
an average selling price (ASP) of $6.20 during the second
quarter.

The diverging DRAM fortunes of Hynix and Micron in the second
quarter reflect their varying corporate strategies. Hynix has
been sticking to its knitting by focusing on the memory
business, and selling off its other product lines. In contrast,
Micron and competitor Infineon Technologies AG have turned their
attention to non-DRAM products and have allocated more capacity
to devices like logic and CMOS image sensors.

In other DRAM market-share news, Elpida Memory Inc.'s DRAM sales
rose by 76 percent in the second quarter, which was the largest
growth in the industry during the time period. Elpida of Japan
now stands solidly among the world's top-five DRAM suppliers
with a 6.4 percent market share.

The Japanese supplier's DRAM unit shipment increased by 46
percent during the quarter as it ramped up production on 300-mm
diameter wafers. Elpida's manufacturing partner, Powerchip of
Taiwan, posted the industry's second-strongest growth during the
quarter. Powerchip's DRAM revenue rose by 46 percent compared to
the first quarter and its unit shipments now exceed those of any
other Taiwanese suppliers.

Samsung achieved the strongest sales growth of the top-four
suppliers. Its DRAM sales revenue grew to $1.85 billion, up 25
percent from the first quarter. Infineon retained the number-
four position with a 14.4 percent market share.

The overall DRAM market in the second quarter grew to $6.7
billion, up 21.4 percent from the first quarter.

iSuppli will issue its final second-quarter DRAM market share
estimates in the near future.

TOP TEN DRAM SUPPLIERS FOR 2Q 2004

Rank   Company  2Q04   Q-over-Q  Q2
                sales  growth    market share

1 Samsung      $1849 Mln  24.7%   27.7%

2 Hynix        $1130 Mln  23.1%   16.9%

3 Micron       $1021 Mln   1.9%   15.3%

4 Infineon     $960 Mln1   7.9%   14.4%

5 Elpida       $430 Mln   75.5%    6.4%

6 Powerchip    $357 Mln   46.4%    5.4%

7 ProMOS/Mosel $309 Mln   21.2%    4.6%
-Vitelic

8 Nanya        $304 Mln   21.1%    4.6%

9 Elite        $81 Mln    39.7%    1.2%

10 Winbond     $70 Mln    11.0%    1.0%

Others        $156 Mln   -1.8%    2.3%

Total         $6667 Mln  21.4%    100%

CONTACT:

Hynix Semiconductor Incorporated
San 136-1 Ami-ri Bubal-eup Ichon-si
Gyeonggi, KYONGGI-DO 467-866
Korea (South)
Tel: +82 31 630 4114
Tel: +82 31 630 4101

iSuppli Corporation
1700 East Walnut Avenue
El Segundo, CA 90245
Phone:  310 524 4000
Fax:  310 524 4050


KOOKMIN BANK: Expects Better 2H Performance
-------------------------------------------
With the improving quality of its credit-card assets, Kookmin
Bank expects its net profit in the second half of 2004 to be
larger compared to the first, The Asian Wall Street Journal
reported on Wednesday.

The bank incurred a net profit of KRW307.6 billion (US$264.7
million) in the first half versus a loss of KRW161.2 billion a
year earlier as provisions shrank, helped by an improvement in
its credit-card operations.

Loan-loss provisions fell 28% to KRW2.16 trillion from KRW2.99
trillion. Local lenders, particularly retail-oriented Kookmin
Bank, have taken significant hits from credit-card-related
losses following a surge in consumer credit defaulters after a
spending spree in the past few years. But the banks have been
focusing on reducing their bad credit-card assets, resulting in
an improvement in the quality of their credit-card assets this
year.

CONTACT:

Kookmin Bank
9-1 Namdaemoonro 2-ga
Chung-gu, Seoul 100-092
Korea (South)
Tel: +82 2 317 2114
Tel: +82 2 776 5637


LG CARD: Creditors OK Business Reorganization Plan
--------------------------------------------------
Creditors of LG Card Co. approved on Wednesday a restructuring
plan for the credit card issuer, under which the firm has agreed
to sell assets and reduce debt, according to Reuters.

The creditors, led by state-run Korea Development Bank (KDB),
completed a KRW2.55 trillion (US$2.19 billion) debt-for-equity
swap put forward in January for the troubled credit card
company.

LG Card expects to slash the size of assets to KRW12.6 trillion
by the end of this year from last year's KRW21 trillion, and cut
the ratio of risky assets against the total to 11.3 percent by
2006 from 44.4 percent at the end of 2003, KDB said.

The cash-strapped card firm is expected to post a KRW175.8
billion net profit next year.

For a copy of the Company's press release, go to
http://bankrupt.com/misc/tcrap_lgcard0729.pdf

CONTACT:

LG Card Investor Relations
10th Floor, YTN Tower
6-1 Namdaemun-ro 5-ga,
Joong-Gu, Seoul, Korea
100-800
Phone: 822-6009-7206
Fax: 822-6009-7983


SSANGYONG MOTOR: Not Moving Production Facilities to China
----------------------------------------------------------
Ssangyong Motor Co. will not move its production facilities to
China upon takeover by Shanghai Automotive Industry Corporation
(SAIC), Asia Pulse reported on Wednesday.

SAIC and Chohung Bank, the main creditor of Ssangyong, signed
the Memorandum of Understanding (MOU) in Seoul on Tuesday. Under
the MOU, SAIC was chosen as the exclusive preferred buyer to
purchase 48.9 percent shares of the South Korean carmaker.

Both parties will conduct further investigation and negotiation,
and if they agreed with conditions proposed by each other, they
will finally sign the definitive agreements around September or
October, according to SAIC President Hu Maoyuan.

Ssangyong Motor has been up for sale since its creditors bailed
it out following the 1997-1998 financial crisis. The South
Korean company went into restructuring in 2000.

CONTACT:

Ssangyong Motor Company Limited
150-3 ChilgoE-dong
Pyeongtaek-si, Kyonggi 459-711
Korea (South)
Tel: +82 31 610 1114
Tel: +82 31 610 3739


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


AKTIF LIFESTYLE: Discloses Restructuring Update
-----------------------------------------------
Further to the initial announcement made on 15 June 2004, the
Board of Directors of Aktif Lifestyle Corporation Berhad said it
is still working on a restructuring scheme, the implementation
of which will enable the Company to ensure a level of operations
that is adequate to warrant continued trading and/or listing on
the Official List.

This Bursa Malaysia announcement is dated 28 July 2004.


BOUSTEAD HOLDINGS: Issues Additional 172,000 Ordinary Shares
------------------------------------------------------------
Boustead Holdings Berhad's additional 172,000 new ordinary
shares of RM0.50 each issued pursuant to the employees' share
option scheme will be granted listing and quotation with effect
from 9 a.m., Friday, 30 July 2004.

CONTACT:

Boustead Holdings Berhad
18th Floor, Menara Boustead,
69 Jalan Raja Chulan,
50200 Kuala Lumpur
Tel: 03-2141 9044
Fax: :03-21430075
Web site: http://www.boustead.com.my


CHG INDUSTRIES: Securities Suspension Pending
---------------------------------------------
CHG Industries Berhad has failed to regularize its financial
condition within the prescribed time frame pursuant to paragraph
8.14 of the Listing Requirements and paragraph 5.0 of Practice
Note No. 4/2001.

Bursa Malaysia Securities announced that the trading in the
Company's securities will be suspended with effect from 9 a.m.,
Wednesday, 4 August 2004 until further notice.

CONTACT:

CHG Industries Berhad
Registered Address: B-12-15 Block B
Megan Avenue II
12 Jalan Yap Kwan Seng
50450 Kuala Lumpur
Tel: 03-27112100
Fax: 03-27136999
Web site: www.chg.com.my


GULA PERAK: Grants Listing of 10,800 Ordinary Shares
----------------------------------------------------
Gula Perak Berhad's additional 10,800 new ordinary shares of
RM1.00 each issued pursuant to the conversion of 10,800
irredeemable convertible secured loan stocks will be granted
listing and quotation with effect from 9.00 a.m., Friday, 30
July 2004.

CONTACT:

Gula Perak Berhad
218 Jalan Ipoh
Kuala Lumpur, 51200
MALAYSIA
+60 3 4044 2828
+60 3 4044 6688


KILANG PAPAN: MITI OKs Revised Restructuring Scheme
---------------------------------------------------
Reference is made to the announcement made by AmMerchant Bank
Berhad (AmMerchant Bank) on 22 June 2004 on the revision to the
proposed restructuring scheme of Kilang Papan Seribu Daya Berhad
(KPSD).

In a disclosure to the Bursa Malaysia Securities Berhad, the
Ministry of International Trade and Industry (MITI) approved the
revision to the proposed restructuring scheme of KPSD vide their
letter dated 27 July 2004 subject to, inter alia, the following
conditions:

a) Approval for the listing scheme is to be obtained from the
Securities Commission (SC) and the Company is required to adhere
to the guidelines on acquisitions, takeovers and mergers;

b) KPSD and Padas Hevea Wood Products Sdn Bhd will be given
three (3) years to fulfill the equity conditions as stated in
its manufacturing licenses; and

c) KPSD is required to inform the MITI of the fulfillment of the
above conditions upon completion of the revision to the Proposed
Restructuring Scheme.

KPSD is currently waiting for approvals from the SC and the
Foreign Investment Committee on its revised Proposed
Restructuring Scheme.

CONTACT:

Kilang Papan Seribu Daya Berhad
Lot 1 Harmoni Industrial Estate
Kolombong, Inanam 88100
Malaysia
Tel: +60 88 423 385
Tel: +60 88 423 287

This announcement is dated 28 July 2004.


KUMPULAN BELTON: Releases Default Status Update
-----------------------------------------------
The Board of Directors of Kumpulan Belton Berhad disclosed to
the Bursa Malaysia Securities Berhad the following updates on
the status of the Company's default in payment and involvement
in litigation for the period from June 29, 2004 to the date of
this announcement.

INVOLVEMENT IN LITIGATION

1) OCBC Bank (Malaysia) Berhad (Plaintiff) vs Belton Properties
Sdn Bhd (Defendant) & Kumpulan Belton Berhad (Guarantor) Kuala
Lumpur High Court Suit No. D4-22-1204-2002

No changes.

2) OCBC Bank (Malaysia) Berhad (Plaintiff) vs Belton-Dorbyl
Automotive Products Sdn Bhd (Defendant) & Kumpulan Belton Berhad
(Guarantor) Kuala Lumpur High Court Suit No. D7-22-1088-2002

No changes.

3) OCBC Bank (Malaysia) Berhad (Plaintiff) vs Belton Fasteners
Sdn Bhd (Defendant) & Kumpulan Belton Berhad (Guarantor)

Ipoh High Court (No.3) Civil Suit No. 22-251-2001

Our application for stay of proceedings pending our appeal to
the Judge in Chambers, which was fixed for hearing on 03/06/2004
was adjourned to 08/07/2004 at the request of the plaintiff's
solicitors. We have withdrawn our application for stay of
proceedings. Enclosure 21, our appeal to Judge in Chambers is
fixed for hearing on 7/10/2004.  Enclosure 21 is an appeal
against the Registrar's decision disallowing our application to
adduce further evidence.

4) OCBC Bank (Malaysia) Berhad (Plaintiff) vs Belton HWC
Industries Sdn Bhd (Defendant) & Kumpulan Belton Berhad
(Guarantor)

Kuala Lumpur High Court Suit No: D8-22-1430-2002

Our appeal to Judge in Chambers against Registrar's decision to
allow Plaintiff's application for Summary Judgement fixed for
hearing on 22/07/2004 was adjourned to 03/11/2004 pending
settlement.

5) OCBC Bank (Malaysia) Berhad (Plaintiff) vs Belton Springs
Sdn. Bhd (Defendant) & Kumpulan Belton Berhad (Guarantor)

Kuala Lumpur High Court Suit No: D8-22-1429-2002

Our appeal to Judge in Chambers against Registrar's decision to
allow Plaintiff's application for Summary Judgement fixed for
hearing on 22/07/2004 was adjourned to 03/11/2004 pending
settlement.

6) a)  OCBC Bank (Malaysia) Berhad (Plaintiff) vs Aesthetic
Development Sdn Bhd (Defendant)

Ipoh High Court Originating Summons No. 24-706-2001

The plaintiff's application by Summons in Chambers for a new
auction (third) date fixed for hearing on 26/07/2004 was
adjourned to 08/11/2004.

  b) OCBC Bank (Malaysia) Berhad (Plaintiff) vs Aesthetic
Development Sdn. Bhd (Defendant) & Kumpulan Belton Berhad
(Guarantor).

Ipoh High Court Suit No: 22-173-2003.

The plaintiff's application for Summary Judgement fixed for
hearing on 21/07/2004 was adjourned at the request of the
plaintiff's solicitors to file affidavit in reply. Next date is
08/09/2004 for mention.

  c) OCBC Bank (Malaysia) Berhad (Plaintiff) vs Pleasant Venture
Sdn Bhd (Defendant)

Ipoh High Court Originating Summons No: 24-707-2001.

The plaintiff's application by Summons in Chamber for a new
auction (third) date fixed for hearing on 26/07/2004 was
adjourned to 08/11/2004.

7) RHB Bank Berhad (Plaintiff) vs Belton Springs Sdn Bhd
(Defendant) & Kumpulan Belton Berhad (Guarantor).

Ipoh High Court Civil Suit No.22-133-2001

Our appeal to Judge in Chambers against Registrar's decision in
allowing Summary Judgment is fixed for hearing on 26/08/2004.

8) RHB Bank Berhad (Plaintiff) vs Belton Sdn Bhd (Defendant) &
Kumpulan Belton Berhad (Guarantor)

Ipoh High Court Civil Suit No.22-134-2001

Plaintiff's application for Summary Judgment was allowed by the
Registrar on 13/07/2004. We have filed an appeal to Judge in
Chambers on 22/07/2004. The hearing date of appeal is to be
fixed by court.

9) AmBank Berhad (Plaintiff) vs Belton Sdn Bhd (Defendant) &
Kumpulan Belton Berhad (Guarantor)

Kuala Lumpur High Court Civil Suit No: D9-22-2365-2000

At the case management on 08/07/2004, the court has fixed
29/08/2005 and 30/08/2005 for trial.

10) AmBank Berhad (Plaintiff) vs Kumpulan Belton Berhad
(Defendant) Kuala Lumpur High Court No. D2-22-1369-2003
Plaintiff's application for Summary Judgement was allowed by
Registrar on 24/06/2004.  We shall be filing on application for
stay of execution soon pending our appeal to the Judge in
Chambers filed on 29/06/2004.

11) Aseambankers Malaysia Berhad (Plaintiff) vs Kumpulan Belton
Berhad (Defendant)

Kuala Lumpur High Court D2-22-1827-2003

Plaintiff's application for Summary Judgement fixed for hearing
on 06/07/2004 was adjourned to 17/08/2004.

12) Hong Leong Bank Berhad (Plaintiff) vs Belton Pins Industries
Sdn Bhd (Defendant); Kumpulan Belton Berhad and 2 Others
(Guarantor)

Kuala Lumpur High Court No. D7-1845-2003

Plaintiff's application for Summary Judgement fixed for hearing
on 15/06/2004 was adjourned to 17/08/2004.

13) Danaharta Managers Sdn. Bhd. (Plaintiff) vs Belton Fasteners
Sdn. Bhd (Defendant)

Ipoh High Court Originating Summons No. 24-389-2004

In response to Plaintiff's application to remove caveat and for
vacant possession, we have filed an affidavit with counter-
claim.  The hearing fixed on 15/07/2004 was adjourned to
06/10/2004.  Plaintiff's solicitor is writing to court for an
earlier date.

Note: The is no subsequent payment to lenders except repayment
to the following financial institutions between 01/03/2004 to
the date of this announcement:

Lender Subsidiary          Amount (RM)

BCB  Belton Sdn. Berhad   1,350,000  *
BCB  Belton Auto Parts Sdn. Bhd.       200,000
OCBC  Belton-Dorbyl Automotive         400,000
  Products Sdn. Bhd.
OCBC  Belton Properties Sdn. Bhd.          70,000

*  Full & final payment under compromised settlement.

CONTACT:

Kumpulan Belton Berhad
Lot 10 Sungai Siput Light Indus'l Estate
31100 Sungai Siput, Perak Darul Ridzuan 48000
Malaysia
Tel: +60 3 6257 2233
Tel: +60 3 6257 8989


LANKHORST BERHAD: Unveils Private Placement Proposal
----------------------------------------------------
Lankhorst Berhad (LB) refers to the announcement dated 28 April
2004 in which Commerce International Merchant Bankers Berhad
(CIMB), on behalf of the Board of Directors of LB, had announced
that the Company proposes to implement a private placement of up
to 10% of the issued and paid-up share capital of the Company.

CIMB announced that Lankhorst Berhad would submit applications
in respect of the Proposed Placement to the relevant authorities
within six (6) months from the date of this announcement as
opposed to the timeframe, which was previously announced.

CONTACT:

Lankhorst Berhad
5th Floor, Bangunan Umno Selangor
Persiaran Perbandaran
Section 14, 40000 Shah Alam
Selangor, Malaysia
Tel: 03-50313030
Fax: 03-50313036

This Bursa Malaysia announcement is dated 27 July 2004.


MANGIUM INDUSTRIES: Unit Issues Default in Payments
---------------------------------------------------
Mangium Industries Bhd (formerly known as Serisar Industries
Bhd) (MIB) announced that its wholly owned subsidiary, Mangium
Sawmill Sdn Bhd (formerly known as Kilang Papan Dasatu Sdn Bhd)
(MSSB) has not paid, and is deemed to have defaulted in its
repayments on facilities granted by Standard Chartered Bank
Malaysia Berhad and Southern Bank Berhad, which are unsecured.

A) REASON FOR DEFAULT IN PAYMENTS

Due to the unfavorable timber market and depressed prices for
timber and timber related products throughout Asia since the
financial crisis in the year 1997, many of the Group's buyers
were adversely affected and are facing financial difficulties
leading to their inability to settle their outstanding balances
despite efforts made by the management to collect these
outstanding debts with the Group. As a result, the cash flow
generated from operations was not sufficient to service the
interest and principal obligations to the lenders as and when
they fell due.

B) MEASURES BY THE LISTED ISSUER TO ADDRESS THE DEFAULT IN
PAYMENTS

Standard Chartered Bank Malaysia Berhad has agreed to the
Proposed Debt Settlement & Restructuring Scheme announced by MIB
on 22 December 2003.

C) FINANCIAL AND LEGAL IMPLICATIONS IN RESPECT OF THE DEFAULT IN
PAYMENTS INCLUDING THE EXTENT OF THE LISTED ISSUER'S LIABILITY
IN RESPECT OF THE OBLIGATIONS INCURRED UNDER THE AGREEMENTS FOR
THE INDEBTEDNESS

The estimated total outstanding as at 30 June 2004, in relation
to the payments, which are in default and are the subject matter
of this announcement amounts to RM10,479,501.74.

Since MIB is the guarantor for these loans, MIB is liable for
the full amount and any further interest and financial cost
levied there or until the settlement of these debts.

D) IN THE EVENT THE DEFAULT IS IN RESPECT OF SECURED LOAN STOCKS
OR BONDS, THE LINES OF ACTION AVAILABLE TO THE GUARANTORS OR
SECURITY HOLDERS AGAINST THE LISTED ISSUER

Not applicable.

E) IN THE EVENT THE DEFAULT IS IN RESPECT OF PAYMENTS UNDER A
DEBENTURE, TO SPECIFY WHETHER THE DEFAULT WILL EMPOWER THE
DEBENTURE HOLDER TO APPOINT A RECEIVER OR RECEIVER AND MANAGER

Not applicable.

F) WHETHER THE DEFAULT IN PAYMENT CONSTITUTES AN EVENT OF
DEFAULT UNDER A DIFFERENT AGREEMENT FOR INDEBTEDNESS (CROSS
DEFAULT) AND THE DETAILS THEREOF, WHERE APPLICABLE

The facilities listed above represent the borrowings of the
MIB's wholly owned subsidiary, MSSB, and as a result of their
default, the remaining facilities granted by other lenders to
MSSB are all technically in default by virtue of the "Cross
Default" clauses in the Letter of Offers.

However, the lenders have kept in view further legal action
other than those, which have been disclosed in our Annual Report
and Announcements, since MIB is in active negotiations with them
to normalize and regularize the accounts.

The details of the facilities currently in default in compliance
with Section 3.1 of Practice Note 1/2001 can be accessed at
http://bankrupt.com/misc/tcrap_mangium0729.doc

CONTACT:

Mangium Industries Berhad
2nd Floor Menara MAA
6 Lorong Api-Api 1
88000 Kota Kinabalu
Sabah
Tel: 6088-315000
Fax: 6088-312213

This Bursa Malaysia announcement is dated 28 July 2004.


MANGIUM INDUSTRIES: Posts Monthly Production Figure for June
------------------------------------------------------------
The Board of Directors of Mangium Industries Berhad announced
the following monthly production figure for the month of June
2004 in compliance with Paragraph 9.29 of the Chapter 9 of the
Bursa Malaysia Securities Berhad Listing Requirements.

M3
Mangium Sawmill Sdn. Bhd. (Formerly known as Kilang Papan
Dasatu Sdn. Bhd.)

1) Production of sawn timber

2) Production of finger joint timber

Mangium Plantations Sdn. Bhd. (Formerly known as Serisar
Forest Plantation & Products Sdn. Bhd.)

1) Production of logs 42,807.50

   Total 42,807.50


METACORP BERHAD: Seeks Shareholder's Mandate Approval
-----------------------------------------------------
In a disclosure to the Bursa Malaysia Securities Berhad,
Metacorp Berhad proposes to seek a shareholders' approval for
the Proposed Shareholders' Mandate for recurrent related party
transactions of revenue or trading nature at the forthcoming
Extraordinary General Meeting (PROPOSAL).

Circular to Shareholders containing information on the
abovementioned Proposal will be dispatched to the shareholders
upon obtaining approval from Bursa Malaysia Securities Berhad.

This Bursa Malaysia announcement dated 27 July 2004

CONTACT:

Metacorp Berhad
76, Lorong Mamanda 1
Ampang Point
68000 Ampang
Selangor
Tel: 03-4256 3800
Fax: 03-4251 9858/4256 5900
Web site: http://www.metacorp.com.my


MTD CAPITAL: Issues Additional 39,000 Ordinary Shares
-----------------------------------------------------
MTD Capital Berhad 's additional 39,000 new ordinary shares of
RM1.00 each issued pursuant to the employees' share option
scheme will be granted listing and quotation with effect from
9.00 a.m., Friday, 30 July 2004.

CONTACT:

MTD CAPITAL BERHAD
Batu 8 Jalan Batu Caves
Batu Caves, Selangor Darul Ehsan 68100
MALAYSIA
Tel: +60 3 6189 9022
Tel: +60 3 6187 7898


MWE HOLDINGS: Releases Notice of Director's Interests
-----------------------------------------------------
MWE Holdings Berhad announced that Dato' Surin Upatkoon, the
Company Director, and persons connected with him, intend to deal
in Company shares during the closed-period commencing from 26
July 2004 until one (1) market day after the announcement of the
Company's second quarter result ended 30 June 2004. The
shareholdings of Dato' Surin Upatkoon in the Company as at to
date are as follows:

No. of shares percentage (%)

1) Direct interest - 786,630 ordinary shares of RM1.00 each

2) Indirect interest - *25,018,895 ordinary shares of RM1.00
each

* Deemed interested by virtue of his interest in Casi Management
Sdn Bhd.

CONTACT:

MWE Holdings Berhad
Plaza Monterez
No.1, Jalan Merah Kesuma
U9/18, Seksyen U9
40000 Shah Alam
Tel: 04 - 5824811
Fax: 04 - 5824707


OSK HOLDINGS: Releases Notice of Shares Buy Back
------------------------------------------------
OSK Holdings Berhad disclosed to Bursa Malaysia Securities
Berhad the details of its shares buy back on July 27, 2004.

Date of buy back from: 15/07/2004

Date of buy back to: 23/07/2004

Total number of shares purchased (units): 194,900

Minimum price paid for each share purchased (RM): 1.590

Maximum price paid for each share purchased (RM): 1.650

Total amount paid for shares purchased (RM): 317,141.79

The name of the stock exchange through which the shares were
purchased: Bursa Malaysia Securities Berhad

Number of shares purchased retained in treasury (units): 194,900

Total number of shares retained in treasury (units): 37,613,300

Number of shares purchased, which were cancelled (units): 0

Total issued capital as diminished:

Date lodged with registrar of companies: 27/07/2004

Lodged by: Mentor Management Services Sdn Bhd

CONTACT:

OSK Holdings Berhad
Jalan Ampang
50450 Kuala Lumpur, 50450
MALAYSIA
Tel: +60 3 2162 4388
Tel: +60 3 2161 8254


PAN PACIFIC: Issues Restructuring Scheme Update
-----------------------------------------------
On behalf of Pan Pacific Asia Berhad (PPAB), Avenue Securities
Sdn Bhd (Avenue) announced that PPAB had on 27 July 2004 entered
into a conditional restructuring agreement (Restructuring
Agreement) with Goh Kheng Peow and Tan Ngaip Soon (collectively,
the CSB Vendors) wherein PPAB and the CSB Vendors have agreed to
undertake a restructuring scheme with the intention of restoring
PPAB onto stronger financial footing via an injection of new
viable business.

The Proposed Restructuring Scheme to be undertaken shall entail
the following:

(i) Proposed scheme of arrangement with PPAB's shareholders will
involve:

(a) Proposed reduction of the existing issued and paid-up share
capital of PPAB of RM128,578,004 comprising 128,578,004 ordinary
shares of RM1.00 each (PPAB Shares) to RM6,428,900 comprising
128,578,004 ordinary shares of approximately RM0.05 each
(Proposed Reduction);

(b) Proposed consolidation of the 128,578,004 ordinary shares of
approximately RM0.05 each in PPAB into 6,428,900 of RM1.00 each
PPAB Shares (Proposed Consolidation);

(c) Proposed cancellation of the entire issued and paid-up share
capital of PPAB of RM6,428,900 comprising 6,428,900 PPAB Shares,
resulting in a credit reserve of RM6,428,900 arising in the
accounts of PPAB (Proposed Cancellation);

(d) In consideration for the Proposed Cancellation, Newco, a
company incorporated or to be incorporated to serve as the
holding company to facilitate the implementation of the Proposed
Restructuring Scheme, shall allot and issue to the shareholders
of PPAB 6,428,900 ordinary shares of RM1.00 each in Newco (Newco
Shares) at par, credited as fully paid-up on the basis of one

(1) Newco Share for every one (1) PPAB Share held after the
Proposed Consolidation; and

(e) Forthwith and contingent upon the Proposed Cancellation,
PPAB shall apply an amount of RM6,428,900 out of the credit
reserve arising in paying in full at par 6,428,900 PPAB Shares
which shall be allotted and issued, credited as fully paid-up to
Newco.

(Collectively, the Proposed Scheme of Arrangement with
Shareholders)

(ii) Proposed settlement and/or compromise of the liabilities
(including contingent liabilities) owing by PPAB to its
creditors via inter-alia, the issuance by Newco of not more than
RM18,000,000 worth of securities which will be determined later
to the Company's creditors as full and final settlement of the
liabilities owing (Proposed Scheme of Arrangement With
Creditors);

(iii) Proposed acquisition by Newco of the entire equity
interest in Compugates Sdn Bhd (CSB) from the CSB Vendors for an
indicative purchase consideration of RM162,000,000 (Purchase
Consideration) to be satisfied by the issuance of Newco Shares
at par and/or other securities by Newco, the aggregate value of
which is equivalent to the Purchase Consideration to the CSB
Vendors (Proposed Acquisition);

(iv) Upon completion of the Proposed Acquisition, the CSB
Vendors shall collectively hold more than 33% of resultant
enlarged issued and paid-up share capital of Newco. In
accordance with Paragraph 6(1)(a) of Part II of the Malaysian
Code on Take-Overs and Mergers, 1998 (Code), the CSB Vendors are
obliged to undertake a mandatory offer for all the remaining
Newco Shares not already held by them.

In this respect, the CSB Vendors intend to apply to the
Securities Commission (SC) for an exemption from having to
undertake the mandatory offer (Proposed Exemption);

(v) Proposed private placement and/or restricted issue of up to
25,000,000 new Newco Shares to eligible investors to be
identified and/or existing shareholders of PPAB at a minimum
issue price of RM1.00 per share in order to meet the public
spread requirement as stipulated under the Listing Requirements
of Bursa Malaysia Securities Berhad (Bursa Securities) (Proposed
Private Placement/Restricted Issue); and

(vi) Proposed transfer of the listing status of PPAB on the Main
Board of Bursa Securities to Newco (Proposed Listing Transfer).

(Collectively, the Proposed Restructuring Scheme)

In view of the above, the Board of Directors of PPAB has
resolved to abort its existing proposed restructuring scheme,
which was announced by Alliance Merchant Bank Berhad on behalf
of PPAB on 17 December 2002 and approved by the SC on 21 May
2003.

2) DETAILS OF THE PROPOSED RESTRUCTURING SCHEME

The detailed terms and conditions of the Proposed Acquisition
will be finalized and incorporated into the definitive
agreements to be executed by the relevant parties. Save for the
aforesaid, the Proposed Scheme of Arrangement with Creditors and
the Proposed Private Placement/Restricted Issue, of which the
terms and conditions have yet to be finalized, the details of
the Proposed Restructuring Scheme (which will be undertaken
pursuant to Section 176 of the Companies Act, 1965 (Act)) are as
follows:

2.1 Proposed Scheme of Arrangement with Shareholders

PPAB proposes to undertake the following:

(a) Proposed reduction of the existing issued and paid-up share
capital of PPAB of RM128,578,004 comprising 128,578,004 PPAB
Shares to RM6,428,900 comprising 128,578,004 ordinary shares of
approximately RM0.05 each;

(b) Proposed consolidation of the 128,578,004 ordinary shares of
approximately RM0.05 each in PPAB into 6,428,900 of RM1.00 each
PPAB Shares;

(c) Proposed cancellation of the entire issued and paid-up share
capital of PPAB of RM6,428,900 comprising 6,428,900 PPAB Shares,
resulting in a credit reserve of RM6,428,900 arising in the
accounts of PPAB;

(d) In consideration for the Proposed Cancellation, Newco shall
allot and issue to the shareholders of PPAB 6,428,900 Newco
Shares at par, credited as fully paid-up on the basis of one (1)
Newco Share for every one (1) PPAB Share held after the Proposed
Consolidation; and

(e) Forthwith and contingent upon the Proposed Cancellation,
PPAB shall apply an amount of RM6,428,900 out of the credit
reserve arising in paying in full at par 6,428,900 PPAB Shares
which shall be allotted and issued, credited as fully paid-up to
Newco.

The Proposed Scheme of Arrangement with Shareholders will be
effected pursuant to Sections 64 and 176 of the Act.

The 6,428,900 new Newco Shares to be issued pursuant to the
Proposed Scheme of Arrangement with Shareholders shall rank pari
passu in all respects with the existing Newco Shares except that
they will not be entitled to any rights, dividends, allotment
and/or other distributions for which the relevant entitlement
date precedes the relevant issue date of the said shares.

2.2 Proposed Scheme of Arrangement with Creditors

PPAB proposes to enter into discussions with its creditors to
reach an agreement and/or compromise on the liabilities
(including liabilities that are actual and contingent) owing by
PPAB to its creditors via inter-alia, the issuance by Newco of
not more than RM18,000,000 worth of securities which will be
determined later to the Company's creditors as full and final
settlement of the liabilities owing.

As at 30 June 2003, the total liabilities (including contingent
liabilities) owing by PPAB (at Company level) to its creditors
amounted to approximately RM234.9 million. Details of the
Proposed Scheme of Arrangement with Creditors will be announced
accordingly when all terms and conditions have been finalized.
2.3 Proposed Acquisition

Newco shall acquire the entire equity interest in CSB from the
CSB Vendors for an indicative purchase consideration of
RM162,000,000 to be satisfied by the issuance of Newco Shares at
par and/or other securities by Newco, the aggregate value of
which is equivalent to the Purchase Consideration to the CSB
Vendors.

The Purchase Consideration was arrived at on a willing buyer-
willing seller basis after taking into consideration inter-alia,
the following:

(i) The forecast profit after taxation of RM12.0 million for the
financial year ending 31 December 2004 of CSB and its subsidiary
companies (CSB Group); and

(ii) The historical financial performance of the CSB Group.

The detailed terms and conditions for the Proposed Acquisition
including the nature of the Purchase Consideration will be
finalized and announced upon the execution of the definitive
agreements.

2.3.1 Information on the CSB Group

CSB was incorporated in Malaysia as a private limited company
under the Act on 19 May 1997. The authorized share capital of
CSB is RM500,000 comprising 500,000 ordinary shares of RM1.00
each of which 500,000 ordinary shares of RM1.00 have been issued
and fully paid-up.

The principal activities of CSB are trading, marketing and
distribution of imaging, information technology and
communication-based products, whilst the principal activities of
its subsidiary companies are as shown in Table 1 below.

The audited consolidated financial records of the CSB Group for
the past five (5) financial years ended 31 December 1999 to 2003
are as shown in Table 2 below.

2.3.3 Original Dates and Cost of Investments

The original dates and cost of investments of the CSB Vendors in
CSB are as shown in Table 3 below.

2.4 Proposed Exemption

Upon completion of the Proposed Acquisition, the CSB Vendors
shall collectively hold more than 33% of resultant enlarged
issued and paid-up share capital of Newco. In accordance with
Paragraph 6(1)(a) of Part II of the Code, the CSB Vendors are
obliged to undertake a mandatory offer for all the remaining
Newco Shares not already held by them upon completion of the
Proposed Acquisition

In this respect, the CSB Vendors intend to apply to the SC for
an exemption from having to undertake the mandatory offer
pursuant to the relevant provisions of the Code.

2.5 Proposed Private Placement/Restricted Issue

Newco proposes to undertake a private placement and/or
restricted issue of up to 25,000,000 new Newco Shares to
eligible investors and/or existing shareholders of PPAB to be
identified at a minimum issue price of RM1.00 per share. Based
on the above, the indicative proceeds of the Proposed Private
Placement/Restricted Issue of RM25.0 million will be utilized to
finance the working capital requirements of the Newco group of
companies. Further details of the Proposed Private
Placement/Restricted Issue will be announced upon the
finalization of the terms of the Proposed Acquisition.

The Newco Shares to be issued pursuant to the Proposed Private
Placement/Restricted Issue shall rank pari passu in all respects
with the existing Newco Shares except that they will not be
entitled to any rights, dividends, allotment and/or other
distributions for which the relevant entitlement date precedes
the relevant issue date of the said shares.

2.6 Proposed Listing Transfer

It is proposed that the entire issued and paid-up capital of
PPAB be de-listed from the Official List of the Main Board of
Bursa Securities and that Newco be admitted to the Official List
of the Main Board of Bursa Securities with the listing of the
entire issued and paid-up share capital after the Proposed
Restructuring Scheme.

3) SALIENT TERMS OF THE RESTRUCTURING AGREEMENT

The salient terms of the Restructuring Agreement include,
amongst others the following:

(i) The Proposed Restructuring Scheme is conditional upon the
following condition precedents being fulfilled within twelve
(12) months from the date of the Restructuring Agreement or by
such later date(s) as may be mutually agreed upon in writing
(Cut-off Date):

(a) The approval of the following authorities (Authorities):

i. The SC;

ii. The Foreign Investment Committee (FIC);

iii. The Bursa Securities, for the admission of Newco to the
Official List, the listing of and quotation for the entire
enlarged issued and paid-up shares of Newco to be issued and
allotted pursuant to the Restructuring Scheme on the Main Board
of the Bursa Securities and the delisting of PPAB;

iv. If required, the Ministry of International Trade and
Industry (MITI); and

v. If required, any other relevant authorities;

(b) The requisite approvals of PPAB's shareholders in general
meeting for the Proposed Restructuring Scheme;

(c) Sanction and confirmation of the High Court of Malaya for
the Proposed Restructuring Scheme approved by PPAB's
shareholders at a court convened meeting;

(d) Sanction and confirmation of the High Court of Malaya for
the Proposed Scheme of Arrangement with Creditors approved by
the creditors at a court convened meeting;

(e) The due execution and delivery of all agreements, documents
and instruments necessary to document and give effect to the
Proposed Restructuring Scheme including but without limitation,
the entry into, execution and delivery of the definitive
agreement(s) by Newco and the CSB Vendors in respect of the
Proposed Acquisition;

(f) PPAB being reasonably satisfied with the results of the due
diligence on the CSB Group; and

(g) The results of the due diligence on the PPAB group of
companies do not reveal or identify any prohibition or
restriction in respect of any issue, which will delay or prevent
the implementation for the Proposed Restructuring Scheme.

(ii) In the event the conditions precedent referred to in clause

(i) Above are not fulfilled by the Cut-off Date, the
Restructuring Agreement shall be deemed to be terminated and
thereafter shall become null and void.

(iii) In the event the condition(s) of the Authorities' approval
is not acceptable to any party, the parties concerned may within
30 days from the receipt of the conditional approval, either
make an appeal against the said condition(s) or reject the said
condition(s). In default of any election by the parties to
appeal or reject the said condition(s), all parties shall be
deemed to have accepted the condition(s).

(iv) PPAB and the CSB Vendors agree that in the event that the
Purchase Consideration (including the number of Newco Shares/and
or other securities to be issued in satisfaction thereof) shall
be adjusted accordingly to reflect the purchase consideration as
may be approved by the SC (Approved Purchase Consideration)
PROVIDED ALWAYS THAT the Approved Purchase Consideration shall
not in any event be varied by more than ten percent (10%) from
the Purchase Consideration (as the case may be). Should the
Approved Purchase Consideration be varied by more than ten per
cent (10%), the parties hereto shall be allowed to renegotiate
the terms and conditions of the Restructuring Agreement and
mutually agree on a new purchase consideration in respect of the
Proposed Acquisition.

In the event that the parties hereto are unable to agree on a
new purchase consideration within thirty (30) days of the
determination by the SC being notified to PPAB or its adviser,
any of the parties hereto may terminate the Restructuring
Agreement by giving thirty (30) days' notice in writing to the
other party.

(v) Forthwith upon the execution of the Restructuring Agreement,
PPAB shall be at liberty to conduct a legal and financial due
diligence on the CSB Group (CSB Due Diligence) for the purposes
of the Proposed Acquisition and the submissions to be made to
the Authorities for approval. The CSB Due Diligence shall
commence on the business day immediately following the date of
the Restructuring Agreement and shall be completed within a
period of thirty (30) days from the date on which all
information and documents first requested by PPAB's advisers
have been furnished by the CSB Group to the said advisers or
prior to the execution of the definitive agreements by Newco and
the CSB Vendors in respect of the Proposed Acquisition,
whichever is later.

(vi) The CSB Group (together with the CSB Vendors) shall be at
liberty to conduct a legal due diligence on PPAB (PPAB Due
Diligence) for the purposes of ensuring that there are no
prohibitions or restrictions in respect of the implementation of
the Proposed Restructuring Scheme. The PPAB Due Diligence shall
commence on the business day immediately following the date of
the Restructuring Agreement and shall be completed within a
period of thirty (30) days from the date on which all
information and documents first requested by the PPAB Group's
advisers have been furnished by PPAB to the said advisers or
prior to the execution of the definitive agreements by Newco and
the CSB Vendors in respect of the Proposed Acquisition,
whichever is later.

4) RATIONALE FOR THE PROPOSED RESTRUCTURING SCHEME

PPAB Group had recorded consecutive losses after taxation for
the past 5 years of approximately RM314.0 million, RM209.4
million, RM487.3 million and RM28.0 million for the financial
year ended 31 December 1999, 18 months ended 30 June 2001 and
financial years ended 30 June 2002 and 2003 respectively due to
the economic downturn in 1997 which had severely affected the
PPAB Group's business operations. As a result, the PPAB Group
ceased its core business of timber operations in 2002.

The main objective of the Proposed Restructuring Scheme is to
return PPAB to better financial standing and profitability,
thereby benefiting all stakeholders.

5) PROSPECTS OF THE CSB GROUP

Upon completion of the Proposed Restructuring Scheme, PPAB will
have a new core business via the CSB Group whose principal
activities are of trading and distribution of prepaid phone
cards, telecommunication equipment and office equipment.

Globalization and liberalization have intensified competition
and resulted in the emergence of new players in the market,
particularly lower cost-producing nations. This has prompted the
Government to strengthen further the nation's competitiveness.
Additional measures were designed to build upon the present
competitive edge, which hinges on the pillars of political
stability, a business-friendly Government, educated and easily
trainable workforce, abundant natural resources as well as
efficient economic management that have contributed to the
present strong macroeconomic fundamentals. The excellent network
of infrastructure, including high-speed broadband information
communication technology (ICT) connectivity has further enhanced
the nation's competitiveness. Further measures were focused on
reducing the cost of doing business, accelerating the transition
to ICT as the enabling tool to enhance productivity as well as
developing human resource to meet the demands of the New
Economy.

The electrical and electronic industry (E&E Industry) maintained
its position as the major contributor to the export-oriented
manufacturing industries, despite a slower growth 4% during the
half of the year, on account of strong growth of semiconductors,
ventilating and air conditioning as well as electronic
equipment. Electronic equipment manufactured mainly comprised
data processing equipment, communications, automotive, military
and civil aerospace equipment as well as consumer electronic
products. This industry continues to be Malaysia's largest
export earner at 65.5% during the first six months of 2003.

The global demand for electronic products, estimated at RM4,028
billion in 2002, is expected to increase by about 10%-12% in
2003, thereby providing positive impact on the performance of
this industry in Malaysia. Further, growth in the E&E Industry
is envisaged to gain strength following higher inter-regional
trade, particularly between Association of South East Asian
Nation and East Asian region.

(Source: Economic Report 2003/2004)

6) RISK FACTORS

(a) Change in control

Following the completion of the Proposed Restructuring Scheme,
the CSB Vendors are expected to emerge as the largest
controlling shareholders of Newco. The CSB Vendors as the new
controlling shareholders may introduce new Directors who will
effectively determine the future business direction of Newco. In
this regard, the CSB Vendors will be able to influence the
outcome of matters requiring the vote of Newco's shareholders,
unless they are required to abstain from voting by law and/or
the relevant authorities.

(b) Political, economic and regulatory risks
Like all other business entities, changes in political, economic
and regulatory conditions in Malaysia, could materially and
adversely affect the financial and business prospects of the CSB
Group. Amongst the political, economic and regulatory
uncertainties are the changes in political leadership,
expropriation, nationalization, re-negotiation or nullification
of existing sales orders and contracts, interest rates, method
of taxation and currency exchange rates.

While the CSB Group will seek to limit the impact of such risk
to its business, there is no assurance that any change in the
above factors will not have a material adverse effect on the
business and operations of the CSB Group.
(c) Business risks

The CSB Group's principal activities, which are related to the
trading and distribution of prepaid phone cards,
telecommunication equipment and office equipment will be
subjected to certain risks inherent the ICT sector. These may
include changes in general economic conditions and political
conditions, inflation, taxation, interest rates and exchange
rates of foreign currencies and changes in business conditions
such as, but not limited to, deterioration in prevailing market
conditions, labour and material supply shortages, increase in
costs of labour and raw materials.

(d) Competition

The CSB Group competes in a competitive and fast moving prepaid
phone card industry where its success is dependent on its
ability to increase market share and market presence within its
target markets. The ability to compete depends upon many factors
both internal and external, including stock availability,
product distribution channels, pricing and customer service and
support. The CSB Group's strategy is to constantly meet and
improve on fulfilling customers' needs and requirements in terms
of prepaid distribution, namely in the availability and delivery
of prepaid products and services as and when the customer
requires them. Nevertheless there can be no assurances that any
changes in the competitive environment will not have a material
effect on the CSB Group's business.

(e) Dependence on key personnel

The success of the CSB Group will depend to a significant extent
upon the abilities and continued efforts of its current
management team. The loss of any member of its management team
may have an impact on the CSB Group's operations. The CSB
Group's future success will also depend upon its ability to
attract and retain skilled personnel.

7) EFFECTS OF THE PROPOSED RESTRUCTURING SCHEME

The proforma effects of the Proposed Restructuring Scheme on the
share capital, net tangible asserts (NTA), gearing and
substantial shareholdings of PPAB and Newco can only be
determined upon finalization of the detailed terms of the
Proposed Restructuring Scheme. A detailed announcement will be
made in due course upon finalization of the aforesaid terms.

The Proposed Restructuring Scheme is expected to contribute
positively to the future earnings of Newco.

8) CONDITIONS OF THE PROPOSED RESTRUCTURING SCHEME

The Proposed Restructuring Scheme is subject to and conditional
upon approvals from, amongst others, the following:

(a) The SC;

(b) The FIC;

(c) The Bursa Securities, for the admission to the Official
List, the listing of and quotation for the entire enlarged
issued and paid-up shares of Newco to be issued and allotted
pursuant to the Restructuring Scheme on the Main Board of the
Bursa Securities and the delisting of PPAB;

(d) The MITI, if applicable;

(e) The shareholders of PPAB;

(f) The sanction of the High Court of Malaya;

(g) The creditors of PPAB; and

(h) Other relevant authorities
The Proposed Scheme of Arrangement with Shareholders, Proposed
Scheme of Arrangement with Creditors, Proposed Acquisition, the
Proposed Exemption, the Proposed Private Placement/Restricted
Issue and the Proposed Listing Transfer are inter-conditional
upon one another.

9) DIRECTORS' AND SUBSTANTIAL SHAREHOLDERS' INTEREST

Save for their interest as shareholders, none of the Directors
and/or substantial shareholders of PPAB and persons connected
with the Directors and substantial shareholders have any
interest, direct or indirect, in the Proposed Restructuring
Scheme.

10) ADVISER

Avenue has been appointed as adviser for the Proposed
Restructuring Scheme.

11) OTHER MATTERS

A detailed announcement in compliance with the relevant
provisions of the SC's Policies and Guidelines on Issues/Offer
of Securities and the Listing Requirements of Bursa Securities
will be made in due course upon the finalization of the detailed
terms of the Proposed Restructuring Scheme and the execution of
the definitive agreements for the Proposed Acquisition.

Barring any unforeseen circumstances, the Proposed Restructuring
Scheme is expected to be completed within twelve (12) months
from the date of this announcement.

12) DOCUMENTS FOR INSPECTION

The Restructuring Agreement may be inspected at the registered
office of PPAB at Unit No. 602B, Level 6, Tower B, Uptown 5, 5
Jalan SS 21/39, Damansara Uptown 47400 Petaling Jaya, Selangor
Darul Ehsan during normal business hours from Mondays to Fridays
(except public holidays) for a period of three (3) months from
the date of this announcement.

This Bursa Malaysia announcement is dated 27 July 2004.

CONTACT:

Pan Pacific Asia Berhad
Unit No. 602B,
Level 6, Tower B,
Uptown 5, 5 Jalan SS21/39,
Damansara Uptown,
47400 Petaling Jaya,
Selangor
Tel: 03-77278168
Fax: 03-77271622

For more information, go to
http://bankrupt.com/misc/tcrap_panpacific0729.doc


PARK MAY: Proposes Restructuring Scheme
---------------------------------------
Bursa Malaysia Securities Berhad announced that the proposed
restructuring scheme of Park May Berhad is comprised of the
following:

(a) Proposed acquisitions of six (6) subsidiaries of Kumpulan
Kenderaan Malaysia Berhad (KKMB) by Konsortium Transnasional
Berhad (KTB), the company which will assume the listing status
of Park May pursuant to the Proposed Restructuring Scheme, for a
total purchase consideration of RM85,055,614 to be satisfied by
the issuance of 170,111,229 new ordinary shares of RM0.50 each
(Shares) in KTB (Proposed Acquisitions);

(b) Proposed conditional voluntary offer by KTB to acquire all
the issued and paid-up share capital of Syarikat Kenderaan
Melayu Kelantan Berhad (SKMK), a subsidiary of KKMB, comprising
7,250,620 ordinary shares of RM1.00 each to be satisfied by the
issuance of new Shares in KTB at an issue price of RM0.50 per
Share on the basis of ten (10) new KTB Shares for every one (1)
existing ordinary share of RM1.00 each held in SKMK;

(c) Proposed conditional voluntary offer by KTB to acquire all
the issued and paid-up share capital of Tanjong Keramat Temerloh
Utara Omnibus Berhad (Keramat), a subsidiary of KKMB, comprising
1,054,653 ordinary shares of RM1.00 each to be satisfied by the
issuance of new Shares in KTB at an issue price of RM0.50 per
Share on the basis of seven (7) new KTB Shares for every one (1)
existing ordinary share of RM1.00 each held in Keramat;

(Items (a), (b) and (c) to be collectively referred to as
"Proposed Acquisitions Of Bus Companies)

(d) Proposed exchange of all the existing ordinary shares of
RM1.00 each in Park May with new Shares in KTB on the basis of
two (2) new Shares in KTB for every three (3) existing ordinary
shares held in Park May prior to the Proposed Shares
Cancellation (Proposed Share Exchange);

(e) Proposed cancellation of the entire issued and paid-up share
capital of Park May and issuance of new ordinary shares of
RM1.00 each in Park May to KTB;

(f) Proposed debt restructuring of the Company's balance
outstanding Commercial Papers of approximately RM74.0 million
(Proposed Debt Restructuring);

(g) Proposed waiver to KKMB and parties acting in concert with
it from the obligation to extend an unconditional mandatory
general offer for all the remaining Shares not already owned by
them in KTB after the Proposed Acquisitions Of Bus Companies and
Proposed Share Exchange;

(h) Proposed offer for sale / placement of the Shares in KTB
held by KKMB in order to comply with the minimum 25% public
shareholding spread requirement; and

(i) Proposed admission of the entire enlarged issued and paid-up
share capital of KTB to the Official List of the Malaysia
Securities Exchange Berhad and proposed delisting of Park May.

(Items (a) to (i) to be collectively referred to as "Proposed
Restructuring Scheme)

On 11 March 2004, AmMerchant Bank Berhad (AmMerchant Bank), on
behalf of Park May, announced that the Company has submitted an
application to the Securities Commission (SC) and other relevant
authorities for the Proposed Restructuring Scheme.

In this respect, on behalf of the Company, AmMerchant Bank is
pleased to announce that the SC has approved the Proposed
Restructuring Scheme, as proposed, via its letter dated 27 July
2004 (which was received on 28 July 2004).

However, the SC's approval on the Proposed Restructuring Scheme
is subject to the following conditions:

(i) The Proposed Restructuring Scheme and the issuance of
prospectus for the offer for sale should only be implemented
after approval has been obtained from the Commercial Vehicles
Licensing Board (CVLB) for the following:

(a) The transfer of the CVLB licences from the United Transport
Co. Sdn Bhd to Kenderaan Langkasuka Sdn Bhd (Langkasuka), both
being subsidiaries of KKMB, or, alternatively, approval for the
existing bus lease agreement between these two companies;
(b) The bus lease agreement between Langkasuka and three (3)
subsidiaries of Park May, namely Central Province Wellesley
Transport Company Sdn Bhd, The Min Sen Omnibus Company Sdn Bhd
and Sam Lian Omnibus Company Sdn Bhd; and

(c) The bus lease agreement between Kenderaan Klang Banting
Berhad (Klang Banting) and three (3) subsidiaries of Park May,
namely The Kuala Lumpur, Klang And Port Swettenham Omnibus
Company Berhad, The Kuala Selangor Omnibus Company Berhad and
Tanjung Karang Transportation Sdn Bhd, and after approvals from
the other relevant authorities have been obtained. Should the
above-mentioned bus lease agreements (Lease Agreements) and/or
transfer of licenses be disallowed by CVLB and / or the parties
involved be penalized under the CVLB Act, 1987 (CVLB Act), Park
May / KTB are required to inform the SC of the impact of the
penalty on KTB and its subsidiaries' (KTB Group" or "Group)
business operations, financial position and earnings and to seek
SC's reconsideration for the Proposed Restructuring Scheme
(including any necessary revision);

(ii) Park May / KTB should make full disclosure in the
Explanatory Statement / Circular to Shareholders and prospectus
for the offer for sale on the following:

(a) Basis of arriving at the purchase consideration for the
eight (8) companies which are the subject of the Proposed
Acquisitions Of Bus Companies. In this regard, AmMerchant Bank /
Park May / KTB are to comment on the reasonableness of the
purchase consideration; and

(b) The potential implications of the breach of the relevant
sections of the CVLB Act arising from the Lease Agreements
involving Langkasuka and Klang Banting, the potential impact on
the KTB Group's operations, financial position and earnings
should CVLB's approval be not granted for the Lease Agreements
or should the relevant parties be penalized under the CVLB Act,
and the detailed measures and action plan taken by the Group to
address the issue;

(iii) Park May / KTB should inform the SC of the final number
of KTB Shares to be offered pursuant to the proposed offer for
sale / placement of Shares in order to comply with the 25%
public shareholding spread requirement;

(iv) Moratorium to be imposed on 85,055,615 new KTB Shares
issued to KKMB as consideration for the Proposed Acquisitions,
in accordance with the moratorium requirements as stipulated in
the SC's Policies and Guidelines on Issue/Offer of Securities
(Issues Guidelines);

(v) The directors and substantial shareholders of the new KTB
Group should not be involved in any business, which would be in
conflict with the Group's core business activities. Accordingly,
KKMB should dispose of its interest in Sistem Kenderaan
Seremban-KL Sdn Bhd and any other companies involved in the
provision of bus services before the implementation of the
Proposed Restructuring Scheme;

(vi) Park May should appoint an independent firm of auditors
(which has the requisite experience in conducting investigative
audits and which is not the existing or previous auditors of the
Park May Group) within two (2) months from the date of this
letter to conduct an investigative audit so as to ascertain the
reasons for the past losses of Park May. Park May is also
required to take the necessary actions to recover its past
losses and, based on the findings of the investigative audits,
Park May is required to make a report to the relevant
authorities should there have been any transgression of any
relevant laws, regulations, guidelines or the Memorandum &
Articles of Association of Park May's Directors and / or any
other party that had resulted in the said losses. The
investigative audit must be completed within six (6) months from
the date of appointment of the independent firm of auditors and
appropriate announcement must be made on the findings of the
investigative audit. Four (4) copies of the report are to be
forwarded to the SC immediately after the completion of the
investigative audit;

(vii) AmMerchant Bank and KTB should obtain the SC's prior
approval should there be any change to the terms and conditions
of the irredeemable convertible secured loan stocks (ICSLS) to
be issued pursuant to the Proposed Debt Restructuring;

(viii) Prior to the issue date of the ICSLS, AmMerchant Bank
should submit the following information or documents to the SC:

(a) A copy of the Facility Maintenance File (FMF/JPB) form;

(b) A certified true copy of the executed trust deed for the
ICSLS;

(c) Ratification to the issuer's declaration submitted by KTB by
its new Board of Directors upon it being constituted and an
extract of the board resolution evidencing the ratification; and

(d) A hard and soft copy of the complete principal terms and
conditions for the ICSLS.

(ix) AmMerchant Bank / KTB should inform the SC on the
completion of the Proposed Restructuring Scheme; and

(x) Park May / KTB should comply with the relevant requirements
of the Issues Guidelines in relation to the implementation of
the Proposed Restructuring Scheme.

CONTACT:

Park May Berhad
Lot 18115 Batu 5
Jalan Kelang Lama, Kuala Lumpur 58100
Malaysia
Tel: +60 3 7982 7060
Tel: +60 3 7625 4987

The announcement is dated 28 July 2004.


RNC CORPORATION: Extends Moratorium Period
------------------------------------------
The Special Administrators of RNC Corporation Berhad, namely
Robert Teo Keng Tuan and Vincent Chew Chong Eu announced that
the moratorium period for the Special Admninistrators of the
Company has been extended by Pengurusan Danaharta Nasional
Berhad for a further period of twelve (12) months from 28 July
2004 to 27 July 2005 pursuant to Section 41(3) of the Act.

CONTACT:

RNC Corporation Berhad
20/F East Wing Plaza Permata
Jalan Kampar Off Jalan Tun Razak, 50400 Kuala Lumpur Wilayah
Persekutuan
Malaysia
Tel: +60 3 4043 9411
Tel: +60 3 4043 1233


TANJONG PUBLIC: Receives Notification on Listing Requirements
-------------------------------------------------------------
Tanjong Public Limited Co. received notifications pursuant to
Paragraph 14.09 (a) of the Listing Requirements of Bursa
Malaysia Securities Berhad (Bursa Malaysia) of Dealings during
Open Period.

Bursa Malaysia announced that the Company has been notified of
the following dealings by Yin Yee Yuen, a Principal Officer of
the Company pursuant to Paragraph 14.09 (a) of the Listing
Requirements of Bursa Securities:

(1) Notification on 27 July 2004:

(a) (i) That he has disposed in the open market of the Bursa
Securities, 20,000 shares of 7.5 pence each in Tanjong
representing 0.0050% of the issued share capital of Tanjong as
at the date of the transaction;

  (ii) Date of transaction - 26 July 2004; and

(iii) Transaction price - RM12.30 per share of 7.5 pence each.

(b) (i) That he has disposed in the open market of the Bursa
Securities, 20,000 shares of 7.5 pence each in Tanjong
representing 0.0050% of the issued share capital of Tanjong as
at the date of the transaction;

  (ii) Date of transaction - 26 July 2004; and

(iii) Transaction price - RM12.40 per share of 7.5 pence each.

(c) (i) That he has disposed in the open market of the Bursa
Securities, 10,000 shares of 7.5 pence each in Tanjong
representing 0.0025% of the issued share capital of Tanjong as
at the date of the transaction;

   (ii) Date of transaction - 26 July 2004; and

  (iii) Transaction price - RM12.50 per share of 7.5 pence each.

CONTACT:

Tanjong Public Limited Co.
Kuala Lumpur City Centre
Kuala Lumpur, 50088
MALAYSIA
Tel: +60 3 381 3388
Tel: +60 3 381 3399


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


ABS-CBN BROADCASTING: To Pay 64-Centavo Cash Dividend Per Share
---------------------------------------------------------------
A 64-centavo per share cash dividend would be given to ABS-CBN
Broadcasting Co. stockholders on record on August 10,
BusinessWorld reports.

"ABS-CBN has good overall performance in 2003, with double-digit
revenue growth, healthy balance sheet, and continued strong cash
generation. ABS-CBN would like to share its exceptional
performance with its stockholders," BusinessWorld quoted
Chairman and Chief Executive Eugenio Lopez III as saying.

An earlier report states that ABS was setting aside PHP500
million or half of its 2003 net income as dividend payment.
According to the firm, 2003 net income rose by 500 percent to
PHP1 billion as a result of improved economic climate and a
stronger and leaner organization.

Chief Financial Officer Randolph Estrellado said even if the
broadcasting firm fails to get a US$120-million loan, it would
still give out cash dividends because it has not been able to do
so in the past two years.  The loan will be used to refinance
the PHP3 billion worth of debts maturing in the next 18 months.

CONTACT:

ABS-CBN Broadcasting Corp.
ABS-CBN Broadcasting Centre Complex
Mother Ignacia St. cor. Sgt. Esguerra Ave.
Quezon City
Telephone Numbers:  924-4101 to 4122; 415-2272
Fax Number:  431-9368
Email Address:  oliver_calma@abs.pinoycentral.com
Website: http://www.abscbn-ir.com


ABS-CBN BROADCASTING: Issues News Article Clarification
-------------------------------------------------------
ABS-CBN Broadcasting Corp. issued to the Philippine Stock
Exchange a clarification to the news article entitled "ABS-CBN
to acquire Benpres' 60 percent stake in Sky Cable" published in
the July 28, 2004 issue of The Philippine Star (Internet
Edition). The article reported that:

"Lopez controlled media giant ABS-CBN Broadcasting Corp. plans
to acquire the more than 60-percent controlling stake of parent
Benpres Holdings Corp. in Sky Cable, The STAR learned on
Tuesday. Highly placed sources from the Lopez group said that
the acquisition by ABS-CBN of Sky Cable makes more sense because
of the synergy between the two businesses.  No decision has yet
been reached as to how ABS-CBN will compensate Benpres for the
purchase, but one option is a share-swap arrangement, a Lopez
group official told The STAR."

ABS-CBN Broadcasting Corporation ("ABS"), in its letter dated
July 28, 2004, informed the Exchange that:

"ABS-CBN Broadcasting Corp. presently has no plans to acquire
Benpres' stake in Sky Cable or increase its stake in Sky Cable
or Beyond Cable, Inc. other than in relation to the
US$30,000,000 it recently invested in Beyond Cable in the form
of a convertible debt instrument which will be converted into
equity after two years."


BENPRES HOLDINGS: Clarifies News Article on Philippine Star
-----------------------------------------------------------
In a disclosure to the Philippine Stock Exchange, Benpres
Holdings Corp. issued a clarification to the news article
entitled "ABS-CBN to acquire Benpres' 60 percent stake in Sky
Cable" published in the July 28, 2004 issue of The Philippine
Star (Internet Edition). The article reported that:

"Lopez-controlled media giant ABS-CBN Broadcasting Corp. plans
to acquire the more than 60-percent controlling stake of parent
Benpres Holdings Corp. in Sky Cable, The STAR learned on
Tuesday. Highly placed sources from the Lopez group said that
the acquisition by ABS-CBN of Sky Cable makes more sense because
of the synergy between the two businesses. No decision has yet
been reached as to how ABS-CBN will compensate Benpres for the
purchase, but one option is a share-swap arrangement, a Lopez
group official told The STAR."

Benpres Holdings Corporation (BPC), in its letter to the
Exchange dated July 29, 2004, stated that:

"To date, there has been no discussion on an acquisition by
ABSCBN Broadcasting Corporation of the Benpres Holdings' stake
in Sky Cable."

CONTACT:

Benpres Holdings Corp.
4/F, Benpres Building
Exchange Road corner Meralco Avenue
Ortigas Center, Pasig City
Telephone Number: 633-3368
Fax Number: 634-3009
E-mail Address: jr_benpres@bayantel.com.ph
Website: http://www.benpres-holdings.com


NATIONAL POWER: Job Cuts Could Generate PHP250Mln In Savings
------------------------------------------------------------
National Power Corp. (Napocor) will cut 370 jobs out of its
3,790 employees which would generate PHP250 million in savings
from payroll, BusinessWorld reports.  The state-owned power
firms annual payroll amounts to PHP2.5-billion.

Energy Secretary Vincent S. Perez Jr. said the retrenchment is
in line with President Gloria Macapagal Arroyo's call to improve
the efficiency and competitive performance in government
service. But he would still consult Napocor where the
retrenchments may be.

"We are not specifying any individual, position, or place. It
could be from anywhere, senior management, legal management,
casual, contractual, or job orders," BusinessWorld quoted Mr.
Perez as saying.

"We have given the retirement and separation benefits to
employees in those positions as interim assignments and
therefore all of them have actually received their separation
benefits in line with the EPIRA [Electric Power Industry Reform
Act]," he added.

Mr. Perez stressed that retrenched employees will have a good
chance of being employed by companies interested in buying
Napocor's generation projects.

The job cuts would not be the first for Napocor. In 2002, the
power firm reduced its 8,000 strong work force to 3,790 which
resulted to a savings of PHP600 million.


NATIONAL POWER: 14 SPUGs Open For Privatization
-----------------------------------------------
Fourteen of National Power Corp.'s (Napocor) Small Power
Utilities Groups (SPUG) would now be open for takeover to new
power players, the Philippine Star reports, citing Energy
Secretary Vincent S. Perez.

According to Mr. Perez, there is a steady increase in the power
requirements in the large island area due to increased economic
activities, and most of them are promising tourist destinations,
which is why privatization of the SPUGs would be necessary in
order to meet their power requirements.

The privatization of the SPUG areas, which would be done
simultaneously with the sale of Napocor's generating assets,
will be carried out within a year.

Napocor-SPUG areas are being grouped into "waves" based on the
suitability of the areas for supply by new private providers to
ensure an orderly and well-managed private sector participation
process.  The "first wave" areas open for private sector
participation are considered the most attractive to new players.

Rules and procedures for the inflow of private capital in
missionary electrification has been sent out by the Department
of Energy. Napocor-SPUG operations' fund comes from missionary
areas' electricity sales and from the universal charge, a
component of the power bill charged to all electricity
consumers.

Mr. Perez said they want to make sure that the new power players
would be capable financially and technically to supply
electricity.  They are expected to pursue projects that would
address the lowest long-term cost of power and services,
environmental compatibility with the local area and the most
advantageous implementation schedule.

Eight of the 14 SPUG's are in Luzon while there are three each
in the Visayas and Mindanao.  The areas open for new players in
Luzon are Catanduanes, Marinduque, Masbate, Occidental Mindoro,
Oriental Mindoro, Palawan, Romblon and Tablas Island; Bantayan
Island, Camotes Island and Siquijor in the Visayas; and Basilan,
Sulu and Tawi-tawi in Mindanao. The current peak demand in the
14 Napocor-SPUG areas total 93.7 megawatts (MW).

Considered as missionary or unviable areas, Napocor-SPUG
provides the electricity needs of these areas. As of Dec. 2002,
the company operates a total of 234.32 MW SPUG facilities. Of
these, 145 MW are in Luzon, 21.39 MW in Visayas and 35.26 MW in
Mindanao.


PHILIPPINE NATIONAL: First Semester Growth Performance On Track
---------------------------------------------------------------
In a press release dated July 28, 2004, the Philippine National
Bank (PNB) announced that it has kept its growth performance on
track as total resources grew by PHP16.49 billion or eight
percent to PHP216 billion as of June 30, 2004 from the end-2003
level of PHP199 billion.

The increase in assets was pushed by the expansion in customer
deposits and proceeds from the issuance of Tier 2 capital, which
were deployed in trading and investment securities and interbank
loans. The Bank's first semester performance proves the
continued effectiveness of the rehabilitation initiatives which
it started to pursue in mid-2002, anchored on the "Good Bank -
Bad Bank" strategy.

Under the Good Bank, deposit liabilities grew by seven percent
to PHP158.238 billion from PHP148.291 billion in December 2003.
This was propelled by the increase in low-cost deposits whose
Average Deposit Balance grew by PHP6.431 billion or 11 percent
during the first half of the year. Trading and investment
securities also contributed to the healthy growth in the Bank's
asset base, expanding by 12 percent to PHP51.476 billion from
the PHP45.964 billion level as of end-2003.

Initiatives under the Bad Bank further boosted efforts to
improve the Bank's balance sheet. Through focused work-out
strategies aimed at improving asset quality and reducing non-
performing accounts, a total of PHP2.325 billion in loans were
restructured, collected and foreclosed during the first half of
2003. Consequently, NPL ratio declined to 45.6 percent in June
2004, from the end-2003 figure of 46.4 percent.

As a result of successes realized under the Good Bank - Bad Bank
initiatives, Net Interest Margin grew by a hefty 52 percent or
nearly PHP400 million during the semester. Interest Income
increased by PHP474 million driven by improvements in the
portfolio mix of investments and loan restructuring efforts.
Interest Expense grew only slightly by PHP77 million mainly due
to higher interest rates during the period, tempered by a much
improved funding cost structure.

Fee-based and other income amounted to PHP2.272 billion from the
previous year's PHP2.551 billion, mainly because of lower
collection figure for fees and charges. Trading gains on
investment securities, income from acquired assets as well as
rentals of bank premises and equipment continued to be strong
during the period.

Total ROPOA sales amounted to PHP1.029 billion, compared to
PHP875 million implemented sales last year. The Bank's public
auctions of foreclosed properties held in various parts of the
country, such as, in Tarlac, Batangas, Camarines Sur, Cebu,
Bacolod, Davao, Cagayan de Oro, and Zamboanga, as well as the
use of other sales channels such as the internet have
effectively expanded the market for PNB's foreclosed properties.

Despite the slowdown in incoming foreign remittances experienced
by the country during the first half of the year, PNB's figure
continued to grow to contribute significantly to fee-based
income.

Administrative and Other Expenses grew by 14 percent to PHP3.073
billion from PHP2.694 billion in the first half of 2003, as the
Bank absorbed the impact of the government's decision to revert
back to the GRT system of taxation.

As a result, PNB's net income for the first six months amounted
to PHP40 million, lower than the PHP91 million it earned during
the same period last year. The change in the taxation system,
which saw a return from the Value Added Tax system to the Gross
Receipts Tax system, was the biggest non-recurring item that
affected the Bank's net income performance in the first half of
2004.

PNB's capital base remained solid during the period, with Total
Capital Funds of PHP24.345 billion representing 11.27 percent of
Total Resources. The consolidated Group's capital adequacy ratio
likewise improved to 15.1 percent from the end-December 2003
figure of 13.7 percent.

The Bank has budgeted to end the year with a net profit of
PHP205 million. The second half of 2004 is expected to see a
picking up in the pace of the Bank's revenue generation
performance as its core businesses accelerate in growth. These
include a re-focusing of lending thrust to more profitable
segments such as SMEs and LGUs as well as consumer finance, the
launching of new products targeted at specific market segments,
the conversion of PNB representative offices into full
remittance centers, and more active cross-selling of group
products, including bancassurance.

CONTACT:

Philippine National Bank
PNB Financial Center
President Diosdado Macapagal Boulevard,
Pasay City
Telephone Numbers:  891-6040 to 70; 526-3131 to 40
Fax Number:  551-5187
Email Address:  pesayco@pnb.com.ph
Website: http://www.pnb.com.ph


PRYCE CORPORATION: Furnishes PSE With Court Order Copy
------------------------------------------------------
Pryce Corp. (PPC) refers to Circular for Brokers Nos. 3135-2004
dated July 9, 2004 and 3173-2004 dated and July 12, 2004
pertaining to Pryce Corporation's filing of Petition for
Corporate Rehabilitation with Prayer for Suspension of Payments.

In relation thereto, the Corporation to submitted the Philippine
Stock Exchange the attached Court Order with regard to the
abovementioned petition filed at the Regional Trial Court of
Makati City, Branch 138.

To view full copy of the Court Order, click
http://bankrupt.com/misc/PRYCECOPORATION.pdf

CONTACT:

Pryce Corp.
17/F, Pryce Center
1179 Chino Roces Ave.
Cor. Bagtikan St., Makati City
Telephone Number:  899-4401
Fax No/s:  899-6865
E-mail Address:  pryce@info.com.ph
Website: http://www.Philgardens.com


SEMIRARA MINING: Clarifies News Article
---------------------------------------
Semirara Mining Corp. issued to the Philippine Stock Exchange a
clarification to the news article entitled "DMCI Holdings
forecasts higher profits this year" published in the July 29,
2004 issue of Today. The article reported that:

"Consunji said Semirara has already exceeded last year's
profit levels as of end June. In the first half of the year, net
income stood at PHP140 million and revenues stood at Php1.8
billion."

Semirara Mining Corporation (SCC), in its letter to the Exchange
dated July 29, 2004, disclosed that:

"Please be informed that we are confirming the veracity of his
statement that during the first half of the year, net income and
gross revenues of Semirara Mining Corporation stood at PHP140
million and PHP1.8 billion, respectively."

CONTACT:

Semirara Mining Corp.
4/F, Dacon Building
2281 Pasong Tamo Ext., Makati City
Telephone Numbers: 867-3377 to 79; 888-3000
Fax Number: 888-3000 local 1136
Email Address: demagdayo@dmci.net


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


CHARME LUNETTES: Court Issues Winding Up Order
----------------------------------------------
In the Matter of Charme Lunettes International Pte Ltd., a
Winding Up Order was made on July 16, 2004.

Name and address of Liquidator: Official Receiver, Singapore at
45 Maxwell Road #05-11/#06-11
The URA Centre (East Wing)
Singapore 069118.

Messrs Khattar Wong & Partners
Solicitors for the Petitioner.
Singapore.

Note:

(a) All creditors of the above named company should file their
proof of debt with the liquidator who will be administering all
affairs of the company.

(b) All debts due to the above named company should be forwarded
to the liquidator.


DAR HARNQ: Creditors To Submit Claims on August 23
--------------------------------------------------
Notice is hereby given that the creditors of Dar Harnq Industry
(Singapore) Pte Ltd., whose debts or claims have not already
been admitted, are required on or before August 23, 2004 to
submit particulars of their debts or claims and any security
held by them to the Liquidator.

This should be done by delivering or sending through the post
the Liquidator's address a formal Proof of Debt in accordance
with Form 77 containing their respective debts or claims.

In default of complying with this notice they will be excluded
from the benefit of any distribution made before their debts or
claims are proved or their priority is established and from
objecting to the distribution.

Lim Say Wan
Liquidator.
c/o 6 Shenton Way
#32-00 DBS Building Tower Two
Singapore 068809.

This Singapore Government Gazette announcement is dated July 23,
2004.


DAVIN INDUSTRIES: Winding Up Order Made
---------------------------------------
In the Matter of Davin Industries Pte Ltd., a Winding Up Order
made on July 16, 2004.

Name and address of Liquidator: The Official Receiver
45 Maxwell Road #05-11/#06-11
The URA Centre (East Wing)
Singapore 069118.

Messrs WONG PARTNERSHIP
Solicitors for the Petitioners.

This Singapore Government Gazette announcement is dated July 23,
2004.


KIN YUEN: Releases Winding Up Order Notice
------------------------------------------
In the matter of Kin Yuen Petroleum Pte Ltd., a Winding Up Order
made the 9th day of July 2004.

Name and address of Liquidator: The Official Receiver
45 Maxwell Road #05-11/#06-11
The URA Centre (East Wing)
Singapore 069118.

Messrs LIM & LIM
Solicitors for the Petitioner.

This Singapore Government Gazette announcement is dated July 23,
2004.


REED GROUP: Announces Annual General Meeting Result
---------------------------------------------------
The Board of Directors of Reed Group Holdings Ltd is pleased to
announce that at the Annual General Meeting of the Company held
on 28 July 2004, all resolutions relating to matters as set out
in the Notice of Annual General Meeting were duly passed.

By Order of the Board

Tan San-Ju
Company Secretary

This announcement is submitted on July 28, 2004 to the Singapore
Stock Exchange.


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


BANGKOK MASS: Not For Sale, CEO Insists
---------------------------------------
Bangkok Mass Transit System PCL (BTS) chief executive Keeree
Kanjanapas has stressed that the skytrain operator is not for
sale, according to the Bangkok Post.

Mr. Keeree, who is also a major shareholder of BTS, said that
from the very beginning, it never crossed his mind to invest in
the project just for sale. "If I wanted to sell the skytrain, it
would be done at the date before the company decided to sign a
financing deal with the creditors, he said.

The refinancing deal had gone through a thorough and careful
review by the creditors and was deemed relatively costly.

"Money is not the priority for us," Mr. Keeree insisted. "It is
all about inner feelings. We are willing to sell the project
immediately, even at a loss, if the government believes that we
failed to fulfill our obligations agreed in the concession
contract to reduce traffic and help Bangkok commuters, the
Bangkok Post quoted Mr. Keeree as saying.

The government says the takeover of the elevated train system
and the Bangkok subway system is part of a mass transit
expansion plan aimed at linking the two systems together.

Mr. Keeree said the government should use money it would raise
to buy the two projects if it really wants to accelerate the
extension of the mass transit, this would also be an easier
solution than being locked in a dispute with the private firms.

Authorities have proposed buying out the holdings of creditors
such as German development bank KfW, Siam Commercial Bank, the
International Finance Corp and Thai Asset Management Corp.  The
creditors were willing to cut the operators US$1 billion
(THB41.10 billion) debt by up to 45 percent if the government
purchases the remaining 55 percent, Transport Minister Suriya
Jungrungreangkit said.

But according to BTS Chairman Kasame Chatikavanij, a term sheet
of the debt-restructuring plan has been completed with creditors
and was expected to become an official agreement at the
company's shareholders meeting scheduled for mid-September.

The restructuring plan calls for THB16 billion in debt to be
converted into an equity stake, about THB8 billion to be
forgiven and the remainder repaid over an 18-year period, the
Bangkok Post report stated.

If the company succeeds in raising funds by floating shares on
the stock market, it could cut its debt in half from THB20
billion, Mr. Keeree said.

CONTACT:

The Bangkok Mass Transit System PCL
1000 Phahonyothin Road
Lad Yao, Chatuchak
Bangkok 10900
Telephone: 0 2617 7300
Fax: 0 2617 7133, 0 2617 7135
BTS Hotline: 0 2617 7141-2
BTS Tourist Information Center: 0 2617 7340


KRUNG THAI: Issues Explanation on Increased NPLs
------------------------------------------------
Krung Thai Bank PCL (KTB) refers to the previous news reports on
the operating performance for the first half-yearly period of
2004 of Krung Thai and the increasing non-performing loans
(NPLs) as well as provision for possible loan losses.  In this
connection, Krung Thai PCL wishes to further explain that:

(1) The Bank's financial position is still strong.  In this
first half-yearly period, the Bank earned a net profit of
THB6,806 million compared to a net profit of THB1,587 million in
the same period of 2003.

The Bank increased its provision for possible loan losses by
THB3,250 million compared to the increase by THB3,541 million
of provision for possible loan losses in the same period of last
year.  Currently, the Bank's total provision for possible loan
losses stands at THB62,062 million while its ratio of capital to
risk assets is 8.8 percent.

Of this eight percent is tier-one capital which is higher than
the capital adequacy requirement specified by the official
authority.  Therefore, the Bank is confident that it will still
be able to make profit continuously in the second half of this
year.

(2) Krung Thai Bank has set aside its provision for possible
loan losses higher than the Bank of Thailand's requirement for
the past two years by adhering to the principle of prudence in
case of certain incidents that might have an impact on the
debtors' loan repayment ability in the future especially the
restructured groups of debtors who have even complied with the
specified terms and conditions.  Apart from the restructured
debtors, the Bank still has another amount of loan loss
provision for loans in general.

(3) The debt classification that resulted in higher figure of
NPLs this time originated from the joint discussion between the
Bank of Thailand and Krung Thai Bank. In the latest inspection
by the BOT, more stringent criteria were used in classifying
debts as doubtful of loss despite the debtors' regular
repayment.

Such stringent criteria are considered as an outlook for the
future that there may be incidents or factors barring some
debtors from regularly repaying debts as they do at present.

(4) The increased NPLs from the more stringent loan
classification do not have any impact on the Bank's expenses in
this period since the Bank has already adopted the more
stringent criteria of loan loss provisioning in excess of the
requirement. The impact that took place represented the transfer
of excess provision for possible loan losses into the provision
for each individual debtor.

(5) Approximately half of the increased NPLs are the
restructured debtors, most of which are those transferred from
the First Bangkok City Bank while the other half represents the
general debtors comprising several corporate and medium debtors,
and they are not involved in the government's projects at
grassroots level.

(6) In considering credit extension or lending, the Bank's
consideration has been made prudently and strictly with
systematic process of credit approval in the form of committees
at each level. The Bank has also improved and developed its risk
management system on continuous basis.

The Bank's debt classification and provisioning in the past
complied with the prevailing standards and requirements
specified by the official authorities during that time. It was
the Bank of Thailand that held discussion with Krung Thai Bank
and wished to set more stringent criteria by using prudent
judgment in considering the qualitative risk in classifying the
non-performing loans or NPLs debtors as well as provisioning for
doubtful-of-loss debts, and also wanted Krung Thai Bank to set
an example of adopting more stringent criteria in order to be
prepared of the Basel II or new capital accord.

Krung Thai Bank thus agreed with the Bank of Thailand and would
comply with the stringent criteria by following up the matter
and hold close discussion with the authority.

(7) According to certain press reports publishing information
and list of names alleged to be KTB's customers, the Bank wishes
to state that it does not have the policy to disclose the
customers' names and information since they are business
information/data between the Bank and the customers that are not
to be disclosed.

As for the information referring to the Bank of Thailand, it is
the official information not to be disclosed to the general
public Krung Thai Bank dose not have any knowledge of the source
and facts of the alleged lists of names and information as
appeared in the news.

Please be informed accordingly.
Yours sincerely,
Krung Thai Bank Public Company Limited
Pongsathorn Siriyodhin
(Mr. Pongsathorn Siriyodhin)
First Senior Executive Vice President
Acting President of KTB

CONTACT:

KRUNG THAI BANK PCL
Address: 35 SUKHUMVIT ROAD, KHLONG TOEI NUA, WATTANA Bangkok
Telephone: 0-2255-2222
Fax: 0-2255-9391-6
Website: www.ktb.co.th


NFC FERTILIZER: Releases Opinion of the Business on Tender Offer
----------------------------------------------------------------
This is in relation to Mr. Nuttaphob Ratanasuwanthawee's
intention to purchase the remaining of the ordinary share of the
NFC Fertilizer PCL (NFC) (previously named National Fertilizer
Public Company Limited) pursuant to the details in the Tender
Offer (Form 247-4) issued on July 9, 2004.

In order to comply with the Notification of the Securities and
Exchange Commission (SEC) No. Kor Jor 59/2545 re: Reports and
Time Period for Preparing Opinion on the Tender Offer, the C.J.
Morgan Company Limited as the Plan Administrator of the NFC
would like to submit the Opinion of the Business on the Tender
Offer (Form 250-2) pursuant to the details in the attachment and
the Opinion of the Advisory Plus Company Limited (shareholder's
advisor) pursuant to last details in the attachment for
assisting shareholders on considering the Tender Offer.

Please be advised accordingly.
Yours respectfully,
Visot Kajchamaporn and Mr. Ziriwat Anunkusri
C.J. Morgan Company Limited
On behalf of the Plan Administrator of NFC Fertilizer PCL

To view full copy of the Opinion of Business Tender Offer, click
http://bankrupt.com/misc/nfcfertilizer072904.txt

CONTACT:

NFC FERTILIZER PCL
LAOPENGNGUAN BLDG 1, FLOOR 17-19,
333 VIBHAVADI RANGSIT ROAD,
CHATU CHAK, Bangkok
Telephone: 0-2618-8100
Fax: 0-2618-8200
Website: www.nfc.co.th


THAI PETROCHEMICAL: Revised Rehab Plan Faces Problems Anew
----------------------------------------------------------
With the transfer of Thai Petrochemical Industry PCL's (TPI)
US$$2.95-billion debt to many new creditors, the completion of
the company's rehabilitation plan would not be possible this
year, reports Business Day, citing TPI's legal advisor Chavalit
Atthasart.

According to Mr. Chavalit, the new creditors who bought TPI
stakes have different objectives, and if the new rehabilitation
plan did not serve their needs, this would hinder the rehab
plan's completion for problems would surely arise, aside from
present problems with TPI's founder Prachai Leophairatana.

TPI's debt has been sold to other creditors at a 50 percent
discount.

The ministry of finance expected TPI's rehabilitation to be
completed soon, in order to bring in PTT Plc as the new
strategic investor. Pakorn Malakul Na Ayudhya, a member of TPI's
plan administrator team, said last week that the plan would be
finalized by November.

CONTACT:

THAI PETROCHEMICAL INDUSTRY PCL
TPI TOWER,FLOOR 8, 26/56
NEW JUN ROAD, THUNGMAHAMEK, SATHON Bangkok
Telephone: 0-2678-5000, 0-2678-5100
Fax: 0-2678-5001-5
Website: www.tpigroup.co.th




* Large Companies With Insolvent Balance Sheets
-----------------------------------------------

                              Total
                                        Shareholders   Total
                                        Equity         Assets
  Company                      Ticker    ($MM)          ($MM)
  ------                       ------    ------------   -------

  CHINA & HONG KONG
  -----------------

Guangdong Sunrise-B            200030    (-177.22)     45.09
Guangdong Sunrise-A            000030    (-177.22)     45.09
Shenzhen China Bicycles-B
Co., Ltd.                      200017    (-203.9)      52.16
Shenzhen China Bicycles-A
Co., Ltd.                      000017    (-203.9)      52.16
Shenzhen Great Ocean           200057    (-10.87)      11.27
Shenzhen Petrochemical
Industry Group                 200013    (-290.79)     25.62
Shenzhen Petrochemical
Industry Group                 000013    (-290.79)     25.62


INDONESIA
---------
Barito Pacific Timber Tbk Pt    BRPT      (-50.67)     393.92
PT Smart Tbk                    SMAR      (-37.38)     398.89


  JAPAN
  -----

Fujitsu Comp Ltd                6719       (-46.88)    316.07
Kanebo Limited                  3102     (-3409.58)   4163.73
Prime Systems                   4830      (-100.79)     130.2

  MALAYSIA
  --------

CSM Corporation Bhd             CSM        (-8.40)      41.55
Faber Group Bhd                 FAB        (-7.16)     504.98
Kemayan Corp Bhd                KOP      (-353.12)      84.89
Panglobal Bhd                   PGL       (-41.07)     187.79
Sri Hartamas Bhd                SHB      (-138.37)      24.48
YCS Corporation Bhd             YCS         28.34      160.27

  PHILIPPINES
  -----------

Pilipino Telephone Co.          PLTL     (-400.56)     115.91


  SINGAPORE
  ---------

Pacific Century Regional
Developments Ltd                 PAC      (-176.29)    1050.46


  THAILAND
  --------

Asia Hotel PCL                  ASIA       (-26.62)     96.21
Asia Hotel PCL                  ASIA/F     (-26.62)     96.21
Bangkok Rubber PCL              BRC        (-41.29)     80.14
Bangkok Rubber PCL              BRC/F      (-41.29)     80.14
Central Paper Industry PCL      CPICO      (-37.02)     40.41
Central Paper Industry PCL      CPICO/F    (-37.02)     40.41
Datamat PCL                     DTM           2.27      17.21
Datamat PCL                     DTM           2.27      17.21
Jutha Maritime                  JUTHA      (-0.78)      29.03
Jutha Maritime                  JUTHA/F    (-0.78)      29.03
National Fertilizer PCL         NFC        (-91.34)    293.84
National Fertilizer PCL         NFC/F      (-91.34)    293.84
Siam Agro-Industry Pineapple
And Others PCL                  SAICO      (-14.84)      13.32
Siam Agro-Industry Pineapple
And Others PCL                  SAIC0/F    (-14.84)      13.32
Thai Wah Public
Company Limited-F               TWC        (-43.88)     168.15
Thai Wah Public
Company Limited-F               TWC/F      (-43.88)     168.15
Tuntex (Thailand) PCL           TUNTEX     (-50.94)     398.25
Tuntex (Thailand) PCL           TUNTEX/F   (-50.94)     398.25








                            *********


S U B S C R I P T I O N  I N F O R M A T I O N

Troubled Company Reporter -- Asia Pacific is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Trenton, NJ
USA, and Beard Group, Inc., Frederick, Maryland USA. Lyndsey
Resnick, Ma. Cristina Pernites-Lao, Faith Marie Bacatan, Reiza
Dejito, Editors.

Copyright 2004.  All rights reserved.  ISSN: 1520-9482.

This material is copyrighted and any commercial use, resale or
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