PROPOSED EXEMPTION UNDER PRACTICE NOTE 2.9.10 OF THE MALAYSIAN CODE ON TAKE-OVERS AND MERGERS, 1998 (“CODE”) TO LG CAPITAL SDN BHD AND PERSONS ACTING IN CONCERT WITH IT FROM THE OBLIGATION TO UNDERTAKE A MANDATORY OFFER FOR ALL THE REMAINING SHARES IN BPPLAS PURSUANT TO THE PROPOSED SHARE BUY-BACK ("PROPOSED EXEMPTION")

We refer to the announcement dated 7 April 2008 in relation to the above.

Kenanga Investment Bank Berhad wishes to announce that the Securities Commission (“SC”) had, vide its letter dated 21 May 2008, stated that the SC will only consider the Proposed Exemption upon the fulfilment of the following conditions:-

(i) Approval from the independent holders of voting shares of BPPlas, on a poll in a general meeting in which the interested parties are to abstain from voting. The result of the poll has to be confirmed by an independent auditor;

(ii) Provision is made for the shareholders of BPPlas for competent independent advice regarding the Proposed Exemption. The appointment of the independent adviser and the independent adviser’s circular to the shareholders are to be first approved and consented by the SC respectively; and

(iii) LGCap and the PACs are to submit declarations (to be furnished after the general meeting) addressed to the SC, attesting that LGCap and the PACs have not purchased shares in BPPlas subsequent to the discussion in relation to the Proposed Share Buy-Back (the date of the discussion is to be stated by them) and until the granting of the Proposed Exemption by the SC (if so decided).

This announcement is dated 22 May 2008.