SILK / Sunway Infrastructure Berhad is being sued by affected residents of Sg Chua

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Investors should be forewarned that SILK / Sunway Infrastructure Berhad is being sued by affected residents of Sg Chua and the outcome of the suits would have material effect on the SILK project

Media Statement
by Ronnie Liu Tian Khiew

(Petaling Jaya, Thursday): In the Prospectus dated 13 November 2003 published today, Sunway Infrastructure Berhad (Company No. 405897-V) has made the following claim under the heading 1.7 Material Litigation, Capital Commitments, Contingent Liabilities and Borrowings:

"1.7 Material Litigation

Saved as disclosed in Section 20.4.6 and 20.4.7 of this Prospectus, as at 7 November 2003(being the latest practicable date prior to the issuance of this Prospectus), neither the Company nor its subsidiary companies are engaged in any material litigation, claims or arbitration, either as plaintiff or defendant, or any material claim against the Company or its subsidiary companies, or material arbitration proceeding which has a material effect on the business or financial position of the Company or its subsidiary companies and the Directors do not know of any proceeding pending or threatened or of any fact likely to give rise to any proceeding which might materially affect the business or financial position of the Company or the subsidiary companies."

I like to bring the attention of investors to the disclosed note 20.4.7 in the Prospectus, where Tan Yoke Kwee and 19 others filed an action in the High Court of Malaya at Shah Alam. (Originating Summons No MT3-21-164-2003) in late August 2003.

Tan and 19 others as plaintiffs have sued 1. Sistem Lingkaran Leburaya Kajang Sdn Bhd, 2. Sunway Holdings Inc Bhd, 3. Sunway Construction Bhd and 4. Pengarah Tanah dan Galian Negeri Selangor Darul Ehsan as defendents 1,2,3 and 4 respectively.

{Sistem Lingkaran Leburaya Kajang Sdn Bhd (SILK) is a subsidiary company of Sunway Infrastructure Berhad ( SUNSILK)}

The case is still pending in Shah Alam High Court and in fact, SILK and other defendants will be cited for contempt on 18 November 2003 following the demolition of 15 houses owned by the plaintiffs without a court order on 11 November 2003 morning by SILK and the land office, with the assistance of the FRU.

Please to notified that on Monday, 10 November 2003, the plaintiffs have filed a notice of appeal to the Court of Appeal. Further on 13 November 2003, the plaintiffs have filed an application for stay, which will be heard on 18 November 2003. The demolition taken by SILK and land office on 11 November 2003 may affect heavy damages and claims on the Sunway group of companies.

The plaintiffs are claiming RM350, 000 each as rightful compensation from the four defendants. I believe in any event, the outcome of these suits will inevitably has a material effect on the business or financial position of the Company and subsidiary companies.

I would also like to highlight the fact that SUNSILK has undertaken to indemnify the Government from all actions, suits, claims, demands, proceedings, losses, damages, compensation, costs (including solicitor and client costs), charges and expenses. (Refer to clause 21 of the Prospectus for details). If Tan and 19 others succeed in the suit against the fourth defendant, the claims and costs involved would have to be borne by SILK.

(13/11/2003)

* Ronnie Liu Tian Khiew, DAP national publicity secretary and Selangor chairman