05 June 2002

PROPOSED MERGER OF ZURICH INSURANCE (MALAYSIA) BHD AND MCIS INSURANCE BERHAD.

We are pleased to confirm that the shareholders of both Zurich Insurance (Malaysia) Bhd (Zurich) and MCIS Insurance Berhad (MCIS( have at their respective EGMs approved to proposed merger. The final requirement is to obtain a vesting order from the High Court to enable the business merger to take effect, tentatively scheduled for 28 June 2002.

On completion of the merger, the business of MCIS and Zurich will be integrated and operated under MCIS Insurance Berhad ( to be re-named as MCIS Zurich Insurance Berhad).

The proposed merger will allow us to expand the range of life and general insurance products and service capability through the expansion of our business units and branch network.

As part of our effort to streamline the branch networks in the business integration process, our Kuching Branch will be operating from the following address, effective from 14 June 2002