ANNOUNCEMENT ON ARTICLE BY THE EDGE FINANCIAL DAILY “FRAUD AT CNLT?”

CNLT (FAR EAST) BERHAD

TypeReply to query
Reply to Bursa Malaysia's
Query Letter - Reference ID
LS-080121-57547
SubjectANNOUNCEMENT ON ARTICLE BY THE EDGE FINANCIAL DAILY “FRAUD AT CNLT?”
ContentsResponse to the article by The Edge Financial Daily "Fraud at CNLT?"
Query Letter ContentsWe refer to the above article appearing in The Edge, Financial Daily, pages 1
and 2 on Monday, 21 January 2008, a copy of which are enclosed for your
reference.

In particular, we would like to draw your attention to the underlined sentence,
which is reproduced as follows:

"The forensic auditors concluded in its report that there was "clear evidence
that the management and some of the directors had attempted to mislead
investors and Bursa Malaysia with fictitious invoices amounting to 20% of
revenue announced for the second quarter (ended) June 30, 2007)"."

In accordance with the Exchange's Corporate Disclosure Policy, you are
requested to furnish the Exchange with an announcement for public release
confirming or denying the above reported article and in particular the
underlined sentence after due and diligent enquiry with all the directors,
major shareholders and all such other persons reasonably familiar with the
matters about which the disclosure is to be made in this respect.

In the event you deny the above sentence or any other part of the above
reported article, you are required to set forth facts sufficient to clarify any
misleading aspects of the same. In the event you confirm the above sentence or
any other part of the above reported article, you are required to set forth
facts sufficient to support the same, including:

(i) Further clarification on the alleged -

(a) failure to provide for impairment of its plant and equipment; and
(b) fictitious invoices;

(ii) A statement of the relevant financial impact of the above to the Company;
and

(iii) The steps taken and proposed to be taken by the Company in respect of the
preliminary findings.


Page 2/-



Please furnish the Exchange with your reply within one (1) market day from the
date hereof.


Yours faithfully,




JOHAN ABDULLAH
Deputy Chief Regulatory Officer

SUZ/WLS

c.c. Encik Chung Tin Fah, Securities Commission (via fax)


Announcement Info

Company NameCNLT (FAR EAST) BERHAD  
Stock Name CNLT    
Date Announced22 Jan 2008  
CategoryGeneral Announcement
Reference NoCU-080122-47086