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Type: Reply to query
Date: 27/03/2007
Contents:

We refer to the letter of query from the Bursa Malaysia Securities Berhad ("Bursa") dated 26 March 2007 in relation to the above article appearing in Nanyang Siang Pau, Business section, page c12, on Saturday, 24 March 2007 which states that "Kawan Food Berhad expects the company to achieve 50% growth in revenue for the financial year 2007."

We wish to clarify that the quoted statement was strictly internal aspiration set to be achieved by the Company after taking into consideration the business expansion programme. The quoted statement was an internal target set by the Company to achieve and not in any way intended to refer to any financial estimates, forecasts or projections of the Company and have not been reviewed by the external auditors of the Company.

Query Letter content:

We refer to the above news articles appearing in Nanyang Siang Pau, Business section, page C12, on Saturday, 24 March 2007 , a copy of which is enclosed for your reference.

In particular, we would like to draw your attention to the underlined sentence, which states that Kawan Food Berhad expects the company to achieve 50% growth in revenue for the financial year 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 the relevant bases and assumptions in arriving at the above forecast. In this respect, you are also required to confirm whether the accounting bases, calculations and assumptions have been reviewed by the external auditors.

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

Yours faithfully

SUZALINA HARUN
Head Issuers
Listing Division
Group Regulations
SUZ/ZOOS
c.c. En. Chung Tin Fah, Securities Commission (via fax)

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