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We wish to inform that REGO’s solicitors have on 13 May 2005 been served with the Defence and Counterclaim of the 2nd Defendant to the above action, Tan Sri Dato’ Tajudin Bin Ramli (“TSDTR”).

TSDTR has instituted a counterclaim against (i) Rego, (ii) Technology Resources Industries Berhad (“TRI”), the parent company of Rego which is also a wholly owned subsidiary of Celcom (Malaysia) Berhad, (iii) Mr Tan Poh Keat, Datuk Azzat Bin Kamaludin, Encik Bazlan Bin Osman (All currently directors of Rego and TRI) (iv) Encik Ismael Fariz Bin Ali and Dato’ Mohamed Yunus Ramli Bin Abbas (Both currently directors of TRI ).

In the counterclaim, TSDTR seeks, inter alia, (i) a declaration that the Letter of Indemnity dated 1 April 1998 (‘the Letter of Indemnity’) given by TSDTR to Rego relating to the investments made by Rego under the Investment Management Agreement dated 10 January 1997 (‘the Investment Agreement’) and the Supplemental Agreement dated 21 April 1997 (‘the Supplemental Agreement’) between Rego and Aras Capital is void or alternatively is avoided, (ii) rescission of the Letter of Indemnity, (iii) the return of the sum of RM100,000,000 as being a sum allegedly paid by TSDTR to Rego and (iii) general, exemplary and aggravated damages to be assessed. The claim against the Rego / TRI directors is for general, exemplary and aggravated damages to be assessed arising from a claim of alleged conspiracy.

Rego and TRI are presently studying TSDTR’s Defence and Counterclaim and a further announcement will be made upon consideration of the same and upon the receipt of legal advice.