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Differences has arisen between MEPS JV and TM which, amongst others include the completion of the works, remedying the defects, retention of the cash performance guarantee, the deduction of the liquidated damages for delay and the certification and payment of the retention money. This dispute was referred to Jabatan Kerja Raya ("JKR"). On 27 June 2002, JKR has awarded a compensation of RM63.8 million in favour of MEPS JV.

TM wish to announce that an amicable settlement has been reached with MEPS JV. The settlement sum is RM41.97 Million which is in full and final settlement of all claims by MEPS JV. As part of the settlement, TM and MEPS JV will file a Notice of Discontinuance for the withdrawal of all legal suits filed against each other in due course.