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Contents :

We refer to your letter dated 16 August 2002, reference FM-020816-55781, with regard to the above article appearing in Mail Money, page 27 of the Malay Mail on Friday, 16 August 2002.

On 8 July 2002, we have in our reply to a KLSE query raised on 5 July 2002 stated that, "There is no discussion between Nissan Motor Co. Ltd., Japan and our Company with regard to any change in the sole distributorship position of the Group. The Company will make the appropriate announcement, in accordance with KLSE guidelines, if and when there is any change or development on our status."

We wish to advise that the above position remains unchanged.

With regard the statement highlighted, we confirm that Nissan Motor Co. Ltd. Japan has for many years and currently still owns 5.56% of the paid up share capital of Tan Chong Motor Holdings Berhad.

We enclose herewith (by fax) the article published in the Business Times, Singapore on 17 July 2002 carrying the interview with Mr. Carlos Ghosn, the Chief Executive Officer of Nissan Motor Co. Ltd. Japan that was quoted by Mail Money for your information.

Query Letter Contents :

We refer to the above article appearing in Mail Money , The Malay Mail, page
27, on Friday,
16 August 2002, a copy of which is enclosed for your reference.
In particular, we would like to draw your attention to the underlined sentence,
which is reproduced
as follows:-

"Market talk has it that Nissan Japan, which has a small stake in Tan Chong,
may take
over the distribution itself following a family feud which is threatening to
break up the Tan
Chong Group".


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.


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

Yours faithfully

CHONG FUI TZY
Senior Manager
Listing Operations
HTH/WSW/TFM
Copy to : Securities Commission (via fax)