General Announcement
Reference No IC-050111-99536

Company Name	:	INDUSTRIAL CONCRETE PRODUCTS BERHAD
Stock Name	:	ICP
Date Announced	:	11/01/2005


Type	:	Announcement
Subject	:	Material Litigation with Concrete Engineering Products Berhad

Contents :

Further to the announcement on 3 January 2005, the Company wishes to provide clarity to the few press reports carried on 11 January 2005 in relation to the decision of the Court of Appeal on the material litigation with Concrete Engineering Products Berhad ("CEPCO").

The events leading to the judgement of the Court of Appeal on 22 December 2004 are as follows:-

1. On 26 January 2002, the Kuala Lumpur High Court recorded the following consent judgement:-

i. The Company to pay to CEPCO the sum of RM11,533,119.27 in full and final settlement of all the claims of CEPCO (with regards to the goods sold by the Company referred to under item 4 below), together with interest at 3.5% per annum from 1 January 1997 to 5 March 2001 and thereafter at the interest of 8% per annum to the date of payment;

ii. The costs of this assessment be costs in the cause; and

iii. This Consent Order is recorded without prejudice to the Company's right to apply for a stay of execution.

2. On 11 May 2002, the Kuala Lumpur High Court allowed the Company's application for a stay pending the Company's appeal to the Court of Appeal and ordered the monies to be paid within thirty (30) days from 11 May 2002 under the joint names of the two (2) solicitors firms as stakeholders.

3. On 21 May 2002, the Company paid RM14,333,297.43, being the consent judgement sum of RM11,533,119.27 and interest thereon (amounting to RM2,800,178.16), to the joint named account of the two (2) solicitors firms as stakeholders pending the Company's appeal to the Court of Appeal.

4. The Company wishes to highlight that the sum of RM11,533,119.27 was for value of CEPCO's goods sold by the Company for the period of two (2) months when the Company was the Managers for CEPCO's piles and poles operations (pursuant to the Management Agreement dated 5 June 1996).

5. On the appeal to the Court of Appeal by the Company and cross appeal by CEPCO, the Court had on 22 December 2004 ruled (among others) as follows:-

i. The Company's appeal under Civil Appeal No. W-02-247-2001 on the Company's claim against CEPCO for breach of contract and specific performance of the Management Agreement dated 5 June 1996 was dismissed with costs;

ii. CEPCO's cross appeal under Civil Appeal No. W-02-247-2001 against the Company for trespass and constructive trusteeship was dismissed with costs; and

iii. CEPCO's appeal under Civil Appeal No. W-02-265-2001 against the Company for constructive trustees was dismissed with costs.

6. Arising from the decision of the Court of Appeal on 22 December 2004, the Company had on 31 December 2004 consented to the release of the sum of RM14,333,297.43 placed under joint solicitors' account (referred to under item 3 above).

7. With reference to CEPCO's announcement on 10 January 2005 in relation to the material litigation with the Company, the figures appear to be misleading. The amount in dispute of RM17,912,891.95 stated by CEPCO has no relation to the figures in the consent judgement recorded by the Kuala Lumpur High Court dated 26 January 2002 (referred to under item 1 above). The amount of RM6,379,772.60, claimed to have been received by CEPCO, was never paid by the Company. As the Company has already fully settled its obligation as required under the consent judgement (referred to under item 3 above), there will be no further payment of RM1,450,906.75 as claimed by CEPCO.

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