General Announcement Reference No O&-051216-52421

Submitting Merchant Bank	:	K & N KENANGA BHD
Company Name	:	ASIAEP BHD (MESDAQ Market)
Stock Name	:	ASIAEP
Date Announced	:	16/12/2005

Type	:	Announcement
Subject	:	asiaEP BERHAD ("asiaEP" OR "Company") PROPOSED RENOUNCEABLE RIGHTS ISSUE OF UP TO 82,777,778 NEW WARRANTS ON THE BASIS OF ONE (1) NEW WARRANT FOR EVERY THREE (3) EXISTING ORDINARY SHARES OF RM0.10 EACH HELD IN ASIAEP ON AN ENTITLEMENT DATE TO BE DETERMINED LATER ("PROPOSED RIGHTS ISSUE")

Contents :

We refer to the announcements made on 10 October 2005 and 23 August 2005 on behalf of the Company by K & N Kenanga Bhd ("Kenanga") in relation to the Proposed Rights Issue.

On behalf of the Board of asiaEP, Kenanga is pleased to announce that the Proposed Rights Issue has been approved by the Securities Commission ("SC") vide its letter dated 14 December 2005, which was received on 15 December 2005.

The approval of the SC is subject to the following conditions:-

(i) the shareholders who have provided irrevocable undertakings to subscribe to the warrants must observe and comply with the Malaysian Code on Take-overs and Mergers 1998, if applicable;

(ii) all provisions for changes in the terms of warrants must be clearly determined and disclosed upfront in the warrant deed poll and in the circular to shareholders;

(iii) details of the utilization of the proceeds from the Proposed Rights Issue and any subsequent conversion of warrants should be disclosed in the quarterly report and annual report of asiaEP until these proceeds have been fully utilized;

(iv) Kenanga / asiaEP should comply fully with the MESDAQ Market Listing Requirements pertaining to implementation of the Proposed Rights Issue; and

(v) Kenanga / asiaEP to ensure that all relevant laws / rules / regulations and requirements are complied with.

This announcement is dated 16 December 2005.