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With the acquisition, DHMB Group is expected to assume the status of being the largest distributor in Malaysia with a focus on four core business segments: Chemicals and Specialties, Consumer Products and Logistics, Food Ingredients and Healthcare.

Dr. Joerg Wolle, President and CEO of DKSH Group said, This major acquisition in Malaysia is the only EAC unit in the region which is acquired by the DKSH Group. The acquisition will serve to enhance economies of scale in DHMB's distribution services by increasing efficiency in logistics, category management and merchandising, branch networks, IT infrastructure and other back-office functions. We expect this acquisition to contribute to a major boost in sales turnover. The businesses to be acquired reported a turnover of RM 599 million by the end of last year, which would broadly represent a 47% increase to current turnover of DHMB.

Our rationale is simple we have firm expectations that the Malaysian market holds vast potential in terms of growth opportunities and we expect to tap these prospects to further strengthen our operations in the country. This of course is complemented by the excellent infrastructure, political stability and growing consumer affluence especially in our core business sectors. We maintain it is a good time to invest in Malaysia.

Given our analysis of the positive impact of this acquisition, we would like to confirm that the existing employees of EAC Malaysia will continue in our employment as we definitely require their expertise and services to strengthen our business in Malaysia.

According to Dr. Wolle, the newly merged DKSH Group, a fusion of DHMB's parent company, Diethelm Keller Services Asia Ltd. and SiberHegner Holding Ltd. unveils increased opportunities for growth and expansion for DHMB.

We expect the worldwide network of the DKSH Group to contribute substantially to DHMB's reservoir of resources and solutions, while the company and its Malaysian subsidiaries' legal structure will remain unchanged. We will continue to stay customer-oriented by maintaining different sales structures that are specifically tailored to meet every customer's needs irrespective of the organization's size. Some of our customers to date include BOH Tea, KRAFT Cheese, OREO Biscuits, FERRERO Chocolate, MEAD JOHNSON Milk Powder, NIVEA Toiletries, QUAKER Oats, INDOCAFE, JC Products, MAMY POKO Baby Diapers, WYETH S-26 Infant Formula, MARTELL Cognac, SHIELDTOX Insecticides. We represent Healthcare Companies like Roche, GlaxoSmithKline, Novartis, BMS, Aventis, Boehringer Ingelheim, Eisai, Organon, Leo, Novo Nordisk, Allergan, just to name a few, added Dr. Wolle.

The merger between Diethelm Keller Services Asia Ltd. and SiberHegner Holding Ltd., signed in June 2002, creates a true Asian powerhouse, combining annual revenues of CHF4.5 billion (RM 11.5 billion) with a total staff strength of 13,000 covering all Asia-Pacific.

The convergence of these two strong entities in terms of business activities, market coverage and strengths will augur well for the Group's future profitability and business prospects in the coming years.

The merger also reflects a corporate mission that bridges the gap between the East and West with an objective to adopt a long-term approach to market developments, concluded Dr. Wolle.

DKSH Group, under the helm of Dr. Wolle, is today's leading international marketing and distribution services group that actively applies Market Intelligence, a systematic solution that combines and uses market information, leading edge product and application expertise, sophisticated marketing and logistics skills. This unique solution is able to meet the business, product, application and logistics challenges of expansion in complex markets in the Eastern and Western hemispheres.

With the acquisition, Mr. Niels J Holm who will assume the post of DHMB Group's Managing Director / President in Malaysia on January 1, 2003, will succeed Peter Heinser who will retire in the course of 2003 after a successful 30 years career within the Diethelm Group. Holm commands more than 25 years of experience in distribution and logistics in Hong Kong, Malaysia, Taiwan, Singapore and Thailand.

The acquisition is subject to approval by government authorities and shareholders of the two companies and is expected to be completed by early 2003.