General Announcement Reference No O&-041208-63385

Submitting Merchant Bank	:	K & N KENANGA BHD
Company Name	:	ASIAEP BHD (MESDAQ Market)
Stock Name	:	ASIAEP
Date Announced	:	08/12/2004

Type	:	Announcement
Subject	:	ASIAEP BERHAD ("AsiaEP" or the "Company") Incorporation of a new subsidiary

Contents :

The Company wishes to announce the incorporation of a new wholly-owned subsidiary AsiaEP China Co., Ltd ("AsiaEP China"). AsiaEP China received all relevant approvals, documents and its office is equipped for commencement of operations on 7 December 2004. AsiaEP China is currently dormant and its intended principal activities are computer software design, development, technology support, e-commerce homepage development and sales. The registered capital of AsiaEP China is US Dollars 900,000.

The incorporation of AsiaEP China does not have any material financial effect on the Company and is not subject to the approval of the shareholders of the Company nor any governmental authorities.

None of the Company's directors, substantial shareholders nor persons connected to them have any interest, direct or indirect, in the incorporation of AsiaEP China.

This announcement is dated 8 December 2004.