General Announcement Reference No O&-040510-60738

Submitting Merchant Bank	:	K & N KENANGA BHD
Company Name	:	ASIAEP BHD (MESDAQ Market)
Stock Name	:	ASIAEP
Date Announced	:	10/05/2004

Type	:	Announcement
Subject	:	ASIAEP BERHAD ("ASIAEP" OR "COMPANY") MEMORANDUM OF COOPERATION ("MOC")

Contents :

We refer to the announcement dated 6 May 2004 whereby on behalf of the ASIAEP, K&N Kenanga Berhad ("Kenanga") announced that the Company had ceased negotiations with Beijing Netthinker Co. Ltd ("BNCL") with regards to a MOC executed between ASIAEP and BNCL, a company incorporated in the People's Republic of China, to mutually cooperate in respect of a project called "China Occupational Skills Training-Multimedia and Virtual Course Materials."

Kenanga on behalf of the Company wishes to announce that ASIAEP and BNCL had mutually agreed to cease negotiations due to the inability of both parties to agree on the terms to finalise an agreement pursuant to the MOC.

The Directors have confirmed that none of the Directors or substantial shareholders of ASIAEP or persons connected with them have any interest, direct or indirect, in the MOC.

This announcement is dated 10 May 2004.