General Announcement Reference No O&-040817-60289

Submitting Merchant Bank	:	K & N KENANGA BHD
Company Name	:	ASIAEP BHD (MESDAQ Market)
Stock Name	:	ASIAEP
Date Announced	:	17/08/2004

Type	:	Announcement
Subject	:	ASIAEP BERHAD ("AsiaEP" or the "Company") Memorandum of Understanding between the Company and the China Council for the Promotion of International Trade ("CCPIT")/the China Chamber of International Commerce, Guangdong Province ("CCOIC")

Contents :

1. Introduction

K&N Kenanga Bhd, on behalf of the Board of Directors of AsiaEP (the "Directors"), is pleased to announce that the Company had on 12 August 2004 entered into a Memorandum of Understanding ("MOU") with CCPIT/CCOIC to mutually cooperate in respect of each other's products and services (in the form of CCPIT and CCOIC's Internet portal, GETGD.NET) as well as to enhance each other's competitive advantage in Guangdong and internationally.

2. Background information on CCPIT/CCOIC

Formed in May 1952, CCPIT is a national economic and trade organization comprising of social dignitaries, enterprises and organizations from the People's Republic of China's ("PRC's") economic and trade sectors. It aims to promote the PRC's foreign trade, attract and utilize foreign capital, introduce advanced technology, foster various forms of economic and technical cooperation with various other countries and to promote mutual understanding and friendship between the people of the PRC and the rest of the world. CCPIT started to adopt a separate name, the CCOIC, in June 1988 which is now used concurrently with CCPIT.

CCPIT/CCOIC has approximately 49 local sub-councils, approximately 18 industrial sub-councils, more than 600 sub-branch and county-level chambers of commerce and more than 60,000 member enterprises including 15 overseas representative offices which have formed a working network covering almost all of the PRC and all trades and industries in the country.

Developed by CCPIT/CCOIC, GETGD.NET is an information portal for the promotion of various trades and industries in the Guangdong Province to the international markets. Its functions include, amongst others, the provision of information on various trade statistics, investment policies, exporters' directories and other industrial news and analysis.

3. Salient terms of the MOU

The salient terms of the MOU are as follows:-

(a) AsiaEP will provide its Internet Trade Alliance Hub ("ITAH") Global Infrastructure Network to host GETGD.NET's web portal at www.getgd.net and AsiaEP will also be responsible for promoting GETGD.NET's services for a period of three (3) years from 2004;

(b) In addition to the above, AsiaEP will also market the www.getgd.net portal to the international market;

(c) GETGD.NET will also market and promote AsiaEP's range of products subject to AsiaEP's agreement to a profit sharing arrangement between GETGD.NET and the Company; and

(d) Both AsiaEP and GETGD.NET are to promote each other on their respective websites and jointly organize promotional activities with the aim of penetrating the Guangdong and international markets.

The terms and conditions above are subject to further negotiations between the Company and CCPIT/CCOIC (including the profit sharing arrangement mentioned in (c) above). Further developments in respect of the MOU will be announced in due course.

4. Statement by the Directors

The Directors are of the view that the MOU is a strategic collaboration that is complementary to the Company's business as well as to provide opportunities for the Company to expand into the PRC, especially in the Guangdong Province. In addition, such collaboration would also provide an opportunity for the Company to enhance and expand its products base from the cross-promotional activities between the Company and GETGD.Net.

The Directors are of the opinion that the MOU will not have any immediate material effects on AsiaEP's financial results. However, such collaboration is expected to add value to the Company in the long run. There is no expected capital commitment on AsiaEP's part under the MOU at this stage.

5. Directors' and Substantial Shareholders' Interest

The Directors and the substantial shareholders of the Company do not have any interest, directly or indirectly, in the above MOU. In so far as the existing Directors and the substantial shareholders are able to ascertain and are aware, no persons connected to them have any interest, directly or indirectly, in the said MOU.

This announcement is dated 17 August 2004.