Based on the assumption that all the Unexercised ESOS Options and the Additional ESOS Options are fully exercised, as well as the Proposed Investment in Cimtek and the Call Option are completed prior to the entitlement date of the Proposed Rights Issue, the Proposed Rights Issue entails a renounceable rights issue of up to 103,202,312 Warrants at an indicative issue price of RM0.01 per Warrant on the basis of one (1) Warrant for every three (3) asiaEP Shares.

The salient terms of the Warrants are set out in Table 1 of this announcement.

The maximum number of 103,202,312 Warrants to be issued hereunder was derived from the proforma issued and paid-up share capital of asiaEP as at 22 August 2005 after taking into account the maximum number of asiaEP Shares which could be issued pursuant to the ESOS of 30,000,000 Shares and the potential new asiaEP Shares that could be issued pursuant to the Proposed Investment in Cimtek and the Call Option amounting to an aggregate of 79,606,937 asiaEP Shares. Please refer to Table 2 of this announcement for further details on the proforma issued and paid-up share capital of asiaEP.

The Warrants will be provisionally allotted and issued to the shareholders of asiaEP whose names appear on the Record of Depositors at the close of business on an entitlement date to be determined and announced later. Fractions of a Warrant shall be disregarded and the aggregate of such fractions will be dealt with as the Board may at its absolute discretion deem fit and expedient and in the interest of the Company.

The exercise price of the Warrants of RM0.30 per Warrant was arrived at based on a premium of approximately 43% or approximately RM0.09 to the 5-day volume weighted average price up to and including 22 August 2005 (being the date prior to the date of this announcement) of approximately RM0.21.

The new asiaEP Shares to be issued pursuant to the exercise of the Warrants shall, upon issue and allotment, rank pari passu in all respects with the then existing asiaEP Shares, save and except that they shall not be entitled to any dividends, rights, allotments and/or other distributions, the entitlement date of which is prior to the date of allotment of the new asiaEP Shares arising from the exercise of the Warrants.

An application will be made for the admission of the Warrants to the Official List of Bursa Malaysia Securities Berhad ("Bursa Securities") and for the listing of and quotation for the Warrants and new asiaEP Shares arising from the exercise of the Warrants on the MESDAQ Market of Bursa Securities.

Certain substantial shareholders of asiaEP, namely Tan Boon Nunt and Lee Suet Hong, have given their irrevocable undertakings to subscribe for their respective entitlements of up to 7,262,333 and 5,245,667 Warrants to be issued pursuant to the Proposed Rights Issue.

In addition, Tan Boon Nunt and Lee Suet Hong have also undertaken to subscribe for any remaining unsubscribed Warrants pursuant to the Proposed Rights Issue in proportion to their respective shareholdings in asiaEP. In the event none of the Warrants are subscribed for (by shareholders other than Tan Boon Nunt and Lee Suet Hong), Tan Boon Nunt and Lee Suet Hong will subscribe for up to 59,920,818 Warrants and 43,281,494 Warrants respectively in total.

The proforma effects of the Proposed Rights Issue on the issued and paid-up share capital of asiaEP are set out in Table 2 of this announcement.

The proforma effects of the Proposed Rights Issue based on the audited NTA of asiaEP as at 28 February 2005 are set out in Table 3 of this announcement.

The Proposed Rights Issue is not expected to have any material effect on the earnings of asiaEP for the financial year ending 28 February 2006.

The proforma effects of the Proposed Rights Issue on the shareholdings of the substantial shareholders of asiaEP as at 22 August 2005 (being the date prior to the date of this announcement) are set out in Table 4 of this announcement.

The Proposed Rights Issue is not expected to have any material effect on the dividend policy or dividend to be declared by the Company, if any, for the financial year ending 28 February 2006.