General Announcement
Reference No O&-040426-63613

Submitting Merchant Bank	:	K & N KENANGA BHD
Company Name	:	ASIAEP BHD (MESDAQ Market)
Stock Name	:	ASIAEP
Date Announced	:	27/04/2004


Type	:	Announcement
Subject	:	AsiaEP Berhad (ASIAEP or "the Company") Research Report 29 February 2004

Contents :

Financial Highlights

Turnover

For the financial year ended ("FYE") 29 February 2004, the Company achieved turnover of approximately RM8.431 million representing a growth of 20.41 % as compared to approximately RM7.002 million achieved in the previous FYE 28 February 2003. The increase in turnover is contributed by the Company's successful implementation of its marketing plans.

PAT

The PAT of the Company for the FYE 29 February 2004 increased by 9.29% to approximately RM2.659 million as compared to approximately RM2.433 million achieved in the previous FYE 28 February 2003. The slight increase in PAT despite the significant increase in turnover is mainly due to higher advertising/promotional costs and more staff training/development.

Utilisation of Proceeds

As at 29 February 2004, ASIAEP had utilized approximately 12.6% of the proceeds raised from its Initial Public Offering ("IPO") in January 2004.

The IPO proceeds were received by the Company in late January 2004 and the Company expects to fully utilize the said proceeds by early of 2006.

Future Prospects

As the Company is principally involved in the provision of a comprehensive range of Internet and advertising related services, the prospect of the Company is dependent on the growth of the IT industry. Planned investment in the designated areas covering activities of the IT services and software development has reached RM13 billion, an increase of 34% against the previous year. (Source : Economic Report 2003/2004). Based on this, the outlook of the IT industry is expected to be favorable. Accordingly, the Company expects the outlook to be positive.

Going forward, the Company expects to capture a bigger market share of the market, by relying on the expertise of its' Research & Development team, aggressive marketing strategies and successful implementation of its business plan.