Response to Natsteelメs reply

Date: May 19, 2003

No plausible reason(s) has been advanced to justify the tie-up. In fact, the reasons advanced are, with respect, difficult to understand. The problems discussed by Natsteel in their reply can be addressed and achieved without requiring the vote on the M&A resolution to be mandatory. By their own statement, the proposed amendments are not applicable to the Special Dividend payment but rather applicable to payments of future dividends only.

Our advice to the Natsteel Board is separate the Special Dividend resolution from the M&A resolution to avoid the exercise being doomed to failure. It only gives rise to unnecessary controversy and is not at all helpful to minority shareholdersメ expectation for the Special Dividend payment.

Mr David Gerald J.
President & CEO
Securities Investors Association (Singapore)