KHI clarifies

With reference to the report in The Jakarta Post dated April 8, 1999, on page 8 under the title Pipe maker protests W. Natuna pipeline tender stipulations", mentioning that Commercial Director of PT KHI stated that, "KHI had won the tender for the supply of spiral pipe for..." (paragraph 12), and in view of a question posed by state gas company PT Perusahaan Gas Negara, we would like you to rectify the report because what we mean is as follows:

"That KHI took part in a tender for the supply of an underwater pipeline for a project undertaken by Perusahaan Gas Negara and that the winner of the tender has not until now been announced because an evaluation process is still going on."

MURBIANTORO S.

Commercial Director

PT KHI Pipe Industries

Jakarta