YEAR 2000 COMPLIANT DISCLOSURE - KLSE PRACTICE NOTE NO. 1/98

Pursuant to Section 335 of the KLSE Main Board Listing Requirements and the KLSE practice note no. 1/98 on Year 2000 disclosure, the Genting Group of Companies (comprising the three public-listed companies - Genting Berhad, Resorts World Bhd and Asiatic Development Berhad), is pleased to make the following announcement:

Overview

As disclosed in our respective 1997 annual reports, the Genting Group of Companies ("the Group") acknowledges the business and systems challenges that can arise from the potential Year 2000 (Y2K) problem. Since August 1997, efforts were initiated by the management to ensure that its business process and systems are Y2K-ready. The main aim is to warrant a smooth continuity of the Group's business process and systems into the next millennium.

A task-force committee ("Committee") has been set up to address the Y2K issues, both from IT as well as business perspectives. The Committee consists
of the representatives from all three public-listed companies of the Group, who have been meeting on a fortnightly basis since February 1998. The Senior Management of the Genting Group is being regularly informed on the progress of the project status. In addition, progress reports will be submitted to the Group Executive Committee (a Board Committee).

The Committee has also adopted a strategic plan to identify and address the Y2K problem. To-date, we have completed several major phases of the project - including awareness program, production of complete inventory, impact analysis, budgeting and setting up of testing facilities. The Group is now at the later stage of implementing program modifications, software and hardware upgrades, replacements and testings required to be Y2K ready.

Details of what the Group has done or is doing to reduce its potential exposure to Y2K problem:

The Committee has mapped the following plans to recognize, identify and resolve the Y2K issues within the Group:-

a) Y2K Project Awareness

It is essential that management at all levels be fully aware of the Y2K problem and its potential impacts on their business and customers. During this stage, numerous e-mails and latest articles on Y2K issues were sent to management and executives of the Group to create awareness on the potential threat of the millennium bug and to address the potential problems so that the Y2K project can be successfully completed.

Sub-committees were set-up for IT and non-IT areas to assess the Group's systems and processes to be Y2K ready.

b) System Inventory

The primary purposes of this phase are to gather and analyze the information
to determine the size and scope of the Y2K problem and to identify all IT assets of the Group and their relationship and dependencies with each other.

During this phase, a complete inventory of both IT and non-IT systems including software, operating systems, hardware and services was compiled.

c) Prioritize / Assessment

In ascertaining the impact and risks of the Y2K problem to the business, the entire inventory system is being analyzed and prioritized to three levels (High, Medium and Low). Any system that is critical for the business operations and which receives a high rating is dealt with on a priority basis.

d) Y2K Acceptance Testing

In the absence of a universal standard, the Committee has adopted a DISC PD2000-1¹ as a definition of Y2K conformity requirements. The four rules² of DISC PD2000-1 are being used to test all high and medium priority systems to ensure a high degree of confidence that the systems will operate during the transition through the Year 2000 and beyond.

e) Upgrades & Replacements

The Group's businesses are supported by external vendors and suppliers for products and services. For IT-related products and services, these include the supply and ongoing support of hardware, software, operating systems and software enhancements.

Non-IT external suppliers include the following:

• Inventory items - such as food, beverage, consumables, chemicals etc.
• Non-inventory items - such as printing, office equipment etc.
• Services - such as gas, power, water, telecommunications and air-conditioning.

The Group also has agreements with financial and insurance companies for its banking and insurance services.

As the external vendors and suppliers are essential in the smooth running of the Group's daily operations, the Group is working with these parties to minimise the potential risk of Y2K issue. The Group is also seeking to obtain written assurance from all existing vendors and suppliers of their Y2K compliance status. Where possible, the Group will seek to include an express warranty / indemnity clause in new contracts with third party vendors or suppliers that their products are Y2K-ready. All current in-house applications are being reviewed and if necessary be upgraded to be Y2K-ready.

f) Contingency Plans

Contingency plans and procedures are also being developed for high and medium priority systems in case:

• a major component of the system fails during Year 2000;

• data is not received from the external source; or

• invalid data received from an external source.

In extreme cases, the contingency plans would include the activation of manual procedures to ensure the continuity of the Group's businesses.

Summary of Year 2000 Ready Schedule

Barring unforeseen circumstances, we anticipate that all reprogramming efforts will be completed by March 1999.

Independent verification

The Committee has engaged an external consultant to provide the expert advice and to test our critical inventory for Y2K compliance.

Details of the Group's overall potential exposure to the Y2K problem:

a) Impact on the Group's business
Based on our assessment and the scope of work carried out thus far, the
Group is expected to have adequately addressed the Y2K issue by June 1999. Having taken these preventative measures and barring any unforeseen circumstances, the Group does not anticipate any major disruption to its business operations comes Years 2000.

b) Projected Cost
The current estimated total cost of the Y2K project for Genting Group of Companies is projected at RM5 million. This amount is not significant relative
to the Group's earnings and its assets, and thus will not materially impact
the Group's financial results and its liquidity.

______________________________

¹DISC PD2000-1 is a definition of Year 2000 Conformity Requirements -
which is a part of the British Standards Institution.

²Year 2000 conformity shall mean that neither performance nor functionality is affected by dates prior to, during and after the year 2000.
In particular: