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Writ Of Summons Served On Vitrox Technologies Sdn. Bhd., a Wholly-Owned Subsidiary Of Vitrox Corporation Berhad
We refer to our announcement dated December 28, 2005 and your letter to us dated December 29, 2005 with regards to the Writ of Summons served on Vitrox Technologies Sdn. Bhd., a wholly-owned subsidiary of Vitrox Corporation Berhad, please be informed as follows:-
Question 1
As the plaintiff's claim is founded on the allegation of the tort of defamation it is not a liquidated claim that can be quantified. The plaintiff had therefore claimed the interest rate on the judgment sum which is to be assessed in the event that the plaintiff is successful in its claim. In such an event, the plaintiff is entitled to claim interest of 8% per annum on the judgment sum from the judgment date until the full settlement of the said sum.
Question 2
The circumstances leading up to the filing of summons have been set out in paragraph two of the initial announcement. The plaintiff in the statement of claim has alleged that the subsidiary of Vitrox Corporation Berhad, Vitrox Tecnologies Sdn Bhd, had, in the subsidiary's corporate directory under the file - Vitrox-CorpDirectory-InfoSummary-RiskFactors - published in the Bursa Malaysia website,
www.bursamalaysia.com, under the heading of Information Summary and in the sub-heading entitled Material Litigation published a statement that is defamatory of the plaintiff.
Question 3
The plaintiff did not specify any specific quantum of damages claimed in the aforementioned writ of summons. At this stage the quantum of damages of the suit cannot be determined as damages (if any) that is to be awarded in a defamation action is to be assessed by the Court having the benefit of evidence adduced during trial. As such, the Company is not able to assess the financial impact of the suit on the group. Other than the potential damages (if any), the summons has no other financial impact on the group.
The suit is not expected to have any operational impact on the group.
Question 4
As set out in Question 3 above, the group is unable to assess the expected losses (if any) arising from the summon.
Question 5
The listed issuer has instructed its solicitors to do the necessary to proceed to defend the said action.
Query Letter content :
We refer to your announcement dated 28 December 2005 in respect of the
aforesaid matter.
In this connection, kindly furnish the Securities Exchange immediately with the
following additional information for public release: -
1) The interest rate on the amount claimed for.
2) The details of default or circumstances leading to the filing of the
summons.
3) The financial and operational impact on the group, arising from the summons.
4) The expected losses, if any, arising from the summons.
5) The steps taken and proposed to be taken by the listed issuer in respect of
the summons.
Yours faithfully
TAN YEW ENG
Sector Head, Issues & Listing
Group Regulations
TYE/NMA copy to:- Securities Commission (via fax)