Dear Sir,

Re: Article published in the Phnom Penh Post dated April 8-21

1994 about Inchcape.

Further to the publication of the above mentioned

article in your recent bi-weekly issue pertaining to the renovation of

Pochentong Airport, I wish to point out following misquotes by your Ms Liz

Gilliland:

1) Inchcape Special Markets Ltd is the corporate

vehicle we use to handle project business such as the airport renovation and

Khmer Agencies Co Ltd was never linked to those sort of projects. Khmer Agencies

Co Ltd is our fully owned subsidiary to handle direct distribution to the public

of Inchcape's diversified range of products & equipment from our various

principals/agencies.

2) I have never said that the two Dutch

companies, NKI and Vanderlande are Inchcape's parent companies as they are two

independent companies, not part of the Inchcape Group.

3) I have

also not said that no Khmer/local companies were involved in the airport

renovation. On the contrary I have indicated that to my personal knowledge,

about four to five companies are involved in this air port project of which some

are foreign firms and some are local firms. Further clarification should be then

sought from the Civil Aviation Authorities of Cambodia.

4)

Inchcape Special Markets Ltd was the corporate vehicle used to subcontract

from Pernama for the management of the Wines & Spirits section within the PX

which at that time catered exclusively for Untac personnel as well as the

Diplomatic Corps in Cambodia. Khmer Agencies Co Ltd did not exist then.

I

would appreciate if you could rectify the above points resulting from a

misunderstanding from Ms Liz Gilliland during her recent interview with me. As a

public listed company, Inchcape gives much importance to any public or press

statements pertaining to the Group's activities as we do not want to give a

wrong impression on our existing operations whether it be in Cambodia or any

other country.

Thanks & Kind Regards,

- David Van, Inchcape Special Markets, Phnom Penh

Editor's

note: Our reporter is on on holiday and is unable to reply to these points.