UZMA VENTURES INTO INNER MONGOLIA OIL SECTOR

KUALA LUMPUR, Sept 12 (Bernama) -- Uzma Bhd's wholly-owned subsidiary, Uzma Engineering Sdn Bhd, has acquired a 35 percent equity interest in Hong Kong-incorporated Oriental Motors Co Ltd.

In a statement here today, Uzma, an international oil and gas company, said
the acquisition was to pave the way for its participation as master project
manager for Baiyin Chagan, Inner Mongolia, petroleum block for 14
years.

It said Oriental has an agreement with Hefei XinXing Petrochemical Co Ltd
(Hefei-XX) to jointly set up Hefei Sun Xing Mineral Development Co Ltd under the
net profit sharing ratio of 70 percent and 30 percent respectively to develop
the block.

"Hefei-XX has been granted the exclusive rights by China Petroleum and
Chemical Corp for the drilling, extraction, production, crude oil processing and
daily data collection operations in connection with the extraction and recovery
of petroleum in Baiyin Chagan," it said.

Uzma chairman, Syed Ali Syed Abbas Alhabshee, said the company's total
investment for the first stage was RM4.0 million (US$1.15 million) including the
acquisition of 35 percent equity stake in Oriental.

"This venture will enable us to have a long-term sustainable income for
our group," he said.

He said the investment was envisaged to further enhance its drilling
services and reservoir studies divisions.

Meanwhile, Uzma managing director/chief executive officer, Kamarul Redzuan
Muhamed, said Uzma expected to commence its drilling activities in the
petroleum block in the next two months, subject to certain approvals and weather
conditions.

"The prospects of our involvement in the petroleum operations are positive
based on its preliminary assessment of data collected," he said.