General Announcement
Reference No TC-071231-57934

Company Name	:	TALAM CORPORATION BERHAD
Stock Name	:	TALAM
Date Announced	:	31/12/2007


Type	:	Announcement
Subject	:	TALAM CORPORATION BERHAD [“TALAM or “the Company”] RATIONALISATION OF THE BUSINESSES OF EUROPLUS BERHAD AND TALAM INCLUDING THE MERGER OF THEIR PROPERTY RELATED BUSINESSES (“MERGER”)

Contents :

We refer to our announcement dated 28 September 2007 on Securities Commission (“SC”)’s letter dated 21 June 2007 on the approval of an extension of time, from 23 June 2007 to 23 June 2008, for Talam to comply with the conditions imposed by the SC pursuant to the Merger.

Announcement Details :

We refer to our announcement dated 28 September 2007 on Securities Commission (“SC”)’s letter dated 21 June 2007 on the approval of an extension of time, from 23 June 2007 to 23 June 2008, for Talam to comply with the following conditions:

Property Description Conditions

1 P.T. 2730
Mukim of Hulu Yam
District of Hulu Selangor
Selangor The ownership of the property must be transferred to Ulu Yam Golf & Country Club Sdn Bhd.

2 State Land Lots 610 and 615
Section 67
Town and District of Kuala Lumpur The outstanding land alienation premium must be settled.^*1

Note:

^*1 On 3 February 2005, Talam completed the disposal of Ambang Vista Sdn Bhd, which holds this parcel of land, to Kumpulan Europlus Berhad (“KEB”). Talam has procured an undertaking from KEB that KEB will use its best endeavour to meet this condition.

The approval of the SC is subject to the following conditions:

(i) announcements on the status of the conditions above be made to Bursa Malaysia Securities Berhad on a quarterly basis; and

(ii) that the SC be informed of the status of the conditions when the announcements are made.

The current status of the conditions imposed by the SC on the properties of Talam is as follows:

Property Description Status

1 P.T. 2730
Mukim of Hulu Yam
District of Hulu Selangor
Selangor The amount owing by Talam to SAP Holdings Berhad (“SAP”) with respect to this property was RM7.2 million (“Amount Owing”). In addition to the Amount Owing, Talam also owes SAP some monies with respect to other properties (“Other Amount Owing”).

Talam has settled the Amount Owing and Other Amount Owing on 21 December 2007.

In addition, Talam is currently negotiating with Kumpulan Darul Ehsan Berhad (“KDEB”) and Pendidikan Industri YS Sdn Bhd (“PIYS”) to dispose off this property in settlement of amounts owing from Talam group to KDEB and PIYS.

The ownership of this property shall be transferred directly to KDEB upon the settlement agreement being completed.

Talam expects to enter into the settlement agreement with KDEB and PIYS in the 1st quarter of 2008.

2 State Land Lots 610 and 615
Section 67
Town and District of Kuala Lumpur On 18 May 2007, Ambang Vista Sdn Bhd (“AVSB”), a subsidiary of KEB, entered into a sale and purchase agreement with Tekal Perkasa Sdn Bhd, to dispose of Lots 610 and 615.

The disposal was completed on 17 December 2007. As such, the Securities Commission’s condition with respect to this property is no longer applicable.

This announcement is dated 31 December 2007.

	Property Description	Conditions

1	P.T. 2730 Mukim of Hulu Yam District of Hulu Selangor Selangor	The ownership of the property must be transferred to Ulu Yam Golf & Country Club Sdn Bhd.

2	State Land Lots 610 and 615 Section 67 Town and District of Kuala Lumpur	The outstanding land alienation premium must be settled.^*1

	Property Description	Status

1	P.T. 2730 Mukim of Hulu Yam District of Hulu Selangor Selangor	The amount owing by Talam to SAP Holdings Berhad (“SAP”) with respect to this property was RM7.2 million (“Amount Owing”). In addition to the Amount Owing, Talam also owes SAP some monies with respect to other properties (“Other Amount Owing”). Talam has settled the Amount Owing and Other Amount Owing on 21 December 2007. In addition, Talam is currently negotiating with Kumpulan Darul Ehsan Berhad (“KDEB”) and Pendidikan Industri YS Sdn Bhd (“PIYS”) to dispose off this property in settlement of amounts owing from Talam group to KDEB and PIYS. The ownership of this property shall be transferred directly to KDEB upon the settlement agreement being completed. Talam expects to enter into the settlement agreement with KDEB and PIYS in the 1st quarter of 2008.

2	State Land Lots 610 and 615 Section 67 Town and District of Kuala Lumpur	On 18 May 2007, Ambang Vista Sdn Bhd (“AVSB”), a subsidiary of KEB, entered into a sale and purchase agreement with Tekal Perkasa Sdn Bhd, to dispose of Lots 610 and 615. The disposal was completed on 17 December 2007. As such, the Securities Commission’s condition with respect to this property is no longer applicable.