WORLD number two Andre Agassi's confidence was dented ahead of next week's Australian Open when he was beaten by Russia's Yevgeny Kafelnikov at the Colonial Classic exhibition event in Melbourne yesterday.

The American, second seed and defending champion for the first Grand Slam event of the year, lost 2-6 6-2 7-6 (7-2) to the world number six in the semi finals.

But he was pleased with his preparation for the Australian Open, starting on Monday, in which he plays a qualifier in the first round. It will be pleased if I hit the ball as well as today at the Open next week," Agassi said after his defeat. I feel 100 per cent at present. I am healthy," added Agassi, who appeared satisfied with his first round draw at Flinders Park.

"Qualifiers have a knack of becoming nervous before matches. Obviously, the intensity level is a lot higher for a Grand Slam event," he said, before praising Kafelnikov for his performance yesterday.

"Yevgeny is a threat to anyone on a good day. He definitely has the talent to win a Grand Slam tournament," Agassi said of the Russian who will meet American world number five Michael Chang in today's final of the Classic.

Kafelnikov, winner of last week's Australian Hardcourt Championship in Adelaide, said he would not be fooled by his victory over Agassi. "Andre can do loo times better than today," said Kafelnikov. "But I have played some great matches this week against the likes of Andre so I could not ask for a better preparation for the Open."

Agassi, who will play fellow American and world number eight Jim Courier in the third place play off today, was warned for verbal abuse during his match against Kafelnikov and queried several line calls.

In a hastily arranged and lighthearted exhibition match at the end of the day, Germany's Boris Becker beat American world number one Pete Sampras 4-6 6-1 7-6 (8-6). I would not read too much into today's match but I feel comfortable for next week," said world number four Becker.

Sampras commented "It was a good workout which got me prepared for next week. It was not the best match because of the wind, but it was fun."