MIDF’S NET PROFIT JUMPS 95 PER CENT

• Revenue at RM557.6 million
• Profit after tax at RM125.1 million
• Earnings per share doubled from 6 sen to 13 sen per share
• Higher dividends proposed
• final 7sen plus special 3 sen

KUALA LUMPUR, Wednesday, 28 February 2007 - Malaysian Industrial Development Finance Berhad (“MIDF”) Group today announced a net profit after tax of RM125.1 million for the financial year ended 31 December 2006 against RM64.1 million for the financial year ended 31 December 2005. Revenue for last year was recorded at RM557.6 million and earnings per share doubled to 13 sen per share.

The current year’s result is creditable, despite the Group opting to adopt a uniform and more stringent policy in providing for non-performing loans (NPLs) older than five-and-seven years for all its lending activities, including its development finance as well as investment banking activities. The policy change resulted in the allowance for loans losses for the current year increasing to RM79.4 million, compared to RM44.7 million in the previous year.