MIDF NET PROFIT JUMPED 101% TO RM122.9 MILLION

Kuala Lumpur, Tuesday, 12th June 2007 - The Malaysian Industrial Development Finance Berhad (“MIDF”) Group delivered an impressive showing during the financial year ended 31st December 2006, by posting a 101% jump in net profit attributable to shareholders of RM122.9 million. For the financial year ended 31st December 2005, the Group registered a net profit of RM61.1 million.

MIDF held its forty-seventh Annual General Meeting today whereby all 10 resolutions were passed by the shareholders. The higher net profit was achieved with slightly lower operating revenue of RM559.9 million compared to RM578.9 million in 2005. Despite this slightly lower operating revenue the pre-tax profit managed to grow by 11% to RM125.2 million.

As a result of the doubling in net profit, net earnings per share also doubled to 12.84 sen as at 31 December 2006 from 6.39 sen a year ago. For the year ending 2006, total assets of the Group were at RM11.5 billion and its shareholders’ funds were at RM1.96 billion.

Conservative Policy On Doubtful Debt Provisioning

The results were achieved even though the Group adopted a more conservative policy for doubtful debt provisioning to meet best practices.