KUALA LUMPUR, 9 July 2008 – Malaysian Industrial Development Finance Berhad (“MIDF”) Group today announced a profit after tax of RM138.5 million for the financial year ended 31 December 2007, with revenue of RM562.7 million. This is a 33% increase in net profit from RM103.8 million recorded in 2006.

MIDF Group Managing Director, Encik Mohd Najib Hj. Abdullah, said “The results are a reflection of the strengths of the new MIDF of today, a diversified group with strong focus in Investment Banking, Development Finance and Asset Management”.

“With this diversity in the supply chain of financial services, MIDF is well positioned to emerge as a significant player in the financial services market”, said Mohd Najib.

The Investment Banking Division under MIDF Investment contributed a profit before tax of RM86.4 million in the first year of operations as a full-fledged investment bank. The Division expects an enhanced involvement in the debt and equity capital markets with the full array of investment-banking related activities - financial advisory, underwriting of equities and debt instruments, treasury activities and equity-broking services - from a stronger platform.

Going forward, the Investment Banking Division is working to forge smart partnerships and alliances with other market players especially foreign financial institutions as a means to enhance contributions from non-debt capital market related businesses such as corporate advisory activities and stock broking.

The established expertise in the local capital markets will also provide MIDF Investment with the opportunities to participate in the private sector as an active driver of economic growth as well as derive substantial earnings for the group.

“Building on the stronger platform of a diversified financial services group, we have the means and are well positioned to provide the necessary consultation and services to businesses in each of their stages of development and growth using our ‘cradle to maturity’ approach,” said Mohd Najib.

The improvement in earnings for the year under review is also attributed to the Development Finance Division which recorded a profit before tax for the current year to RM27.8 million, compared to a loss of RM14.3 million in the previous year. Loan losses for the Division fell by 87 % to RM6.7 million, from RM50.0 million for the previous year.

Under the Ministry of International Trade and Industry and its agencies, there are four soft loan schemes for the development finance activities especially for Small and Medium Enterprises, with an aggregate value of RM950 million for onwards lending to eligible companies.

MIDF intends to fulfil its development finance agency role for the onwards lending of the soft loan scheme in its efforts to contribute towards the development of SMEs in Malaysia.

As at 12 June 2008, a total of 859 applications with cumulative value of RM661 million, under the various Schemes, have been approved to manufacturing, manufacturing-related services and services enterprises. Of these, the disbursement to-date amounted to RM385 million.

The Asset Management Division of the Group recorded a marginal reduction of 8% in profit before tax to RM9.2 million for the current year, compared to RM9.9 million in the previous year, with the challenge to meet investment benchmark returns amidst a volatile investment environment.

Also contributing significantly to group’s profit was the Industrial Property Division which recorded a two-fold increase in its profit before tax to RM20.6 million from RM9.9 million in 2007, attributed to the higher margin from sales in the year under review.

With the completion of the take over exercise by Permodalan Nasional Berhad (“PNB”) as of 21 February 2008, MIDF is now a wholly-owned subsidiary of PNB. The rationale for the privatisation offer was to facilitate the re-positioning of the Group and to enhance its competitive edge.

In line with its efforts to transform into a preferred financial advisor, the Group’s focus is to simultaneously drive sales performance, product and service delivery and cost efficiency.

“The continued focus on customer relationships, operational efficiencies, NPLs management and cost rationalisation will provide the base for a sustainable and quality growth for the Group as we continuously create value for our shareholders”, Encik Najib added.

Financial Highlights

MIDF Group	Audited 2007 RM million	Audited (restated) 2006 RM million
Revenue	562.7	559.9
Profit Before Tax	176.0	125.2
Net Profit	138.5	103.8
Shareholders’ Funds	2,046.1	1,967.6
EPS per share unit (sen) - Basic	14.1	10.6
ROSF (%)	6.90	5.54
Net Asset Per Share (RM)	2.09	2.06

MIDF, a subsidiary of Permodalan Nasional Berhad, has total assets of over RM9.2 billion and shareholders’ funds of over RM2.0 billion as at 31 December 2007.