MIDF RESTRUCTURES ITS INVESTMENT BANKING UNIT

KUALA LUMPUR, Friday, 13 October 2006 - Malaysian Industrial Development Finance Berhad (“MIDF”) announces a restructuring of its companies pursuant to the Guidelines on Investment Banks jointly issued by Bank Negara Malaysia and the Securities Commission on 1 July last year.

MIDF’s merchant banking arm, Utama Merchant Bank Berhad (“UMBB”) takes the helm in the integration of MIDF’s discount houses and stock broking businesses to create a single investment banking entity. UMBB recently signed an agreement for the acquisition of all assets and liabilities in Amanah Short Deposits Berhad (“ASD”), Malaysia Discounts Berhad (“MDB”) and MIDF Sisma Securities Sdn. Berhad (“MIDFSS”) respectively, with assets and liabilities arising from taxation and proposed dividends being excluded. Thus, the indicative valuation for ASD, MDB and MIDFSS are approximately RM41.7 million, RM4.2 million and RM102.6 million respectively, which amounts to RM148.5 million.

The proposed interim dividends, subject, inter alia, to regulatory approvals, would amount to about RM336.4 million and RM189.5 million for ASD and MDB respectively.