2 NEW FUNDS FROM ALLIANCE UNIT TRUST

Kuala Lumpur, 2 September 2004 - Alliance Unit Trust (AUT) Management Berhad, a subsidiary of Alliance Bank, is pleased to announce the launch of 2 new funds, the Alliance Tactical Growth Fund and Alliance Optimal Income Fund.

Kenny Tan, AUT's Chief Executive Officer said that he is optimistic of the investors' response to the 2 new funds after Bank Negara's recent announcement that the country's economic growth in the second quarter registered an 8% growth. He further concludes that it may be a good time for investors to invest as he projects the market will see an up trend following the budget announcement and the stabilisation in crude oil prices.

The approved fund size of Alliance Tactical Fund is 800 million while its inception price is RM0.25. Says Tan, "We have carefully priced it at 25 sen to make it more affordable to the public. Being a sector-rotation fund, the Tactical Fund will employ an active management approach in deciding appropriate asset allocation and in stock selection. To provide Unitholders with enhanced capital growth, the strategy is to focus the bulk of the Fund's investment in sectors and market themes that are expected to outperform the KLCI. Since it is an equity growth fund, it is suitable for investors with a higher-risk appetite, like the younger working adults with more disposable income."

The Alliance Optimal Income Fund, an equity income fund, with an approved fund size of 400 million, is priced at RM0.50. It is suitable for those who seek a stable income stream with potentially higher than the prevailing FD rates. According to Tan, the Income Fund is expected to target those who are more risk-averse. Essentially a dividend-income fund, the focus will be on high-yielding stocks that will provide stable plus recurrent income. Going forward, Tan expects the current trend of higher dividend payout to be more sustainable given the robust economy and the performance of Malaysia's, which is the highest in the Asia Pacific.

With the launch of Alliance Tactical Growth Fund and Alliance Optimal Income Fund, AUT now offers a range of products for the younger working adults to retirees.

Distributors of the new funds include Alliance Bank, HSBC, Standard Chartered and Alliance Unit Trust Tied-Agents.

For more information on AUT funds or for a copy of the new funds' Master Prospectus, please call 1-800-88-3065 or log on to www.allianceut.com.my