ALLIANCE MERCHANT BANK COMPLETES ACQUISITION OF KUALA LUMPUR CITY SECURITIES

Kuala Lumpur, 3 January 2005 - On January 1, 2005, Kuala Lumpur City Securities Sdn Bhd (KLCS) and its related companies became subsidiaries of Alliance Merchant Bank Berhad.

Foo Kok Siew, Acting Chief Executive Officer of Alliance Merchant Bank Berhad says, "We welcome KLCS into the Alliance Banking Group, following completion of its acquisition. KLCS will add on stock-broking, equity research and distribution capabilities to our existing range of services. Being a Universal Broker, KLCS operates from a network of 13 strategic locations in key towns and cities throughout the country. We will be able to immediately tap on the enlarged client base and benefit from the wider geographical coverage offered by KLCS."

He added, "With KLCS on board, we believe that 2005 will be an exciting year for us as we aim to fully capitalize on our capabilities as a full service investment banking group with a complete range of service offerings. We will be able to deliver to our clients more comprehensive value added services and solutions." With the benefit of a prior merger exercise by the Alliance Banking Group, the group is aware of the issues involved, and thus will be able to ensure a smooth and seamless integration of the combined entities.

"During the next few months, we will focus on a smooth and seamless integration of the operations of KLCS into Alliance Merchant Bank to ensure an efficient and uninterrupted delivery of our combined services to our clients," continued Foo. He does not foresee any significant disruption to the operations of both entities.

With the completion of the acquisition of KLCS, Alliance Merchant will immediately benefit from a wider geographical coverage from the 13 KLCS locations nationwide: the Klang Valley, Sitiawan, Alor Setar, Kangar, Kuala Trengganu, Kota Bahru, Kuantan, Kluang, Sibu and Kota Kinabalu.

And, as part of the Alliance Banking Group, KLCS is now able to offer its clients full-fledged investment banking services from Alliance Merchant as well as a wide range of banking products and services from Alliance Bank's network of 81 branches nationwide.

Going forward clients of Alliance Merchant and KLCS can be assured of a more comprehensive and efficient delivery of value added services and solutions from the enlarged group.

For more information on KLCS, please visit www.klcs.com.my