ALLIANCE INVESTMENT BANK ARRANGES RM800 M PRIMARY COLLATERALISED LOAN OBLIGATIONS (CLO) VIA SPV IDAMAN CAPITAL

Kuala Lumpur, 10 October 2006 - Alliance Investment Bank Berhad ("AIB") had successfully completed the securitisation of a portfolio of new loan facilities amounting to RM800 Million via a special purpose vehicle ("SPV"), Idaman Capital Berhad ("Idaman Capital"), under a Primary Collateralised Loan Obligations ("CLO") transaction, as Lead Arranger and Principal Adviser today. The Alliance Banking Group and DBS Bank Ltd ("DBS") are the primary subscribers for the issue.

Idaman Capital is AIB's second CLO, with the first being the Kerisma Primary CLO closed in 2004. The Idaman Capital Primary CLO is rated by Rating Agency Malaysia Berhad ("RAM"), and comprises 25 investment grade obligors cut across 17 industry sectors, making it a well-diversified portfolio. Alliance Capital Asset Management Sdn Bhd, a subsidiary of AIB, is the portfolio manager under the transaction.

"Under the Idaman Capital Primary CLO, AIB originated new loan facilities to certain identified companies that met the selection criteria and which were scrutinized by the bond investors. This portfolio of new loan facilities was sold to Idaman Capital on closing of the transaction today," said Bridget Lai, Group Chief Executive Officer, Alliance Banking Group.

Idaman Capital issued 5-year RM800 Million Asset-Backed Bonds ("Bonds") comprising RM50 Million Class A Super Senior Bonds (rated AAA), RM430 Million Class B Super Senior Bonds (rated AAA), RM220 Million Senior Bonds (rated AAA), RM20 Million Mezzanine Bonds (rated AA2) and RM80 Million Subordinated Bonds (rated B3) from which the proceeds of the Bonds were used by Idaman Capital to purchase the loans from AIB. AIB then used the funds to disburse to the corporate borrowers as loan disbursements. The entire RM800 Million Bonds were pre-funded by AIB, Alliance Bank Malaysia Berhad and DBS, as primary subscribers, after which AIB and DBS plan to conduct road-shows in Malaysia, Singapore and Hong Kong to officially introduce the transaction and avail the Bonds to investors. Preliminary market sounding has already seen considerable interest from both onshore and offshore investors.

Lai said "This CLO is an evolution from the previous structures done in Malaysia, adapted to meet international securitization standards, so that it provides further credit-enhancements and meets both onshore and offshore investors' expectations. An enhanced structure which addresses risk factors well will enable the CLO to withstand greater stress-testing resulting in better rating stability."

"We have been seeing substantial and growing demand for Malaysian bonds from offshore investors so we expect there to be good interest in this transaction as well. This is a good opportunity for offshore investors to participate in the growth of the Malaysian corporate sector across a diversified pool of credits," said Clifford Lee, Managing Director and Head of Fixed Income, DBS. Lee added that DBS will leverage on its extensive network in Asia and its capital markets expertise to promote the Bonds.

A Primary CLO is constituted with loans that are newly originated specifically to fulfill targeted criteria set by the transaction structure. Other forms of Collateralised Debt Obligations (CDOs), both balance sheet and arbitrage, consist of debt purchased either from a single financial institution or from the secondary market but in either case, the constituent assets already exist. Therefore, a Primary CLO or its variation thereof is the only form of CDO technology that funnels capital to new borrowers. This transaction provided an alternative route for investment grade corporate borrowers to tap the debt capital market.

On an ongoing basis, the servicing of the coupons and redemption of the Bonds by Idaman Capital will be backed by cash flows from the loan assets, which consists of the interest collections and principal repayment from the corporate borrowers. Approval from the Securities Commission on the transaction had been obtained.

As a bank-backed investment bank, AIB brings a total and synergistic approach to customer service via our offering of a complete suite of financial products and solutions and investment banking services, ranging from corporate finance, debt capital market, equity capital market to asset and fund management, corporate banking as well as a wide range of stock broking services, including institutional and retail share trading, share margin financing, inter-broking services, underwriting and placement, research and nominees and registration services.

About Alliance Investment Bank

Alliance Investment Bank Berhad (AIB), formally known as Alliance Merchant Bank Berhad (AMBB), is currently undergoing a legal merger between AMBB and Kuala Lumpur City Securities (KLCS) to form an Investment Bank. AIB will encompass AMBB's merchant banking business and the stockbroking business of KLCS upon completion of the merger, targeted by the end of 2006. As an investment bank, AIB will be in a privileged position to provide its clients with value-added end-to-end investment banking servicing capabilities– from origination to execution to distribution. AIB will be able to harness investment banking opportunities for its clients and add value to the clients' pursuit of competitive advantage, productivity and profitability. AIB represents the Investment Banking arm of and is a wholly owned subsidiary of Alliance Banking Group.