PROPOSED RM600 MIL SUBORDINATED BONDS BY ALLIANCE BANK

Kuala Lumpur, March 14, 2006 - Alliance Bank Malaysia Berhad ("Alliance Bank"), a wholly-owned subsidiary of Malaysian Plantations Berhad proposes to issue Subordinated Bonds of up to RM600 million aggregate nominal value on a 10-Year Non-Callable 5-Year basis ("Proposed Sub-Bonds"). The Proposed Sub-Bonds will qualify as Tier 2 capital of Alliance Bank for purposes of Malaysian capital adequacy regulations.

In this connection, an application in respect of the Proposed Sub-Bonds has been submitted to the Securities Commission on 13 March 2006. The Bank has received the Central Bank's approval to issue the Proposed Sub-Bonds on 1 March 2006.

The proceeds to be raised from the Proposed Sub-Bonds will be for Alliance Bank's general working capital purposes including the redemption of Alliance Bank's existing 10-Year Non-Callable 5-Year Sub-Bonds of RM535 million issued in 2001 ("Existing Sub-Bonds").

The Proposed Sub-Bonds will not have any material effect on the earnings and net assets of the Alliance Banking Group for the financial year ending 31 March 2006. However, it is expected to contribute positively to the future earnings of the Alliance Banking Group as the Proposed Sub-Bonds will carry a lower cost of funds than the Existing Sub-Bonds.

Alliance Merchant Bank Berhad, a wholly-owned subsidiary of Alliance Bank, and HSBC Bank Malaysia Berhad have been appointed as Joint Lead Arrangers/Lead Managers/Book-Runners for the Proposed Sub-Bonds.