ALLIANCE SCORES A FIRST WITH AN AFFINITY CREDIT/PAYMENT CARD FOR CHINESE INDEPENDENT SCHOOLS

Kuala Lumpur, January 24, 2006 - Alliance Bank sets the standard for responsible financial management by being the first bank to offer the Alliance Bank CIS Affinity Credit/Payment Card, an affinity card programme for Chinese Independent Schools (CIS). The Affinity Credit/Payment card programme for CIS comprise the first ever payment card for students aged 12 years and above and a credit card.

Called the Alliance Bank CIS Affinity Payment Card, will help inculcate in the children the importance of prudent spending and money management, hence equipping them for adulthood. In addition to the Payment Card, the affinity card programme also includes a credit card for cardmembers who are passionate and supportive of Chinese School education.

Said Bridget Lai, Group Chief Executive Officer of Alliance Bank, "Alliance Bank strongly believes that as a financial institution, we play an important role in educating the youth to manage, take responsibility and control over their finances. We are very grateful to Bank Negara for its foresight in lowering the age limit for payment cards and sharing our vision of encouraging responsible financial management among youths today. Together with the support of the Board of Governors of the respective CIS, we are confident that the CIS affinity credit/payment card programme will be well received by the consumers who support Chinese School education."

Pay Fong High School, Malacca, is among the first CIS to partner with Alliance Bank for its CIS Affinity Credit/Payment Card. Also on board is Confucian Private High School from Kuala Lumpur, Chung Hua High School from Seremban, and Muar Chong Hwa Associated Chinese Schools in Johor. Alliance Bank is also confident of signing up 2 CIS located in Batu Pahat and Tangkak. Alliance Bank also plans to sign up a total of 64 CIS nationwide for this Affinity Cedit/Payment Card programme.

Pang Siew Fian, Chairman of The Board of Governors for Pay Fong High School said, "We think that the Alliance Bank CIS Affinity Credit/Payment Card is a great way for parents to monitor their children's spending while, at the same time, giving them a certain amount of freedom and autonomy. This is a good programme and I am confident that our parents will appreciate the facility."

"We expect more schools and students to sign up as they realise the convenience and benefits of the programme. Our target is 30,000 cards within 12 months," revealed Lai.

The Alliance Bank CIS Affinity Credit/Payment Card allows parents the control to determine the amount of cash to load into the payment card for their child to utilize. Students can then use their cards to make payments within and outside their respective schools.

Lai added, "The Alliance Bank CIS Affinity Credit/Payment Card is an initiative that supports Bank Negara's call for wider use of ePayments by 2010. It provides customers a more efficient and convenient method to perform cash-less transactions. I'm sure this alternative channel of payment will be appreciated by our customers."

Holders of the Alliance Bank CIS Affinity Credit/Payment Card will enjoy five-year annual fee waiver and free 12-month Personal Accident Disability Education insurance coverage.

As a valued added feature, the Alliance Bank CIS Affinity Credit/Payment Card has a micro donation component, which provides a less expensive and time consuming fund raising method compared to the more traditional fund-raising activities often undertaken by the schools. With the Alliance Bank CIS Affinity Credit/Payment Card, card members can make cash-less donations to help fund the school of their choice. Donations can be made as standing instruction to debit from their card account or pledging their redeemable Timeless Bonus Points which will be converted to cash value by the Bank and then donated to the school of the card member's choice.

Lai revealed, "Alliance Bank has always been supportive of education. To underscore our commitment, the Bank will contribute donations to its partner schools in this programme based on the total retail spending of the card member. Hence the more the card member uses the card, the more the Bank contributes to the school of the card member's choice. This is a direct contribution from the Bank and we hope that card members will partner us in our commitment."

With a base of over 203,000 cards, Alliance Bank is the first bank to offer co-brand credit cards in Malaysia with partners that include international home furnisher, IKEA, and successful multi-level marketing company, Cosway. Today, Alliance Bank enjoys the largest co-brand credit card base for multi-level marketing companies in the country.

About Alliance Banking Group

The Alliance Banking Group comprises Alliance Bank Malaysia Berhad and Alliance Merchant Bank Berhad and has had more than 4 decades of proud history in contributing to the financial community with its innovative and entrepreneurial spirit to business. As a full-fledged financial services provider, the Banking Group continuously strives to provide its customers with excellence and innovation in its services and products.

The Banking Group has over 3,000 employees in more than 77 branches throughout the country, including Sabah and Sarawak.