ALLIANCE INVESTMENT BANK COMPLETES MERGER WITH KLCS

January 3, 2007, Kuala Lumpur - Alliance Investment Bank Berhad (formerly known as Alliance Merchant Bank Berhad) (AIBB), a member of the Alliance Banking Group, has successfully completed its merger exercise with Kuala Lumpur City Securities Sdn Bhd (KLCS). The merger of the merchant banking business of AIBB and stockbroking businesses of KLCS is the final phase of the rationalisation process as laid out in the Guidelines on Investment Banks issued jointly by Bank Negara Malaysia and the Securities Commission.

With the completion of the integration exercise, AIBB becomes a Participating Organisation of Bursa Malaysia Securities Berhad and is able to offer stockbroking services to its clients thereby further enhancing its capability and position as a key player in the domestic and regional equity markets.

Bridget Lai, Group Chief Executive Officer of Alliance Banking Group said, "The new Investment Banking structure further strengthens AIBB's competitive edge, particularly in terms of capitalising on our end-to-end servicing capabilities – from origination to execution to distribution."

Lai continued, "AIBB is now in a privileged position to harness all investment banking opportunities within the market. This adds a holistic and synergistic approach to customer service and the distribution of innovative solutions, bringing us closer to our customers."

As a full-fledged investment bank, AIBB will offer customers a total and synergistic approach to banking. Customers will be able to access to a broader suite of financial products and solutions as well as investment banking services which includes stock broking services such as institutional and retail share trading, share margin financing, inter-broking services, underwriting and placement, research, custodian and nominees services, asset management and unit trusts services.

William Tseng, Chief Executive Officer of AIBB said, "We have also enhanced our value proposition in bringing knowledge-based insights and in-depth research support as well as in leveraging on strategic alliances regionally to meet the customised needs of our customers."

AIBB, as part of an integrated financial services group, will also be able to tap on the expertise of the Alliance Banking Group to assist customers who may need access to value-added financial products and services offered by Alliance Bank's Consumer Banking and Commercial Banking products and services to meet their varied personal and business needs.

With an extensive branch network of 12 branches in Kuala Lumpur, Kuantan, Kangar, Alor Setar, Kota Kinabalu, Kluang, Sitiawan, Kota Bharu, Kuala Terengganu, Desa Sri Hartamas, Sibu and Seri Kembangan, AIBB will be able to offer customers greater accessibility to financial solutions and services.

About The Alliance Banking Group
The Alliance Banking Group, which comprises Alliance Bank Malaysia Berhad and Alliance Investment Bank Berhad, has had more than five decades of proud history in contributing to the financial community in Malaysia with its innovative and entrepreneurial business spirit. Since its inception the Bank has been an integral part of Malaysia's history. Over the past 50 years the Bank has grown from strength to strength by observing the basic tenets of prudent financial management, an honourable approach to doing business and an unwavering innovative and entrepreneurial spirit.

Alliance Bank is a wholly-owned subsidiary of Malaysian Plantations Berhad as of 23 September 2002. Today, the Group employs over 3,700 people and has 77 bank branches and 12 investment banking branches in Peninsular Malaysia, Sabah and Sarawak.