ALLIANCE BANKING GROUP OFFERS INVESTMENT MANAGEMENT SERVICES

Unit Trust and Capital Asset Management merged

Kuala Lumpur, 4 April 2007 - Alliance Unit Trust Management Berhad and Alliance Capital Asset Management Sdn Bhd have merged to form Alliance Investment Management Berhad (AIMB), a subsidiary of Alliance Banking Group effective 2 April 2007.

The merger is integral to ABG's strategic restructuring to provide a full suite of investment banking solutions and services, particularly in capitalising on its Investment Banking's end-to-end servicing capabilities - from origination to execution to distribution under one roof.

The merger exercise saw an increase in AIMB's Assets under Management (AUM) to RM2.38 billion (as at 28 February 2007), placing it among the top 10 fund managers in the country. In addition, the integration of the two entities makes good business sense in terms of greater operational and management efficiencies and access to a wider pool of resources.

Leveraging on the resources of the Alliance Banking Group, AIMB will be in a stronger position to offer investors a holistic and synergistic approach to innovative investment solutions and customer service. AIMB will tap on the in-house and regional resources of the Group to widen its product and customer franchise in asset management and unit trust services.

Said Alliance Banking Group Chief Executive Officer Bridget Lai: “The strategic merger of the Group's unit trust and capital asset management subsidiaries is in line with the Group's overall strategy to strengthen our asset and fund management expertise. By placing the investment management business under Alliance Investment Bank Berhad (AIBB), there will be greater control in the management of funds as well as in the development of innovative and specialised products.”

“In addition, AIMB will also be able to leverage on AIBB's technical capability and research expertise to cater to both retail and institutional investors by tapping on the Group's wealth of experience and expertise available locally and regionally.”

Lai added: “Investors, especially retail investors, will be able to gain access to a broader and more sophisticated suite of investment funds, which are normally catered to institutional and high net worth investors through segregated accounts.”

Investors will be able to access AIMB's fund management services through its tied-agents and institutional unit trust agents.

ABG has appointed Nik Azhar Abdullah as the Head of AIMB. Graduated as an accountant from the University of Portsmouth, United Kingdom and a qualified CIMA, Nik Azhar is well regarded in the fund management industry with his extensive experience in managing funds worth more than RM5 billion at one point as well as in bagging numerous Malaysian Unit Trust Funds' awards from Standard and Poor's and The Edge-Lipper.

Nik Azhar's extensive experience in, and knowledge of, the market cover a wide spectrum of investment products in domestic and regional markets that also saw him being responsible for portfolio management, client servicing, business development and research.

“We are confident that Nik Azhar, with his extensive experience and intimate knowledge of the industry, will drive greater value and build synergy between AIMB and the Group's businesses,” commented Lai.

-The End-

About Alliance Banking Group

Alliance Banking Group is a dynamic, integrated financial services group offering end-to-end financing solutions through it consumer banking, commercial banking, wholesale banking, Islamic banking, investment banking and stock broking businesses as well as unit trust and asset management, providing products and services that are suited for every customer at every stage of their life.

The Group has had five decades of proud history in contributing to the financial community in Malaysia with its innovative and entrepreneurial business spirit. It provides easy access throughout the country serving its broad base of customers via multi-pronged delivery channels including 79 retail branches, 10 Privilege Banking Centres, 19 Hire Purchase hubs, 22 Business Centres, 12 investment bank branches, 6 direct marketing offices and 3 unit trust agent offices located nationwide in a mix of rural and urban areas.

Through strategic partnerships, the Alliance Banking Group is also able to offer customers to regional and global platforms.

The Group's aspiration is to be Malaysia's premier integrated financial services group delivering the best customer experience and creating long term shareholder value. Strategic alliances, enhanced group synergy, excellent technology and human capital will be the key to creating long term value for all stakeholders.

Alliance Bank is a wholly-owned subsidiary of Malaysian Plantations Berhad