MPLANT GROUP RECORDS PRE-TAX PROFIT OF RM131.5 MILLION FOR 1ST QUARTER FY2007/08

Interim dividend of 1.75 sen to shareholders

Kuala Lumpur, 17 August 2007 - The MPlant Group achieved a profit before tax of RM131.5 million for the first quarter ended 30 June 2007, an increase of RM71.8 million over the corresponding period last year. The improvement was due primarily to an increase in operating profit by 17% and higher recoveries, in particular from one large account.

An interim dividend for the financial year ending 31 March 2008 of 1.75 sen has been declared by MPlant's Board of Directors.

Datuk Bridget Lai, Director of MPlant/Group CEO of Alliance Bank said, "MPlant Group's net income grew 14% to RM253.6 million compared to the same period last year. This is attributed to improved interest margins and higher operating income particularly from brokerage fees."

Asset quality has improved with net non-performing loans (NPLs) ratio declining from 5.6% as at 31 March 2007 to 5.0% as at 30 June 2007 and gross NPLs provisioning coverage increasing to 70.0% compared to 67.3% as of 31 March 2007.

Operating expense increased by 12% to RM138.1 million mainly due to investment in development of human capital and upgrading of branches.

Continued Consumer and Commercial Loans Growth
The Group's gross loans and advances for the quarter increased by 2.4% to RM14.7 billion compared to 31 March 2007. Consumer loans registered a 4.1% growth compared to 31 March 2007, on the back of 4.5% housing loan growth and 8.8% credit card growth. Similarly, Commercial loans also registered a 2.0% growth during the first quarter of the financial year ending 31 March 2008. The Group's risk-weighted capital ratio remained strong at 15.8% compared to industry average at 13.1%.

Investment Bank posts 14 per cent improvement in profit before tax
Meanwhile, the Group's investment banking arm posted a 14% improvement in profit before tax of RM13.8 million for the first quarter ended 30 June 2007, compared to the corresponding period last year.

The investment bank registered a 36% growth in net income to RM33.9 million compared to the same period last year, mainly contributed by higher operating income from investment gains from trading securities and brokerage fees income.

Cost savings from the Group's centralization initiatives resulted in an 11% decline in operating expenses. Cost efficiencies and higher productivity have been realized through the implementation of shared services model.

Net NPLs ratio improved to 5.7% as at 30 June 2007 compared to 6.7% as at 31 March 2007.

Current Year Prospects
Commented Datuk Lai, " the Group will continue to focus on its growth strategy to grow its market share in both consumer and commercial/SME banking, whilst harnessing synergies of its investment bank and corporate banking customers."

The Malaysian economy is expected to continue to grow in 2007. The banking sector is projected to remain stable but challenging due to increased competition from the liberalization of the sector.

Barring any unforeseen circumstances, the Group expects to record satisfactory performance in the current financial year.