ALLIANCE FINANCIAL GROUP POSTED RM255.4 MILLION IN PRE-TAX PROFIT FOR 1ST HALF FY2007/08

Kuala Lumpur, 28 November 2007 - The Alliance Financial Group (formerly known as Malaysian Plantations Berhad) posted a pre-tax profit of RM255.4 million for the first half-year ended 30 September 2007, an increase of RM241.8 million compared to the corresponding period last year.

Datuk Bridget Lai, Director of Alliance Financial Group Berhad & CEO of Alliance Bank said, "The improvement in our performance was due primarily to higher operating profit contributed by higher net income and lower operating expenses, coupled with better recoveries, including the one-off recovery in the first quarter."

"Similarly, the growth in our net income was attributed to improved interest income mainly coming from loans growth in Consumer and Commercial/SME banking and higher operating income particularly from higher brokerage and processing fees." The Group's net income grew by 9.2% to RM475.8 million compared to the corresponding period last year.

Other operating expenses reduced significantly by 17.6% or RM43.0 million to RM201.9 million compared to RM244.9 million in the corresponding period last year. "The reduction is due mainly to reversal of certain provision for expenses, particularly marketing expenses and personnel-related expenses with the introduction of the Employees' Share Scheme," Datuk Lai explained.

Asset quality continued to improve with net non-performing loans (NPLs) ratio declining from 4.9% as at 30 June 2007 to 4.4% as at 30 September 2007 (31 March 2007: 5.5%). Gross NPLs provisioning coverage further improved to 72% compared to 70% at 30 June 2007 (31 March 2007: 67%).

Continued Growth in Consumer and Commercial Loans

The Group's gross loans and advances increased by 5.7% to RM15.3 billion compared to 31 March 2007. Consumer loans registered 9.3% growth compared to 31 March 2007. Similarly, Commercial loans also registered 9.0% growth during the six months ended 30 September 2007. The Group's risk-weighted capital ratio remained strong at 16.5%

"For the first half-year ended 30 September 2007, Alliance Bank has declared a gross interim dividend of RM70.8 million payable to Alliance Financial Group which represents 35% of the Bank's net profit after tax ," said Datuk Lai.

"Alliance Financial Group will continue to focus on our growth strategy to expand our market share in both consumer and commercial/SME banking." adds Datuk Lai.

Barring any unforeseen circumstances, the Group expects to record satisfactory performance in 2007/8.

For further enquiries please contact:

Philip Goh Teck Siang
Group Chief Financial Officer
Alliance Bank Malaysia Berhad
15th Floor, Menara Multi Purpose
8 Jalan Munshi Abdullah
50100 Kuala Lumpur
philipgoh@alliancebg.com.my
Tel: 03-2730 2388, Fax: 03-7490 9696

Lee Wei Yen
Group Company Secretary
Alliance Financial Group Berhad
3rd Floor, Menara Multi Purpose
8 Jalan Munshi Abdullah
50100 Kuala Lumpur
simonlee@alliancegroup.com.my
Tel: 03-2694 4888 ext. 1980
Fax: 03-2694 6200