BONDHOLDERS APPROVE PROPOSED RESTRUCTURING OF THE RHB USD200 MILLION EXCHANGEABLE BONDS 1997/2007

• Bondholders approve settlement of the USD Bonds by way of exchange for new USD 265.184 million RHB Bonds with approximately 340.439 million detachable warrants.

21 June 2002, Kuala Lumpur, Malaysia-Rashid Hussain Berhad ("RHB") today obtained approval from holders of its USD200 million Exchangeable Bonds 1997/2007 ("USD Bonds") to restructure the USD bonds. The restructuring of the USD Bonds forms part of the restructuring of RHB's borrowings in conjunction with the Proposed RHB Group Restructuring Scheme which was announced on 20 March 2002.

At the duly convened bondholders' meeting today, 82.2% of bondholders present approved the settlement of the USD Bonds by way of exchange for new USD265.184 million RHB Bonds 2002/2007 ("New Bonds") with approximately 340.439 million detachable call warrants ("New Warrants"). The New Warrants entitle their holders to purchase shares of RHB Capital Berhad held by RHB at an exercise price of RM 2.96 per share, representing a premium of 25% over the volume weighted average trading price of RHB Capital shares for each of the trading days falling within 30 days before the bondholders' meeting.

The New Bonds will bear interest at a rate of 2% per annum until the interest payment date on 30 June 2005, following which the New Bonds will bear interest at 4% per annum until maturity on 30 June 2007. The yield to maturity of the New Bonds is 7.05% per annum.

This approval by bondholders marks an important milestone in the Proposed RHB Group Restructuring Scheme. The restructuring of the USD Bonds is expected to be completed in the last quarter of 2002 and is subject to the completion of the Proposed RHB Group Restructuring Scheme, the restructuring of the domestic borrowings of RHB, the approval of the Securities Commission, the relevant regulatory authorities and shareholders of RHB at an extraordinary general meeting to be convened at a later date.

Commenting on the bondholders' meeting today, Tan Sri Abdul Rashid Hussain, Executive Chairman of RHB, said, "RHB thanks bondholders for their tremendous support which reflects the market and bondholders' view of the underlying benefits which will accrue to all stakeholders of RHB upon implementation of the Proposed Group Restructuring Scheme."

RHB appointed Credit Suisse First Boston as financial adviser for the restructuring of the USD Bonds.

Issued by RHB Public Affairs & Communications. For further information, please contact Celina May Ong at Tel:03-92802535.