HOLDERS OF RHB'S RM800 MILLION BONDS 97/02 SAY YES TO RHB'S PROPOSAL

• Tenure of the Bonds 97/02 extended for a further period of six months from June 25, 2002 until December 25, 2002 to allow time for completion of the Proposed Group Restructuring Scheme.
• Redemption of the Bonds 97/02 via exchange with RM800 million RHB Bank Sub-Debt as announced in the Proposed Group Restructuring Scheme.

24 June 2002, Kuala Lumpur, Malaysia-Rashid Hussain Berhad ("RHB") today obtained approval from 83.25% of the holders of the RHB RM 800 million Bonds 97/02, representing yet another milestone achievement for RHB which comes close after last Friday"s 82.2% approval from the holders of RHB's USD 200 million Bonds.

This approval marks a crucial and important final step towards the proposed restructuring of RHB"s borrowings, allowing RHB to eventually retire a substantial portion of its debt via the redemption of its RM 800 million Bonds 97/02 with RM 800 million RHB Bank Sub-Debt which forms an integral part of the Proposed Group Restructuring Scheme. Upon the completion of the scheme, RHB"s gearing will be substantially reduced from 9.4 times to 2.1 times and 1.1 times if one takes into consideration the conversion of the proposed RHB ICULS.

Tan Sri Abdul Rashid Hussain, Executive Chairman of RHB, said, "We are greatly encouraged and thank our bondholders for the strong support. This approval represents yet another important step which enables RHB to move closer towards the completion of its Proposed Group Restructuring Scheme and merger between RHB Bank and Bank Utama. Subject to the approvals of the relevant authorities which includes the Securities Commission, RHB expects completion of the restructuring and merger to take place in the last quarter of 2002."

"Clearly, this solid endorsement from our bondholders underscores the positive views of the market and investors with regard to the benefits that will come with our Proposed Group Restructuring Scheme for all stakeholders of RHB. RHB will emerge financially stronger and poised for even more dynamic growth for the future," he added.

As part of the terms of the redemption proposal, the RHB Bank Sub-Debt will have a coupon rate which will commensurate with yields of similar debt instruments to ensure fair pricing and marketability of the RHB Bank Sub-Debt in the secondary market, subject to a minimum coupon rate of 6.85% per annum based on the assigned AA3 rating by Rating Agency Malaysia Berhad.

RHB has appointed AmMerchant Bank as Adviser for the Proposed Group Restructuring and Merger Scheme.

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