RHB BANK AND BANK UTAMA MERGED - MERGER DAY 1 ON MAY 1,2003

• BIGGER BANK , WIDER NETWORK
• RHB BANK REINFORCES NO. 3 POSITION IN THE MALAYSIAN FINANCIAL SERVICES SECTOR

Kuala Lumpur, April 31, 2003- RHB Bank Berhad ("RHB Bank") announced today the completion of the merger of the commercial banking businesses of RHB Bank and Bank Utama ("Malaysia") Berhad ("Bank Utama"), marking the official transformation of Bank Utama branches into RHB Bank branches on May 1, 2003 - officially known as Merger Day 1.

Effective 1 May 2003, all business, assets and liabilities of Bank Utama will be vested in RHB Bank pursuant to the Business Merger Agreement dated 25 March 2003 and the Vesting Order granted by the High Court of Malaya on 8 April 2003. Both the commercial banking businesses of RHB Bank and Bank Utama will be operated as ONE Bank namely RHB Bank. Bank customers will have access to a wider network of 470 ATMs and an extended branch network of 222 branches nationwide.

Dato' Ali Hassan, Chairman of RHB Bank said "The merger between RHB Bank and Bank Utama further strengthens RHB Bank's position as the third largest local financial institution in the country. RHB Bank is now better poised to meet the challenges of competition that lie ahead. Our professional management team is primed to take us forward into the future of financial services."

The RHB Bank and Bank Utama merger brings to completion the first phase of Malaysia's domestic banking consolidation programme. The merger with Bank Utama is a win-win situation for RHB Bank as they now have an enhanced presence in East Malaysia to complement their strength in the Peninsula. This makes RHB Bank a truly Malaysian Bank for all Malaysians.

Mr. Michael Hague, RHB Bank Chief Executive Officer said, "We are looking forward to growing our business and developing new products for our clients. This merger has resulted in a bigger and wider network for all stakeholders. The merged Bank will enable us to be more customer-focused and innovative in providing a wider range of products and services for the benefit of our enlarged customer base."

He added " Consumer, Commercial and Corporate banking continue to be key drivers in our business focus. Loan growth of our consumer book has been encouraging, particularly in the key areas of home loans and credit cards. Islamic banking experienced a 10.9 percent growth for the first six months of the financial year, and given the vast potential in this market, we expect strong growth from this sector. Meanwhile, we have merged our two Treasury units into one to bolster the business unit, and diversify our product base. We expect our Treasury business to be a key income contributor in 2003."

With an enlarged customer base and more diversified product range, RHB Bank anticipates stronger growth in the following business areas.

Consumer banking has been identified as RHB Bank's major engine for growth and profitability over the medium to long term. Total housing loans growth is likely to exceed over RM 1.4 billion for this financial year, representing over 21 percent increase in the home loan portfolio. Credit card also saw a significant increase of over 100,000 cards and receivables is expected to grow by 70 percent to RM 372 million. The enlarged Bank will continue to focus on strengthening relationships with existing customers.

RHB Bank has undertaken very active cross selling programmes and implemented the Customer Relationship Management programme (CRM) to ensure customers utilise services provided by RHB Group and selected business partners to meet their needs. The expanded customer base provides the enlarged Bank with an ideal opportunity to extend this concept further particularly in the area of credit cards and financial planning.

Corporate loan growth continues to be affected by the slower pace of economic activities. However, the enlarged Bank will continue to play a significant role in the financing of middle market and Small and Medium Scale Enterprise businesses and will continue its active participation in government-funded loan schemes.

The trade finance business remains an integral unit within corporate and commercial banking and has a significant share of the trade financing market. RHB Bank remains focused on growing this business supported by regional trade and trade service centers.

Islamic banking has been actively marketing its consumer products particularly in Islamic financing, which grew by 4.8 percent as at 31 December 2002.

Skim Perbankan Islam (SPI) assets represented 7.7 percent of the Bank's total assets as at 31 December 2002. SPI products continue to be an alternative to our consumer and commercial customers. The growth in consumer products can be seen by the increase in our Mudharabah Account by over 8.9 percent and Wadiah Savings by 11.7 percent respectively.

Bai Bithamin Ajil (BBA) Home Financing and CASH LINE-I continues to take the lead in consumer financing which grew by 34 percent as at 31 December 2002. This increase was largely contributed by the Bank's direct sales team and establishment of dedicated SPI consumer credit services support unit in the division.

The Bank Utama and RHB Bank Treasury units will be merged into one, resulting in longer term cost efficiencies. The Bank's funding and liquidity position continue to be proactively managed resulting in an improvement in its deposit mix and lowering of its cost of funds while at the same time ensuring adequate liquidity. In the fixed income and derivatives market, the Bank intends to expand the product base offered by the Treasury unit and further diversify their product portfolio. The Treasury unit is expected to be a key growth segment for the Bank particularly in foreign exchange transactions, offering of private debt securities and transactions in the local bond market.

The RHB Bank and Bank Utama Merger resulted from the acquisition of Bank Utama by RHB Bank, which was an integral part of the RHB Group Restructuring Scheme completed in December last year.

RHB Bank is a 70% subsidiary of RHB Capital Berhad, which in turn is a 64.87% subsidiary of Rashid Hussain Berhad ("RHB"). The remaining 30% in RHB Bank is held by Khazanah Nasional Berhad.

Following Utama Banking Group Berhad's ("UBG") acquisition of shares in RHB in December last year and January this year, UBG is now the single largest shareholder of RHB, with a holding of 32.13%. The other major institutional shareholders of RHB are the Employees Provident Fund Board, with a holding of 31.86% and Kumpulan Wang Amanah Pencen, with a holding of 11.07%. The further institutionalization of the shareholding structure of RHB has laid a stronger foundation for growth and greater capital support.

Issued by : Ogilvy Public Relations Worldwide Sdn Bhd

On Behalf of : RHB Capital BerhadFor further information, please contact Chong Ee Rong at Tel: 03-2718 8267 or Usha Veerasamy at Tel: 03-2718 8271 or fax at 03-2710 6966