RHB INVESTMENT BANK APPOINTED FINANCIAL ADVISOR, JOINT GLOBAL COORDINATOR FOR SUNCITY REIT IPO

Kuala Lumpur, 17 January 2008: RHB Investment Bank Bhd ("RHB Investment Bank") has been appointed Financial Advisor for a Real Estate Investment Trust initial public offering by Sunway City (SunCity).

RHB Investment Bank has also been appointed Joint Global Coordinator and Joint Lead Manager together with Goldman Sachs for the IPO. The two investment banks also join UBS and CIMB Investment Bank as Joint Bookrunners for the IPO.

The investment bankers will kick off the structuring process with SunCity, studying the viability of injecting the company's investment properties into a REIT and the plan to grow the REIT with the injection of other and future developments.

Mr Ngeow Voon Yean, Managing Director of SunCity's property investment division, said that the outlook for the retail, hospitality and commercial segments were encouraging and SunCity's assets, backed by its integrated resort development concept, allowed this REIT offering a diverse yet synergistic earnings base.

"We are also confident that SunCity's sound track record of its ability to identify, and turn around and manage quality investment assets will contribute to the continued growth of the REIT," he said.

The REIT offering is part of the company's strategy to maximize shareholders' value through asset restructuring.

"Setting up the trust will create value for shareholders through the realignment of assets within the tax efficient REIT structure. The listing will unlock the value of SunCity's portfolio of investment properties and this will provide further resources necessary for the company to realize its full potential," Mr Ngeow said.

He further explained that the flotation would streamline the group's businesses, allowing the company to focus its full attention on property development while divesting long-term yield properties to the REIT. This would enhance the earnings visibility of the group, he added.

SunCity's performance is forecasted by analysts to be bullish in 2008, with the company recently posting RM586 million of new sales in the second quarter of fiscal year 2008 (Q2 FY08). Encouraging sales is attributed to the conclusion of en bloc sales of RM171 million from Sunway South Quay and RM219 million from Sunway Palazzio.

This brings its first-half FY08 sales to RM924 million, effectively meeting 68% of its FY08 target of RM1.35 billion in new sales. Unbilled sales now stand at RM1.2 billion.

Issued by Group Corporate Communications, RHB Capital Bhd. For more information, please call Yeoh Guan Jin at 03-92802536 or 012-3835027 or Adeline Ong at 012-8833345 or 03- 92802552.