Penerbangan Malaysia Berhad

PENERBANGAN MALAYSIA BERHAD AND AIRBUS FINALISE A380 PURCHASE

11 December 2003 - Penerbangan Malaysia Berhad (PMB), the holding company of Malaysia Airlines (MAS), today signed a purchase agreement with Airbus for the acquisition of six (6) Airbus A380 aircraft.

At a ceremony witnessed by Dato’ Dr Jamaludin Jarjis, Malaysia’s Finance Minister II, the Managing Director and Chief Executive Officer of PMB Dato’ Gumuri Hussain,signed the agreement on behalf of the holding company whilst Airbus was represented by Mr Kiren Rao, Vice President, Sales.

The six aircraft scheduled for delivery commencing 2007, will be leased to Malaysia Airlines in accordance with the Corporate and Contractual Governance Code 2002 which defines the roles of PMB and Malaysia Airlines as the asset owner and asset operator respectively.

Dato’ Gumuri Hussain, the Managing Director and Chief Executive Officer of PMB said, “Today is the culmination of the negotiations between PMB and Airbus after the MoU for this deal was signed earlier this year. As asset owner, we see this acquisition as ideal for Malaysia Airlines to strengthen and enhance its competitive edge in the long haul international air travel market. This latest equipment brings opportunities to upgrade our skills base, and heralds increased economic activities by boosting international trade and enhancing KLIA as an aviation hub.”

Malaysia Airlines’ Managing Director Dato’ Md Nor Yusof said, “The introduction of the A380 aircraft in our fleet will enable us to maintain our position as a premier brand offering state-of-the-art product and services. The A380’s cost effectiveness is also a strong economic rationale for its addition to the fleet. This sophisticated aircraft will provide much-needed extra capacity on existing routes, and strengthen further our presence in existing key markets in support of our aggressive network expansion plan”.

The 555-seater A380 uses leading-edge technology and is estimated to provide 15 to 20 per cent lower operating costs per seat kilometre and 10 to 15 per cent more range than the largest aircraft flying today. With a full upper deck, 49% additional cabin space and around 35% more seats compared to existing offerings, the A380 is expected to raise the benchmark for customer experience and comfort in years to come.