Penerbangan Malaysia Berhad

4 May 2007

COMPLETE REPRICING EXERCISE

Penerbangan Malaysia Berhad has successfully completed a pricing reduction exercise (“Amendment Exercise”) in relation to its US$1 billion syndicated term loan facility which was procured by PMB in June 2004. The facility is guaranteed by the Government of Malaysia (“GOM”).

The Amendment Exercise, which was mandated to and coordinated by Standard Chartered Bank, was completed smoothly and on schedule since its launch on 19 March 2007. In total, 11 local and international banks participated in the deal.

The successful close of the transaction clearly demonstrates the confidence and support of the financial market for PMB and its guarantor, GOM. PMB now stands to receive substantial interest savings after the interest margins have been reduced by almost half. The reduced pricing levels are believed to now serve as benchmarks for GOM-guaranteed financing going forward.

The amendment agreement was signed and effective on 30 April 2007.