Press Release: Closing of the sale of PT Berau Coal

30 July 2004 ? Jakarta -- On 29 July 2004, PT United Tractors Tbk (?UT? or ?the Company?) and its subsidiary in Singapore, UT Heavy Industry (S) Pte. Ltd. (?UTHI?) have successfully closed their transaction (?Closing?) to sell all of their shares in PT Berau Coal (?Berau?) to one of Berau?s shareholders, PT Armadian Tritunggal (?Armadian?) and one of its associated company. The event marks the conclusion of Shares Sale and Purchase Agreement (?SSPA?) previously signed by UT, UTHI and Armadian on 2 June 2004.

The shares previously held by both UT and UTHI comprise of 60% of the total shares issued by Berau. Following to the closing, Armadian?s shares in Berau directly and indirectly increases from 30% to 90%, while the rest of 10% is held by Sojitz Corporation. By the closing of this transaction, UT received USD 44.6 million as consideration for shares, and USD 12.8 million as the payment for its shareholder loan to Berau. As was mentioned in SSPA, Armadian also paid USD 12.2 million to PT Pamapersada Nusantara (?Pama?) as repayment of Berau?s debt to Pama. All of the proceeds received by UT will be utilised for prepayment of the Company?s debt.

The result of Berau transaction, as well as proceeds from UT?s Rights Issue II recently and several debt repayments within the period of January ? June 2004, will strengthen the Company?s financial position, where the total debt of UT (as parent company) will be significantly reduced from an equivalent of USD 267 million on January 2004 during which the second debt restructuring was signed, to an equivalent of USD 115 million, after UT receives the proceeds from Berau sales.

PT Berau Coal is a coal mining company whose operations located in Berau, East Kalimantan. Three of its main mining sites are Lati, Binungan and Sambarata. On average, 30 percent of Berau?s production was sold domestically and 70 percent to the export market. Berau?s largest customers include Taiwan Power Company, Jawa Power and Castle Peak Power. (end of release)

For further information, please contact the following:
- Buntoro Muljono, PT United Tractors Tbk, tel. 62-21 460-0069
- Tjandrawati Waas, PT United Tractors Tbk, tel. 62-21 460-0069