PRESS RELEASE: KPC welcomes moves to withdraw litigation

Following is a press release from PT Kaltim Prima Coal:

PT Kaltim Prima Coal (KPC) welcomes the recent actions by the Provincial Government of East Kalimantan to begin removal of the civil court case and attachment orders against KPC in the District Court of South Jakarta.

Completion of the unconditional withdrawal of the litigation will remove a major impediment that has so far prevented KPC from making an offer of its shares in accordance with its obligation under the Coal Agreement.

KPC?s approval on the withdrawal of the litigation is done on condition that Provincial Government of East Kalimantan and all the defendants (including KPC) sign a Settlement Deed.

Meanwhile KPC will continue to work with the Government of Indonesia to finalise the formal agreement that will provide the basis for proceeding with the offer of its shares.

For further information, please contact: Lex Graefe ? Rio Tinto; Phone: (021) 527 4208; Fax: (021) 527 4270 -OR- John O?Reilly ? BP; Phone: (021) 7854 8400; Fax: (021) 7854 9069. (*)