Press Release: Sale of PT United Tractors Tbk?s stake in PT Berau Coal

7 June 2004 ? Jakarta -- As previously announced, on 2 April 2004, PT United Tractors Tbk (?UT? or ?the Company?) and its subsidiary in Singapore, UT Heavy Industry (S) Pte. Ltd. (?UTHI?), signed a Shares Sale and Purchase Agreement (?SSPA?) with PT Indika Inti Corpindo (?IIC?) (?Agreement with IIC?) to sell all of their shares in PT Berau Coal (?Berau?), which represents 60% of total shares issued (?the Shares?), pursuant to its obligations under the Creditors Agreement, which became effective on 27 February 2004. Closing of that transaction is subject to a number of conditions, including approval from UT?s Shareholders at an Extraordinary General Meeting and approval from Berau?s shareholders (other than the Company and UTHI) in regard to pre-emptive rights to purchase the Shares.

UT?s Shareholders approved the sale of the Shares to IIC at an Extraordinary General Meeting held on 14 May 2004.

However, one of Berau?s minority shareholders, PT Armadian Tritunggal (?AT?) has decided to exercise its pre-emptive right to purchase the Shares. The other minority shareholder, Sojitz Corporation (?SC?), has released its pre-emptive right.

In connection with the above, on 2 June 2004 a SSPA was signed between the Company, UTHI, and AT (?Agreements with AT?) on the same terms and conditions as the SSPA signed with IIC. If all the terms and conditions as stipulated in the Agreements with AT are fulfilled, the Agreement with IIC will no longer be valid and the 60% shareholding in Berau will be transferred to AT. (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