Release: EMP announces intention to divest Lapindo

(Jakarta, September 5, 2006) - PT Energi Mega Persada Tbk (EMP) announces its intention to divest its ownership in Kalila Energy Limited and Pan Asia Enterprise Limited (both companies are based in Hongkong) which together own 99.99% shares in Lapindo Brantas Inc (LBI) which in turn holds 50% working interest in Brantas PSC, to a company fully controlled by Bakrie Group.

This intended divestment is expected to maintain EMP?s positive financial and operational performance while at the same time LBI?s commitment towards the mudflow situation at its Banjarpanji well will be fully supported by Bakne Group.

The intended transaction is expected to materialize within the near future subject to independent valuation, shareholder?s approval, and compliance with all the applicable regulations including the capital market regulation. (end of release)