Release: EMP signs agreement to sell Lapindo to Freehold

(Jakarta, November 14, 2006) - Indonesian oil and gas company PT Energi Mega Persada Tbk (EMP) today said that the Board of Directors of EMP has signed an agreement to sell its shares in Kalila Energi Ltd. (KEL) and Pan Asia Enterprise Ltd. (PAN). The buyer is Freehold Group Limited (FGL), an independent third-party incorporated in the British Virgin Islands, and not affiliated with the Bakrie Group.

KEL and PAN own 100 percent of Lapindo Brantas Inc. (LBI).

The sale and purchase agreement for KEL and PAN was signed on November 14, 2006. In accordance with Bapepam regulation No. IX.E.No (relating to conflicts of interest) and IX.E.2 (relating to material transactions), the transaction, neither involves any conflict of interest nor is it material and therefore requires no approval from shareholders.

A previous attempt by EMP to divest its stakes in KEL and PAN to an affiliated company has yet to be approved by Bapepam. The decision to sell LBI to a third-party was made after long and careful deliberation and EMP believes that the sale is in the best interest of minority shareholders.

In undertaking this transaction with FGL, EMP has considered the needs of the people of Sidoarjo. EMP has taken into account the support that LBI will receive from Minarak labuan Co. (L) Ltd (an affiliate of Bakrie Group) in the handling of the mudflow around the Banjarpanji well in accordance with the Presidential Decree (Kepres) no. 13/2006. (end of release)