Release: EMP signs definitive agreements to introduce strategic investors into the Kangean PSC

(Jakarta, Indonesia ? March 7, 2007) Indonesian publicly listed oil and gas company, PT Energi Mega Persada Tbk (EMP) today announced that it had signed binding agreements with Mitsubishi Corporation (Mitsubishi) and Japan Petroleum Exploration Co. Ltd (Japex) to introduce them as strategic partners, via a proposed share subscription into EMP?s subsidiary, Energi Mega Pratama Inc (EMPI).

These definitive agreements follow up on last weeks HoA that foreshadowed Mitsubishi and Japex assuming, in aggregate, an indirect 50% working interest in the Kangean PSC as well as agreeing to carry a substantial portion of EMP?s remaining development Capex obligations for Kangean?s major projects.

The details of the transaction remain as outlined in the HoA with subscription proceeds totaling US$360 million.

The proposed transaction is a material transaction and is subject to the approval by a majority of EMP shareholders at an extraordinary meeting of shareholders (EGM) to be held as early as April 2007. The transaction is expected to be completed within a few weeks of shareholder approval at such EGM.

The proposed transaction involves Mitsubishi and Japex subscribing for new shares in EMPI to dilute EMP?s current 100% shareholding to 50%.

Last week EMP announced an integral part of the transaction involved a substantial ?Capex Carry? whereby Mitsubishi and Japex would carry EMP?s development Capex obligations in the Kangean PSC up to an agreed amount.

The President Director of EMP, Mr. Chris Newton, said ?the transaction crystallizes a portion of the value created in the Kangean PSC over the last few years of EMP ownership and demonstrates that the strategy of focusing on organic growth, gas commercialization and operational excellence is delivering value for shareholders. EMP still retains a 50% exposure to this significant growth asset while reducing its debt, funding requirements and cost of funds in the process?

In late February, the Kangean PSC was producing some 38 MMscfd of gas, 300 barrels of condensate per day and 3,800 barrels of oil per day. The oil is being produced from the Sepanjang Island Oil field from which the first crude oil lifting of 66,000 barrels was made in early March 2007.

The transaction is the culmination of a competitive process designed to maximize value for shareholders. EMP was advised by its financial advisor, Credit Suisse. (end of release)