Release: Medco Energi: Launched offering of a convertible bonds

Tuesday, 9th May 2006, PT Medco Energi Internasional Tbk (?MedcoEnergi? or the ?Company?) has launched the offering a Senior Unsecured Convertible Bonds (the ?Convertible Bonds?) with 0% coupon due 2011 (?Offering?). The Convertible Bonds are issued by Medco CB Finance BV, MedcoEnergi?s wholly-owned subsidiary and guaranteed by MedcoEnergi.

The Convertible Bonds are convertible into the shares issued and held by MedcoEnergi which is now booked as treasury shares. The Convertible Bonds has a yield to maturity and yield to put of 7.25% and puttable for one day at year 3. The net proceeds will be used to fund the Company?s working capital requirements and for general corporate purposes.

The Offering was 5 times oversubscribed with a premium of 45% to the closing price on 9th May 2006 of IDR 4,775, making the total Proceeds of the Offering at USD 176.9 Million.

The closing and settlement of the Offering is scheduled on 12th May 2006 the listing and trading at the SGX-ST will commence on 15th May 2006. The Convertible Bonds will be traded on the SGX-ST in a minimum board lot size of USD 200,000 for so long as the Convertible Bonds are listed there. Meanwhile, the shares remain listed and traded on the Main Board of the Jakarta Stock Exchange.

MedcoEnergi appointed Credit Suisse and Deutsche Bank to act as Joint Bookrunners and Joint Lead Managers. (end of release)