Release: Medco Energi: Update on sales of US assets

(Jakarta, November 11, 2004) PT Medco Energi Internasional Tbk ("MedcoEnergi" or the "Company"), the largest Indonesian integrated exploration and production company, today announced that, consistent with the actions taken by the Company?s shareholders at the Company?s September 15, 2004 Extraordinary General Meeting, it plans to sell the United States exploration and production assets held by Novus U.S. Holdings, Inc. ("Novus"), a wholly owned Medco subsidiary, to better focus on its core operations.

Medco has retained Credit Suisse First Boston LLC to assist the Company?s U.S. management team with the sale of the Novus assets and to advise Medco during the sale process. Novus? assets include interests in the East Cameron/Main Pass Gulf of Mexico fields, offshore Louisiana, the Sorrento Dome field, onshore Louisiana, the Stratton field, onshore Texas, and the Coastal Bend field, Texas onshore and coastal waters.

Novus owns interests in 13 producing offshore wells and over 300 producing onshore wells, with 177.8 billion cubic feet gas equivalent ("Bcfe") of net proved and probable reserves as of July 1, 2004. Novus? assets produced approximately 43 million cubic feet gas equivalent per day ("MMcfe/d"), net to Novus? working interest, as of October 7, 2004.MedcoEnergi has received several informal expressions of interest from both strategic buyers and financial sponsors.

No buyer has been identified to purchase the assets yet, and if the sales price is less than anticipated, the Company may withdraw the sales package. This divestment is expected to be successfully completed by the first quarter of 2005, although MedcoEnergi remains flexible with respect to the timing in order to facilitate a transaction.

Hilmi Panigoro, MedcoEnergi?s Chief Executive Officer said, "Our long-term plan is to build shareholder value by concentrating our oil and gas investments in Indonesia and the Middle East." (end of release)