Release: Medco fully repaid UOB loan

(Jakarta, July 21, 2005) On Friday, July 15, 2005, PT Medco Energi Internasional Tbk. has received a payment from Meridian Oil & Gas (Middle East) Limited, a Cayman Islands company, with the amount of US$65 million on the selling of 100% shares in Novus Middle East Limited.

Payments will be made in two steps with the initial direct disbursement of $59 million paid on July 15, 2005. Whereas the final payment would be paid in the form of Escrow Account, and will be settled after working capital adjustment has been audited by Public Accountant Ernst & Young in Dubai.

As stated previously in the Company press release, MedcoEnergi will utilize the fund from the selling of Novus Middle East asset to repay its outstanding loans to UOB and OCBC, Singapore, with outstanding balance of $50 million as of March 31, 2005.

On July 18, 2005, the Company has fully repaid the loan to UOB. The loan repayment to UOB will reduce the long term bank loans with the entire interest burden there in. (end of release)