Release: MedcoEnergi and Anadarko Exploration Joint Venture Agreement (EJVA) is now effective

Jakarta, August 11, 2005 ? PT Medco Energi Internasional Tbk. (?MedcoEnergi?/?The Company?) is pleased to announce that Exploration Joint Venture Agreement (?EJVA?) with Anadarko Petroleum Company (?Anadarko?), which was signed in July 26, 2005, is now in full effect.

Background
The agreement, only affects the new field wildcat, will build on MedcoEnergi?s strong operating position as one of the leading oil and gas players in Indonesia.

The key benefit for MedcoEnergi in this joint venture is in risk sharing of the exploration activities in the Company?s oil and gas assets in our efforts in realizing our upside potentials. In turn, this allows MedcoEnergi to finance other high growth projects in the country to further boost the Company?s growth. (end of release)