Release: MedcoEnergi: Changes on board of commissioners and board of directors

Jakarta, March 10, 2005 ? Today, PT. Medco Energi Internasional Tbk is pleased to announce that Darmoyo Doyoatmojo has been appointed as the new Finance Director (CFO) to replace the former Sugiharto, who is now preside as a Minister of State Owned Enterprise, as reinstated during MedcoEnergi?s Extraordinary General Meeting of Shareholders (EGM). Darmoyo Doyoatmojo joint MedcoEnergi since 1994 and started working for Medco Group since 1974.

The EGM also approved the resignations of Sugiharto, former Chief Financial Officer, Yongyos Krongphanich, former Chief Planning Officer, Maroot Mrigadat, former member of the Board of Commissioners (BOC), Suwit Pitrchart, former member of BOC, Andrew Purcell, also former member of the BOC.

The changes on MedcoEnergi?s management resulted from the changes on indirect controlling shareholders of MedcoEnergi. In late January 2005, Encore Int'l Limited, a wholly owned company of the Panigoro family and previously owned 40.1 percent shares in New Links Energy Resources Limited or equivalent to 34.29 percent shares of MedcoEnergi, acquired the remaining 40 percent shares of New Links or equivalent to 34.20 percent shares of MedcoEnergi from PTTEP Offshore Investment Company Limited (PTTEPO) and 19.9 percent shares of New Links or equivalent to 17.01 shares of MedcoEnergi from Cumin Limited. For this acquisition, Encore paid a total consideration of US$343.5 million to both PTTEPO and Cumin.

Currently, Encore owns 100 percent shares of New Links, a company that owns 85.505 percent shares of MedcoEnergi.

The Management believes that even though Panigoro?s family is now the sole indirect controlling shareholder of MedcoEnergi, but their strong commitment to continue the implementation of Good Corporate Governance practices would enhance the values of MedcoEnergi in the future. (end of release)