Release: MedcoEnergi issues Global Depositary Shares

July 15, 2005 ? PT Medco Energi Internasional Tbk. (?the Company?/?MedcoEnergi?) wishes to announce that it plans to undertake an offering of common shares (?Common Shares?) directly or in the form of Global Depositary Shares (each a ?GDS? and collectively the ?GDSs?). The common Shares or GDSs will be entirely offered by the wholly-owned subsidiaries of Encore Int?l Limited (?Selling Shareholders?), an indirect controlling shareholder of MedcoEnergi. Therefore, no proceed from the offering of Common Shares or GDSs is going to MedcoEnergi.

The indicative size of the offering will be up to 30 percent of Common Shares in MedcoEnergi. The Common Shares are listed on the Jakarta Stock Exchange. Application has been made to list the GDSs on the Luxembourg Stock Exchange and included for trade on the International Order Book System of the London Stock Exchange and the PORTAL market of the Nasdaq Stock Market.

For the offering, the Company has appointed Merrill Lynch International and Credit Suisse First Boston as the Joint Bookrunners and Joint Lead Managers. The Offering of these Common Shares or GDSs is inline with the Company?s plan to increase liquidity of its shares in the Market. The Company also expects that such offering would support to enhance the Company?s current performance and add value to its shareholders and investors. (end of release)