Release: MedcoEnergi priced its secondary offering shares and GDS

(Jakarta, July 29, 2005)--PT Medco Energi Internasional Tbk. (?MedcoEnergi?/the ?Company?) announced today that its indirect controlling shareholder, Encore International Limited (?Encore?), through its subsidiaries Densico Energy Resources Pte Ltd and Aman Energy Resources Pte Ltd, have priced the secondary offering of common shares (?Common Shares?).The offering comprises 899,313,500 common shares, offered directly or in the form of Global Depositary Shares with an over-allotment option for an additional 134,897,500 common shares. Common shares are offered at the price of Rupiah 2,850 per share and GDSs are offered at the price of US$ 14.50 per GDS. Total proceeds from the offering, including the over-allotment portion, approximately US$ 300 million and payable to the selling shareholders.

Each GDS is equivalent to 50 common shares. The Common Shares remains listed on the Jakarta Stock Exchange and the GDSs when issued are expected to be listed and traded on the Luxembourg Stock Exchange, the International Order Book System of the London Stock Exchange and the Portal market of the Nasdaq Stock Market.

The secondary offering is the largest private sector Indonesian equity offering since the Asian financial crisis. With this offering, the Company is increasing free float to approximately 38%, diversifying shareholder base with over 100 institutional investors and enhancing the corporate profile globally.The Company honors the decision and commitment of Encore to dilute its shares ownership in MedcoEnergi from 85.5% previously to 54.5%.

"I am pleased that we were able to successfully price this offering. The success of this transaction underscores international investors? interest in Indonesia and specifically in the continued growth opportunities of MedcoEnergi as a leading oil and gas company in Indonesia." said Hilmi Panigoro, CEO of MedcoEnergi. He also expresses his appreciation to Merrill Lynch International and Credit Suisse First Boston for their contribution and assistance as the Joint Global Coordinators and Joint Bookrunners this Secondary Offering.(end of release)