Release: PT Inco provides update on fire at electric furnace No. 2

JAKARTA, May 29, 2006 -- PT International Nickel Indonesia Tbk (?PT Inco?) previously announced on May 24, 2006 a transformer fire at one of its four electric furnaces at its Sorowako operations (PT Inco press release issued May 24, 2006). While PT Inco continues to investigate the causes and consequences of the fire, preliminary indications are that it will be approximately 7 ? 8 weeks before electric furnace No. 2 will be at normal operating levels.

Prior to the fire, PT Inco?s production target for 2006 was 167 million pounds of nickel-in-matte. Until electric furnace No.2 is operating at normal levels, PT Inco estimates that production of nickel in matte at its Sorowako operations will be reduced by approximately 1 million pounds per week. PT Inco is making every effort to maximize production and will consider its options to increase production levels after electric furnace No. 2 is back at operating levels. PT Inco is also working with its customers to limit the impact of this reduced level of production. (end of release)