Update on Situation - PT Kaltim Prima Coal

The Shareholders, Commissioners and Management have today considered options to reduce the serious impact of the blockade on KPC's operations.

However, we are informed that the Government is taking initiative to enforce the law and remove the blockade soon.

In the circumstances, KPC has decided to defer a decision pending the outcome of this latest Government initiative.

For further information, please contact:

Bambang Susanto PT Kaltim Prima Coal: Tel: (021) 527-4208, Fax: (021) 527-4228 (--Press release from PT KPC--)