Rights Offer Price Danamon IDR1,200

Bank Danamon today announced that the Bank intends to raise equity capital by way of a renounceable rights issue (rights issue).

Shareholders whose name are registered in the Share Register of the Bank on the date to be approved by an extraordinary general meeting of shareholders (the EGM) will be entitled to 68 pre-emptive rights for every 100 shares held. Each pre-emptive right will entitle the holder to subscribe for one share at a price (the Rights Offer Price) of Rp. 1,200 per share.

The Rights Offer Price of IDR 1,200 per share represents approximately 46.7% discount to the closing price of IDR 2,250 on 17 February 2009 (the last closing price prior to filing of the prospectus with BAPEPAM-LK), and approximately 34.2% discount to the theoretical ex-rights price of Rp. 1,825 per share.

Asia Financial (Indonesia) Pte Ltd, the Bank’s largest shareholder with a 67.9% interest, has provided an undertaking to fully subscribe its entitlement of the Rights Issue shares. The Rights Issue is fully underwritten. Citigroup Global Markets Singapore Pte. Ltd. and Morgan Stanley Asia (Singapore) Pte. have agreed to act as Standby Purchasers for 32.1% of the Rights Issue shares that are not subscribed (after having taken into account any excess applications) by other shareholders in the Rights Issue.

Bank Danamon currently has a strong capital position with a consolidated Tier 1 ratio and Capital Adequacy Ratio (CAR) of 13.8% and 15.4%, respectively, which are well above the minimum requirements of 4% and 8%, respectively, set by Bank Indonesia.

The Rights Issue will further strengthen the Bank’s capital position and enhance its capacity to pursue growth in microfinance and SME segments. After adjusting for the estimated net proceeds of the Rights Issue, the pro forma consolidated Tier 1 ratio and CAR of Danamon as at 31 December 2008 will increase to 19.2% and 20.8%, respectively.