We refer to the announcement dated 1 March 2011 made by PROTON Holdings Berhad (“PROTON”) to Bursa Malaysia Securities Berhad in respect of the signing of a Memorandum of Understanding (“MOU”) between PROTON and Nissan Motor Co, Ltd (“NML”).

The Board of Directors of Tan Chong Motor Holdings Berhad (“TCMH”) views the signing of the MOU positively. Based on the deep and positive relationship between TCMH Group and NML, we are confident that NML will pursue win-win solutions to increase synergies and reduce costs for all parties in their business alliances. We are open to collaborate with PROTON, the first national car manufacturer of Malaysia, to bring about mutual benefits and success.

TCMH Group remains the exclusive NISSAN franchise holder and distributor in Malaysia as well as Indochina and we would continue to work closely with NML in expanding the NISSAN business both locally and in Indochina.