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Pursuant to Paragraph 10.08 - Related Party Transactions of the KLSE Listing Requirements, Malayan Banking Berhad ("Maybank") wishes to announce the following related party transaction ("RPT") entered into on 3.12.2002 between Maybank and PricewaterhouseCoopers Advisory Services Sdn Bhd ("PwCAS").

2. DETAILS OF THE RELATED PARTY TRANSACTION AND RATIONALE

On 14.10.2002, the Board of Directors of Maybank approved the appointment of PwCAS as advisors to assist Maybank enhance its Integrated Risk Management ("IRM") framework. The enhancement is in line with Maybank's objective of achieving an integrated, efficient and sophisticated risk management system to meet regulatory standards as well as to meet future challenges. The enhanced IRM framework will cover credit, market/ALM and operational risk management that are in line with the New Basel Capital Accord requirements.

The value of this contract is approximately RM4 million, including out-of-pocket expenses but excluding government tax. The contract sum is derived based on the estimated time and material costs to be incurred by PwCAS and will be billed progressively. The estimated timeframe for completion is between 5 to 7 months. This transaction is not a material contract and accordingly is not subjected to shareholders' approval.

3. INTEREST OF DIRECTOR AND PERSON CONNECTED

Ms. Hooi Lai Hoong, Deputy President and director of Maybank, is the spouse of Mr. Chin Kwai Yoong. Mr. Chin has a direct equity interest in PwCAS and is on the Board of Directors of PwCAS. The Board of Maybank has noted Ms. Hooi Lai Hoong's disclosure of interest. Ms. Hooi Lai Hoong had abstained from Board deliberations and voting on the related resolution in respect of the RPT. The services to be provided by PwCAS are advisory in nature and are not expected to result in any conflict of interest.

4. EFFECT OF THE TRANSACTION

The RPT is entered into in the ordinary course of business and at arms length and is not expected to have a material financial impact on Maybank's earnings per share, net tangible assets per share, share capital and substantial shareholders' shareholding of Maybank.

5. STATEMENT BY THE BOARD OF DIRECTORS

Having considered all the relevant facts and merits of the RPT, the Board of Directors is of the opinion that the RPT is in the best interest of Maybank and its shareholders.