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We refer to the announcement to the Kuala Lumpur Stock Exchange and the Sale and Purchase Agreement ("Agreement") entered between Maybank and Sime Bank Berhad ("SBB") on 29 October 1999 in relation to the acquisition of Sime Finance Berhad ("SFB"). Aseambankers Malaysia Berhad, on behalf of the Board of Directors of Maybank, is pleased to announce that Mayban Finance Berhad ("MFB") has completed the acquisition of the entire issued and paid-up share capital of SFB.

The necessary approvals under the Banking and Financial Institutions Act, 1989 were obtained from the Ministry of Finance and Bank Negara Malaysia on 23 September 1999 for MFB to enter into the Agreement with SBB for the acquisition of SFB. Maybank has subsequently received the approval from the Foreign Investment Committee for the Acquisition of SFB on 20 March 2000.

The operations of SFB will eventually be merged with that of MFB.

2. PURCHASE CONSIDERATION

 The final purchase consideration for the Acquisition of SFB was RM79.6 million.

The final purchase consideration, paid by cash, was determined after taking into account the due diligence findings on SFB and will be financed by using the internally generated funds of MFB.

3. EFFECTS OF THE ACQUISITION OF SFB

3.1 Share Capital of Maybank

The Acquisition of SFB will not have any effect on the issued and paid-up share capital of Maybank.

3.2 Net Tangible Assets

The Acquisition of SFB is not expected to have any material effect on the net tangible assets of Maybank.

3.3 Earnings

The Acquisition of SFB is not expected to have any material effect on Maybank's earnings.