April 1, 2008

AFFINISLAMIC and Mutiara Goodyear embark on Malaysia’s first hybrid Musharakah financing arrangement

Kuala Lumpur - Affin Islamic Bank Berhad (AFFINISLAMIC) and Mutiara Goodyear Development Berhad (Mutiara Goodyear) are pleased to jointly announce that both parties have entered into Musharakah (joint venture) financing arrangement for a land development project.

The arrangement is the first in the country to feature a combination of hybrid Islamic financing products based on the concept of Musharakah (joint-venture), Murabahah (sale-based financing), Istisna’ (bridging financing) and Musharakah Mutanaqisah (diminishing partnership).

The Musharakah is established via a registered Special Purpose Vehicle called Affin-i Goodyear Sdn Bhd (Affin-i Goodyear) in which AFFINISLAMIC and Jurus Positif Sdn Bhd, a wholly-owned subsidiary of Mutiara Goodyear are joint partners.

For the first project, Affin-i Goodyear will undertake the development of high-end residential properties on an 8.8 acre land in Bukit Gambir, Penang.

Kamarul Ariffin Mohd Jamil, AFFINISLAMIC CEO said, “We are indeed ecstatic about having marked another milestone to be the first bank in Malaysia to introduce this unique financing arrangement despite being just two years in operation. This is the first of many innovative structures we plan to develop and in line with government aspiration to meet the increasingly diversified and sophisticated market demand and transform the country into an international hub for Islamic finance.”

Executive Chairman of Mutiara Goodyear, Hamidon Abdullah said, “This is our first joint venture with AFFINISLAMIC and the combination of both parties’ resources and expertise will bring tremendous synergistic benefits. Under this joint venture, Mutiara Goodyear will be responsible for the construction and sales of the development whilst AFFINISLAMIC will provide the facilities required to finance the development.”

“We plan to launch high-end residential properties targeted at the affluent market and we expect this development to be fully-completed within three years. We are confident that this development will enjoy a high take-up rate, buoyed by the vibrant Penang property market and the influx of foreigners residing in the island under the Malaysia My Second Home Programme,” Hamidon added.

“We are delighted to have an established property developer with an impressive track record as our partner in this joint venture. We would certainly leverage on their expertise and we look forward to working together with Mutiara Goodyear on many more developments in the future,” Kamarul added.

Today also marked AFFINISLAMIC’s second anniversary since its incorporation in 2006. To meet the increasing demand for Islamic banking products and services in general and AFFINISLAMIC’s offerings in particular, the Bank recently opened three new branches namely in Fraser Business Park in Kuala Lumpur, Auto-City in Penang and Taman Molek in Johor Bahru.

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About AFFINISLAMIC

AFFINBANK’s Islamic banking subsidiary Affin Islamic Bank Berhad (AFFINISLAMIC) commenced operations on 1st April 2006. As a full-fledged Islamic bank, AFFINISLAMIC offers a complete range of Islamic Banking products and services encompassing the areas of Enterprise and Consumer banking.

About AFFINBANK

Affin Bank Berhad (AFFINBANK) is a wholly-owned subsidiary of Affin Holdings Berhad which is listed on Bursa Malaysia. It was incorporated in 1975, under the name Perwira Habib Bank Malaysia Berhad. It started as a joint venture between several Malaysian parties including Lembaga Angkatan Tentera (LTAT), Syarikat Permodalan Kebangsaan Berhad, and Habib Bank Limited of Pakistan. In 1991, the Bank embarked on a capital restructuring resulting in the emergence of Affin Holdings Berhad as its largest shareholder in 1992. It later changed its name to Perwira Affin Bank Berhad and then AFFINBANK. In August 2000, the Bank merged with the former BSN Commercial (M) Berhad and pursuant to the amendment to the BAFIA Act 1989, it again merged with the former Affin-ACF Finance Berhad in June 2005.

To date, it has a network of 82 branches nationwide. The Bank is constantly reviewing the geographical reach of its branches to better serve its customers. Towards this end, the Bank is on constant look-out for more strategic locations for the existing branches and to relocate if deemed appropriate.

The Bank serves both retail and corporate customers. The business units of the Bank comprise Enterprise Banking, Consumer Banking, Debt and Capital Markets and Hire Purchase. Consumer Banking provides credit cards, personal loans, mortgages and deposit taking services to individuals. Enterprise Banking offers corporations, institutional clients and SMEs services in corporate banking, contract financing and trade finance. Enterprise Banking serves as an important feeder to the other business units by way of contacts and opportunities.

For more information, please log on to affinbank.com.my

About Mutiara Goodyear

Listed on the Main Board of Bursa Malaysia Securities Berhad since 2002, Mutiara is an established property developer with prominent developments in Kuala Lumpur, Klang Valley and Penang. With a track record of approximately 30 years in the industry, Mutiara has vast experience with various types of commercial and residential developments such as condominiums, terrace houses, semi-dees, bungalows, shop offices and townships. Mutiara stamped its mark in the Malaysian market as the pioneer developer as well as project and sales manager to the Subang new town; one of the first comprehensive new town development projects in the country.

Mutiara’s notable projects include amongst others; Bandar Tasek Mutiara township in Seberang Perai, Lagenda Mas in Cheras, Dataran Prima Condominium and Commercial Development in Kelana Jaya, Villa Lagenda Condominiums in Selayang, Mutiara Upper East Condominium in Ampang and Taman Mutiara Gombak in Gombak.

For more information, please log on to http://www.mutiaragoodyear.com/

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