MARC has revised the MARCWatch status of its AID/MARC-2ID ratings on PRI’s RM40.0 million Islamic Commercial Paper/Medium Term Note Issuance Programme to negative from developing with immediate effect. This follows written confirmation from Bank Negara Malaysia that it has terminated its 10 year contract for the purchase of raw materials with PRI. The termination of this contract constitutes an Event of Default under the terms of the issue.

The ratings on PRI were placed on MARCWatch Developing on March 3, 2007 as a result of heightened concerns arising from the apparent absence of production activity at its factory, and in connection with an alleged investigation by the Central Bank for a shortfall of coins in circulation.

PRI is the holding company of The Royal Mint of Malaysia Sdn Bhd (RMM), the sole official minter of circulation coins in Malaysia. Apart from producing copper strips used in the manufacture of coin blanks for RMM, PRI also manufactures copper wires and copper rods for the telecommunication and power sectors. PRI derives the bulk of its revenue and operating profit from its contract with RMM, while its contract with the Central Bank for the purchase of raw materials provides a passthrough of costs.

MARC is currently seeking clarification from PRI’s management to ascertain the impact of the abovementioned termination on PRI’s credit profile. Rating implications arising there from will be advised as they become clear.

9 May 2007