General Announcement
Reference No DD-060529-42388

Company Name
Stock Name
Date Announced

Subject:Electrified Double Tracking Rail Rawang-Ipoh Project

Contents :

Further to our annoucement dated 13 April 2006, DRB-HICOM Berhad ("DRB-HICOM" or "the Company") is pleased to announce that the Government and the Company had amicably resolved on the settlement for the payment of variation order and loss and expense claims in relation to additional works done on the Rawang-Ipoh portion of the Electrified Double Tracking Rail Project with the final and full settlement of RM425 million.

Subsequent to this, DRB-HICOM is in further discussion with the Government in regards to related issues pertaining to liquidated ascertained damages and release of performance bond. DRB-HICOM is hopeful and positive that this matter will also be amicably resolved in due course.

DRB-HICOM is thankful that the long-drawn episode has obtained the support and understanding of the Government of Malaysia, the relevant Ministries and Authorities and KTMB. DRB-HICOM also wishes to record appreciation to its Consultants and Sub-Contractors for their patience and understanding extended to the Company.

c.c. : Issues and Investment Division
Securities Commission
Fax No. : 62015213

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