General Announcement

Reference No PH-060523-39435

Company Name	:	PROTON HOLDINGS BERHAD
Stock Name	:	PROTON
Date Announced	:	23/05/2006


Type	:	Announcement
Subject	:	1.PERUSAHAAN OTOMOBIL NASIONAL SDN BHD 2. LOTUS ENGINEERING (M) SDN BHD

Contents :

The Board of Directors of Proton Holdings Berhad is pleased to announce the following:

1. Perusahaan Otomobil Nasional Sdn Bhd ("PONSB")

PONSB, a wholly owned subsidiary of the Company had on 23 May 2006 entered into an understanding with Chery Automobile Co, Ltd and Alado Corporation Sdn Bhd to undertake a joint feasibility study to evaluate possibilities and opportunities for, inter alia providing assembly services and distribution of vehicles of Proton and Chery brands in China, Malaysia and also in ASEAN.

The feasibility study period commences from the date hereof up to 28 August 2006.

2.Lotus Engineering (Malaysia) Sdn Bhd ("LEM")

LEM, a company within Proton Group, had on 23 May 2006 entered into an understanding with Jinhua Youngman Automobile Group Co. Ltd ('YOUNGMAN"), to undertake a joint feasibility study to evaluate the possibilities for cooperation for, inter alia designing, developing and selling complete knocked down (CKD) vehicles in China

The period of the feasibility study is for a period of one hundred and twenty (120) days from the date hereof.