General Announcement

Reference No PH-060829-71770

Company Name	:	PROTON HOLDINGS BERHAD
Stock Name	:	PROTON
Date Announced	:	01/09/2006


Type	:	Announcement
Subject	:	1). MEMORANDUM OF INTENT ("MOI") WITH PETROLIAM NASIONAL BERHAD ("PETRONAS") SIGNED ON 27 JANUARY 2006. 2). MEMORANDUM OF UNDERSTANDING ("MOU") WITH MITSUBISHI MOTORS CORP, JAPAN ("MMC") SIGNED ON 3 FRBRUARY 2006. 3). UNDERSTANDING OF A JOINT FEASIBILITY STUDY BETWEEN PERUSAHAAN OTOMOBIL NASIONAL SDN BHD ("PONSB"), CHERY AUTOMOBILE CO, LTD ) ("CHERY") AND ALADO CORPORATION SDN BHD ("ALADO") SIGNED ON 23 MAY 2006. 4).UNDERSTANDING OF A JOINT FEASIBILITY STUDY BETWEEN LOTUS ENGINEERING (MALAYSIA) SDN BHD ("LEM") AND YOUNGMAN AUTOMOBILE GROUP CO. LTD ("YOUNGMAN") ENTERED INTO ON 23 MAY 2006.

Contents :

The Board of Directors of Proton Holdings Berhad wishes to annnounce the following:

MOI WITH PETRONAS

The MOI with Petronas has concluded. Both parties are currently assessing alternative engine sourcing opportunities.

MOU WITH MMC

Subject to the approval of the Board of Directors of both the parties, the MOU will be extended for another three (3) months period ending in November 2006.

UNDERSTANDING BETWEEN PONSB, CHERY AND ALADO

Subject to the approvals of the Board of Directors of both parties, the Understanding between PONSB, CHERY and ALADO will be extended for another two (2) months.

UNDERSTANDING BETWEEN LEM AND YOUNGMAN

The above mentioned Understanding will come to an end on 28 September 2006. LEM is currently studying the financial, legal and marketing aspects of the proposed collaboration.