Contents :

AXA APH, AHB and MAA Holdings would be required to obtain the prior approval of the Minister of Finance, based on the recommendation of BNM, pursuant to the Insurance Act 1966 (“Act”) before entering into any agreement to effect the Proposed Acquisition.

The final approval pursuant to the Act will only be considered upon AXA APH and AHB complying with the following requirements:-

(i) submitting a plan to rationalise the insurance business of MAA Holdings with AXA AFFIN General Insurance Berhad (“AXA AFFIN General”) and AXA AFFIN Life Insurance Berhad (“AXA AFFIN Life”) in accordance with Section 69 of the Act; and

(ii) submitting a detailed capital plan for AXA AFFIN General and AXA AFFIN Life as well as the rationalised entities to comply with the supervisory and internal target capital as prescribed under the Risk Based Capital Framework, including identifying the source of financing for the Proposed Acquisition; and

(iii) compliance with the foreign equity participation limit imposed on insurance companies.

The Board expects negotiations to commence soon and further announcement will be made to Bursa Malaysia Securities Berhad on the development at the appropriate time.

This announcement is dated 21st September 2007.