Contents :

The Board of Directors of AFFIN wishes to announce that the Company had on 10 May 2006 acquired and subscribed for fifty-one (51) ordinary shares of RM1.00 each representing 51% of the issued and paid-up share capital of AXA AFFIN Life Insurance Berhad ("AXA AFFIN Life") for a cash consideration of RM51. The balance fourty-nine (49) ordinary shares of RM1.00 each in AXA AFFIN Life representing 49% equity interest is held by AXA. Accordingly, AXA AFFIN Life is now a subsidiary of AFFIN.

Following this and upon receipt of all regulatory approvals, Tahan Insurance Malaysia Berhad ("Tahan") shall transfer its Life Business to AXA AFFIN Life for AXA AFFIN Life to carry out the Life Business.

AFFIN and AXA will inject further funds into AXA AFFIN Life prior to the commencement of operations to enable:-

• AXA AFFIN Life to meet its payment obligations under the conditional business transfer agreement entered into by AFFIN, AXA and Tahan dated 18 November 2005 on the Proposed Acquisition; and

• AXA AFFIN Life to be capitalised in such amount as required by law, regulation or Bank Negara Malaysia, so as to comply with capital and minimum solvency and other requirements.