Introduction

MMC Corporation Berhad ("MMC") wishes to announce that its subsidiary, MMC Oil & Gas Engineering Sdn Bhd ("MMCOG"), has today entered into a Shareholders Agreement ("SHA") with AMEC Group Ltd ("AMEC"), an international project management and engineering services company registered in the United Kingdom, to establish a private limited company, to be named "MMC AMEC Sdn Bhd" ("MMC AMEC" or "Company").

Salient terms of the SHA

The Company will provide comprehensive engineering solutions for large-scale integrated deepwater facilities and marginal field development in addition to engineering and project management services within the upstream and downstream hydrocarbon sectors.

The equity interest of the parties in MMC AMEC shall be as follows:
MMCOG 51%
AMEC 49%

MMC AMEC shall have an initial issued and paid-up capital of Ringgit Malaysia Two Million (RM2,000,000.00).

Effects of the SHA

MMC AMEC will be a subsidiary of MMCOG.

The formation of the Company will not have any impact on the net assets of the MMC Group for the financial year ending 31 December 2007.

MMC AMEC is expected to contribute positively to the future earnings of the MMC Group.