KUALA LUMPUR, 25 June 2008 – Sime Darby Berhad has informed the Government of Malaysia that it had decided not to take up the equity interest in Sarawak Hidro Sdn Bhd ("SHSB") and not to participate in the development of the High Voltage Direct Current transmission link ("HVDC Link") to supply electricity from the Bakun Hydroelectric Project in Sarawak to Peninsular Malaysia.

President & Group Chief Executive Dato’ Seri Ahmad Zubir Murshid said the decision had been arrived at after a thorough review of the project.

“Our Board is of the view that the project economics do not fit in with our business strategy. We are withdrawing our proposal to take up an equity interest in the project but will continue in our role as a contractor to complete the construction of the dam,” he said.

In November 2007, Sime Darby received letters of intent from the Ministry of Finance and the Economic Planning Unit of the Prime Minister’s Department advising that the Government had given an in-principle agreement for Sime Darby to hold a majority stake in SHSB, the owner of the Bakun Dam, and the company developing the HVDC Link ("Trans Co").

The letters of intent allowed Sime Darby to begin detailed discussions on the cost of the undersea cable project as well as outline tariff proposals for Tenaga Nasional Berhad. The cable project would have involved laying two 700 km submarine cables from Sarawak to Johor. The first cable was expected to have been ready for transmission by 2013 and the second by 2015.

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