M'SIA'S DRB-HICOM IN MIDDLE EASTERN VENTURE TO SET UP INTEGRATED AUTO

KUALA LUMPUR, Nov 5 (Bernama) -- DRB-HICOM Bhd announced that it had
signed
an agreement Tuesday with Jazan Economic City Land Limited (JEC), Saudi Binladin
Group (SBG) and GIIG International Holding Company Ltd(GIIG), to explore
business prospects in respect of establishing an integrated automotive cluster
project.

To be located in the Jazan Economic City in the Jizan Province of Saudi
Arabia and called the Jazan Project, it comprises the assembly,manufacturing,
production, sales, services, distribution and supply of commercial and passenger
vehicles as well as motorcycle, light and heavy vehicles and automotive
components.

In a filing to Bursa Malaysia (Malaysian Stock Exchange), DRB-Hicom said
Jazan Economic City is located along the Red Sea, 60km north-west of Jizan City,
and encompassing 113 sq km.

The economic city focuses on heavy industries, secondary industries, human
capital and lifestyle.

Various industries such as a power plant, port, aluminium smelter and steel
cluster have also been identified in the approved master plan for the
economic city.

DRB-HICOM is an investment holding company with investments in the
automotive, defence, services, property and construction sectors.

According to the statement, the parties shall, within one month from the
date of the agreement, jointly undertake a detailed study to ensure that the
Jazan Project is competitive.

The study is to identify among others, the incentives, grants, exemptions
and benefits required from the Saudi Arabian government. It is to be completed
within 12 months.

DRB-HICOM shall take the lead in the study as well as the Jazan
Project.

DRB-HICOM stated that JEC, SBG and GIIG are in the midst of incorporating a
joint venture company in Saudi Arabia to undertake and implement the Jazan
Project, which includes obtaining the license required from the Saudi
General Investment Authority.

The statement said that SBG and GIIG will identify and invite a Saudi local
partner for the project. DRB-HICOM on the other hand, will identify an
international partner.

On the rationale for the project, the statement explained that the Jazan
Project would enable the DRB-HICOM Group to seize opportunities arising from the
growing Middle Eastern economies by leveraging on its core competencies in the
automotive business sector.

The involvement of DRB-HICOM Group in the Jazan Project will be a
significant step forward towards exploring international markets for its
automotive sector.

JEC and SBG are Saudi Arabian companies while GIIG was incorporated in the
Virgin Islands and is based in Kuala Lumpur.
-- BERNAMA