PROTON ENTERS INTO COLLABORATION WITH MITSUBISHI MOTORS CORP

KUALA LUMPUR, Dec 5 (Bernama) -- Perusahaan Otomobil Nasional Sdn Bhd (PONSB), a wholly-owned subsidiary of Proton Holdings Berhad, Malaysia's national car company, has signed agreements with Mitsubishi Motors Corporation to develop a new car model.

Both companies will work on the details of the new model, target
specifications, job-sharing and time schedule as determined by the two parties,
Proton said in a filing to Bursa Malaysia.

Under the licensed agreement, Mitsubishi Motors grants Proton, a
non-exclusive licence to use technical assistance and patents solely for the
purpose of utilisation of technical information.

Proton said the information would be used for restyling, modification and
improvement work, manufacturing of local parts, assembling, selling and after
sales services and support of the licensed product to be sold under its
trademark and styling.

For an engineering services agreement, it said Mitsubishi Motors will
provide the work and services for Proton's manufacturing of the licensed
product.

"At the same time, PONSB has entered into an understanding with Mitsubishi
Motors in relation to product collaborations to develop a new vehicle model for
Proton," it said.

The understanding entails initiatives taken by the companies to
improve build and component qualities for its vehicles, Proton said.

"Concurrently, both companies shall explore possibilities on export and
contract assembly wherein the parties commit to conduct feasibility studies on
the said areas within three months from the date of signing," it added.
-- BERNAMA