Press Release by Chairman of PBB

							PRESS RELEASE BY TAN SRI DATO' SRI DR. TEH HONG PIOW, CHAIRMAN OF
PUBLIC BANK



PUBLIC BANK GROUP BUYS BANK IN HONG KONG FOR RM2.2 BILLION
PLATFORM INTO CHINA


The Public Bank Group is proposing to acquire Asia Commercial Bank Limited in Hong
Kong. The acquisition will be made by JCG Holdings Limited, Public Bank's 64%
subsidiary which is listed on the Stock Exchange of Hong Kong. JCG Holdings had on
14 February 2006 entered into a Share Purchase Agreement with Asia Financial Holdings
Limited to acquire the entire issued and paid-up share capital of Asia Commercial Bank
for a cash consideration of HK$4.5 billion (RM2.16 billion).


The proposed acquisition of Asia Commercial Bank is subject to the approvals of Bank
Negara Malaysia and the Hong Kong Monetary Authority, as well as the shareholders of
JCG Holdings and Asia Financial Holdings Limited.


Asia Commercial Bank is a full-service commercial bank in Hong Kong. It was founded
in Hong Kong in 1934 as the Hongkong and Swatow Commercial Bank and assumed its
present name in 1995. Asia Commercial Bank has total assets of HK$14.7 billion (RM7.1
billion), total deposits of HK$10.5 billion (RM5.0 billion), and total loans and advances of
HK$8.8 billion (RM4.2 billion) as at 30 June 2005. Asia Commercial Bank has a network
of 12 branches in Hong Kong, a branch in Shenzhen in the People's Republic of China as
well as representative offices in Shanghai and Shenyang in the People's Republic of China
and in Taipei, Taiwan.




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The acquisition of Asia Commercial Bank will further expand both the scope and scale of
the business of the Public Bank Group, as well as extend its geographical reach in Hong
Kong and Greater China. The Public Bank Group will have a network of 53 branches in
Hong Kong, comprising 40 branches of Public Finance Limited (formerly known as JCG
Finance Company, Limited), 12 branches of Asia Commercial Bank and Public Bank's
Hong Kong Branch. As a result of the acquisition of Asia Commercial Bank, the Public
Bank Group will now have an immediate banking operation in the People's Republic of
China with the Shenzhen branch and the Shanghai and Shenyang representative offices of
Asia Commercial Bank, and provides an instant platform for the Public Bank Group to
expand further in the People's Republic of China.


The Public Bank Group will be able to enhance its commitment to excellence in serving
its customers by the expansion of the full range of banking services of Public Bank's Hong
Kong Branch to the entire branch network of Asia Commercial Bank in Hong Kong and
Greater China. The Public Bank Group will also seek to extract maximum synergies from
the combined retail network of Public Finance Limited's existing 40 branches and Asia
Commercial Bank's 12 branches in Hong Kong. Revenue growth will be pursued through
the leveraging of the combined branch network and the enlarged customer base of the
Public Bank Group in Hong Kong and Greater China, the introduction of new products
and the leveraging of the Public Bank Group's strengths in retail consumer banking and
middle-market commercial banking, particularly in serving the SMEs, in the pursuit of
growth of the Public Bank Group's business in Hong Kong and Greater China. The
acquisition of Asia Commercial Bank would also provide opportunities for the Public
Bank Group to tap into a wider funding source from the retail deposits market in Hong
Kong.


The Public Bank Group's operations in Hong Kong and Greater China is also expected to
benefit from increased efficiencies through the consolidation of back-office and support
services of the Public Bank Group's enlarged operations in Hong Kong and Greater China
as well as the potential for the Public Bank Group to add value to the business and
operations of Asia Commercial Bank through the transfer of management skills,
technology and processes.




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The acquisition of Asia Commercial Bank will be funded initially by a short-term bridging
loan, which will be refinanced by a rights issue to be raised by JCG Holdings and
medium-term loan financing. The Public Bank Group's commitment to the expansion of
its business in Hong Kong and Greater China is also evident in Public Bank's undertaking
to subscribe for its share of the rights issue by JCG Holdings as well as the full
underwriting of the JCG Holdings rights issue. Public Bank has also given its undertaking
as the controlling shareholder of JCG Holdings to vote in favour of the acquisition of Asia
Commercial Bank at the shareholders' meeting of JCG Holdings to approve the said
acquisition.


The proposed acquisition of Asia Commercial Bank and the recent rebranding of the
Public Bank Group's consumer financing business in Hong Kong under "Public Finance"
clearly demonstrates the Public Bank Group's commitment to the expansion of its financial
services franchise in Hong Kong and Greater China.




Tan Sri Dato' Sri Dr. Teh Hong Piow
Chairman
16 February 2006




For more information, please contact:


Mr Leong Kwok Nyem                                    Mr Wong Jee Seng
Senior General Manager                                General Manager
Tel. No: 03-21766270                                  Finance & Risk Management
                                                      Tel. No: 03-21766320




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