PT HM Sampoerna Tbk

March 13, 2005 22:52 ET

Change of Share Ownership of PT HM Sampoerna Tbk


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: PT HM SAMPOERNA TBK

MARCH 13, 2005 - 22:52 ET

Change of Share Ownership of PT HM Sampoerna Tbk

JAKARTA, Indonesia--(CCNMatthews - Mar 13, 2005) -

The Board of Directors of PT Hanjaya Mandala Sampoerna Tbk., (the
"Company") received on the 13 March 2005 a letter dated 12 March 2005
from PT Philip Morris Indonesia ("PT PMI"), a wholly-owned subsidiary of
Philip Morris International Inc., advising the following:

-- (a) PT PMI has entered into sale and purchase of shares agreements
with a number of shareholders of the Company for the purchase of 40% of
all issued shares in the Company with a price of Rp 10,600 per share.

-- (b) the sale and purchase of shares agreements shall be completed on
18 March 2005.

-- (c) following such completion, as required by the prevailing laws
and regulations, PT PMI will conduct a tender offer for the rest of the
issued shares at the same price, such tender offer is expected to
complete approximately 80 days thereafter.

PT PMI has also advised the Board of Directors of the Company that PT
PMI will continue the Company's core business and continue to build the
brand equity of its strong and well-established brands. PT PMI has also
advised that they have the highest regard for the Company's employees,
they look forward to working with the employees of the Company, and will
work closely with the employees of the Company, to ensure that in this
process their rights are protected under the prevailing laws and
regulations.

The Company will take all necessary efforts to ensure that this
transition takes place smoothly and will not adversely affect the
operations of the Company.

The Company prides itself in being professionally managed and will
maintain these high standards. We will take a "business as usual
approach" and make all necessary efforts to maintain the strong momentum
we have built in the marketplace.

The Company recognizes strong similarities between itself and PT PMI.
Both companies are well managed, market driven, produce high quality
products and have strong commitment to both the community and their
employees.

-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    PT HM Sampoerna Tbk
    Niken Rachmad, 62-21-526-6287
    Head of Corp Communications
    62-21-526-6656 (FAX)
    E-mail: niken.rachmad@sampoerna.com