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June 8, 2010

ARTICLE ENTITLED: " STEERING PROBLEMS AT PROTON"

We ( Proton ) refer to the Article entitled, "Steering problems at Proton", appearing on pages 68 - 70 of The Edge ( the week of June 7 - June 13, 2010).
With regard to the statement in relation to the proposed sale of 40% stake in Lotus Group International Ltd ("Lotus"),the Board wishes to clarify that over the years PROTON has received several unsolicited offers for a stake in Lotus. While PROTON takes cognizance of such offers, the Board wishes to state that Lotus is and continues to be a strategic entity within PROTON, as well as a technology catalyst for PROTON.
The Board wishes to reiterate that Lotus is not for sale at this point in time. However, the Board wishes to add, that as a proactive business entity, the PROTON Group of Companies will continue to initiate and consider viable business opportunities and arrangements which will benefit and add value to the Group's interest.
PROTON will make all relevant and necessary announcements at the appropriate time in accordance with the Main Market Listing Requirements of Bursa Malaysia Securities Berhad.

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