Synergy Drive to Hold 60 per cent Equity in Undersea Cable Project

Press Release

KUALA LUMPUR, 21 November 2007 – Synergy Drive Berhad will hold a 60 per cent equity in a consortium involved in laying undersea cables to transmit electricity from the Bakun dam in Sarawak to Peninsular Malaysia.

The Economic Planning Unit of the Prime Minister's Department issued a letter of intent today, saying that the government had given an in-principle agreement that Synergy Drive hold the majority stake in the Trans Co involved in the transmission project.

With the letter of intent in hand, Synergy Drive will now begin detailed discussions on the cost of the undersea cable project as well as outline tariff proposals for Tenaga Nasional Berhad.

The cable project will involve laying two 700km submarine cables from Sarawak to Johor. The first cable will be ready for transmission by 2013 and the second by 2015.

Last week, Synergy Drive received a letter of intent from the government of Malaysia approving in principle the acquisition of a 60 per cent equity interest in Sarawak Hidro. Sarawak Hidro owns the Bakun dam.