Hong Leong launches Double Happiness FRNID

Double your investment joy with 10% p.a. guaranteed return and principal protection

Hong Leong Bank (HLB) today launched its 3 rd Floating Rate Negotiable Instrument of Deposit (FRNID). The Double Happiness FRNID is a 3-year principalprotected investment with a guaranteed return of 10% within the first quarter and can be potentially enhanced in subsequent quarters by leveraging on thecombined performance of 4 underlying shares that focus on the oil and gas, gold and precious metal and alternative energy sectors.

The Double Happiness FRNID will invest in PetroChina, Royal Dutch Shell, Barrick Gold and First Solar which are all industry class leaders. The performanceoutlook for the sector and related equity for oil and gas over the next 12 to 24 months remains positive. Gold prices are speculated to strengthen againstthe weakening US Dollar and other external factors which include the sub-prime crisis and possible recession in the US.

Investors are guaranteed a 10% per annum return in the 1 st quarter. Returns from the 2 nd to 12 th quarter are based on the performance of the 4underlying shares. The investor earns 8% per annum if the worst performing share is equivalent to or greater than 96% of the initial pricing level, and 2%per annum if the worst performing share is equivalent to or greater than 88% of the initial pricing level. The investment will be Auto-called should all 4shares rise to 105%, and the principal plus 8% per annum coupon will be returned to the investor for further re-investment opportunities with HLB.

“The Double Happiness FRNID offers investors a great opportunity to diversify their investment portfolio in 3 of the most resilient sectors which areexpected to perform positively given the current market condition,” said Ms Moey Tan, Chief Operating Officer, Personal Financial Services of HLB.

“By choosing strong companies within a growing sector, we are confident that investors will be rewarded. The investment will provide coupon payout evenwhen the share prices fall by 12% from its initial pricing level. At the same time, invested capital is protected, with the chance of achieving anAuto-call within the 3-year period for further re-investment opportunities with HLB,” she added.

The Double Happiness FRNID is ideal for investors who share a positive outlook for the 3 sectors above and the 4 selected underlying shares. PetroChina isChina's biggest oil producer and one of the most profitable companies in Asia. In 2006, Royal Dutch Shell's USD318.1 billion revenue became the thirdlargest corporation in the world by revenue. Barrick Gold is the largest pure gold mining company in the world while First Solar is one of the largest purealternative energy companies with a market capitalization of USD13 billion.

The initial investment for the Double Happiness FRNID starts at RM100,000 with subsequent investment in multiples of RM50, 000. The offer period for theDouble Happiness FRNID is until 10 March 2008.

For more information, please visit any of Hong Leong 186 branches, call 1-800-38-8888 during business hours or log on to www.hlb.com.my

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Press Release - 18/02/2008