I am pleased to announce that Public Bank Bhd and Public Islamic Bank Bhd will reduce their Base Lending Rate ("BLR") and Base Financing Rate ("BFR") by 25 basis points from 6.75% to 6.5% with effect from 1 December 2008, following the downward revision of the Bank Negara Malaysia's Overnight Policy Rate ("OPR") by 25 basis points on 24 November 2008.

With the reduction of BLR/BFR, the full benefit of the reduction in interest rate by Bank Negara Malaysia is passed on to our customers and would support the objective of Bank Negara Malaysia in promoting domestic economic activities by lowering the cost of financing for consumers and businesses.

The above revision in BLR/BFR will have marginal impact to the net interest income of the Public Bank Group, after taking into account the benefit enjoyed from the reduction in Statutory Reserve Ratio from 4.0% to 3.5% by Bank Negara Malaysia.

* * * * * * * *

* * * * * * * *