Company Profile of Bank Mandiri

Bank Mandiri was formed on 2 October 1998, as part of the Government of Indonesias bank restructuring program. In July 1999, four state-owned banksBank Bumi Daya, Bank Dagang Negara, Bank Exim and Bapindowere amalgamated into Bank Mandiri. Each of our four legacy banks played an integral role in the development of the Indonesian economy. The four banks were badly hit by scandals and large non performing loans putting them on the brink of bankruptcy when the monetary crisis struck in 1997/1998. The government decided merger for the four banks to save them from liquidation which was feared to trigger disaster to the country's banking industry and economy in general Today, Bank Mandiri continues this tradition of more than 140 years of delivering expertise in banking and financial services throughout Indonesia. Immediately following the merger, Bank Mandiri embarked on a comprehensive process of consolidation. Most visibly, this bank closed 194 overlapping branches and reduced our combined workforce from 26,600 to 17,620. Bank Mandiri single brand was rolled out throughout our network and across all of our advertising and promotional activities. One of Bank Mandiris most significant achievements has been the complete replacement of our technology platform. We inherited a total of nine different core banking systems from bank four legacy banks. After an initial investment to immediately consolidate our systems around the strongest inherited platform, we undertook a three-year, US$200 million, program to replace this bank core banking platform with one specifically geared toward consumer banking. Today, Bank Mandiris IT infrastructure provides straight-through processing and a unified interface for customers. This corporate customer base still represents the core of the Indonesia economy. By sector, it is well diversified and particularly active in food and beverage manufacturing, agriculture, construction, chemicals and textiles. Credit approvals and monitoring are subject to a highly structured four eyes approval process, in which credit approval decisions are separated from the marketing activities of our business units. From its founding, Bank Mandiri has worked to create a strong, professional management team operating under internationally recognized principles of corporate governance, control and compliance. The Bank is supervised by a Board of Commissioners appointed by the Ministry of State-Owned Enterprise from respected members of the financial community. The highest level of executive management is the Board of Directors, headed by a President Director. Our Board of Directors includes bankers drawn from the legacy banks as well as independent outside directors. In addition, Bank Mandiri maintains independent Offices of Compliances, Audit and the Corporate Secretary, and is under regular scrutiny from external auditors representing Bank Indonesia and the Supreme Audit Agency (BPK), as well as international auditing firms. AsiaMoney magazine had

recognized our commitment toward GCG principles by awarding Corporate Governance Award for category Best Overall for Corporate Governance in Indonesia and Best for Disclosure and Transparency With assets that have grown to more than Rp 319 trillion today, and more than 21 thousand employees spread among 956 domestic branch offices and 6 overseas branches and representatives Bank Mandiri has committed to delivering excellence in banking services and to provide wideranging financial solutions in investment and sharia products as well as bancassurance for our private and state-owned corporate, commercial, small business and micro customers in addition to our consumer clients. This commitment had been recognized through the top ranking in Banking Service Excellence Award 2007 of Infobank magazine.