PLUS ... July 09

PLUS EXPRESSWAYS PAID FIRST PORTION OF 2009 COMPENSATION OF RM92M

The Government paid PLUS EXPRESSWAYS the first portion of 2009's compensation amounting to RM92m to PLUS EXPRESSWAYS for not allowing the scheduled increase in toll rates, said PLUS MD - NOORIZAH ABDUL HAMID.

COMPENSATION FOR 2009
She said the amount accounted for 50% of the estimated full-year compensation, based on PLUS' projected traffic volume. " .... The actual compensation for this year (2009) will be determined next year (2010). The Government will look at the actual traffic volume .... " she told reporters after the Company's AGM on Jun 4, 2009.

REVISED CONCESSION
According to a revised Concession Agreement in Jan 2002, PLUS is allowed to raise its toll rates by 10% once every three years. It last increased toll rates in 2005.

A scheduled increase was scheduled for Jan 2008 but the Government did not allow it due to high inflation then. In 2008, the Government paid RM185m in compensation to PLUS.

LOWER TRAFFIC THROUGHPUT FOR 2009
NOORIZAH said the current economic downturn had caused a decrease in traffic volume at some of its highways, and that 2009 would be a challenging year for the Company.

The Company experienced traffic growth of 3.2% for the Jan to Apr 2009, but the Company projected a full-year growth of merely 1% to 2%, NOORIZAH said. This was in contrast to the 5.2% and 7.7% growth registered in 2008 and 2007, respectively.

" .... Our first quarter and fourth quarter are traditionally strong. But we can't sustain the 3.2% growth (in the first four months) due to economic downturn and rising oil prices ...." she said.

DIVIDEND COMMITMENT
However, the Company is committed to paying dividend of at least 16 sen per share in 2009 to shareholders, she added.