Proton Improves Performance with Higher Profits in 3rd Quarter

SHAH ALAM, MALAYASIA, 21 February, 2008 - PROTON Holdings Berhad continued to improve its financial performance, posting a profit before tax of RM11 million for the third quarter ended 31 December 2007.

The Group registered a profit before taxation of RM11 million for the current quarter, an improvement compared to the loss before tax of RM272 million incurred in the corresponding quarter in the last financial year. The positive return is achieved on the back of higher sales volume and lower operating costs.

PROTON Chairman Dato' Mohammed Azlan Hashim said the Group is greatly encouraged by the support of the Malaysian market for its new products, which in turn has generated more revenue of RM 1.45 billion in the 3rd Quarter ended 31 December 2007. This, coupled with better cost management, has contributed positively to the Quarter 3 results. With this second successive quarter of profits, PROTON appears to be on track to show improvement in its annual financial performance for the current financial year ending 31 March 2008.

"Orders for the PERSONA have reached over 30,000 units, while bookings for the SAGA launched last month has exceeded 35,000 units. PROTON's market share in this Quarter 3 ended 31 December 2007 increased to 34.8 per cent compared to 33.1 per cent in the second quarter and 26.5 per cent in the first quarter."

Managing Director Dato' Syed Zainal Abidin Syed Mohamed Tahir said the strong support for the PERSONA has enabled PROTON to chalk up a 7 per cent increase in sales volume of 2,444 to 36,784 units from 34,340 units recorded in the second quarter. This is a significant improvement against the backdrop of reduced Total Industry Volume for the overall passenger car market.

However, for 2008, the Malaysian Automotive Association forecasts passenger car Total Industry Volume to increase by 4.5 per cent in 2008 as opposed to a contraction of 0.7 per cent in 2007. He added that with the brighter outlook for the domestic automotive industry, the SAGA would complement the PERSONA to provide the impetus for a strong order book for PROTON.

Syed Zainal added, with increasing demand for more fuel-efficient and value for money vehicles, the SAGA is set to ride on the wave of higher Total Industry Volume for passenger cars and drive volume growth for PROTON.

On the international front, PROTON has made headway to grow in volume beyond Malaysian shores through landmark deals, like export orders of 30,000 GEN.2 completely built up (CBU) units to Jinhua Youngman Automobile Manfacturing Co Ltd of China and 5,000 units for WAJA to be used as taxis in Iran.

Syed Zainal said the expected impact from export initiatives in China, Iran and Asean countries coupled with a strong domestic order book, driven by the SAGA and PERSONA, will hold the Group in good stead for the final quarter ending 31 March 2008. Additionally, continual cost reduction initiatives and improvement in operational efficiency will also contribute positively to the financial performance of the company.

About PROTON
PROTON, was established in 1983, and is Malaysia's 1st National manufacturer of automobiles. With operations in key market centers from UK and Western Europe to the Middle East, and across South-East Asia and Australasia, PROTON produces cars to suit a range of consumer demands and preferences. The offerings include versatile and reliable four-door family vehicles, two-door hatchbacks for the young-at-heart, luxurious and stylish executive sedans, as well as the world-renowned sports cars from Lotus.

PROTON's inception as a key driver of national development has seen the brand accelerate its learning curve through technology transfer with strategic partnerships and technical collaborations. PROTON cars are now steadily on track to achieving the mission for the future, gearing up to achieve the promise of a marquee which builds cars with passion and soul; cars which are a delight to drive and a pleasure to own.

Source: PROTON

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