Acquisition, not merger

We thank you for publishing our press release entitled PT Prudential BancBali Life Assurance Acquisition of PT Asuransi Jiwa Allstate Completed on July 3, 2001.

However I regret to highlight that the headline of your article on PT Prudential BancBali (PBBL) which reads Insurance merger approved is incorrect. It should have been titled "Insurance Acquisition Approved." From a legal standpoint the latter is completely different from a merger situation.

As you might know, a merger is the process of joining two or more organizations or businesses into one. While an acquisition is the process of buying a company with the intention to make it grow and expand the current business. In this case PBBL had acquired PT Asuransi Jiwa Allstate (AJA) and as of July 2 2001, PBBL is effectively the owner of AJA.

The publication of this letter would help clear any queries or doubts from our valued customers both from PBBL, AJA and the readers at large.

NINI SUMOHANDOYO

Vice President

Corporate Marketing & Communications

PT Prudential BancBali Life Assurance

Note: Thank you for your correction. We apologize for the error.

-- Editor