Acquisition, not merger

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