MEDIA STATEMENT

PROTON Holdings Bhd (133533-A) Centre of Excellence Complex KM33.8 Westbound Shah Alam Expressway, 47600 Subang Jaya, Selangor Darul Ehsan, Malaysia T (+603) 8026 9999 F (+603) 8026 9266

20 January 2014 With the announcement of the 2014 National Automotive Policy (NAP), PROTON Holdings Berhad (PROTON) would like to reaffirm our commitment and support towards the Governments initiatives. The objective of the NAP, which seeks to significantly contribute to the overall growth of the Malaysian automotive industry and optimize its evident potential, is in line with PROTONs shared vision for the industry. As the only full-fledged car manufacturer in the region, PROTON has always given its full dedication in meeting its role to serve the nation, especially in manifesting the objectives of the NAP. Ultimately it is about giving back to the nation and the society. We understand the need to move forward and progress, but at the same time, it is about meeting the demands of our greatest stakeholders, i.e. the industry, consumers and the nation as a whole. A key initiative that PROTON has always supported is to provide consumers with affordable mobility solutions, with enhanced safety values. Affordability should not come at the price of safety and quality and; our recent launches of the SV models are testament to this. In line with the Government's aspirations to reduce car prices to ease the burden of the consumer, the recently launched Saga SV (MT), which is priced at RM33, 876, is RM5,000 less than the Saga FLX (MT). In fact, Saga SV is the most affordable B-segment sedan in Southeast Asian region. Similarly, the Persona SV 1.6L is priced below RM45, 000 and is also the most affordable C-segment sedan in the region. One fact that should not be ignored is that even with such affordable pricing, we have enhanced the values of our products, through its safety features and level of quality. The Saga SV is rated 3-star by ASEAN New Car Assessment Program (NCAP). Meanwhile, the Persona SV now comes with additional airbags, rear brake discs and ABS/EBD features. PROTON's latest models, the Suprima S and Prev all meet international safety standards. The cars are equipped with optimal safety features, and received 5-star Australasian New Car Assessment Program (ANCAP) rating. In order to obtain 5-Star rating - the highest award given by ANCAP, the cars were required to achieve the highest internationally recognized standards in all of its test categories. Our recent achievements represent the benchmark we have set for the standards and quality that PROTON aims to deliver to its customers.

As the National car manufacturer, PROTON holds a strategic position to spearhead the industrialization of the automotive industry in Malaysia, with the aim of ensuring its growth and sustainability. The automotive industry is a huge sector within the economy as it provides a significant and growing employment market. In that regards, PROTON is instrumental in the realm of job creation as we have continuously created work opportunities within the entire automotive ecosystem, from the upstream to the downstream. This includes R&D, parts development, assembly, vehicle inspection, sales, retail and after-sales, and many more. Of course in a larger context we do not just aim to provide employment opportunities, because as we aspire to be an automotive hub, a strong and competent workforce for the industry is as vital. This is in line with NAP's initiatives, which is expected to create 150,000 employment opportunities by 2020 to support the increase in demand by OEMs. To this effect, the International College for Automotive (ICAM) which is part of the DRB-HICOM Group has a great role to play in the new NAP, by developing competent resources to support the entire automotive eco-system. ICAM is the only learning automotive institution in the region that provides comprehensive automotive training that covers all areas of the automotive industry. Ultimately, this ensures high levels of competency and skills of the workforce within the industry that could enhance productivity and quality, and thus contribute to make us globally competitive. As we look at expanding opportunities to grow abroad, PROTON will continuously develop and produce products with features that meet international standards and requirements. Nevertheless, in order to penetrate the export market, PROTON needs to execute its strategies in stages through direct CBU exports and CKD programmes at selected countries. As practiced by other OEMs, PROTON will bring the local vendors to join us and benefit from our export programme. This extensive programme will contribute to balance our trade with other countries. PROTON believes that the Energy Efficient Vehichle (EEV) is a good criterion as a measure and to this extent PROTON has been investing in research and development activities involving the development of advanced powertrain and the new engine family as well as hybrid and other alternative propulsion system. Investment towards research and development activities plays a vital role in creating a full breadth of local industry talents and PROTON aims at developing world class products; and our local grown in-house capabilities. PROTON is committed towards progress and within the current automotive climate, this means looking into EEV. We acknowledge that there is significant potential to improve energy efficiency for vehicles using alternative powertrains. However, we also understand that the requirements in achieving all these go beyond engine adaptation alone, thus will require time for progression. While EEV can be limited to alternative propulsion systems as a start, the requirements must also incorporate other criteria such as crashworthiness and safety standards, advanced material for lightweight solutions, adoption of materials complying to 3R standards (recycle, reuse, recovery). At this juncture, PROTON is working diligently at aligning its action plans towards augmenting its position in the Malaysian automotive market. New models are being developed both through own-platform programmes and collaborative arrangements. Our partnership with HONDA Japan
PROTON Holdings Bhd (133533-A), Centre of Excellence Complex, KM33.8 Westbound Shah Alam Expressway, 47600 Subang Jaya, Selangor Darul Ehsan, Malaysia

is the testament to that. Quality management processes and operating procedures are being constantly reviewed to enable optimal outcome of all efforts and initiatives. Business partners i.e. local vendors, dealers, financial institutions and other service providers are more involved in achieving better results. We are now moving in full gear to optimise decades of experience to enhance our performance and standing. An enriched automotive industry, as envisioned by the NAP will in fact stimulate PROTONs transformation plan and future growth as we continue to provide products that are safe, high quality, and value for money.

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About PROTON PROTON, established in 1983, is a wholly-owned subsidiary of DRB-HICOM Berhad and Malaysia's largest manufacturer of automobiles, and the only full-fledged OEM car manufacturer in South-East Asia. With operations from the UK to the Middle East, and across South-East Asia and Australasia, PROTON produces cars to suit a range of consumer demands and preferences. Its offerings include versatile and reliable four-door family vehicles such as the Saga and Persona, the dynamic Suprima S hatchback, and Satria Neo three-door hatchback for the young-at-heart, stylish executive sedans such as the Prev and Inspira, the spacious and affordable multi-purpose vehicle, the Exora, the dynamic hatchback the Suprima S, as well as world-renowned sports cars from LOTUS. Most importantly, PROTON models are developed with LOTUS Engineering, offering customers superior ride and handling experience in every drive. PROTONs 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. By listening to the needs of customers, PROTON cars are now steadily on track to achieve the mission for the future, with PROTON set to become a marque which builds quality and safe cars with passion and soul; cars that are a delight to drive - and a pleasure to own. For further information please contact: Group Communications Division, PROTON Holdings Berhad Nur Balkish Hood at 012-377 3626 / tel: 03-8026 9691 / balkish@proton.com Yani Fadzil at hp: 012-212 8977 / tel: 03-8026 9683 / haryanm@proton.com Syazwan Rahimy at hp: 017-6704232 / tel 03-8026 9670 / syazwanrahimy@gmail.com Rohemy Rosslan at hp: 012-351 2729 / tel: 03-8026 9697 / rohemyr@proton.com
PROTON Holdings Bhd (133533-A), Centre of Excellence Complex, KM33.8 Westbound Shah Alam Expressway, 47600 Subang Jaya, Selangor Darul Ehsan, Malaysia