Kuala Lumpur, 11 January 2010, UEM Land Holdings Berhad (“ULHB”) today announced a proposed rights issue (“Rights Shares”) of new ordinary shares of ULHB (“ULHB Shares”) to raise gross proceeds of approximately RM970 million (“Proposed Rights Issue”).

The proceeds raised is intended to be used for the repayment of borrowings, payment for the acquisition of land in Cyberjaya and for property development and working capital purposes.

The issue price for the Rights Shares is expected to be fixed at a discount of at least 30% to the theoretical-ex-rights price of ULHB Shares immediately before the price fixing date which will be determined and announced in due course.

“The Proposed Rights Issue will allow us to raise funds to repay our borrowings and reduce our interest cost which would lead to a more robust capital structure. Further, the inflow of capital for our property development activities will accelerate the realisation of value from our Nusajaya land bank and spur ULHB’s future earnings growth,” said Wan Abdullah Wan Ibrahim, Managing Director & Chief Executive Officer of ULHB.

Wan Abdullah added, “We have a number of property projects in the pipeline which are due to be launched in the near and medium term which we are confident will be both exciting and well received by the market. We are also optimistic that for 2010, the overall property market in Malaysia will outperform 2009 – particularly for Johor where we expect a lot of excitement arising from the successful implementation of Iskandar Malaysia’s initiatives and the spillover demand from Singapore with the recovery of Singapore’s property market and the opening of the Marina Bay Sands and Resorts World Sentosa”.

UEM Group Berhad (“UEMG”), the major shareholder of ULHB, in line with its confidence in and continuous support of ULHB, has provided its irrevocable written undertaking to subscribe for its entitlement in full under the Proposed Rights Issue. As at 31 December 2009, UEMG holds directly 1,873,053,712 ULHB Shares, representing 77.14% equity interest in ULHB. The remaining portion of Rights Shares is expected to be underwritten.

Subject to all approvals being obtained, the Proposed Rights Issue is expected to be completed by 30 April 2010.

This press release and further information on the Proposed Rights Issue can be found in ULHB’s announcement to Bursa Malaysia at www.bursamalaysia.com.