MALAYSIA'S FIRST ISLAMIC DEPOSIT- LINKED HOME FINANCING FACILITY

Kuala Lumpur, 25 October 2007 - Alliance Bank has introduced Malaysia's first Islamic deposit-linked home financing facility - the Alliance i-WISH Home Flexi-i.

Alliance i-WISH Home Flexi-i comprises a home-financing account that is linked to a Mudharabah deposit account. Placement in Mudharabah deposit account work to reduce Principal calculation on the Home Financing account, effectively lowering the account holder's profit rates and shortening the home financing tenure. On a long term basis, home financing account holders will get to own their homes faster.

Commenting on the Alliance i-WISH Home Flexi-i, Alliance Bank Consumer Banking Group Head, Liew Swee Lin, “Alliance i-WISH Home Flexi-i demonstrates Alliance Bank's commitment towards developing best-in-class and innovative Islamic home financing products that is in line with the Government's vision to make Malaysia an Islamic global hub and at the same time, encourages higher home ownership.”

Liew added that Alliance i-WISH Home Flexi-i reflects the Bank's understanding of, and commitment to its customers in terms of offering them products that best match their life stage needs. She said, “Homeownership is a priority with many Malaysians. While many are keen to own their dream homes, we also recognise that different lifestyles and financial considerations come into play as far as home financing packages are concerned.”

“Some want an element of predictability, making it easier for them to plan their finances. Others want a plan that is flexible enough to accommodate their changing financial situation at different stages in life. Alliance i-WISH Home Flexi-i is designed to offer customers predictability and flexibility in a single package. It delivers on our brand promise of making banking personal, in line with our position as a customer-centric, relationship-based financial solutions provider.”

Alliance i-WISH Home Flexi-i account holders have the option to deposit excess payments into their account. As profit rates are calculated daily, savings starts as soon as money is deposited. This will in turn shorten the number of years on the home financing plan. In the event of a circumstance change, account holders can withdraw surplus funds any time, without any charges.

Alliance Bank is confident that i-WISH Home Flexi-i will further boost its loan growth and market share in Mortgage. Growth in Mortgage sales was boosted by adoption of appropriate sales strategies and fast expanding distribution channels. At the same time the Bank has also engaged a robust risk underwriting policy and implemented stringent credit risk process through the centralization of loans underwriting and collection for significant improvements in the health of the Mortgage portfolio. As at September 2007, the bank achieved 16.4% growth in mortgages.

Alliance i-WISH Home Flexi-i will be distributed through the Bank's multi channel distribution including branches and telesales agents.

About Alliance Financial Group

Alliance Financial Group is a dynamic, integrated financial services group offering end-to-end financing solutions through its consumer banking, commercial banking, wholesale banking, Islamic banking, investment banking and stock broking businesses as well as unit trust and asset management by providing products and services that are suited for every customer at every stage of their life.

The Group has five decades of proud history in contributing to the financial community in Malaysia with its innovative and entrepreneurial business spirit. Today, the Group is involved in the provision of financial services through its principal subsidiaries, Alliance Bank Malaysia Berhad, Alliance Investment Bank Berhad and Alliance Investment Management Berhad. It provides easy access throughout the country by serving its broad base of customers via multi-pronged delivery channels which include 77 retail branches, 14 Privilege Banking Centres, 19 Hire Purchase hubs, 25 Business Centres, 12 Investment Bank branches, 8 direct marketing offices and 3 unit trust agent offices located nationwide in a mix of rural and urban areas.

The Group's aspiration is to be Malaysia's premier integrated financial services group delivering the best customer experience and creating long term shareholder value. Strategic alliances, enhanced group synergy, excellent technology and human capital will be the key to creating long term value for all stakeholders.