Multistrada Arah Sarana Tbk.

Brief of Company Background

Established in 1991, tire manufacturer PT. Multi Strada Arahsarana (MSA) began production in 1994 with technical assistance initially provided by Pirelli (from 1991-1994), followed by Continental (1994-2000). The global tire manufactureing industry is facing relocation due to the shutting down of older tire plants in Europe and United States. This relocation provides a good opportunity for the Indonesian tire manufacturing industry to broaden its offshore market share MSA`s products have fulfilled the certification requirements for the Indonesian, United States, European (including UK) and the Middle East Countries. These certifications confirmed MSA`s high quality tires and its ability to sell such tires in the international arena. This year MSA has launched its ""Achilles"" Brand, a Ultra High Performance Tire, which provides a higher margin, to enchance its product range. Achilles will also be used by MSA to spearhead its effort to capture a higher market share in the domestic market. By end of 2004, MSA had restructured its Rp 171 Billion and USD 270 Million loans in principal outstandings. The restructuring, which included significant debt to equity conversation and haircut, leaves MSA with a very sustainable debt balance of USD 46 Million. The term of the remaining loan are also very favorable to MSA`s cash flows going forward. The Company booked a net profit decline by at IDR59.719 billion in 2005 versus IDR2.015 trillion in 2004. The net profit decrease was caused mainly by the extra ordinary post which decreased from IDR2.413 trillion to IDR59.719 billion.

Shareholder List

Management