PC PLANS ROAD SHOWS FOR SECONDARY PUBLIC OFFERING OF PIA SHARES

Islamabad, May 26, 2004

The Privatisation Commission has planned a series of Road Shows / marketing presentations to inform the investors of the opportunity to invest in shares of the national flag carrier, Pakistan International Airlines Corporation. The first of the road shows will be held in Lahore on May 31, 2004. It will be followed by a Road Show in Islamabad on June 01, 2004 while the third and final Road Show will be held in Karachi on June 04, 2004. The Road Shows will be participated by Dr. Abdul Hafeez Shaikh Federal Minister for Privatisation & Investment, PIAC Management, Members PC Board, representatives of Stock Exchanges, Brokerage Houses, Chambers of Commerce and Industries and the general public.

The Road Shows will be part of an extensive marketing campaign, which the Privatisation Commission has decided to launch for the Offer for Sale of up  to 10% (115 million) shares of PIAC by the government. The offer price has been fixed at Rs.20/- per share and applications can be made for 500 shares or multiples thereof through the authorized Banks. The minimum amount of  investment would be Rs.10,000/- for buying 500 shares and preference would be given to small investors as per the Government's policy to benefit the common man.

Investors applying for shares for deposit in CDC accounts will not be required to pay any transfer fee. However, investors applying for physical shares through Bankers to offer will have to pay additional 15 Paisa per  share applied for. Applications forms will be available in the first week of June 2004 from authorized banks. Forms will also be available at the websites of the Privatisation Commission, lead manager to the offer and PIAC from May 28, 2004 and in the newspapers of June 06, 2004.

Over the period FY1999-2003, PIAC has demonstrated remarkable financial performance, registering significant growth in sales, profitability and cash flows. Despite the global recession in the aviation industry, PIAC has managed to be one of the few profitable airlines in the world.