ALL BRANCHES OF MAJOR BANKS TO RECEIVE APPLICATIONS FOR KAPCO SHARES FROM FEBRUARY 21 -Tehsin Khan Iqbal, Secretary Privatisation Commission

Lahore, February 9, 2005

All branches of major banks will receive the applications for Initial Public Offering (IPO) of Kot Adu Power Company (KAPCO) shares from February 21-24 during banking hours. Mr. Tehsin Khan Iqbal Federal Secretary Privatisation Commission stated this while addressing the second road show for KAPCO here today.

He said that KAPCO offering would benefit 316,000 individual Pakistani citizens, which would further raise the number of shareholders in the Stock Markets and would further broaden and strengthen the base of the capital market. Applications could be deposited with copy of computerized NIC in the banks and in case of any problem, help line was being set up to remove the hurdles if faced by the public, which would be publicized through print and electronic media, he added.

Mr. Tehsin Khan Iqbal said that after the public offerings of NBP, OGDC, PIAC, SSGC and PPL, KAPCO would be the sixth offering in line with the government's policy of, 'Privatisation for the People'. He said that through the government's offerings shares worth Rs.17.5 billion were offered to 400,000 citizens and their shares value was increased by Rs.30 billion i.e. shares value appreciated by Rs.28 billion and the dividend received stood at around Rs.2 billion. The IPOs of United Bank Limited, State Life Insurance Company and secondary public offering of OGDC would follow with proper sequencings, he said.

He assured the investors that the matter pertaining to the reduction in CDC fee was being considered at a higher level and a favourable decision was expected in this regard.

Earlier, Mr. Malkom CEO of KAPCO gave an over view of the company's performance and informed that KAPCO was producing 15 % of the energy being used in Pakistan. KAPCO is the leading major energy producing company among the IPPs. WAPDA holds 64 % shares in the company after its privatisation.

The representative of Global Securities Pakistan Limited the Lead Managers for the transaction Mr. Farhan Talib during a presentation to the investors informed that 880,25,000 shares of the company would be offered to the general public and in case of over subscription the similar number of shares would be offered by exercising green-shoe option. 80 %shares were being offered to the resident Pakistanis while 20 % of the same would be available for non-resident Pakistanis and10 % shares of the offer would be given to the KAPCO employees, he said. The provisional trading of KAPCO will commence from February 14, 2005 in the Stock market.

The offer price per share has been fixed at Rs.30/- per share and applications can be submitted for 500 shares only, requiring an investment of Rs.15,000/- per application. Upto 176,050,000 (20%) shares of KAPCO (including green-shoe option) will be offered to the general public resulting in potential proceeds of up to Rs.5.28 billion. Subscription will remain open for four consecutive days i.e. from Monday, February 21, 2005 to Thursday, February 24, 2005 during banking hours. Privatisation Commission is holding road shows and marketing presentations in a number of cities such as Quetta, Peshawar, Multan, Hyderabad and other  cities with the assistance of the respective Chambers of Commerce & Industries of these cities for the information and benefit of the general public. The public would also be informed of the investment opportunity through the press and electronic media campaigns. A large number of individuals, members of the stock exchange, MD LSE Mr. Asim Zafar and others attended the road show.