Labuan, 21 June 2001 - The inaugural listing on Labuan International Financial Exchange (LFX) took place on 20 June 2001 with the secondary listing of a USD250 million bond issue by 1st Silicon (Labuan) Inc.

This bond is in the form of a floating rate secured note which had its primary listing on the Luxembourg Stock Exchange on 19 June 2001.

1st Silicon(Labuan) is a subsidiary of 1st Silicon (Malaysia) Sdn Bhd which operates a wafer foundry in Kuching Sarawak, supplying to semiconductor companies. The listing sponsor for the bond issue on LFX is K & N Kenanga Holdings Bhd.

LFX Chairman Dato' Mohd Azlan Hashim said the inaugural listing capitalises on the capability of LFX to cater for the listing of a wide variety of multicurrency instruments.

LFX offers unlimited investment opportunities not only for Malaysian companies with international operations but also for international companies seeking an efficient, cost effective access to capital.

LFX has been extablished with a flexible regulatory framework and sound infrastructure to make it practical and convenient for companies to fund their operations by listing their instruments on the exchange.

"We certainly look forward to more companies undertaking listings on the LFX to take advantage of the various benefits offered by LFX" he said.

The Director- General of Labuan Offshore Financial Services Authority Noorazman A.Aziz said the listing would provide the impetus to widen the use of non-traditional instruments in the Labuan International Offshore Financial Centre (IOFC).

"There is tremendous capability for the innovative structuring of offshore financial instruments demonstrated by the various entities domiciled in the Labuan IOFC," Norazman said.

"It is certainly time for investors to examine the many strategic offshore financing opportunities offered by Labuan IOFC and LFX, and to participate in them" he said.

Megat Mizan Nicholas Denny, Vice President - Business Development of K & N Kenanga, said the listing is a significant development for both LFX and 1st Silicon (Labuan).

"The secondary listing at LFX by a prominent company such as 1st Silicon will enhance awareness of LFX as a credible, progressive Exchange and 1st Silicon as a forward looking, innovative company in meeting its capital generation requirements" he said.

As an international offshore financial exchange, LFX facilitates the listing of a wide range of multicurrency instruments including equities, investment funds, debt instruments, insurance related instruments and other categories of instruments as defined by the requirements of issuers and investors.

Further details on LFX are available at www.lfx.com.my.