KERTIH, September 16, 2006 - The OPTIMAL Group of Companies (OPTIMAL), a joint venture involving PETRONAS, Malaysia's National Petroleum Corporation, and Union Carbide Corporation, a wholly owned subsidiary of The Dow Chemical Company, is set to replant 1,500 mangrove seedlings along the Kertih River, marking the achievement of a significant milestone in Phase 1 of the ecoCare Program jointly carried out with the Malaysian Nature Society (MNS). The long term program which was initiated in October last year is focused on conservation and nature education involving diverse stakeholders in Kertih.

The mangrove replanting initiative was launched today by Yang Berhormat Dato' Mohamed bin Awang Tera, Chairman of the State's Industrial Development and Tourism Committee representing the Menteri Besar of Terengganu YAB Dato' Seri Idris Jusoh. Also present were YBhg Dato' Seri Dr Salleh Mohd Nor, Chairman of the ecoCare Project Steering Committee and Immediate Past President of MNS; YM Dato' Tengku Mahamad Tengku Mahamut, Chief Executive Officer of OPTIMAL and also Deputy Chairman of the ecoCare Project Steering Committee; YBhg Dato' Dr Hashim Abd Wahab, Vice President, MNS and Mr Hor Wai Kong, General Manager, Finance & Accounts for OPTIMAL.

Under Phase 1 of the ecoCare Program, OPTIMAL employees together with local communities from primarily three villages namely Kampung Gelugor, Kampung Tengah and Kampung Telaga Papan took part in a volunteer program to set-up a mangrove mini nursery along the Kertih River . The volunteer program which began in April this year succeeded in gathering more than 1,500 mangrove seedlings comprising of mainly the Rhizophora mucronata, Avicennia and Bruguiera mangrove species which exist naturally within the ecosystem.

The mangrove replanting effort aims to restore the mangrove and surrounding coastal vegetation along the Kertih River to its original state by selecting and replanting mangrove species according to niches or by proper zone segmentation which is also known as 'zonation'. The effort will begin with replanting of the 1,500 mangrove seedlings by end of this year and continued until all degraded patches which have been identified 15km along the Kertih River have been rehabilitated.

Supporting activities will also be implemented later as part of Phase 1 of the ecoCare program to promote long-term awareness and sustained conservation of the ecosystem. Activities planned include establishment of environmental education programmes for the local community as well as the formation of a Community River Watch Group to monitor water quality as well as other living organisms and plants along the integrated river basin.

In his speech, YM Dato' Tengku Mahamad said, "OPTIMAL is totally committed towards the success of the Mangrove Rehabilitation Program. Together with MNS, we are working towards a long-term plan that will ensure that the habitat along the Kertih River and its vicinity is constantly monitored and maintained.

"Malaysia has one of the world's oldest rainforest and through the ecoCare program, we are now beginning to discover a wide range of existing flora and fauna in Kertih itself. Ongoing expeditions have successfully collated valuable data on the ecosystem and this information will be used as a platform for our environmental conservation and education efforts," he added.

The ecoCare program will set the pace for conservation efforts in the east coast of Peninsula Malaysia . As such, community participation involving schools, local institutions of higher learning and the local community is integral to the success of the program, said YBhg Dato' Seri Dr Salleh. "The involvement of local villagers would instill not only awareness but also ownership of the mangroves.

"Kertih has a unique landscape shaped by a combination of mangroves, sea fronting beach forests and coastal hill forests with some residual emerging forest trees still intact. The distinct geographic composition suggests the existence of a wide range of flora and fauna within the ecosystem which must be conserved and protected. I'm confident that through the ecoCare program, Kertih would be able to showcase its natural heritage and create a generation which will appreciate and protect their legacy," added YBhg Dato' Seri Dr Salleh.

The ecoCare project will enter into Phase 2 by end 2006 where it will focus on the implementation of environmental education programmes and curriculum centered at an Environment Education Centre (EEC) in Kertih. The Centre, which is the first of its kind in the East Coast of Malaysia, provides an integrated environmental education avenue that aims to promote awareness, understanding and care for nature amongst schoolchildren, teachers and the local community through displays and sharing of information relating to the Kertih River ecosystem and Kertih's unique coastal terrain and biodiversity. It will also include the involvement of OPTIMAL employees in setting up School Nature Clubs (KPA) in Terengganu which would be linked to the EEC.

The two-year duration for Phase 2 will also see the implementation of training and educational activities such as mangrove ecology, nature walk, forest ecology studies, bird watching, camping and stream ecology studies. A grant of approximately RM3.0 million has been allocated for the ecoCare program.

"The implementation of the ecoCare program is also in line with the Corporate Social Responsibility policies and practices of both our shareholders, PETRONAS and Dow. In this regard, the establishment of the EEC complements and supports the strong education and human capability development focus of PETRONAS in Kertih," concluded YM Dato' Tengku Mahamad.

For more information, please contact Nirmala Devi, Manager, Public Affairs, OPTIMAL Group of Companies, 03-2783 6868.

About OPTIMAL Group of Companies

The OPTIMAL Group of Companies (OPTIMAL) is a joint venture involving PETRONAS, Malaysia 's National Petroleum Corporation, and Union Carbide Corporation, a wholly owned subsidiary of The Dow Chemical Company. The Company serves key markets in the Asia Pacific region from its world-scale petrochemical facility located in Kertih, Terengganu. Established in July 1998, with a total investment of RM5.3 billion (USD1.4 billion), OPTIMAL comprises of three companies namely OPTIMAL OLEFINS (MALAYSIA) SDN BHD, OPTIMAL GLYCOLS (MALAYSIA) SDN BHD and OPTIMAL CHEMICALS (MALAYSIA) SDN BHD.

OPTIMAL manufacturers and supplies more than 15 different petrochemical product families and approximately 75 products ranging from basic feedstock of Ethylene and Propylene, to intermediates like Ethylene Oxide, Ethylene Glycol, Butanol and various Ethylene Oxide derivatives. The products also include basic and high performance chemicals.

Website: www.optimal.com.my

About The Malaysian Nature Society

The Malaysian Nature Society (MNS), established in 1940, is Malaysia 's largest and oldest Non-Governmental Organization which strives towards the protection of Malaysia 's natural heritage.

The main role of MNS, is conservation, whereby research into key habitats are done with a team of full-time scientific officers and volunteer scientists. A membership-based organization, MNS is run by elected members on a voluntary, non-profit basis. The society organizes hikes, talks, slide shows, camping trips and other wholesome family activities. The Kuala Selangor Nature Park as well as the Nature Education Centre at the Forest Research Institute of Malaysia, Boh Tea Estate in the Cameron Highlands and Rimba Ilmu Environmental Education Program at Universiti Malaya, are also run by MNS. A total of 291 secondary and primary schools throughout the country are associated with MNS through the Kelab Pencinta Alam (School Nature Clubs).

The society's publications include the Malaysian Naturalist, a magazine written for the educated lay reader; Tapir, a newsletter for schools; the Malayan Nature Journal, a scientific periodical; a website and Nature Heritage books.

Website: www.mns.org.my

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