Kuala Lumpur, August 22 - Esso Malaysia Berhad today announced the Company's second quarter and half year results for the period ended June 30, 2007:

The Company recorded an after tax profit of RM11 million for second quarter 2007.  This brings profits for the first half of the year to RM28 million, an improvement from the loss of RM79 million recorded in the second half of 2006.  Revenues for the second quarter were RM2.4 billion, bringing first half 2007 revenues to RM4.3 billion.

First half 2007 profits were lower than the RM85 million recorded in the corresponding period in 2006, which benefited from particularly strong margins.

Over the first half of this year, sales to the local market and margins for controlled products remained strong. However, overall profitability was impacted by the high cost of crude feedstock which pressured refining margins.  Nonetheless the positive results demonstrate the value of our integrated business and tight controls over operations through a period of continued price volatility.

Looking forward, the demand for petroleum products in the country is expected to remain strong. However, there are many challenges ahead as margins remain under pressure and competition intense. In this environment the Company remains focused on operational efficiency, cost containment and growing its profitable businesses.