KUALA LUMPUR, February 18 - Esso Malaysia Berhad today announced the Company's fourth quarter and full year results for the year ended December 31, 2008 as follows:

The Company recorded an after tax loss of RM327 million in the fourth quarter, compared to a profit of RM14 million in the same period in 2007.  For the full year of 2008 the Company recorded an after tax loss of RM251 million compared to a profit of RM57 million in the prior year.

Revenues for the quarter were RM1.8 billion, RM1.1 billion lower compared to the RM2.9 billion recorded in the fourth quarter of 2007 mainly due to lower product prices. However, the full year revenues of RM11.7 billion, were 20% higher than the RM9.7 billion recorded in 2007.

Fourth quarter and full year results were adversely impacted by inventory holding losses due to the steep decline in crude and product prices in the second half of 2008. Inventory losses in the fourth quarter were RM288 million and for the full year were RM269 million. Excluding these effects, margins had improved over 2007.The Company continued to grow local market sales and opened ten new service stations. Overall operating performance continued to strengthen with outstanding safety performance and efficiency gains.

Business Outlook

The outlook for the industry remains challenging in 2009 especially in view of extreme price volatility and growing global economic uncertainty. In this environment our strategy remains focused on product and service quality, flawless operations and cost control. At the same time Company will continue to look for ways to sustain its competitive position while remaining focused on operational efficiency.

Dividends for Financial Year 2008

The Board proposes to maintain the Company dividend for the year ended December 31, 2008 of 12 sen less Malaysian income tax at 25% per ordinary stock unit.  This matches the dividend for the 2007 financial year.