Bangkok--Aug 26--Aziam Burson-Marsteller Khoom Khao Insurance Public Company Limited today announced that Narai International Insurance Co., Ltd. has acquired 79% of Khoom Khao's shares under a Share Sale and Purchase Agreement signed with Khoom Khao's major shareholders in July 2003. The Share Sale and Purchase Agreement contained two conditions that have been met. The first condition was that Khoom Khao's major shareholders would arrange for other shareholders to also sell their shares so that Narai could initially purchase at least 75% of all issued and paid up Khoom Khao shares. The second condition was that the Department of Insurance approve Narai's purchase of the Khoom Khao shares and the plan for the operation of Khoom Khao after the purchase. The Department of Insurance has given this approval. "The successful acquisition of the Khoom Khao shares and the approval from the Department of Insurance paves the way for the next step in integrating our two companies into a highly competitive, customer-focused organization," said Mr Robert Martin, President of Narai Insurance. "Khoom Khao and Narai are highly complementary companies, and we will now begin to assess both companies in detail to find the best way to leverage our respective strengths to build a solid platform for future growth and make customer service even better." According to Khun Oran Vongsuraphichet, who will be a Senior Vice President in the combined company, the integration of Narai and Khoom Khao will create a solid and progressive operation that will hold the number six market position for motor insurance and the number nine market position for all lines of insurance. "Combined, Khoom Khao and Narai will have 47 branches and service locations in Bangkok and throughout Thailand serving over 300,000 policyholders. We will have over 600 million baht in reserves, which is a tremendous indicator of strength to our customers and the market. Special teams of Khoom Khao and Narai staff will work closely to bring together the best products, practices and systems from both companies so we can take full advantage of the growth opportunities offered by the Thai insurance market," said Khun Oran. Once the companies are integrated, Narai hopes to acquire as many additional shares as possible through a tender offer for the remaining Khoom Khao shares. Khoom Khao Insurance Public Company Limited was established in 1982. It registered on the Stock Exchange of Thailand in 1992 and became a public company in 1994. Khoom Khao has established a solid record of professional service and financial performance. The company is considered a leader in using technology to better serve its customers from 20 offices in Bangkokand major provinces throughout Thailand. Established over 27 years ago, Narai International Insurance is a leading Thai motor insurance company. It's backed by the Liberty Mutual Group, a diversified international financial services group of companies with assets under management of US$ 56 billion. The Liberty Mutual group has an A (Strong) rating from Standard & Poor's and A (Excellent) from A.M. Best in recognition of its financial strength. Narai focuses on delivering quality customer service across its nationwide network. For more information, please contact: Vilai Thammatiwat Assistant Vice President Marketing Department Narai International Insurance Co., Ltd. Tel. 0-2953-1340 Satida Sritunyatorn Media Relations Manager Aziam Burson-Marsteller 0 2252 9871 End.-RK-