Bangkok--18 Jun--TMB TMB Bank Public Company Limited stated today that the non-payment of interest of its US$200 million Hybrid Tier 1 in July 2007, a sum of THB 270 million, is in accordance with the securities terms and conditions. The Hybrid Tier 1 bond is a quasi-equity instrument which carries an interest rate of 7.75%. The terms and conditions of the securities stated that if TMB expects to record any losses in consolidated financial statements of a financial period, it will not be obliged to make an interest payment. In such a case, no interest will be due or payable on the interest payment date. Such non-payment will not constitute a default by TMB for any purposes. The Bank had intended to pay the payment and has had reserved funds for such a purpose. However, based on consultation with the Bank of Thailand, approval was not granted for the payment. TMB abides by BoT’s decision. The Bank has a capital adequacy ratio of 10.6% as at the end of March 2007, which is above the Bank of Thailand’s minimum requirements of 8.5%. Mr. Subhak Siwaraksa, President and CEO of the Bank, added that “while such non-payment is regrettable, the focus for TMB in the near future is to execute its plans to improve capital adequacy level and seek final endorsement of such a plan from its two principal shareholders.”