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118 2007 Annual Report PT Bank Mandiri Tbk. Strategic Business Unit Micro and Retail Banking We currently provide 27 Mandiri Prioritas Branches and 30 Priority Lounges within regular branches to gain access to funding from high-end customers. In the coming year, we will provide an additional 6 Mandiri Prioritas Branches and 12 Priority Lounges to further penetrate this vital customer segment. The number of customer transactions exceeded 565 million in 2007, putting Bank Mandiri in the forefront of transactional banking in Indonesia. Network expansion in 2008, through an additional 70 branches, 300 Micro Units, 6 SBDCs , 75 SBBs, 6 Mandiri Prioritas Branches and 12 Priority Lounge will encourage the growth of our micro and retail business in both loans and deposits. In 2007, Bank Mandiri was awarded the 1st rank in Customer Service Excellence from the annual MRI Infobank survey, moving up from 2nd place in 2006, registering significant improvements across the range of services delivered in all branches. Bank Mandiri has also become the best transactional bank in Indonesia, with our volume of transactions exceeded 565 million in 2007. Of these transactions, 400 million were conducted through our electronic channels ATMs, EDCs, SMS and Internet banking, while an additional 165 million transactions were complete in- branch. The success of our Debit Mandiri program, launched in early 2007, has resulted in Bank Mandiri becoming the largest VISA Debit Bank by both value and volume in Indonesia. Our improvement was spurred, in part, by the growth in our retail customer base from 5.2 million in 2006 to 6.4 million by the end of 2007. It also resulted in an increase in our Fee Based Income of 20.3 to a total Rp1.54 trillion. Bank Mandiri also received an award from Indonesia’s Minister of Finance as the Largest and the Best ORI Distributor in 2007. During the year, Bank Mandiri distributed Rp2.23 trillion in ORI Obligasi Retail Indonesia through 618 branches. Network Infrastructure Development To support our efforts in loan distribution and fund raising, we serve our customers through 10 Regional Offices with 956 branches an increase from 924 in 2006. Our planning for 2008 calls for the opening of 70 additional branches. This physical distribution network has allowed us to achieve a funding base of Rp139 trillion and fee based income of Rp1.54 trillion. Our shift to low cost transaction channels has entailed a multi-year investment in new ATMs, which now total 3,186 machines handling more than 30 million transactions per month. We also provide a number of other facilities to enhance the convenience of our customers’ transactions, including Non-cash ATMs, Cash Deposit Machines CDMs Self Service Passbook Printers. We will continue to add to these facilities in the coming year with 1,000 new ATMs, CDMs, drive-thru and mobile ATMs. Retail transactions through our 7 million Debit Mandiri cards have become easier as well, as the number of installed EDCs Electronic Data Capture has increased from 17,661 units last year to 23,690 units in 2007. Our of micro and retail loan expansion will be facilitated in 2008 as we expect to add 300 new MBUs, bringing our year-end 2008 total to 600 MBUs, while also adding 6 SBDC Small Business District Centers and establishing 75 SBB Small Business Branches in areas with high potential for developing retail loans.