Settlement Mandatory Convertible Bond MCB PT Garuda Indonesia Persero continued

PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT 31 DECEMBER 2010, 2009 AND 2008 Expressed in millions of Rupiah, unless otherwise stated Appendix 5177 60. SUBSEQUENT EVENTS continued a. Limited Public Offering continued The Republic of Indonesia, as the Bank’s controlling shareholder, did not exercise all of its pre- emptive rights portion owned by the Republic of Indonesia of 1,558,152,476 shares, which subsequently sold through private placement. The pre-emptive rights were traded during the period of 14 – 21 February 2011 with the execution price of Rp5,000 full amount per share. Through this LPO, the Bank received funds of Rp 11,684,192,955,000 full amount before deducting LPO expenses. After this LPO, the Bank’s shareholders composition is as follows: Number of Nominal Value Per Share Share Value Percentage of Shares full amount full amount Ownership Issued and Fully Paid-in Capital Republic of Indonesia - Dwiwarna Share A Series 1 500 500 0.00 - Common Shares B Series 13,999,999,999 500 6,999,999,999,500 60.00 Public less than 5 each - Common Shares B Series 9,333,333,333 500 4,666,666,666,500 40.00 Total Issued and Fully Paid-in Capital 23,333,333,333 500 11,666,666,666,500 100.00 b. Settlement of Mandatory Convertible Bond MCB of PT Garuda Indonesia Persero On 11 February 2011, IPO of Garuda has been completed and Bank Mandiri’s investment in Garuda’s shares totaling 1.9 billion shares after stock split has been divested at the price of Rp750 full amount per share Note 57e. Bank Mandiri has received the proceeds from the sale of Garuda shares after net-off IPO expenses in totalling Rp1,400,923, on 10 February 2011 and recognised it as other operating income in the February 2011’s consolidated statement of income. The Bank recorded its temporary investments in Garuda shares and related selling in accordance with Bank Indonesia PBI No. 72PBI2005 dated 20 January 2005 regarding Asset Quality Rating for Commercial Banks. In relation to Garuda’s IPO, a Subsidiary , PT Mandiri Sekuritas, entered into cooperation with several securities companies based on underwriting agreement to underwrite issuance of shares of Garuda. Based on the underwriting agreement, the Subsidiary and several securities companies are fully committed to buy the remaining shares which are not purchased by the investors in accordance with their respective underwriting portion. As at 29 March 2011, the remaining shares of Garuda owned by the Subsidiary was amounted to Rp 219,615 for 414,367,500 shares. c. Additional capital investment in Bank Syariah Mandiri On 18 March 2011, Bank has injected additional investment in a Subsidiary, Bank Syariah Mandiri in form of cash amounted to Rp200,000,000,000 full amount. The Bank has obtained approvals for this additional investment from Bank Indonesia through it’s letter dated 31 January 2011 and the Shareholders’ Circular Resolution Keputusan Pemegang Saham Di Luar Rapat dated 28 February 2011.