Public Offering of Shares and Bonds Issuance of the Company

PT. TUNAS BARU LAMPUNG Tbk AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2010 AND 2009 AND FOR THE SIX MONTHS PERIOD THEN ENDED Continued - 2 -

b. Public Offering of Shares and Bonds Issuance of the Company

On December 31, 1999, the Company obtained the Notice of Effectivity from the Chairman of the Capital Market Supervisory Agency Bapepam [currently the Capital Market and Financial Institutions Supervisory Agency Bapepam-LK] in his letter No. S-2735PM1999 for the Company’s initial public offering of 140,385,000 shares with a par value of Rp 500 per share. Through Letter No. 033BPCSV2006 dated June 1, 2006, the Company filed for the Notice of Listing to the Capital Market and Financial Institutions Supervisory Agency Bapepam-LK in relation with its plan to conduct Limited Public Offering I to Stockholders or Rights Issue, for 3,230,774,400 common shares the “shares” with a par value of Rp 125 per share, with Series I Warrants attached and subscription price of Rp 125 per share. Every holder of 3 shares has the right to purchase 6 new shares, wherein for every 6 new shares, one Series I Warrant is attached, free of charge. The total Series I Warrants of 538,462,400 which have a term of 5 years were issued as incentives to stockholders to purchase one new share at a par value of Rp 125 per share, with exercise price of Rp 125 per share, which can be exercised from January 15, 2007 until July 13, 2011. This Rights Issue I was approved by the stockholders in their Extraordinary Stockholders’ Meeting held on June 29, 2006, which resolutions were documented in Notarial Deed No. 27 of Mrs. Kartuti Suntana Sastraprawira, S.H., notary public in Jakarta. The Company received the Notice of Effectivity from Bapepam-LK through its Decision Letter No. S-790BL2006 dated June 28, 2006 for the Rights Issue I. The total proceeds from the Rights Issue I which amounted to Rp 313,602,356 thousand for 2,508,818,846 shares were received by the Company in July 2006. As of June 30, 2010 , all of the Company’s shares totaling to 4,194,384,493, shares, with a par value of Rp 125 per share, were listed in the Indonesia Stock Exchange. PT. TUNAS BARU LAMPUNG Tbk AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2010 AND 2009 AND FOR THE SIX MONTHS PERIOD THEN ENDED Continued - 3 -

c. Consolidated Subsidiaries