Primary Collateralised Loan Obligation Transaction

General Announcement Reference No RP-060905-65252

Company Name	:	RELIANCE PACIFIC BERHAD
Stock Name	:	RPB
Date Announced	:	10/10/2006

Type	:	Announcement
Subject	:	Primary Collateralised Loan Obligation Transaction

Contents :

The Board of Directors of RPB is pleased to announce that it has secured a fixed rate term loan of RM40 Million ("the Facility") under a Primary Collateralised Loan Obligations ("CLO") Programme arranged by Alliance Investment Bank Berhad (formerly known as Alliance Merchant Bank Berhad). The issuer under the CLO Programme is Idaman Capital Berhad. The CLO Programme is scheduled to be completed on 10 October 2006 when the Facility becomes unconditional and available for drawdown.

The Facilty is for a period of five(5) years and is granted to RPB on an unsecured basis. The purpose of the Facilty is for the working capital and general corporate purposes of RPB.

The Facility will not have any material effect on the net tangible assets, the earnings and the share capital of the RPB Group for the financial year ending 31 March 2007.

None of the directors and/or the substantial shareholders of RPB have any interest, direct or indirect in the Facilty.