Jakarta, 15 October 2004- Further to the distribution cooperation signed earlier this year between PT Gajah Tunggal Tbk (GT) and Michelin, tire customers in the major cities throughout Indonesia will benefit from a new concept store called "Tire Zone" that provides a range of world class tires includes GT Radial, Michelin and BFGoodrich to suit their needs along with the right level of services for their cars.

Jointly with Michelin, this Tire Zone represents GT's new thrust into the tire retail market in Indonesia. The products' range and brands carried within Tire Zone are targeted to suit different driving styles, vehicles and budgets. To differentiate itself in the market, Tire Zone shops will run regular consumer promotions including cross-industry promotions for their products, like the current campaign for BFGoodrich tires, in partnership with Telkomsel. During the campaign, for every 2 BFGoodrich tires purchased during the promotion period, customers will receive an "Ace Card" calling card to help them keep in touch with loved ones no matter where they are in the country, and for every 4 Michelin tires purchased will receive a "Travel Guide Check and Drive". While for GT Radial tires, customers will receive exclusive promotion gifts. The first 6 Tire Zone stores were launched today in Jakarta, Semarang, Solo, Surabaya and Denpasar and are located at convenient locations in the respective cities.

The Company is confident that this marketing strategy will not only enhances its presence and position as the Country's largest tire manufacturer and exporter but also will help its partner Michelin to firmly secure its position in the local tire market. Total tire sales of GT is expected to reach USD 350 million this year with around 50% for the export markets.