NEWS RELEASE

TEMASEK DEFERS SALE OF ELECTRICITY GENERATING COMPANIES

       Singapore, 20 November 02 - Temasek Holdings (“Temasek”) has decided to defer the sale of its three power generation companies (“gencos”) till 2004 at the earliest.

2      Temasek had earlier planned to launch the sale of its three gencos – Tuas Power, Senoko Power and Power Seraya - once the electricity industry restructuring process is completed and the new electricity market is functioning smoothly. The electricity industry restructuring process, led by the Energy Market Authority, is now nearing completion. However, the power sectors in several countries, notably in the US, are still faced with weak market sentiments. Some US power companies are also selling off overseas assets and repatriating their interests.

3      These market uncertainties are likely to persist in 2003. The energy market would also take time to be tested robustly in the market. Hence, Temasek has assessed that it will be premature to divest the gencos anytime in 2003. Temasek will continue to monitor the market conditions, and will re-activate the sale process as soon as the market conditions become more conducive for successful sales of all three gencos to take place, probably in the 2004 timeframe.

For media enquiries, please contact:

Eva Ho (Ms)
Vice President, Corporate Communications
Temasek Holdings (Pte) Ltd
Tel: (65) 6828-6763
FAX: (65) 6828-6263
Mobile: (65) 9617-6234
Email: evaho@temasek.com.sg