LPKR US$112MM NEW ISSUE TO PUT US$798MM REIT UNDER LIPPO MALLS. US$2.0BN MALL ASSETS TO BE INJECTED INTO REIT OVER 3 YEARS.

Lippo Karawaci Tbk (LPKR) today announced plans to issue Rp957 billion or approximately US$112

million through a direct placement to Lippo Group (LIPPO) to fund the bulk of the acquisition of a

27.24% controlling stake of Singapore-listed Lippo-Mapletree Indonesia Retail Trust (LMIRT) and a

40% interest in its asset manager Lippo Mapletree Indonesia Retail Trust Management Ltd (LMIRT

Mgt) that will propel LPKR's mall and asset management to a US$4 billion business in 3-4 years.

These initiatives will put LMIRT and LMIRT Mgt fully aligned with LPKR's Lippo Malls Group allowing

LPKR to carry through its plan to inject and facilitate US$2 billion of mall assets into LMIRT over the

next three years. This will add to LMIRT's US$798 million mall assets it currently owns and build it up

to US$4 billion in mall assets under management in 5 years making LPKR's third pillar, its Lippo Malls

group a solid foundation along with its other foundations.

http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_C0834A0B60B0F9224825789500316FA8/$file/LPKR_Announcement_19May11.pdf?openelement