SUBANG JAYA, 8 February 2010 – The international arbitrators under the auspices of the Singapore International Arbitration Centre upheld Proton Automobiles (China) Ltd’s (PAC) termination of the Joint Venture Contract dated 17 June 2002 with Goldstar Heavy Industrial Co Ltd [Goldstar] in 2006. PAC is a subsidiary of Perusahaan Otomobil Nasional Sdn Bhd.

The Final Award was delivered by the arbitral tribunal on 12 January 2010. The arbitral tribunal found that PAC was lawfully entitled to terminate the said Joint Venture Contract as the Joint Venture Company (the JV Co) did not carry out any business activities from the time of its incorporation in 2002 until the termination of the Joint Venture Contract. The JV Co failed to obtain a Manufacturing Licence to manufacture whole vehicles.

The arbitral tribunal also found that PAC had acted in good faith during the course of the joint venture by giving Goldstar repeated extensions of time and opportunities over a period of 4 years to obtain the said Manufacturing Licence from the Chinese authorities.

With this decision, PROTON now looks forward to focus on its efforts to expand its business in China. It is expecting an improvement in its China sales via its collaborative partner Zhejiang Youngman Passenger Car Group Co.. Ltd (formerly known as Youngman Automobile Sales Co Ltd.).

About PROTON
PROTON, established in 1983, is Malaysia's largest manufacturer of automobiles. With operations in key market centers from UK and Western Europe to the Middle East, and across South-East Asia and Australasia, PROTON produces cars to suit a range of consumer demands and preferences. The offerings include versatile and reliable four-door family vehicles, two-door hatchbacks for the young-at-heart, luxurious and stylish executive sedans, as well as the world-renowned sports cars from Lotus.

PROTON’s inception as a key driver of national development has seen the brand accelerate its learning curve through technology transfer with strategic partnerships and technical collaborations. PROTON cars are now steadily on track to achieving the mission for the future, gearing up to achieve the promise of a marquee which build cars with passion and soul; cars which are a delight to drive and a pleasure to own.