Matahari Putra Prima Tbk.

Brief of Company Background

Products sold by the company consist of purchased products that make up about 80% of sales, and the rest are on a consignment basis. Goods purchased by the company are mainly fashion products, which constitute 62-64% of all sales. In 1991, the company merged with PT Matahari Setia Dharma and PT Matahari Agung Perdana. Following this, the company took over the operation of 13 stores from an affiliated company, founded in 1986. At the end of 1994, the company did a joint with foreign company (Australia) to open an entertainment center. On April 1995, the company opened Matahari Department Store at Batam Island, which showed the implementation of a new concept known as one stop shopping. On January 1996, the company reopened an outlet in Ujungpandang, South Sulawesi, which, was the 74th store of the company total network throughout Indonesia. The company has opened a supermarket exclusively for kids named Mega Kids, with a total area of 4,000 m2 in Jakarta, and is considered as the largest of its kind in Southeast Asia. In early 1997, PT Multipolar Corp bought 51% of the company shares and became a majority shareholder, while the founder Hari Darmawan had to be satisfied with being only as a minority shareholder. The company has made a placement of 11.77 million shares or around 5.01% at PT Hero Supermarket total shares. The move was aimed at a long-term strategy that is expected to create a good synergy beneficial to both parties. On February 1998, Standard & Poor lowered the rank of the company from CCC to CC, due to slowness in retail market. According to the company president commissioner, purchasing power of the consumers has decreased by 20%. On March 1998, the company recorded a 50% decline in its regular customers. Therefore, the company now only has 10 million regular customers. On April 1998, the company shut down two outlets in Medan, North Sumatra, while 10 more outlets will be closed in Jakarta and many other cities in Java. By end 2001 most of company’s major stores at significant locations were remodeled and refreshed to the guidelines set by our Model Store at Pluit.

Shareholder List

Management