As part of the restructuring of its Floating Rate Notes due 2007 (of which US$115,680,216 and IDR 146,514,496,000 are outstanding), Garuda previously invited noteholders to tender their notes in a reverse Dutch auction process. Garuda wishes to announce that today it has confirmed winning tenders for approximately US$45 million of notes. Garuda will purchase these notes for an aggregate purchase price of US$25 million. This represents a weighted average price of 56% on the outstanding principal of such notes.