Various trade media reported last week that CP Prima is no longer engaged in shrimp farming. In a press release, George Basoeki, Head of Corporate Communication, PT Central Proteina Prima TBK (CP Prima), explained the company\'s position:

\"CP Prima has been directly investing and engaging in shrimp farming activities since 1994. Our company started with building one large-scale shrimp farm and started to operate in 1994. We operated a second large scale farm starting in 2007, which we acquired from another entity.

From the start, we have been operating our shrimp farms based on a unique \"nucleus-plasma\" concept. We have not changed the concept since 1994. In this nucleus-plasma concept, CP Prima performs as the \'nucleus\" who works closely with ~7,000 individual \"plasma\" farmers within the perimeter of our company\'s two large-scale shrimp farm complexes. The details of the nucleus-plasma model is as follows:

CP Prima, as nucleus, invests and builds the large shrimp farm complexes, each with thousands of shrimp ponds. Each shrimp farm complex is self-sustainable as it is equipped with its own power generation and water treatment facilities, as well as public and social infrastructure for both our employees and the plasma farmers and their families.

Each plasma farmer goes through a rigorous recruitment process. The successful candidates take responsibility of the cultivation operations in one or two shrimp ponds. The plasma farmers are to follow strict guidelines on standard operating procedures defined by CP Prima, pertaining to all aspects of the shrimp cultivation in their ponds.

CP Prima provides each farmer with all inputs, (for some Farmers) including working capital, necessary for the running shrimp cultivation, which among others include quality shrimp fry and shrimp feed, electricity from our power plant facility (mainly for the paddle wheels in the ponds), water (from our water treatment facility), as well as aquaculture training, technical assistance, and other operational supports, e.g., harvesting, pond cleaning between cycles, etc.

In return, the plasma farmers sell their shrimp harvest to CP Prima, which helps harvest and transport the shrimp harvest to our Company\'s nearby processing plants. The difference in value between the shrimp harvest and the inputs provided by CP Prima throughout the cultivation cycle is the profit or benefit that each individual plasma farmer will earn.

Our unique nucleus-plasma concept, as explained above, shows the significant involvement of CP Prima in shrimp farming activities. CP Prima wish to express our strong intention to continue engaging in shrimp farming business and maintaining our unique nucleus-plasma farming model.\"