KUALA LUMPUR, APRIL 25, 2005 - Auto retailer Edaran Otomobil Nasional Berhad (EON) today signed a memorandum of understanding (MoU) with Scott & English (M) Sdn Bhd (SEM) to distribute the Tata marque in Malaysia.

SEM is a 70 per cent owned subsidiary of Hicom Holdings Berhad and the current franchise holder of Tata commercial vehicles in Malaysia.

Hicom, a wholly-owned subsidiary of DRB-Hicom Bhd, is a substantial shareholder of EON.

EON said in a statement that its partnership with SEM would result in the formation of a joint-venture company.

It added that the MoU to establish the joint-venture company would be effective for the next three months or extended as agreed by both parties.

EON will hold a 51 percent stake in the proposed company while the remainder goes to SEM. Both EON and SEM will negotiate with Tata Motor Limited to distribute the Tate marque in Malaysia.

Tata is India's flagship automobile entity and the world's fifth largest automobile manufacturer with more than 130 models spanning a wide range of commercial vehicles, passenger cars and multi-utility vehicles.

EON said its agreement with SEM was in line with the the group's objective to pursue other auto marques to complement the existing Proton marque business which remains the key business of the group.

Recently, EON concluded a distributor agreement with Mitsubishi Motor Corporation of Japan through its joint-venture subsidiary Mitsubishi Motors Malaysia Sdn Bhd.