TEHRAN, 23 DECEMBER 2008 – PROTON Holdings Berhad today signed an agreement with Zagross Khodro (Zagross) for the supply of automotive parts to the latter, its sole distributor in Iran. This is the third of a series of agreements which will allow Zagross to assemble the Proton Gen.2 model through a completely-knockeddown (CKD) arrangement. The first production of the model is expected to commence in April 2009 at Zagross's assembly plant in Borujerd city, southwest of Iran. The previous two agreements were on licensing and technical assistance and purchase of equipment.