BERLI JUCKER ANNOUNCES FOURTH QUARTER NET INCOME OF BAHT 170 MILLION - 1999 NET INCOME RISES 67 PERCENT TO BAHT 693 MILLION. Berli Jucker Public Company Limited announced today that consolidated net income for the fourth quarter of 1999 was Baht 170.2 million, representing a 13 percent decrease from the consolidated net income for the fourth quarter of 1998. For the full year, consolidated net income was Baht 693.1 million, an increase of 67 percent over the consolidated net income for 1998. Consolidated sales revenues for the fourth quarter of 1999 were Baht 2,900 million, an increase of 14 percent over the comparative period in 1998 . For the full year, consolidated sales revenue rose by 7 percent to Baht 11,132 million, compared with 1998. Firstly commenting on the results for the fourth quarter of 1999, Mr. David J. Nicol, Berli Jucker's President and Chief Executive Officer, said : "When presenting the results of the Company at the end of each quarter, I am frequently asked the following questions by investor groups, shareholders and financial analysts: What has been the sales performance of your core businesses during the quarter? Consolidated sales of Baht 2,900 million rose by 14 percent in the fourth quarter compared with 1998. Our Consumer Products business showed a 34 percent increase in sales to Baht 871 million, led by greater tissue paper sales volumes as new markets were opened and paper production capacity increased; Packaging group sales were Baht 1,076 million, being 12 percent higher than in 1998, led by Thai Glass Industries which enjoyed strong output of beer bottle and food containers; the Technical Products group registered a 5 percent growth in sales to Baht 839 million, with medical product and disposable surgical gown sales providing the main impetus; Engineering sales shrank by 13 percent to Baht 111 million, reflecting a low level of orders in this business. What has happened to gross margins during the quarter? The Group's gross margin for the fourth quarter of 1999 was 26.2 percent, slightly down from the margin of 26.7 percent in 1998. Whilst the stability of the Baht has played an important part in maintaining margins, recent rises in the cost of raw materials in some of our businesses are of increasing concern. Why has your net income for the quarter decreased despite rising sales? Net income for the fourth quarter of 1998 was affected by post tax investment disposal income of Baht 57.4 million from the sale of our interest in a joint venture in Thailand with Siemens AG. Absent this factor, net income would have risen 22 percent, reflecting the increase in sales and our control of other expenses. Has there been any material change in your Balance Sheet? The Group's working capital has increased by approximately Baht 400 million to stand at Baht 3.8 billion; the majority of this increase is attributable to greater available cash and cash equivalent balances, which now total over Baht 1.9 billion. Absent any major investment opportunity, it is likely that this cash will be used to retire all the Company's long-term debt in the second quarter of 2000, leaving it debt free. Our investment in Property, Plant and Equipment has decreased when compared with 1998, as we have had to defer planned furnace rebuilds and repairs at Thai Glass until early 2000, in order to fully serve our major customers; this has benefited profitability and reduced capital expenditure in 1999, but will have the reverse effect in 2000." Mr. Nicol continued by commenting on the results for the full year of 1999: "Berli Jucker has again enjoyed a successful year, with increased revenue and profitability. Sales revenues increased 7 percent to Baht 11,132 million, with net income rising 67 percent to Baht 693 million. Earnings per share, following the mildly dilutive 7 for 4 rights issue in June 1998, advanced by 14 percent to Baht 4.36. Sales from our Packaging group grew 12 percent to Baht 4,222 million, with particularly strong growth at Thai Glass Industries, fuelled by increased volumes of beer and whisky bottle output; Consumer Products group sales rose by 13 percent to Baht 3,160 million on the back of increasing market shares in the tissue paper and personnel care sectors, and improved snack foods sales; Technical Products sales increase by 1 percent to Baht 3,326 million, with improving output and sales of disposable medical gowns being offset by diminished generic pharmaceutical revenues, as a result of the disposal of our pharmaceutical manufacturer, Polipharm in the second quarter of 1999; Engineering sales experienced in a 31 percent decline in sales to Baht 397 million as order volumes shrank. The Group's gross margin for the year increased from 25 percent in 1998 to 28 percent in 1999. This increase was due both to good demand for Berli Jucker products, particularly for glass containers, as Thailand's economy began to recover, and to the stability of the Baht during the year, which kept raw material prices in check and obviated the need for substantial selling price fluctuations. The Group's net income for the year was Baht 693 million, a substantial improvement from 1998. Additionally, the earlier year benefited from non- recurring items in respect of post tax gains from investment disposal of Baht 57.4 million and Baht 99.5 million of post tax financing income, partially offset by an extraordinary charge of Baht 92.6 million in relation to the closure costs of the Group's investment in a glass manufacturing plant in Vietnam." Mr. Nicol went on to comment on Berli Jucker's prospects for the future: "I am encouraged by Thailand's gradual recovery from the economic lows of 1997. I believe Berli Jucker's profitability reflects increasing economic confidence in the sectors in which we operate. I am equally encouraged by the success of our BJC branded products in tissue paper and personal care. It is unlikely that we will sell the same volume of glass containers in 2000 as we did in 1999. This is due to a combination of essential furnace rebuilds in 2000 and an anticipated increase in the utilisation of second- hand beer bottles by our major customers. The restructuring exercises we have conducted in our core businesses are however beginning to bear fruit, and I look forward to an increased level of earnings beyond 2000." February 29, 2000 For further information please contact: David J. Nicol Blair Sinton President and Chief Executive Officer Chief Financial Officer Tel 367-1024 Tel 367-1026 E-mail: davidnicol@berlijucker.co.th E-mail: blair@berlijucker.co.th