PRESS RELEASE Berli Jucker announces 3rd Quarter Sales Growth of 10% Berli Jucker Public Co. Ltd. announced today that net income for the third quarter was baht 75.1 million and for the first nine months of the year was baht 310.4 million. As at 30th September 1997, foreign exchange losses due mainly to the flotation of the baht amounted to baht 128.7 million after tax and minority interests. Excluding these foreign exchange losses, net income for the year to date was baht 439.2 million, compared with baht 458.7 million for the same period last year. Consolidated total revenues increased by 10% in the third quarter to baht 2.83 billion and brought year to date revenues to Baht 8.02 billion. Earnings per share for the first nine months of the year declined by 33% from baht 8.03 to baht 5.37 due mainly to foreign exchange losses. Commenting on the results for the third quarter, Dr. Adul Amatavivadhana, Berli Jucker's President, said: " Our overall revenue growth of 10% in the quarter demonstrates the strength of our businesses even in these difficult times. Net income has been held back by foreign exchange losses and lower margins as the Group takes time to adjust selling prices for its products. 2/ Sales of consumer products in the third quarter increased by 12%, with a more modest increase in profit contribution, driven mainly by the success of our snack foods brands. There was a distinct slowing in sales momentum for our paper products, personal care and wine ranges. The technical products group achieved a 16% growth in sales led by our medical products and stationery lines. Profit contribution from this group, which imports most of its products, was reduced from the same level as a year ago by foreign exchange losses. In the packaging group, Thai Glass saw a reduction in sales of 6% as it continued to suffer from reduced demand for bottles from spirits producers and soft drink manufacturers. Profit contribution was reduced by 59% due to a combination of lower volumes, reduced margins pending price increases to take place in the fourth quarter, and foreign exchange losses on unhedged US dollar borrowings and trade payables. Berli Prospack, in which we acquired a majority shareholding in June, achieved a modest operating contribution in the quarter. The engineering group increased sales by 34% due to substantially increased productivity at Thai-Scandic Steel. However, foreign exchange losses on imported steel for fixed price contracts with EGAT pushed the company into losses for the quarter. EGAT has indicated that it is awaiting guidance from Government on how Thai-Scandic Steel and other contractors should be compensated for these losses but no benefit of this is reflected in the financial statements. There was no contribution from Siemens Limited in the quarter." 3/ Regarding foreign exchange issues, David Nicol, Berli Jucker's Chief Financial Officer, said: "In early July we purchased additional foreign exchange cover for US dollar debt at the Company and at Thai Glass and for a proportion of the trade payables at Thai-Scandic Steel and for Berli Jucker's medical products group. Further foreign exchange hedging was purchased throughout the quarter. As a consequence, the foreign exchange losses in the third quarter were incrementally lower than the provision booked in the second quarter which was based on closing exchange rates on the 3rd of July. The bulk of our US dollar debt is hedged into baht using Principal Only swaps which protect us from translation losses on the debt as the baht has weakened. We are nevertheless open on our interest payments to exchange rate fluctuations and are in the process of taking further steps to reduce this exposure." Dr. Adul went on to comment on the outlook for the full year: " Price rises have been implemented in most areas to recover a proportion of our cost increases associated with the weakening baht. Our result for the fourth quarter should benefit from rising demand for glass containers, particularly beer bottles, albeit there may be softer demand for other products. I also anticipate reduced foreign exchange rate volatility for the rest of the year to which, in any event, the Group has a lower exposure due to its increased foreign exchange cover." 4/ 17th November, 1997 For further information contact: Dr. Adul Amatavivadhana, President Tel: 367-1012 David Nicol, Executive Vice President Tel: 367-1024 E-mail: davidnicol@berlijucker.co.th