PRESS RELEASE BERLI JUCKER ANNOUNCES FOURTH QUARTER NET PROFIT INCREASE OF 165 PER CENT Berli Jucker Public Company Limited announced today that consolidated net income for the fourth quarter of 1998 was Baht 196.7 million, representing a 165% increase over the consolidated net income for the fourth quarter of 1997. For the full year,consolidated net income prior to extraordinary items was Baht 507.4 million, an increase of 32 percent over the consolidated net income for 1997. An extraordinary charge of Baht 92.6 million was made by the Company's subsidiary, Thai Glass Industries, in the second quarter of 1998 in relation to the suspension of that company's glass factory project in Vietnam. Including the effect of this extraordinary item,Berli Jucker's net income for the year increased by 8 percent to Baht 414.8 million. Consolidated total revenues for the fourth quarter of 1998 were Baht 2,616 million, almost unchanged from the total revenues recorded in the preceding quarter. For the full year, consolidated total revenue rose by 1 percent to Baht 10,891 million compared with 1997. Firstly commenting on the results for the year, Mr. David J. Nicol, Berli Jucker's President and Chief Executive Officer, said : "In 1998 Berli Jucker recorded net profits which, excluding the effect of the extraordinary items, exceed those of 1997 in what was a most challenging year. However, the Group's profit performance for 1998 must be considered in light of the Baht 4 billion capital raising undertaken in the middle of the year. The resulting increase in equity enabled us to lower interest costs by reducing debt by Baht 1.4 billion, and acquire an additional 32 percent of Thai Glass Industries for Baht 1.3 billion. The additional equity raised had a dampening effect on the earnings per share for the year which, excluding extraordinary items, decreased to Baht 4.69 per share." 2/ Mr. Nicol continued by commenting on the results for the fourth quarter of 1998: "I am pleased to report that Berli Jucker has achieved a level of profitability in the fourth quarter which, excluding the effect of investment disposal gains, is substantially higher than the net profit achieved in the same quarter of 1997 and higher than the preceding quarter of 1998. Gross margins for the past quarter were 27 percent, as compared with 24 percent for the fourth quarter of 1997. This margin improvement, coupled with decreased interest expense and tight control over receivables and inventories, helped boost the Group's performance in the quarter. Sales of Consumer Products in the fourth quarter decreased by 13 percent compared with the same quarter in 1997, influenced by the nation-wide decrease in the consumption of tissue paper. Personal Care and Cosmetics saw improved sales led by the success of Parrot soap, whilst Confectionery and Foods sales increased marginally, led by improved snack foods sales and growth in our wine business. Net profit contribution for the quarter decreased by 10 percent compared with the same quarter in 1997. Sales of Packaging products decreased by 10 percent compared with 1997, due mainly to a significant decrease in the demand for energy drink bottles. However, production of beer and whisky bottles surged during the quarter on the back of continuing market share gains by our major customers in these sectors. Net profit contribution from this line of business rose by 27 percent compared with 1997, reflecting higher volumes and the Company's increased shareholding in Thai Glass Industries, from 66 percent to 98 percent. This increase was dampened by the performance of Berli Prospack, our rigid plastic container manufacturer, which experienced sales and margin pressures in the personal care and automotive lubricant sectors. The Technical Products group recorded a 9 percent increase in sales, assisted by the introduction during 1998 of a new range of medical diagnostic machines and a 53 percent increase in sales by Thai Klinipro, Berli Jucker's joint venture which produces disposable medical gowns. This business group was further helped by steady sales and good margins from both the Company's Chemical Products and Medical Products Divisions. Sales increases and margin gains, principally from new medical products and Thai Klinipro, helped boost fourth quarter net profit contribution from the Technical Products group ten-fold compared with the fourth quarter of 1997. 3/ The Engineering group recorded sales for the quarter which were 28 percent below 1997 levels, affected by a seven week suspension of work at Thai Scandic Steel, our galvanised steel tower manufacturer. This suspension was caused by difficulties in obtaining the required Government permits to work on steel already imported and for which duty had already been paid. Although Thai Scandic Steel re-commenced work in mid December, I am concerned as to the sometimes lengthly delays in obtaining the necessary Government permits and the consequent continuing disruptions to production. Although the Engineering group suffered losses during the quarter as a result of Thai Scandic Steel's problems, these losses were 47 percent less than in the fourth quarter of 1997 when losses were booked on open foreign currency positions." Mr. Nicol went on to comment on Berli Jucker's prospects for the future: "I believe the prospects for Berli Jucker in 1999 and beyond are encouraging. An economic recovery in Thailand aided by consumer spending would benefit the Group. We have a strong Balance Sheet as a result of the recent rights issue and have sufficient resources to expand the Group through acquisitions which are complimentary to our existing principal lines of business and through enhancing Berli Jucker's brands. With a continued high output of glass packaging products, the good position our Consumer Products enjoy and a focused level of service to our principals, we are well placed to produce enhanced earnings in 1999." February 25, 1999 For further information please contact: David J. Nicol: Tel 367-1024 Blair Sinton: Tel 367-1026 President and Chief Executive Officer Chief Financial Officer E-mail: davidnicol@berlijucker.co.th E-mail: blair@berlijucker.co.th