August 13,1998

ASIATIC DEVELOPMENT BERHAD
INTERIM ANNOUNCEMENT

THE DIRECTORS OF ASIATIC DEVELOPMENT BERHAD ARE PLEASED TO ANNOUNCE THE UNAUDITED RESULTS OF THE  GROUP AND OF THE COMPANY  FOR THE HALF-YEAR ENDED 30TH JUNE 1998,  TOGETHER  WITH THE  COMPARATIVE RESULTS  FOR  THE   HALF-YEAR  ENDED  30TH JUNE 1997 AS FOLLOWS:

GROUP
HALF-YEAR
ENDED 30TH JUNE
COMPANY
HALF-YEAR
ENDED 30TH JUNE
GROUPCOMPANY
1998
RM '000
1997
RM '000
1998
RM '000
1997
RM '000
+ or -
%
+ or -
%
1.(a) OPERATING REVENUE  153,548   110,949     60,744    39,578+38+53
   (b)INVESTMENT AND INTEREST INCOME       1,951       1,618     21,154    19,566+21+8
2.(a)PROFIT BEFORE TAXATION AND MINORITY INTERESTS AND AFTER INTEREST ON BORROWINGS AND DEPRECIATION
[see notes (i) and (ii) below]
67,50640,12653,78632,753+68+64
   (b)SHARE OF RESULTS OF ASSOCIATED COMPANIES        (273)         106             -             -N/A-
   (c)PROFIT BEFORE TAXATION67,23340,23253,78632,753+67+64
   (d)TAXATION   (15,183)   (12,371)   (14,072)   (10,097)+23+39
(e)(i)PROFIT AFTER TAXATION BEFORE   MINORITY INTERESTS52,05027,86139,71422,656+87+75
   (ii)MINORITY INTERESTS         406           20             -             -N/A-
   (f)PROFIT ATTRIBUTABLE TO MEMBERS OF THE COMPANY     52,456     27,881     39,714     22,656+88+75
Notes:
    (i)

INTEREST ON BORROWINGS
       2,135 

           16

             -             -N/A-
    (ii)DEPRECIATION INCLUDING AMORTISATION4,9984,4371,7942,054+13-13
3.(a)THE RESULTS OF THE GROUP AND OF THE COMPANY FOR THE HALF-YEAR  ENDED 30TH JUNE, 1998
ARE  BETTER THAN THAT OF THE HALF-YEAR ENDED 30TH JUNE, 1997 MAINLY DUE TO HIGHER PALM PRODUCTS PRICES.  IN ADDITION, THE RESULTS OF THE GROUP AND OF THE COMPANY HAVE ALSO BEEN AFFECTED BY THE FOLLOWING EXCEPTIONAL ITEMS :-

    GROUP HALF-YEAR
    ENDED 30TH JUNE

   COMPANY HALF-YEAR
ENDED 30TH JUNE

1998
RM '000
1997
RM '000
1998
RM '000
1997
RM '000
GAIN ON FREEHOLD LAND AND PLANTATION ACQUIRED BY THE GOVERNMENT4,49213,8044,221127
PROVISION FOR DIMINUTION IN VALUE OF INVESTMENT IN AN OVERSEAS SUBSIDIARY             -   (13,675)             -             -
      4,492         129      4,221         127

APART FROM THE ABOVE, THE RESULTS OF THE GROUP AND OF THE COMPANY FOR THE HALF-YEAR ENDED 30TH  JUNE, 1998  HAVE  NOT BEEN AFFECTED BY ANY OTHER MATERIAL FACTORS OR ITEMS OF AN EXCEPTIONAL OR EXTRAORDINARY NATURE.

(b)

IN  THE OPINION OF THE DIRECTORS, NO SIGNIFICANT TREND OR EVENT HAS OCCURRED BETWEEN 30TH  JUNE, 1998 AND  THE  DATE OF THIS REPORT WHICH WOULD AFFECT  SUBSTANTIALLY  THE RESULTS OF THE GROUP AND OF THE COMPANY.

4.

GROUP

19981997
EARNINGS IN SEN PER ORDINARY SHARE
FOR THE HALF-YEAR BASED ON 2(f) DIVIDED BY 741,335,000 (1997 : 741,335,000) ORDINARY SHARES ISSUED
7.08 sen3.76 sen
5.TAXATION FOR THE HALF-YEAR ENDED 30TH JUNE, 1998 INCLUDES THE FOLLOWING:-
DEFERRED TAX CHARGE/(CREDIT)GROUP HALF-YEAR ENDED 30TH JUNECOMPANY HALF-YEAR ENDED 30TH JUNE
1998
RM '000
1997
RM '000
1998
RM '000
1997
RM '000
240193303(123)
6.THE RESULTS DO NOT INCLUDE ANY PRE-ACQUISITION PROFITS.
7.THE RESULTS DO NOT INCLUDE ANY PROFIT  ON  SALE OF  INVESTMENTS  AND PROPERTIES WHICH ARE NOT IN THE ORDINARY COURSE OF BUSINESS OF THE GROUP AND OF THE COMPANY OTHER THAN AS DISCLOSED IN 3(a) ABOVE.
8.

SINCE  THE PAYMENT OF  THE FINAL  DIVIDEND FOR THE YEAR ENDED 31ST DECEMBER 1997 TO THE  DATE  OF THIS REPORT,  THE COMPANY DID NOT MAKE ANY RIGHTS, BONUS AND/OR OTHER ISSUES OF EQUITY SHARES.

9.

BARRING ANY  UNFORESEEN CIRCUMSTANCES, THE DIRECTORS EXPECT THE RESULTS OF THE  GROUP  AND OF THE COMPANY FOR  THE SECOND HALF-YEAR TO BE SATISFACTORY.

10.

THE GROUP HAS  SET UP A TASK-FORCE COMMITTEE TO ADDRESS THE Y2K ISSUES, BOTH FROM  THE INFORMATION  TECHNOLOGY AS WELL  AS BUSINESS PERSPECTIVES. SEVERAL  MAJOR  PHASES  OF  THE PROJECT HAVE BEEN COMPLETED  TO-DATE,  INCLUDING  THE  AWARENESS PROGRAM, PRODUCTION  OF COMPLETE  INVENTORY, IMPACT ANALYSIS, BUDGETING AND THE SETTING UP OF TESTING FACILITIES. THE GROUP IS NOW AT THE LATER STAGE OF IMPLEMENTING PROGRAM MODIFICATIONS, SOFTWARE AND HARDWARE   UPGRADES, REPLACEMENTS AND TESTING REQUIRED TO BE Y2K READY.

THE  CURRENT TOTAL  COST  OF THE Y2K PROJECT IS ESTIMATED TO BE RM1 MILLION FOR THE GROUP AND  RM  0.8 MILLION  FOR THE  COMPANY  RESPECTIVELY. THESE AMOUNTS ARE NOT SIGNIFICANT AND THUS WILL NOT  MATERIALLY IMPACT THE GROUP  AND THE  COMPANY'S FINANCIAL RESULTS.

11.(a)  AN INTERIM DIVIDEND OF 1.5 SEN LESS 28% TAX PER ORDINARY SHARE IN RESPECT OF THE HALF- YEAR  ENDED  30TH  JUNE 1998 HAS BEEN DECLARED BY THE DIRECTORS AND WILL BE PAYABLE  ON  20TH OCTOBER,  1998 TO THE SHAREHOLDERS  REGISTERED IN THE REGISTER OF MEMBERS AT THE CLOSE OF BUSINESS ON 28TH SEPTEMBER, 1998.
    (b)INTERIM DIVIDEND PER ORDINARY SHARE:
1998
1.5 SEN LESS 28% TAX
1997
1.5 SEN LESS 30% TAX
(NOW DEEMED AS 28%)
 (c)NET INTERIM DIVIDEND:
1998
RM
8,006,418
        1997
     
RM
        7,784,017

(d)

CLOSURE OF BOOKS

NOTICE IS HEREBY GIVEN THAT  THE SHARE TRANSFER BOOKS AND REGISTER OF MEMBERS WILL BE CLOSED FROM  29TH SEPTEMBER 1998 TO 5TH OCTOBER 1998 BOTH DAYS INCLUSIVE, FOR THE PURPOSE OF  DETERMINING  SHAREHOLDERS' ENTITLEMENT TO THE INTERIM DIVIDEND.

DULY COMPLETED REGISTRABLE TRANSFERS RECEIVED BY THE COMPANY'S SHARE REGISTRARS,  GENTING MANAGEMENT AND CONSULTANCY SERVICES SDN. BHD,  23RD FLOOR,  WISMA GENTING, JALAN  SULTAN SMAIL, 50250 KUALA  LUMPUR, UP TO 5.00 PM ON 28TH SEPTEMBER, 1998 WILL BE REGISTERED  BEFORE ENTITLEMENTS  TO  THE  DIVIDEND  ARE DETERMINED.

FURTHER NOTICE IS HEREBY GIVEN THAT THE  MALAYSIAN CENTRAL DEPOSITORY SDN BHD SHALL NOT BE ACCEPTING ANY REQUEST FOR DEPOSIT AND/OR WITHDRAWAL OF SHARES COMMENCING 12.30PM ON 24TH SEPTEMBER 1998 UNTIL 12.29PM ON 28TH SEPTEMBER 1998. A DEPOSITOR SHALL  QUALIFY  FOR  ENTITLEMENT  TO  THE INTERIM  DIVIDEND ONLY IN RESPECT OF:

i)

SHARES DEPOSITED INTO THE DEPOSITOR'S SECURITIES  ACCOUNT BEFORE 12.30 PM ON 24TH SEPTEMBER 1998;

ii)

SHARES NOT WITHDRAWN FROM THE DEPOSITOR'S SECURITIES  ACCOUNT AS AT 12.29PM ON 24TH SEPTEMBER 1998;

iii)

SHARES TRANSFERRED INTO THE DEPOSITOR'S SECURITIES  ACCOUNT  BEFORE 12.30 PM ON 28TH SEPTEMBER 1998 IN RESPECT OF ORDINARY TRANSFERS;

iv)

SHARES  TRANSFERRED INTO THE DEPOSITOR'S SECURITIES ACCOUNT AT  OR BEFORE 3.00 PM ON 28TH SEPTEMBER 1998 IN RESPECT OF EXPRESS TRANSFERS; AND

v)

SHARES  BOUGHT ON  THE KUALA LUMPUR  STOCK EXCHANGE  ON A CUM ENTITLEMENT BASIS ACCORDING TO THE RULES OF THE KUALA LUMPUR STOCK EXCHANGE.