Resorts World Bhd registered a 30% decline in Group profit before exceptional item of RM334.9 million in the first half of 1999 ("1H99"), compared to RM481.6 million in the first half of 1998 ("1H98").

Turnover of the Group declined by 21% to RM1,112.5 million in the 1H99 against RM1,410.6 million for the corresponding 1H98. The decline in profit and turnover is mainly attributable to the difficult local and regional economic conditions which have resulted in lower consumer spending. In addition, the recent Japanese Encephalitis/Nipah virus outbreak in Malaysia affected the Group’s business for only a period of time during the first half of this year. The intensifying competition from overseas casinos has also affected the Group’s business.

For the 1H99, profit after taxation attributable to members of the Company was RM374.2 million, and earnings per ordinary share ("EPS") was 34.3 sen. These figures are not comparable to the corresponding 1H98 (profit after taxation attributable to members of the Company of RM183.5 million and EPS of 16.8 sen) as:

(a)  The  Group  wrote  off  goodwill   amounting  to  RM161.7 million  in  the 1H98, in  respect of the
      acquisition of investment in an associated company.

(b)  There was no contribution from the associated company in the 1H98 as it was only acquired at
      the end of June 1998.

(c)  No provision for tax has been made as 1999 is an income tax waiver year, pursuant to Section
      8, Part III of the Income Tax (Amendment) Act, 1999.

Further to our Y2K status announcement to the Kuala Lumpur Stock Exchange dated 23^rd July 1999, the Group has almost completed the upgrading and testing of all critical systems. The Group is also in the final stage of preparing the contingency plans for all critical functional areas.

The total cost of the Y2K project is estimated at RM4.2 million for the Group and to-date, approximately RM0.9 million has been incurred.

The Directors are pleased to declare an interim dividend of 8.0 sen less 28% tax per ordinary share of 50 sen each in respect of the 1H99, which dividend will be payable on 25^th October 1999 to shareholders registered in the Register of Members at the close of business on 30^th September 1999.

30^th July 1999

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