Jardine Matheson Holdings Limited

Press Release

To : Business Editor

For immediate release

JIB GROUP PLC 1996 PRELIMINARY ANNOUNCEMENT OF RESULTS

The attached press release dated 4th March 1997 of the preliminary announcement of results of JIB Group plc for the year ended 31st December 1996 was today issued by the company.

On 7th February 1997 the merger of JIB Group plc with Lloyd Thompson Group plc to form Jardine Lloyd Thompson Group plc became effective. Jardine Matheson has a 34% interest in the merged company.

On 4th March 1997 Jardine Lloyd Thompson Group plc also issued its interim results for the six months ended 31st December 1996, which covered the operations of the former Lloyd Thompson Group for that period. An interim profit before tax of £10.6 million was reported for the period, an increase of 2%, on brokerage of £23.1 million, an increase of 7%. Full copies of the interim results announcement of Jardine Lloyd Thompson Group plc are available upon request.

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For further information please contact:

Jardine Matheson Limited Chris Cowan

(852) 2843 8216 (office)

Ludgate Asia Limited Martin Spurrier

(852) 2543 5413 (office)

Full text of the preliminary results for the year ended 31st December 1996 of JIB Group plc can be accessed through the Internet at http://www.irasia.com/listco/sg/jm.

JIB Group plc ("JIB"), the international insurance services company, today announces preliminary results for the year to 31st December, 1996.

 In the circular to shareholders giving details of the merger between JIB and Lloyd Thompson Group plc JIB forecast that preliminary profit before tax would not fall below £27.0 million. Today the group is pleased to announce profit before tax up 29% to £27.5 million (1995: £21.3 million) and earnings per share up 34% to 13.5p (1995: 10.1p).

Operational Highlights:

• UK: reduced cost base resulted in increased profits from wholesale and retail operations in a market characterised by severe competition and significant rate reductions

• US: strong performance from specialty business, with excellent contributions from Jardine Group Services and Horan Goldman Group
• Asia Pacific: continued growth in the division characterised by a fiercely competitive Hong Kong market, offset by good growth from ASEAN countries and local government business in Australia
• Reinsurance: acquisition of new business in London and overseas coupled with tight control of overheads resulted in significant profit improvement
• SIACI: excellent results despite growing competitive pressures. Holding increased to 36.75%

 Rodney Leach, Chairman of JIB, commented:

"Against a background of fierce competition in global insurance markets JIB produced record results with increased profitability from all its divisions. The merger with Lloyd Thompson brings the encouraging prospect of combining that company's skills in the London market with JIB's international network, especially in the Asia Pacific region."

Consolidated profit before tax for the year ended 31st December 1996 amounted to £27.5 million, compared with £21.3 million for continuing operations before exceptional items in 1995, an increase of 29%. Earnings per share were 13.5p, compared to 10.1p in 1995, an increase of 34%.

The Company paid a first interim dividend of 3.5p, as a foreign income dividend, on 18th November 1996. A second interim dividend of 5.0p (net) (1995 final dividend - 5.0p (net)) will be paid on 5th March 1997 to shareholders on the register on 28th January 1997. The second interim dividend replaces the final dividend which would have been paid for the year ended 31st December 1996. (The total dividends therefore to be paid in respect of 1996 amount to 8.5p (net) (1995 - 7.5p (net)).

1996 was an excellent year for JIB. Against a background of fierce competition in global insurance markets JIB produced record results with increased profitability from all its divisions. Profit before tax of £27.5 million was up 29% on 1995, an outstanding performance compared with the industry average.

In the UK higher profits from the wholesale and retail operations reflected the reduction in the combined cost base at the end of 1995. However, competition continues to be severe in these markets. Significant rate reductions over the last twelve months have contained revenue growth, particularly in the aviation and corporate divisions.

In the United States the specialty businesses performed well, realising the prospects predicted at the beginning of the year, with strong performances from both Jardine Group Services and Horan Goldman Group.

Asia Pacific operations continue to grow. Operating profits recovered satisfactorily in 1996, despite intensive rate cutting in Hong Kong, where local insurance companies fought to obtain a larger share of the market. This was offset by growth in the ASEAN countries and the continued success of the Local Government business in Australia.

The reinsurance division had a good year both in London and overseas. Despite difficult trading conditions the acquisition of new business and tight overhead control led to a significant improvement in profit.

SIACI, JIB's French associate, again produced excellent results despite the growing competition in the French market. JIB increased its interest in SIACI during the year and now holds 36.75% of the company.

The year ended with the announcement on 16th December 1996 of the merger of JIB with Lloyd Thompson Group plc. The merger was declared unconditional on 6th February 1997 and Lloyd Thompson changed its name to Jardine Lloyd Thompson Group plc on the same date. Jardine Lloyd Thompson became the quoted holding company of the enlarged group from that date.

Competition, low interest rates and, for 1997, the strength of sterling, remain challenges for the development of our insurance broking business in 1997. However, the merger with Lloyd Thompson brings the encouraging prospect of combining that company's skills in the London market with JIB's international network, especially in the Asia Pacific region. Jardine Lloyd Thompson Group will continue to specialise in the areas of the market in which the two constituent companies are strong, and we are confident that this will provide a solid foundation for future growth.

Rodney Leach
Chairman

4th March, 1997

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2. The charge to taxation includes taxation of £4,061,000 (1995: £4,269,000) in respect of overseas subsidiary profits and £1,970,000 (1995: £1,497,000) in respect of associated company profits.

3. Earnings per share are calculated on the profit after taxation and minority interests of £16,726,000 for the year ended 31st December, 1996 (1995: £13,108,000 for continuing operations before exceptional items and the loss after taxation and minority interests of £57,830,000 for total operations) and on the weighted average number of shares in issue of 124,312,241 for the year ended 31st December, 1996 (1995: 129,638,896). In determining the profit after taxation, minority interests and weighted average number of shares in issue, the earnings attributable to SIACI's interest in the share capital of JIB Group plc and the Group's respective share thereof, has been eliminated from earnings and weighted average number of shares in issue respectively.

4. The results have been prepared in accordance with the historical cost convention and applicable accounting standards.

5. The Group now fully complies with FRS 5 which requires that assets and liabilities should not be offset, except in specific circumstances. In 1995 advantage was taken of an amendment to FRS 5, issued in December 1994, which exempted insurance broking transactions from the FRS 5 offset requirement until 1996.

As a result of full compliance with FRS 5 the comparative figures for 1995 have been restated, the effect of which has been to increase both Trade Debtors and Trade Creditors by £404,497,000.

6. The financial information contained in this preliminary announcement does not constitute statutory accounts within the meaning of Section 240 of the Companies Act 1985. The results for the year ended 31st December, 1996 are unaudited and statutory accounts in respect of that year have not yet been delivered to the Registrar of Companies.

7. Copies of the preliminary results press release may be obtained from the Secretary, JIB Group plc, Jardine House, 6 Crutched Friars, London EC3N 2HT.

8. A second interim dividend of 5.0p (net) will be paid on 5th March 1997 to shareholders on the Register of Members on 28th January 1997. The second interim dividend replaces the final dividend which would have been paid for the year ended 31st December 1996.

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