The following announcement was today issued to the London Stock Exchange.

JARDINE STRATEGIC HOLDINGS LIMITED
INTERIM REPORT HIGHLIGHTS 1997

• Good Mandarin Oriental first half
• Dairy Farm beginning to benefit from repositioning
• Uplift in Hong Kong property values
• Reduced contribution from Jardine Fleming
• Additional group share repurchases

Results

"While the prospects for Greater China remain encouraging, other Asian economies are experiencing mixed fortunes. Against this background, we expect the full year's profit excluding non-recurring items broadly to reflect the trend in the first half."

Henry Keswick, Chairman
19th September 1997

The interim dividend of US?.60 per share will be payable on 25th November 1997 to Shareholders on the register of members at the close of business on 3rd October 1997. The share registers will be closed from 6th to 10th October 1997, inclusive.

JARDINE STRATEGIC HOLDINGS LIMITED
INTERIM REPORT 1997

RESULTS

Jardine Strategic Holdings Limited today announced that its net profit after tax, outside interests and preference dividends for the first six months of 1997 was US$173 million, a decrease of 19% over 1996. Excluding non-recurring items in both periods, profit declined 14% due to the absence of realised investment gains, a reduced contribution from merchant banking and higher finance charges.

Fully-diluted earnings per share for the first half of the year were US?9.67 compared with US?2.65 in the same period in 1996, a decrease of 13%. Excluding the non-recurring items in both periods, fully-diluted earnings per share declined by 8%.

At 30th June 1997, on a fully-diluted basis, net assets per ordinary share, based on the market value of the Company's holdings, were US$5.65 compared with US$5.75 as at 31st December 1996.

The Board has declared an unchanged interim dividend of US?.60 per ordinary share.

GROUP REVIEW

Turning to the operations, the Chairman, Henry Keswick, said that Jardine Strategic took measures to enhance earnings and net asset value per share by extending its share repurchase programme and in July acquired a further 2.3% of its ordinary shares. Subsequently, the Company also announced it would convert its outstanding 7? preference shares into fully-paid ordinary shares in order to improve cash flow.

Jardine Matheson reported a 17% reduction in underlying profit in the first half to US$150 million. Of its businesses, excluding those held through Jardine Strategic :

• Jardine Pacific recorded a profit before non-recurring items of US$40 million for the half year, marginally ahead of 1996. The company sold its life assurance business, realising an exceptional gain of US$130 million, and also disposed of its loss-making Sizzler restaurant chain in Australia. Marketing & Distribution achieved strong growth but results from Jardine Davies in the Philippines were held back by weak markets and additional costs relating to new ventures. Engineering & Construction was affected by the troubled Thai property market. Aviation Services performed satisfactorily, but the contributions from Jardine Transport Services and Property Services were lower. In Financial Services, the instalment finance and registrar businesses in Hong Kong both increased earnings.

• Jardine International Motors, 75%-owned, reported profit up 31% over 1996. Excluding an exceptional gain of US$12 million arising from a property disposal, profit declined by 5%. While the Hong Kong market grew significantly, the company's turnover and margins were lower due to a change in model mix. Its operations in the United Kingdom made a strong contribution, but in France the market remained weak.

• Jardine Fleming, the company's 50%-owned joint venture, recorded a reduced net profit of US$29 million in the first half. Mixed performances in the Asia-Pacific markets and tighter margins made trading conditions difficult, and increased costs were incurred in new technology and in strengthening internal controls. Funds under management were little changed at US$20 billion, and new funds were successfully launched in Taiwan, Hong Kong and Japan.

• Jardine Lloyd Thompson, 34%-owned, achieved a net profit of US$27 million for the six months to 30th June before an exceptional US$14 million charge in respect of merger costs. This was marginally ahead of 1996 and a satisfactory performance against a background of unusually poor insurance markets. Overall, the group has made a good start in integrating its recently merged operations.

Dairy Farm's trading profit increased by 27% to US$67 million, benefiting from an improvement in the performance of Franklins in Australia. Net profit was up 80% helped by lower interest costs from reduced working capital. In Australia, the "Fresh" formats are now well established, accounting for some 45% of sales. The disposal of the group's interest in its NestlJ Dairy Farm manufacturing joint venture has been agreed, and will produce an exceptional gain of US$24 million for the full year. In Asia, the group continues to grow and to adapt its businesses to meet changing retail environments. 50%-owned Maxim's restaurants continued its excellent performance. In the United Kingdom, Kwik Save is preparing to implement a fundamental repositioning programme. In Spain, Simago showed a modest improvement despite poor consumer demand.

Hongkong Land reported an interim profit of US$207 million. Excluding an exceptional gain in 1996, the result showed a 9% decline, attributable largely to the absence of investment gains from the company's 45% stake in Connaught Investors. The Hong Kong property market continued to strengthen with rising rents and capital values, though Hongkong Land's profit was held back by the timing of the rental reversion cycle. Occupancy remained high in the group's commercial portfolio in Hong Kong where plans have been announced for the redevelopment of one of its prime Central District office buildings. Construction has also commenced at its King's Road property. Hongkong Land has established a property joint venture in China, and The China Water Company joint venture is planning two new infrastructure projects. Construction has also begun on a major commercial building in Singapore and on a luxury residential development in Manila.

Mandarin Oriental achieved a good start, with interim profit of US$34 million, an increase of 18%, though the second half is looking more difficult. Strong first half performances in Hong Kong and Manila together with an initial contribution from Mandarin Oriental Hyde Park, London produced a 25% growth in turnover. There were mixed results from the group's associate hotels, but improved margins by the subsidiary hotels contributed to a 33% increase in operating profit. The group's new property in Kuala Lumpur will open in 1998.

Cycle & Carriage recorded an interim profit of US$69 million, marginally ahead of 1996. Its earnings from motor operations in Singapore fell sharply due to pressure on margins in a contracting market, although it achieved a significant growth in market share. Its Malaysian and Australian businesses traded strongly and its property activities made an increased contribution due to progress on a number of residential developments in Singapore.

Among Jardine Strategic's other investments, Edaran Otomobil Nasional, in which the Company holds a 14.5% interest, increased its half year net profit by 4%, its growth being held back by supply constraints.

OUTLOOK

In conclusion, Henry Keswick said, "While the prospects for Greater China remain encouraging, other Asian economies are experiencing mixed fortunes. Against this background, we expect the full year's profit excluding non-recurring items broadly to reflect the trend in the first half."

Jardine Strategic Holdings Limited
Notes

1   BASIS OF PREPARATION

The unaudited half-year results have been prepared in conformity with International Accounting Standards. There have been no changes to the accounting policies described in the 1996 Financial Statements.

2   PROFIT AFTER TAXATION, OUTSIDE INTERESTS AND PREFERENCE DIVIDENDS

3   NON-RECURRING ITEMS

4   SHARE OF PROFITS LESS LOSSES OF ASSOCIATES

Results for the six months ended 30th June 1997 include the Group's share of profit on disposal of life assurance business by Jardine Matheson of US$49.9 million (US$46.9 million after tax and outside interests). Results for 1996 include US$70.2 million (US$69.2 million after tax) share of profit on disposal of Trafalgar House by Hongkong Land.

5   TAXATION

Tax on profits has been calculated at rates of taxation prevailing in the territories in which the Group operates and includes United Kingdom tax of US$8.7 million (1996: US$8.4 million).

6   DIVIDENDS

The convertible cumulative preference shares of US$800 each bear dividends at 7? per annum on a reference amount of US$1,000 each.

Interim dividend on ordinary shares is provided on the number of ordinary shares in issue after the repurchase of 24.6 million shares by the Company on the exercise of the put warrants in July 1997.

A wholly-owned subsidiary undertaking has agreed to waive the interim dividend on the ordinary shares held by it.

7   EARNINGS PER SHARE

Earnings per share are calculated on the profit after taxation, outside interests and preference dividends of US$173.4 million (1996: US$213.2 million) and on the weighted average number of 776.7 million (1996: 802.9 million) ordinary shares in issue during the period. The weighted average number excludes shares held by a wholly-owned subsidiary undertaking and the Company's share of the shares held by an associate.

Fully-diluted earnings per share are calculated on the assumption that all outstanding convertible cumulative preference shares and call warrants had been converted into ordinary shares at the beginning of the period, with the proceeds from the exercise of call warrants being placed on fixed deposit earning interest at 5.4% per annum.

Earnings per share excluding non-recurring items are calculated on the profit after taxation, outside interests and preference dividends after adjusting for non-recurring profits of US$43.8 million (1996: US$63.0 million).

8   TERM LOANS

9   ACQUISITIONS

Purchase of associates and other investments includes the Company's and Connaught Investors' increased holding in Edaran Otomobil Nasional of US$76.2 million and Hap Seng Consolidated of US$20.4 million respectively.

10  CORPORATE CASH FLOW AND NET DEBT

Corporate cash flow and net cash/debt comprises the cash flows and net cash/debt of the Company and of its investment holding and financing subsidiary undertakings.

11  MARKET VALUE BASIS NET ASSETS

The Company's investment in Jardine Matheson has been calculated by reference to the market value of US$5,262.5 million (1996: US$5,407.0 million) less the market value of Jardine Matheson's interests in the Company.

Net assets per share are calculated on 1,037.5 million (1996: 1,052.7 million) shares outstanding at the end of the period which exclude shares held by a wholly-owned subsidiary undertaking and the Company's share of the shares held by an associate, and on the assumption that all the outstanding convertible cumulative preference shares and call warrants had been converted into ordinary shares. The repurchase of 24.6 million shares on the exercise of the put warrants in July 1997 has the effect of increasing the net assets per share to US$5.70.

12  INTERIM REPORT

The Interim Report will be posted to Shareholders on or about 13th October 1997. Copies may be obtained from Butterfield Corporate Services Limited, P.O. Box HM 1540, Hamilton HM FX, Bermuda; Independent Registrars Group Limited, Bourne House, 34 Beckenham Road, Beckenham, Kent BR3 4TU, England; Coopers & Lybrand, Level 8, 580 George Street, Sydney NSW 2000, Australia and M & C Services Private Limited, 16 Raffles Quay #23-01, Hong Leong Building, Singapore 048581.

The interim dividend of US?.60 per share will be payable on 25th November 1997 to ordinary Shareholders on the register of members at the close of business on 3rd October 1997. The ordinary share registers will be closed from 6th to 10th October 1997, inclusive. Ordinary Shareholders will receive their dividends in United States Dollars, unless they are registered on the United Kingdom branch register where they will have the option to elect for Sterling. These Shareholders may make new currency elections by notifying any one of the Company's registrars or the United Kingdom transfer agent in writing by 6th November 1997. The Sterling equivalent of dividends declared in United States Dollars will be calculated by reference to a rate prevailing ten business days prior to the payment date. Ordinary Shareholders holding their shares through The Central Depository (Pte) Limited ("CDP") in Singapore will receive United States Dollars unless they elect, through CDP, to receive Singapore Dollars.

For further information, please contact:

Jardine Matheson Limited Norman Lyle	(852) 2843 8388 (office)
Ludgate Asia Limited Martin Spurrier	(852) 2543 5413 (office)

Full text of this announcement can be accessed through the Internet at "http://www.irasia.com/listco/sg/jsh" and is also available through "First Call".

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