Jardine Strategic Holdings Limited

To: Business Editor

12th March 1998 For immediate release

CYCLE & CARRIAGE LIMITED 1997 PROFIT AND DIVIDEND ANNOUNCEMENT

The attached press announcement was released today by the Company's 25%-owned associate, Cycle & Carriage.

For further information please contact:

Ludgate Asia Limited	Tel: (852) 2543 5413 (office)
Martin Spurrier

Full text of the announcement can be accessed through the Internet at "http://www.irasia.com/listco/sg/jsh1", and is also available through "First Call".

RESULTS

The Board of Directors announced today an unaudited consolidated net profit after taxation and minority interests for the year ended 31 December 1997 of S$159 million, a decrease of 21% on the previous year.

Earnings per share for the year were 67.9¢ compared with 85.7¢ for the previous year, a decrease of 21%.

DIVIDEND

The Directors recommend a final dividend of 23¢ or 23% (1996: 27¢ or 27%) per share, less income tax at 26% (1996: 26%), which, together with the interim dividend of 9¢ or 9% per share, less income tax at 26%, will make a total annual dividend in respect of 1997 of 32¢ or 32% per share. This is a decrease of 11% on the previous year.

The final dividend, if approved, will be payable in cash on Friday, 29 May 1998 to shareholders whose registrable transfers are received by the share registrars, Coopers & Lybrand, 9 Penang Road, #10-20 Park Mall, Singapore 238459 by 5.00 p.m. on Monday, 18 May 1998.

OPERATIONAL REVIEW

Motor

In the face of increasingly difficult trading conditions in each of our major markets, earnings from the motor vehicle operations of S$93.0 million were 41% down on 1996.

In Singapore the new car market has fallen by 13% to 25,000 units. Against this Cycle & Carriage's own unit sales fell by only 6%, with its share of the market increasing to almost 27%. Mercedes' share of the market remained constant at around 12%, but margins fell with the steady rise in COE prices that continued for much of the year being absorbed. The impact of COE price rises was offset to an extent by the relative weakness of the Deutschmark against the Singapore dollar, but the benefit of this was insufficient to prevent a material erosion of margins.

For Mitsubishi, 1997 was a good year with unit sales increasing to 3,060, a market share of over 12%. A number of new products were introduced during the year including a new Galant and the Pajero mini, and the Lancer continued to be popular. These served to broaden the Mitsubishi range and made it the leading marque sold in Singapore for much of the year. Proton sales were weak with the high level of COE prices making it difficult to price the product competitively.

Cycle & Carriage Bintang ("CCB") had another good year, announcing a profit after tax and minority interests of RM142.2 million, 29% up on 1996. Demand for Mercedes cars remained strong until close to the end of the year when the limited availability of financing and uncertain economic and currency outlook prompted a decline. Margins benefited from the strength of the Ringgit against the Deutschemark for much of the year, but in the future will inevitably be impacted by the Ringgit's recent weakness. CCB, together with our Malaysian dealership operation, Cycle & Carriage (Malaysia), contributed S$34.3 million to the Group's motor earnings.

In Australia, our motor operations, under 49% owned Astre Investments, have had an extremely difficult second half, having begun the year well. Hyundai unit sales of over 61,000 units were 23% up on the previous year, but margins came under severe pressure during the second half of the year due to adverse exchange rate movements and other manufacturers beginning to price more aggressively in certain key segments. Chrysler unit sales were up over 31% to 11,400 benefiting from the launch of the new Voyager MPV, but margins were again slightly weaker. The new Audi franchise has begun slowly with sales of 2,250 units and made a loss in its first year as expected, but volume is expected to pick-up as the restructuring of the dealership network proceeds. Astre Finance also made a small loss, but the initial response of dealers to this initiative has been encouraging.

The New Zealand operations made a loss for the year, suffering from weak demand and the oversupply of used cars in the market. Australia and New Zealand together contributed S$10.8 million to Group motor earnings. In Thailand, Vietnam and Myanmar our operations are limited to a small number of dealerships.

Property

Property earnings for the year were S$59.8 million, an increase of 53% over 1996.

CCL Group Properties contributed S$47.0 million to the Group's earnings, up from S$7.2 million in 1996. Considerable progress has been made on the construction of the MeraLodge and MeraWoods developments, both of which are fully sold. TOP was obtained for MeraLodge in August. MeraWoods was 28% completed at the year end and is scheduled to be completed in the third quarter of 1999. In Malaysia little further progress was made in leasing space in the Weld tower in the second half. At the year end, tenancies had been secured for approximately 73% of the available space.

MCL Land has announced earnings of S$19.5 million for 1997, a fall of 62% against 1996. The main contributor to earnings was the Scotts 28 development which was 64% completed at the year end. Mera Gardens and Seven Oaks also made material contributions. These were offset, however, by a provision of S$20.0 million in the second half for possible losses on MCL Land's development properties.

Other interests

Net earnings from the Group's other interests increased by S$3.3 million to S$6.0 million. This included a S$4.9 million non-recurring profit on the sale of the Group's 30% stake in Robert Bosch (SEA) Pte Ltd.

PROSPECTS

The prevailing currency turmoil and economic uncertainty in most of the countries in which the Group operates will inevitably make 1998 an extremely difficult year.

In Singapore, the Group's motor interests will be affected by weak sentiment and continuing intense competition which will put further pressure on margins. The government's recent announcement on the introduction of Electronic Road Pricing and revisions to the vehicle tax structure is expected to have positive long-term implications for the growth of the car market, but the absolute size of the market in Singapore is unlikely to increase materially in 1998. In Malaysia, the weakness of the Ringgit, poor consumer confidence and tight liquidity will all have an adverse impact on CCB's performance. Our Australian operations are facing significant competition from other marques as well as being exposed to the fluctuations of the Australian dollar against the US dollar.

The Group's property interests will inevitably be adversely impacted by the weak markets in both Singapore and Kuala Lumpur. MCL Land plans to launch certain of its new developments in 1998, but the timing of these launches will depend on market conditions. Profits will continue to be recognised with progress on the MeraWoods and Scotts 28 developments during the course of the year.

In the circumstances, it is difficult to make a fair assessment of the Group's trading results for 1998, but they are likely to be lower than in 1997.

1 Basis of preparation

The financial information contained in this announcement has been based on the unaudited results for the year ended 31 December 1997 which have been prepared in accordance with the Statement of Accounting Standards on the basis of the accounting policies set out in the financial statements.

2 Company profit and loss account and balance sheet

3 Turnover and profit

4 Taxation

The effective tax rate for the Group is higher than the current Singapore tax rate of 26% because of higher corporate tax rates in Malaysia and Australia, losses in certain subsidiaries and costs disallowed for income tax purposes.

5 Segment information

6 Group borrowings

7 Issue of shares

The number of shares that may be issued on conversion of all outstanding options amounted to 1,166,500 (30.6.97: 1,211,500).

Between 1 July 1997 and 31 December 1997, there have been no rights, bonus or equity issues except that 10,000 and 8,000 ordinary shares were issued for cash to senior executives who exercised the options granted on 31 December 1992 and 24 March 1995 pursuant to the Senior Executives' Share Option Scheme, to subscribe for shares of S$1.00 each at S$6.82 and S$11.55 respectively, per share.

8 Other

The results do not include any pre-acquisition profits and have not been affected by any item, transaction or event of a material or unusual nature. No other significant transaction or event has occurred between 31 December 1997 and the date of this report.

9 Closure of books

NOTICE IS HEREBY GIVEN that the Transfer Books and the Register of Members will be closed from Tuesday, 19 May 1998 to Wednesday, 20 May 1998 for the preparation of dividend warrants.

10 Annual General Meeting

The Annual General Meeting of the Company will be held on Wednesday, 6 May 1998 in the Degas Suite, Level One, The Oriental, Singapore, 5 Raffles Avenue, Singapore 039797 at 12.00 noon (or immediately after the Annual General Meeting of MCL Land Ltd to be held at 11.30 a.m. on the same day and at the same venue shall have been concluded or adjourned).

By Order of the Board

Ho Yeng Tat
Secretary

Singapore
12 March 1998

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