Cycle & Carriage Limited First Quarter 2003 Financial Statement and Dividend Announcement

Highlights

· Trading profit after tax and minorities grew by 16% due mainly to equity-accounted Astra earnings

· Motor vehicle earnings affected by losses in Australia

· Good growth in property business

"The ongoing ramifications of the Iraqi war and the SARS outbreak are likely to further weaken the already fragile economic environments. Motor vehicle and property sales in Singapore, in particular, will be impacted by SARS, and this may spread to neighbouring countries. The value of the Indonesian Rupiah will remain a factor influencing the Group's net profit, although the effect has been reduced through partial repayment of Astra's US dollar debt."

Signed By: Anthony Nightingale, Chairman

6 May 2003

CYCLE & CARRIAGE LIMITED

FINANCIAL STATEMENT AND DIVIDEND ANNOUNCEMENT

FOR THE THREE MONTHS ENDED 31 MARCH 2003

Demand was generally weak in most of the Group's markets in the first quarter, and this was further compounded towards the end of the period by the uncertainty caused by war in Iraq and the impact of the outbreak of the Severe Acute Respiratory Syndrome ("SARS"). The Group, however, did manage to achieve an improved trading profit after tax and minorities. The restructuring by Astra of its balance sheet was also completed with a successful rights issue, which, together with purchases in the open market, enabled Cycle & Carriage to increase its shareholding in Astra to 35.1%.

Performance

The Group's trading profit after tax and minorities for the first quarter grew by 16% to S$54 million as compared to the corresponding period of the previous year, with the equity-accounted contribution from Astra continuing to be the major component. Underlying net profit declined by 4% to S$61 million as the significant profit recorded on Astra's foreign currency debt caused by the strengthening of the Indonesian Rupiah in the first quarter of 2002 was not repeated, partially offset by the recognition of Cycle & Carriage Bintang's ("CCB") deferred tax asset in this quarter. Net profit increased by 5% to S$67 million or S$0.28 per share, boosted by the exceptional gain arising from a debt restructuring in one of Astra's financial services operations.

Trading profit after tax and minorities from the motor vehicle operations fell 28% to S$8 million due to losses in Australia and a decline in Malaysia following the loss of the Mercedes-Benz distributor margins. Operations in both Singapore and New Zealand achieved strong growth.

The contribution from property, excluding exceptional items, grew by 56% to S$8 million, primarily due to development profits recognised for The Warren by MCL Land. An exceptional gain was also realised from the sale of one apartment at Juniper at Ardmore, an investment property.

Economic stability and continued strong motorcycle sales enabled Astra to increase its trading contribution by 19% to S$42 million for the 3 months to February 2003. Earnings were also supported by improved yields and prices for palm oil and an increased contribution from consumer finance activities.

Cycle & Carriage increased its consolidated net debt by S$116 million to S$750 million to support its participation in Astra's rights issue and acquire further Astra shares in the open market. Shareholders' funds increased to S$1,127 million, or S$4.67 per share, compared to S$4.28 per share at the end of 2002.

The Board does not propose to declare an interim dividend for the three months ended 31 March 2003 (31 March 2002: Nil).

Developments

With effect from 1 January 2003, CCB ceased to be the distributor for Mercedes-Benz vehicles in Malaysia. CCB holds a 49% stake in the new distribution joint-venture, albeitwith limited profit and management rights, and remains the major retailer of Mercedes-Benz cars in Malaysia.

In January 2003, Astra completed a rights issue to raise some S$280 million. The Group's participation in this and subsequent market purchases cost S$152 million, and increased its shareholding in Astra to 35.1%.

In February 2003, Astra announced that it had signed a Memorandum of Understanding with Toyota Motor Corporation ("Toyota") on the re-organisation of PT Toyota-Astra Motor into separate manufacturing and distribution entities. Under the re-organisation, Toyota will increase its interest in the manufacturing entity to 95%, enabling it to be integrated into Toyota's international production capacity, while Astra will maintain its 51% interest in the distribution business. A final agreement is expected to be reached early in the third quarter.

In March 2003, the Company acquired from Capital Services of Singapore Limited ("CSS") a further 10% of UMF (Singapore) Limited ("UMF") for a total consideration of about S$17 million pursuant to the exercise of a put option by CSS under a shareholders' agreement. With the acquisition, the Company's interest in UMF which is involved in the leasing and hire purchase of vehicles increased from 40% to 50%.

MCL Land successfully tendered for a 99-year leasehold site located off Tiong Bahru Road. The property with a land area of 5,348 square metres will cost S$73 million.

Prospects

The ongoing ramifications of the Iraqi war and the SARS outbreak are likely to further weaken the already fragile economic environments. Motor vehicle and property sales in Singapore, in particular, will be impacted by SARS, and this may spread to neighbouring countries. The value of the Indonesian Rupiah will remain a factor influencing the Group's net profit, although the effect has been reduced through partial repayment of Astra's US dollar debt.

Signed By: Anthony Nightingale

Chairman

6 May 2003