Masters Limited Releases Interim Report

Net income for the period amounted to $768,339 compared with $685,321 for the same six months for the previous financial period; an increase in earnings for this year in the amount of $83,018 (12.1%). The increase in earnings arose from increased activities in the retail division.

Sales to July 31st, 2003 amounted to $5,281,920 as compared with $4,938,532 for the same period last year; an increase of $343,388 (6.95%). Gross margin on sales for the same period amounted to $2,270,667 in 2003 as compared with $2,058,226 in 2002; an increase of $212,441 (10.3%).

Expenses in the first half of the current financial period amounted to $2,106,656 compared with $1,949,152 for the same period last year. The biggest increase in expenses arose from staff expenses. In addition to staff salary increases, we have also had to bear the burden of increased pension costs, health insurance costs and of course we did not receive any payroll tax relief in the current year (as compared to payroll tax relief in 2002).

Subsequent to July 31st, 2003, we have all had the horrific experience of Hurricane Fabian. Fortunately the damage incurred by the Company was minimal. While there was a small surge in business for supplies prior to the storm, subsequent to that date we have noticed a marked downturn in overall sales. Bearing in mind that the Company is not in the building materials business, we are of the opinion that the sales activities in the Company give a fair indicator of what is happening in the Bermuda marketplace. We are therefore cautious about the very important Christmas selling season wherein the Company usually earns the most significant portion of its profits.

Signed by:

Susan D. Wilson, C.A., J.P.,

President and Chief Executive Officer