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Dairy Farm International Holdings Limited Announce 1998 Interim Report

Hamilton, Bermuda, 16th September 1998 - Dairy Farm International Holdings Limited today announced the following 1998 Interim Report.

Highlights:

Good performance at Franklins

Steady growth in Hong Kong retail

Solid balance sheet with net cash

Results: (unaudited) US$m

Six months ended 30th June 1998

Sales from continuing activities

1998 2,889

1997 3,224

change% -10

Profit attributed to ordinary Shareholders

1998 87

1997 40

change% +118

Net profit from continuing activities

1998 47

1997 44

change% +6

Earnings US¢

Earnings per ordinary share

1998 4.74

1997 2.26

change% +110

Earnings per ordinary share from continuing activities

1998 2.57

1997 2.51

cange% +2

Dividends per ordinary share

1998 1.65

1997 1.65

change% -

"The quality of our major business in Hong Kong, Australia and New Zealand continues to improve. With our strong balance sheet, the Group is well placed to take advantage of new investment opportunities in the more difficult economic conditions in Asia pacific and we will continue to support our existing business by investing in procurement systems and people."

Simon Keswick, Chairman

16th September, 1998