Orient Overseas International Announces 2000 Interim Results

Orient Overseas (International) Ltd. ("OOIL") Group announced a profit
before taxation of US$33.6 million compared with US$5.7 million in th
e same period last year. After taxation, the Group reported a profit o
f US$22.9 million. For the same period in 1999, the after taxation los
s was US$1.3 million.

OOIL Chairman and Chief Executive Officer, C C Tung, said "The profit
before taxation of US$33.6 million represents an improvement in our pe
rformance of US$27.9 million from the first half of 1999 and reflects
a continuation of strong global trade conditions".

"The strong first half performance is attributable to the Group's cor
e business of international containerised transportation. The primary
profit drivers in the first half of 2000 were exports from Asia to the
United States and Europe. Both of these routes showed substantial imp
rovements in revenues. There has also been very substantial improvemen
t, highlighted by strong exports from Europe to North America, in the
Transatlantic trades," added Mr. Tung.

"Average revenue per TEU increased in the first half of 2000 on all m
ajor trade routes except the Intra-Asia trades, where revenue per TEU
was essentially flat with that of the preceding year. Increases in bot
h freight rates and total liftings contributed to improved year-to-yea
r results in the Trans-Pacific, Asia-Europe, and North Atlantic trades
. While performance on the outbound legs from Asia to Europe and North
America can be described as healthy and improving, return voyages fro
m Europe and North America continue to be weak but marginally improved
on last year. Trade from Europe to North America and Asia continues t
o strengthen with better economic growth in Europe and a comparably we
ak Euro currency which makes European goods very competitive in the Un
ited States and Asia. In Intra-Asia, the growth in capacity has not be
en matched by comparable growth in liftings and revenues, although tot
al revenues have increased," commented Mr. Tung.

"Our container terminals group improved its operating profit over the
corresponding period of last year and is ahead of budget. The perform
ance reflects growth in the business at our terminals in Vancouver and
the Port of New York and New Jersey," Mr. Tung said.

"We spoke at length in the 1999 annual report about the evolution of
electronic data management and E-Commerce within the Orient Overseas C
ontainer Line Group, as well as our associated belief that E-Commerce
would enhance our business both quantitatively and qualitatively in th
e years ahead. I am delighted to report that our customers are validat
ing that belief earlier than expected. Amongst our major markets, the
North American territory enjoys generally a very high customer prefere
nce for conducting business through use of the Internet, but also key
areas like the UK and Germany in our European territory are reaching h
igh ratios of Internet services utilisation," said Mr. Tung.

"Non-containerised activities, notably domestic housing in China, are
on plan and on budget". Mr. Tung said "in Hangzhou, "Orient Garden" w
as completed in fourth quarter 1999 and achieved profitability. "Joffr
e Gardens" in Shanghai, expected to be completed by year end, has surp
assed 50% in pre-sales. Initial pre-sales at the Zhenning Lu and Ziyan
g Lu projects in Shanghai, expected to be completed in 2001 and 2002,
are strong and within budget. Some profits will be taken in 2000, but
the major part remains for future years. In Beijing, progress of Beiji
ng Oriental Plaza is proceeding according to schedule and Phase I will
commence occupancy in the second half of the year. We continue to hol
d an 8% stake in the project, and expect the project to make a future
contribution to the Company. Activities at our unsuccessful "Foody's"
brand soft drinks business in Shanghai has been minimised in the year
2000. We expect to exit the business by the fourth quarter of 2000. T
he provision taken in 1999 is expected to be sufficient".

"The current arrival of the peak season in our containerised transpor
tation business and continued performance according to budget in our n
on-containerised activities augur well for the remainder of the year.
We currently expect 2000 full year results to be better than those of
1999," concluded Mr. Tung.

Mr. Tung said that the Group's net debt to equity ratio at 30th June
2000 was 0.4, compared with 0.6 reported for the first half of 1999.
It remains the Group's objective to maintain the net debt to equity r
atio at 1:1 or below. The Group's loans outstanding at 30th June 2000
were US$722.8 million.

The Group maintained cash and marketable securities totalling US$414.
1 million at 30th June 2000.

The Directors are pleased to announce an interim dividend of US1 cent
(HK7.8 cents) per ordinary share to be paid on 29th September 2000 to
ordinary shareholders whose names appear on the register of members o
n 15th September 2000.

OOIL owns one of the world's largest international integrated contai
nerised transportation businesses and trades under the name OOCL. Its
investments are principally in international containerised transportat
ion, container terminal operations, commercial property in New York, b
usiness interests in the People's Republic of China and portfolio inv
estment securities. With more than 160 offices in 50 countries the Gro
up is one of Hong Kong's most international businesses. OOIL is liste
d on The Stock Exchange of Hong Kong Limited.

INTERIM RESULTS

The Directors announce the unaudited consolidated results of Orient O
verseas (International) Limited as set out below:-

Six months ended 30th June

2000
US$'000 1999
US$'000

Turnover
1,161,052 969,314

Operating costs
(975,227) (827,458)


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Gross profit
185,825
141,856

Other operating income
5,361 6,232
Other operating expenses
(138,307) (121,910)
Other exchange gain
1,720 2,165

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Operating profit before financing
54,599 28,343
Net finance expense
(19,581) (21,560)
Share of losses less profits of jointly controlled entities
(1,446)
(1,086)


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Profit before taxation
33,572
5,697

Taxation
(10,699)
(7,016)


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Profit/(loss) after taxation
22,873
(1,319)

Minority interests
(274)
(230)


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Profit/(loss) attributable to shareholders
22,599
(1,549)

Dividends
(5,171)
-


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Retained profit/(loss) for the period
17,428
(1,549)


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US cents
US cents

Earnings/(loss) per ordinary share
4.4
(0.3)


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