• Increase in Total Liftings of 11%

• Group turnover remains level at US$2.4 billion

• Profit after tax drops by 46.5% to US$60.2 million

• Five new vessels ordered for delivery in 2003 and 2004

• Property developments continue to produce profits

Orient Overseas (International) Ltd ("OOIL") today announced a profit after taxation and minority interests of US$59.6 million for the year ended 31st December 2001, a 46.7% decrease against the US$111.9 million recorded for the corresponding period in 2000. The Directors are recommending a final dividend of US1.5 cents (HK11.7 cents). Together with the interim dividend of US1 cent (HK7.8 cents), this represents a dividend for the year of US2.5 cents (HK19.5 cents), a decrease of 37.5% from that for 2000.

"The year of 2001 was not an easy one. Nevertheless, the performance recorded for 2001 by Orient Overseas (International) Limited and its subsidiaries (the "Group") was acceptable in the context of the general economic climate.   Despite the rapidly worsening conditions, our international transportation, logistics and terminal operations, which remain the Group's principal business, managed to achieve a satisfactory result under the circumstances and again provided the majority of profits," said Chairman and Chief Executive Officer Mr. C C Tung.  "After a number of years of investment, our property development projects in China which began to deliver a significant return in 2000, have again contributed significantly to Group profits."

The Group recorded an increase in total liftings of 11% but the fact that Group turnover remained more or less the same level is a reflection of the overall fall in freight rates during the year.  All trade routes experienced worsening business conditions during 2001.  It is variously estimated that total container volumes grew by between 3.5 and 4% during 2001, the lowest in the history of containerised transport.  This was at a stage in the cycle at which the rate of delivery of new containerships was approaching an all time high. The compound impact upon the general level of freight rates has been extreme.

During the year, the Group took delivery of two new vessels, which are chartered in under long-term charters.  The Group also ordered five further new vessels for delivery in 2003 and 2004, four with a capacity of 7,700 TEU each and one, ice-strengthened, with a capacity of 4,100 TEU.  Including the two ordered in 2000, the Group has in total seven new vessels to be delivered in 2003 to 2004.   The Group's container terminal businesses in North America also enjoyed mixed fortunes in 2001.  Overall, the four terminals achieved a 7.8% increase in throughput but the net results suffered from a number of factors.  Global Terminal in New Jersey suffered from the loss of a major customer as a result of bankruptcy and the terminal at Howland Hook incurred significant restructuring charges resulting from our acquisition of the minority shareholding and subsequent management changes.  In 2001, the Group disposed of its non-core investment in the Venice Container Terminal through the sale of its minority holding of 38% to the majority shareholder at a gross consideration of Lira 8 billion.

In October 2001 OOCL launched a Chinese language website option to enable better communication with its Chinese customers allowing them greater transportation, supply chain logistics and terminal operation information. There are also interactive features using simplified Chinese characters.   "We have also enhanced yet further our award winning object-orientated underlying enterprise system, IRIS-2.  It is now a driver within the organisation towards the further improvement of our products and services for the benefit of our customer base," said Mr. Tung.  He continued, "CargoSmart, our portal for the container transportation industry, is possibly the most advanced and comprehensive on-line shipping solution.  During 2001 it was 'neutralised' by being reorganised under a separate management and appointing and employing Hewlett Packard to host the system.pan>

The Group's Property Development and Investment division enjoyed another good year in 2001 as the investments of previous years have come to maturity and continue to produce their returns.  The developments in Shanghai have benefited from a generally buoyant sales environment which is also seeing a steady growth of liquidity in the secondary market for privately owned residential units.  This division is able to look to the future with growing confidence and a number of potential development opportunities have been identified and continue to be assessed with one in the Luwan district of Shanghai now acquired.  The Group's investment property, Wall Street Plaza in New York City, recorded one of its best ever performances during 2001 and enjoyed almost 100% occupancy throughout the year.  The tragic events of 11th September 2001 have had their impact upon the demand for prime office space in Lower Manhattan and, for this reason, the Group deemed it appropriate at this point to write down the value of this investment property.

"While it would seem that the US recession is over and was short lived, a strong recovery is required to provide the demand increase necessary to counterbalance the volume of new vessels due for introduction into service this year.  Only when we see this situation clearly will freight rates and profitability return to more acceptable levels.  With this recovery by no means certain, the Group's focus for the remainder of this year will remain the eradication of unnecessary practices, the achievement of greater efficiencies and the containment of central and fixed costs.  This exercise will then stand us in very good stead to reap the benefits of an improved market as and when it begins to emerge," concluded Mr. Tung.

Nicholas Sims, the Group Chief Financial Officer, said that the Group's net debt to equity ratio as at 31st December 2001 was maintained at 0.6, comparable with that of 2000, and it remains one of the Group's strategic goals to maintain this ratio at a level below 1.0.  Sufficient resources have been set aside to ensure that no undue burden is placed upon the Group's financial position as new vessels are delivered over the next few years.

OOIL owns one of the world's largest international integrated containerised transportation businesses and trades under the name OOCL.  Its investments are principally in international containerised transportation, container terminal operations, commercial property in New York, business interests in the People's Republic of China and portfolio investment securities.  With more than 160 offices in 50 countries the Group is one of Hong Kong's most international of businesses.  OOIL is listed on The Stock Exchange of Hong Kong Limited.

CONSOLIDATED PROFIT AND LOSS ACCOUNT
For the year ended 31st December 2001