• Liftings increased by 15.1%.

• Turnover increased by 26.9% to US$1,441 million.

• Profit before tax of US$88.7 million (US$4.1 million last year).

• Earnings per share of US15.4 cents (US0.2 cent last year).

• Interim dividend of US3.85 cents (HK30cents) per ordinary share.

• Delivery taken of two 8,063 TEU new vessels, one 4,200 TEU ice-strengthened new vessel and four 2,754 TEU new vessels under long-term charter arrangements.

• Improved results from terminal operations.

• Property development projects progressed as forecast.

Orient Overseas (International) Limited ("OOIL") Group today announced a profit before taxation of US$88.7 million compared with US$4.1 million for the same period last year. After taxation and minority interests, the Group reported a profit of US$79.5 million, an increase of US$78.5 million from the US$1.0 million earned during the first half of 2002.

OOIL Chairman and Chief Executive Officer, Mr. C C Tung, said "This dramatic improvement in overall performance has been due almost entirely to a strong recovery in the comparative performance of the Group's core international containerised transportation business. This in turn, was the result of both the continuing strength in the growth of container volumes and a strong recovery in the general level of freight rates resulting from the significantly favourable changes in the balance between the rates of growth of container volumes carried and the introduction of new tonnage into service".

"Despite the general weaknesses of the global economy, the second half of 2002 experienced a strong recovery in the rate of growth in container volumes. This increase, variously estimated at between 15% and 17% for the third and fourth quarters, was at such a rate that the previously much vaunted problem of new tonnage deployment outstripping the rate of demand growth never materialised, certainly not to the extent feared, and towards the end of the year the spectre of space shortages again arose. During the latter part of 2002, it became evident that in fact the industry was likely to be entering into a period of a much improved supply and demand balance. Once this had became the prevailing sentiment, freight rates began to recover strongly during the first half of 2003 to the levels we are at today," added Mr. Tung.

"During the first half of 2003 our terminal operations have again enjoyed mixed fortunes although all have benefitted from the continuing general increase in the number of container movements. Global Terminal in New Jersey remains in the process of re-establishing its customer base and has had some measure of success in its attempts to rebuild its throughput back towards former levels. At Deltaport and Vanterm in Vancouver, throughput numbers have risen 15% compared with the same period last year and average revenues per box have risen by 11%. After many years of significant under achievement Howland Hook Terminal on Staten Island, New York, which is shortly to commence operations under the new name of New York Container Terminal Inc., has also achieved a better than break even position on a recurrent basis," Mr. Tung said.

"The Group's wholly owned and majority owned property investment and development businesses have continued to perform well in the first half of the year. Wall Street Plaza, our investment property in the city of New York, has produced a result ahead of budget for the period aided by lower than forecast operating and interest costs. Our development properties in Shanghai have recorded profits significantly ahead of budget as a result of the strong residential property market," said Mr. Tung.

"Consumer confidence and demand in the major export economies of North America and Europe have remained relatively strong and the development of globalisation and the shift of manufacturing to Asia continues together with the still prevalent process of containerisation. As a result, container volumes are currently growing at an annual rate estimated at between 7% and 8%, a growth rate which keeps pace with the known rate at which newbuilding tonnage can be delivered. We are experiencing the almost unprecedented situation, certainly in recent times, of all sectors of the shipping industry simultaneously enjoying prosperous times with the effect that the world's major shipyard are working at full capacity and are likely to remain so until the latter part of 2006," commented Mr. Tung.

"In an improving business environment we have achieved a record first half result for the Group. Our ability to handle significantly higher business volumes without concomitant rises in our business and administration costs is a direct result of the commitments made over the years to the improvements in our IT systems. We also continue our focus upon our customers, both existing and potential, and persist in our drive to improve our services yet further," concluded Mr. Tung.

During the period, the Group took delivery of two "SX Class" 8,063 TEU newbuildings, the OOCL Shenzhen and the OOCL Long Beach. The Group also took delivery of the OOCL Montreal, a 4,200 TEU ice-strengthened vessel, to replace the 2,330 TEU ice-strengthened OOCL Canada which was subsequently sold. In addition, delivery was taken under long-term charter arrangements of four 2,754 TEU vessels, the OOCL Xiamen, OOCL Osaka, OOCL Sydney and OOCL Melbourne.

OOIL continues to maintain a prudent financial position, with a strategic goal of maintaining a net debt equity ratio of less than 1.0. Nicholas Sims, the Group Chief Financial Officer said that the Group's net debt to equity ratio at 30th June 2003 has been maintained at the 2002 year end level of 0.6.

The Board of Directors has recommended an interim dividend of US3.85 cents (HK30 cents) to be paid on 26th September 2003 to those ordinary shareholders whose names appear on the register on 11th September 2003. Business forecasts for the second six months of 2003 remain positive and the Board of Directors will consider a further dividend for the full year as performance and future business prospects dictate.

OOIL owns one of the world's largest international integrated containerised transportation businesses which 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 businesses. OOIL is listed on The Stock Exchange of Hong Kong Limited.

INTERIM RESULTS

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