HONG KONG

• DISPOSAL OF TERMINALS DIVISION COMPLETED FOR A TOTAL CONSIDERATION OF US$2.35 BILLION
   

• GROUP TURNOVER INCREASED BY 15.5% TO US$2,514.3 MILLION
   

• PROFIT ATTRIBUTABLE TO SHAREHOLDERS OF US$2,216.3 MILLION
   

• A PROFIT BEFORE TAX FROM CONTINUING OPERATIONS OF US$229.0 MILLION (US$204.0 MILLION LAST YEAR), EXCLUDING INVESTMENT PROPERTY REVALUATIONS AND THE 2007 ONE TIME PROFIT FROM THE DISPOSAL OF THE TERMINALS DIVISION
   

• EARNINGS PER SHARE OF US354.2 CENTS (US44.8 CENTS LAST YEAR). EXCLUDING DISCONTINUED OPERATIONS, EARNINGS PER SHARE FROM CONTINUING OPERATIONS OF US36.7 CENTS (LAST YEAR US41.7 CENTS)
   

• A TOTAL DIVIDEND OF US89.5 CENTS (HK$6.98) PER SHARE, COMPRISING AN INTERIM DIVIDEND OF US9.5 CENTS (HK$0.74) AND A SPECIAL DIVIDEND OF US80 CENTS (HK$6.24) PER SHARE IN RECOGNITION OF THE DISPOSAL OF THE TERMINALS DIVISION
   

• OOCL LIFTINGS INCREASED BY 18.8%
   

• DELIVERY TAKEN OF TWO 8,063 TEU NEW VESSELS, ONE 4,506 TEU PANAMAX SIZE NEW VESSEL AND FOUR 5,888 TEU LONG-TERM CHARTERED NEW VESSELS
   

• ORDERS PLACED FOR ANOTHER SIX 4,500 TEU NEW VESSELS
   

• PROPERTY DEVELOPMENT PROJECTS PROGRESSED AS FORECAST
   

Orient Overseas (International) Limited (“OOIL”) Group today announced a profit attributable to shareholders of US$2,216.3 million for the first six months of 2007 compared with US$280.5 million earned during the first half of 2006.  The result for the first half of 2007 included the profit on the sale of the Group’s former Terminals Division to the Ontario Teachers’ Pension Plan Board amounting to US$1,987 million together with a further US$25 million revaluation of the Wall Street Plaza investment property (US$75 million as at June last year).  Excluding these non-recurring profit elements, the profit before tax was US$229.0 million compared with US$204.0 million for the corresponding period of 2006.

The Directors have recommended the payment of a total dividend of US89.5 cents (HK$6.98 at the exchange rate of US$1 : HK$7.8) which is comprised of an interim dividend of US9.5 cents (HK$0.74) and a special dividend of US80 cents (HK$6.24) per ordinary share as a result of the sale of the Group’s Terminals Division, will be paid on 14th September 2007 to the ordinary shareholders of the Company whose names appear on the register of members of the Company on 3rd September 2007.

OOIL Chairman, Mr C C Tung, said “Overall, the markets have remained strong in terms of container volume growth and resilient in terms of freight rates which in some trades, certainly during the second quarter of 2007, have begun to show signs of a return towards former levels.  OOCL’s total liftings increased by 18.8% for the first half of 2007 as compared with the same period last year.  Increases on the Asia to Europe and Intra-Asia and Australasian routes were particularly strong.  Total revenues, however, grew by 14.7% to US$2,326.5 million for the first six months of 2007 as a result of a 3.4% fall in overall revenues per TEU.  The first half of this year in terms of overall performance has been very similar to last year albeit that the relative performances of our various trades have changed.  The significant difference however, is that whereas the environment of the first half of 2006 was one of softening freight rates the environment this year is one of strengthening freight rates.

The deployment of the last two in an initial series of twelve 8,063 TEU “SX” Class newbuildings together with the second four of the series of eight 5,888 TEU “S” Class newbuildings and the first in the series of “P” Class Panamax vessels contributed towards an overall 20.0% increase in loadable capacity during the first half of the year.  Despite this significant increase in fleet capacity, the strength in volume growth has been such that overall load factors registered only a slight 0.8% drop as compared with the first half of 2006.  The emphasis generally on the deployment of tonnage in the stronger trade lanes has allowed load factors to remain at acceptable levels even on those trades experiencing more modest volume growth rates.

In the current environment of historically high costs, both variable and fixed, we have maintained our concentration upon operational efficiencies and tight cost control aided by better usage of and ongoing investment in our IT systems.

“The Group’s property investment and development businesses continued to be profitable during the first half of 2007.  Efforts to build the Group’s property investment and development businesses continue as planned.  However, as previously reported and as a result of project timings we do not expect a significant contribution to Group performance for 2007,” said Mr Tung.

Wall Street Plaza, our investment property in the city of New York has continued to perform to budget and has maintained an occupancy rate of almost 100%.  As at 30th June 2007, it has been revalued by a further US$25 million to US$225 million.  Beijing Oriental Plaza, our investment property in the city of Beijing, continues to perform as forecast.  We expect the project to make a meaningful contribution to the Group results over the longer term.  Our property development projects in Greater Shanghai continue as planned.  Projects under development include residential, commercial and hotel projects in the Greater Shanghai area.

Global consumer demand has thus far remained firm.  The economies of Europe are strengthening and container volume growth is presently exceptionally strong and shows little, if any sign of slowing.  The growth is such that one must assume that a growing percentage of Western Europe bound cargoes are ultimately destined for the former Eastern Europe, itself an area of fast developing and growing economies.  In the US, despite various surveys suggesting a drop in consumer confidence, consumption and retail sales figures remain remarkably resilient.  Healthy corporate earnings, the reasonably tight labour market and an environment of rising wages seem thus far to have countered the negative sentiment arising from high energy and fuel prices, rising interest rates and the slowdown in the property market.  Consumption in Japan is finally showing signs of starting to recover and the economies of the Asia Pacific region also continue to grow robustly.  Those of China and India lead the way at the same time continuing to develop their own consumer economies as the still nascent middle class sector establishes itself.  All this bodes well for the industry to achieve and maintain the fine balance between supply and demand i.e. between the rates of new building tonnage deployment and container volume growth.  We believe that we are currently in an environment of firm freight rates and we look forward to a healthy second half of the year.

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 improved from a net debt of 0.33 : 1 at end of 2006 to a net cash as at 30th June 2007.  He also said that as at 30th June 2007, the Group had cash and portfolio investment balances of US$2,753.9 million.

OOIL owns one of the world’s largest international integrated container transport businesses which trades under the name “OOCL”.  Its investments are principally in international container transport, container terminal operations, property interests and portfolio investment securities.  With more than 230 offices in 58 countries the Group is one of Hong Kong’s most international businesses.  OOIL is listed on The Stock Exchange of Hong Kong Limited.

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Issued by:        Orient Overseas (International) Limited

For further information contact

Nicholas D Sims         Chief Financial Officer                                   (852) 2833 3518

Stanley Shen               Investor Relations Manager                            (852) 2833 3167

Internet address :        http://www.ooilgroup.com

Year 2006 figures have been restated or reclassified to disclose the results of discontinued operation in a separate line.