Our actions are guided by our confidence in our core strategy of focus on retail in the Asia Pacific and our determination to achieve the alignment of talent, organisational structure, competence and financial strength to implement it. We have made progress in 1997 and, despite the current economic uncertainty in the Region, will progress further in 1998. Our view of the long-term economic vibrancy of the Asia-Pacific Region is unchanged. The current circumstances undoubtedly present significant challenges as our customers adjust to slower increases and, in some cases, declines in purchasing power. However, we also see the opportunity for sensible expansion and intend to use our financial position to do so. 1997 has been a time of rapid change in Dairy Farm. We are grateful for the patience and adaptability of our people in accepting the need for change and their commitment to our Company and our customers.

26th March 1998