ULBON BERHAD
(Company No. : 122592-U)

Dated: 30 November 1999

Listing Department
KUALA LUMPUR STOCK EXCHANGE
9th Floor Exchange Square
Bukit Kewangan
50936 Kuala Lumpur

Dear Sirs

ULBON BERHAD
UNAUDITED 3rd QUARTER REPORT ON CONSOLIDATED RESULTS
FOR THE FINANCIAL PERIOD ENDED 30 SEPTEMBER, 1999

CONSOLIDATED INCOME STATEMENT

	Individual Quarter		Cumulative Quarter	
	Current year quarter	Preceding year corresponding quarter		Current year
 to date	Preceding year corresponding period	
	30/09/99	30/09/98		30/09/99	30/09/98	
	RM'000	RM'000		RM'000	RM'000	
						
1.	(a)	Turnover	14,369	*		33,743	*	
						
	(b)	Investment income	-	*		-	*	
						
 	(c)	Other income including interest income	224	*		594	*	
						
2.	(a)	Operating profit before interest on borrowings, depreciation and amortisation, exceptional item, income tax, minority interests and extraordinary items	2,323	*		2,503	*	
	(b)	Interest on borrowings	(127)	*		(391)	*	
	(c)	Depreciation and amortisation	(651)	*		(2,018)	*	
	(d)	Exceptional items	-	*		-	*	
						
	(e)	Operating profit after interest on borrowings, depreciation and amortisation and exceptional items but before income tax, minority interests and extraordinary items	1,545	*		94	*	
	(f)	Share in the results of associated companies	-	*		-	*	
						
	(g)	Profit before taxation, minority interests and extraordinary items	1,545	*		94	*	
	(h)	Taxation	393	*		(75)	*	

ULBON BERHAD
UNAUDITED 3rd QUARTER REPORT ON CONSOLIDATED RESULTS
FOR THE FINACIAL PERIOD ENDED 3O SEPTEMBER, 1999

Page 2

CONSOLIDATED INCOME STATEMENT (Continued)

	Individual Quarter		Cumulative Quarter	
	Current year quarter	Preceding year corresponding quarter		Current year 
to date	Preceding year corresponding period	
	30/09/99	30/09/98		30/09/99	30/09/98	
	RM'000	RM'000		RM'000	RM'000	
						
2.	(i)	(i)	Profit after taxation before deducting minority interests	1,938	*		19	*	
		(ii)	Less : Minority interests	(742)	*		(801)	*	
						
	(j)	Profit/(Loss) after taxation attributable to members of the Company	1,196	*		(782)	*	
						
	(k)	(i)	Extraordinary items	-	*		-	*	
		(ii)	Less : Minority interests	-	*		-	*	
		(iii)	Extraordinary items attributable to members of the Company	-	*		-	*	
						
	(l)	Profit/(Loss) after taxation and extraordinary items attributable to members of the Company	1,196	*		(782)	*	
						
3.	(a)	Earnings/(Losses) per share based on 2(j) above after deducting any provision for preference dividends, if any :						
						
		(i)	Basic (based on 19,800,000 ordinary shares – sen)	6.0	*		(3.9)	*	
						
		(ii)	Fully diluted (sen)	NA	*		NA	*	
						
4.	(a)	Dividend per share (sen)	Nil	*		Nil	*	
	(b)	Dividend description	NA	*		NA	*	

	
As at End of Current Quarter		As at Preceding Financial Year End	
						
5.	Net tangible assets per share (RM)	1.86		1.89	

Note:	*	Not applicable since this is the first reported quarterly results.

ULBON BERHAD
UNAUDITED 3rd QUARTER REPORT ON CONSOLIDATED RESULTS
FOR THE FINANCIAL PERIOD ENDED 30 SEPTEMBER, 1999

Page 3

CONSOLIDATED BALANCE SHEET
		
As at end of current quarter
30/09/99		As at preceding financial period ended
30/09/98	
		RM'000		RM'000	
					
1.	Fixed assets	21,462		*	
2.	Investment in associated companies	-		*	
3.	Long term investments	1,538		*	
4.	Intangible assets	6,529		*	
5.	Current assets				
	   Stocks	9,322			
	   Trade debtors	20,368			
	   Other debtors, deposits and prepayments	2,432			
	   Short term investments	-			
	   Term deposits	7,325			
	   Cash and bank balances	898			
		40,345		*	
					
6.	Current liabilities				
	   Short term borrowings	1,765			
	   Trade creditors	7,698			
	   Other creditors	3,132			
	   Provision for taxation	(166)			
	   Proposed dividend	-			
 		12,429		*	
					
7.	Net current assets	27,916		*	
					
		57,445		*	
					
8.	Share capital	19,800		*	
	Reserves				
	   Share premium	5,200		*	
	   Revaluation reserve	-			
	   Capital reserve	-			
	   Statutory reserve	-			
	   Retained profits	17,907		*	
	   Others	475		*	
		23,582		*	
	Shareholders' funds	43,382		*	
					
9.	Minority interests	8,619		*	
10.	Long term borrowings	3,820		*	
11.	Other long term liabilities	1,624		*	
					
		57,445		*	
					
12.	Net tangible assets per share (RM)	1.86		*	

Note:	*	Not applicable since this is the first reported quarterly results.
Notes

1.	Accounting Policies
The third quarter financial statements have been prepared using the same accounting policies, method of computation and basis of consolidations as compared with those used in the preparation of the most recent annual financial statements.

2.	Exceptional Item
There was no exceptional item in the quarterly financial statement under review.

3.	Extraordinary Item
There was no extraordinary item in the quarterly financial statement under review.

4.	Taxation
No provision is made for tax on operating income for the financial period under review in view of the waiver of income tax granted under the Income Tax (Amendment) Act 1999.  However, the taxation amount provided includes a deferred tax of RM60,000 and under provision for the previous year of RM14,744.

5.	Pre-acquisition Profit
There were no pre-acquisition profits or losses for the current financial period ended 30 September 1999.

6.	Profit on sale of Investments and/or Properties
There was no sale of investments and/or properties for the current financial period ended 30 September 1999.

7.	Quoted Securities 
There was no purchase or disposal of quoted securities for the current financial period ended 30 September 1999.

8.	Changes in the Composition of the Group
One of the subsidiaries of the Company, Advance Industries Sdn Bhd has acquired 51% equity interest in Acumen Enterprise Sdn. Bhd. during the current financial period ended 30 September 1999.

9.	Status  of  Corporate Proposals
There were no corporate proposals announced but not completed as at 24 November 1999. 

10.	Seasonal or Cyclical Factors
For the financial period under review, the Group’s business is not affected by any seasonal or cyclical factors.  

11.	Corporate Developments
There were no issuances and repayment of debts and equity securities, share buy-backs, share cancellations, shares held as treasury shares nor resale of treasury shares during the current financial period ended 30 September 1999.

12.	Group Borrowings and Debt Securities
The borrowings of the Group as at 30 September 1999 are as follows:-

			As at 30 September 1999	
			 RM’000	
				
Short term borrowings	- secured		1,265	
	- unsecured		1,353	
				
Long term borrowings	- secured (US dollars denominated)	3,820 (RM equivalent)	
				
Hire purchase	- due by the financial year ending 31 Dec. 1999	234	
	- due within two to five years	485	

13.	Contingent Liabilities
As at 24 November 1999, the contingent liabilities of the Company are as follows:-

•	guarantee for bank facilities of the subsidiary companies amounted to RM4.239 million; and  
•	performance guarantee of RM5.7 million for a subsidiary company in respect of its OEM contract and marketing agreement. 

14.	Off Balance Sheet Financial Instruments
There were no material financial instruments with off balance sheet risk during the current financial period ended 30 September 1999.

15.	Material Litigation
As at 24 November 1999, there was no material litigation involving the Group.

16.	Segmental Reporting
There is no segmental reporting as the Group’s activities are carried out primarily in Malaysia and the Group’s operations are substantially in the manufacturing sector only.

17.	Quarterly Financial Results Comparison 
No comparison is available as this is the first quarterly financial announcement issued by the Company.

18.	Review of Performance of the Company and its Principal Subsidiaries
For the financial quarter under review, the Company recorded about RM5.5 million in sales and a profit before tax of RM126,000.  The main contributing factor to the positive results is the lower cost of materials.  As for the subsidiaries, they have recorded about RM8.9 million in sales and about RM1.5 million in profits.  

The results for the financial quarter under review were not, in the opinion of the directors, substantially affected by any item, transaction or event of a material or unusual nature.

19.	Prospect for the Current Financial Year
The Board expects the Group’s results for the fourth quarter to be profitable based on the contract amount in hand.

20.	Dividend
No interim dividend has been recommended for the financial year ending 31 December 1999.

21.	Year 2000 (Y2K) Readiness
To date, the Group is Y2K ready in respect of the critical operational systems.  Total amount incurred by the Group in addressing the Y2K issue is about RM200,000.