ULBON BERHAD
(Company No. : 122592-U)

Dated: 25 February 2000

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

Dear Sirs

ULBON BERHAD
UNAUDITED 4th QUARTER REPORT ON CONSOLIDATED RESULTS
FOR THE FINANCIAL PERIOD ENDED 31 DECEMBER, 1999

CONSOLIDATED INCOME STATEMENT

	Individual Quarter		Cumulative Quarter	
	
Current year quarter	Preceding year corresponding quarter		
Current year
 To date	Preceding year corresponding period	
	31/12/99	31/12/98		31/12/99	31/12/98	
	RM'000	RM'000		RM'000	RM'000	
						
1.	(a)	Turnover	14,337	*		48,081	41,831	
						
	(b)	Investment income	-	*		-	18	
						
 	(c)	Other income including interest income	155	*		713	1,565	
						
2.	(a)	Operating profit before interest on borrowings, depreciation and amortisation, exceptional item, income tax, minority interests and extraordinary items	2,023	*		4,525	6,884	
	(b)	Interest on borrowings	(124)	*		(514)	(558)	
	(c)	Depreciation and amortisation	(664)	*		(2,682)	(1,689)	
	(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	1,235	*		1,329	4,637	
	(f)	Share in the results of associated companies	-	*		-	-	
						
	(g)	Profit before taxation, minority interests and extraordinary items	1,235	*		1,329	4,637	
	(h)	Taxation	          343	*		268	(867)	

ULBON BERHAD
UNAUDITED 4th QUARTER REPORT ON CONSOLIDATED RESULTS
FOR THE FINANCIAL PERIOD ENDED 31 DECEMBER, 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	
	31/12/99	31/12/98		31/12/99	31/12/98	
	RM'000	RM'000		RM'000	RM'000	
						
2.	(i)	(i)	Profit after taxation before deducting minority interests	1,578	*		1,597	3,770	
		(ii)	Less : Minority interests	(621)	*		(1,220)	(1,155)	
						
	(j)	Profit after taxation attributable to members of the Company	957	*		377	2,615	
						
	(k)	(i)	Extraordinary items	-	*		-	-	
		(ii)	Less : Minority interests	-	*		-	-	
		(iii)	Extraordinary items attributable to members of the Company	-	*		-	-	
						
	(l)	Profit after taxation and extraordinary items attributable to members of the Company	957	*		377	2,615	
						
3.	(a)	Earnings 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)	4.8	*		1.9	13.2	
						
		(ii)	Fully diluted (sen)	NA	*		NA	NA	
						
4.	(a)	Dividend per share (sen)	        8.5	*		8.5	1.0	
	(b)	Dividend description	Final	*		Final	Final	

	
As at End of Current Quarter		
As at Preceding Financial Year End	
						
5.	Net tangible assets per share (RM)	1.75		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 31 DECEMBER, 1999

Page 3

CONSOLIDATED BALANCE SHEET
		
As at end of current quarter
31/12/99		As at preceding financial period ended
31/12/98	
		RM'000		RM'000	
					
1.	Fixed assets	21,384		22,018	
2.	Investment in associated companies	-		-	
3.	Long term investments	1,538		1,475	
4.	Intangible assets	6,434		6,817	
5.	Current assets				
	   Stocks	9,144		14,931	
	   Trade debtors	22,973		17,661	
	   Other debtors, deposits and prepayments	3,619		1,213	
	   Short term investments	-			
	   Term deposits	5,875		4,235	
	   Cash and bank balances	935		1,204	
		42,546		39,244	
					
6.	Current liabilities				
	   Short term borrowings	             1,939		384	
	   Trade creditors	9,040		7,457	
	   Other creditors	             6,687		3,855	
	   Provision for taxation	173		824	
	   Proposed dividend	1,683		198	
 		19,522		12,718	
					
7.	Net current assets	23,024		26,526	
					
		52,380		56,836	
					
8.	Share capital	19,800		19,800	
	Reserves				
	   Share premium	5,200		5,200	
	   Revaluation reserve	-		-	
	   Capital reserve	-		-	
	   Statutory reserve	-		-	
	   Retained profits	15,630		19,165	
	   Others	475		-	
		21,305		24,365	
	Shareholders' funds	41,105		44,165	
					
9.	Minority interests	9,039		7,818	
10.	Long term borrowings	955		3,284	
11.	Other long term liabilities	1,281		1,569	
					
		52,380		56,836	
					
12.	Net tangible assets per share (RM)	1.75		1.89	

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

1.	Accounting Policies
The fourth 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 RM283,000 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 31 December 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 31 December 1999.

7.	Quoted Securities 
There was no purchase or disposal of quoted securities for the current financial period ended 31 December 1999.  
# Investment in quoted shares as at end of the reporting period :-
- at cost:		          RM1,475,000
- at market value:	          RM1,410,100
##- at carrying value                         Nil
Golf and club membership:- RM63,000

8.	Changes in the Composition of the Group
There were no changes in the composition of the Group for the financial period ended 31 December 1999.

9.	Status  of  Corporate Proposals
There were no corporate proposals announced but not completed as at 25 February 2000. 

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 31 December 1999.

12.	Group Borrowings and Debt Securities
The borrowings of the Group as at 31 December 1999 are as follows:-

			As at 31 December 1999	
			 RM’000	
				
Short term borrowings	- secured		1,563	
	- unsecured		376	
				
Long term borrowings	- secured (US dollars denominated)		
	- due by the financial year ending 31 Dec. 2000	1,910 (RM equivalent)	
	- due by the financial year ending 31 Dec. 2001	955 (RM equivalent)	
				
Hire purchase	- due by the financial year ending 31 Dec. 2000	487	
	- due within two to five years	-	

13.	Contingent Liabilities
As at 25 February 2000, the contingent liabilities of the Company are as follows:-

•	guarantee for bank facilities of the subsidiary companies amounted to RM2.1 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 31 December 1999.

15.	Material Litigation
As at 25 February 2000, 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 
The Group has achieved a turnover of RM14.337 million for the 4th financial quarter ended 31 December 1999 which is about the same as the preceding quarter of RM14.369 million.  However, profit before tax was slightly lower than the preceding quarter, dropped from RM1.545 million to 1.235 million.  The higher amount of expenditure for the final quarter of the year is normal in view of year-end provisions.

18.	Review of Performance of the Company and its Principal Subsidiaries
For the financial quarter under review, the Company recorded a turnover of RM5.312 million and a profit before tax of RM406,000.  The main contributing factor to the positive results is the lower cost of materials.  As for the subsidiaries, they have recorded about RM9.0 million in sales and about RM925,000 in profits.  

For the Group, although turnover increased by 14.9% as compared to the last financial year, profit margin was depressed by the competitive environment.  Also, other income is substantially lower due to lower interest income earned as compared to the last financial year which is attributable to the much lower saving interest rate for the current financial year ended 31 December 1999.

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
As the economy has began to pick up the pace and the revival of several major infrastructural projects, the Board of Directors is more optimistic that the current year prospect should be better. 

20.	Shortfall of the Profit Guarantee
As per the Profit Guarantee Agreement signed on 15th January 1996 prior to the listing, the shortfall amount of RM1.684 million due from the guarantors was incorporated in the accounts for the current financial year ended 31 December 1999. 

21.	Dividend
The Board of Directors proposes a first and final (tax exempt) dividend of 8.5% ##(1998:1%)amounting to RM1.683 million ##(1998: RM198,000) in respect of the financial year ended 31 December 1999.  Notice of the Annual General Meeting and Book Closure will be announced at a later date.