Our operations in 2002 resulted in a 6.68 percent increase in revenue amounting to IDR 7.6 billion. The proceeds of our IPO in 2001 were managed into deposits resulting in additional earnings of IDR 962 million. Furthermore, progressive working capital allocations served to increase cash flow liquidity throughout the year.

Despite adverse macro and microeconomic conditions, we recorded gross profits of IDR 4.2 billion. However due to the nature of our industry, unavoidable investments in tangible and intangible assets resulted in increased amortization and depreciation expenditure significantly impacting the company’s operating expenses.

The slow recovery in the value of the Indonesian Rupiah against foreign currencies further disadvantaged our financial performance during this report period. In order to limit exposure in the future, the management of

PT. Limas Centric Indonesia has moved to limit future foreign currency liabilities while at the same time continuing to promote growth in all aspects of our business.

In accordance with natural product cycles, in 2002 Limas Stokhomindo adapted its signature product - StockWatch® - to cater to growing public demand for access to real time financial information. With an understanding of the challenge of connectivity due to inconsistent domestic infrastructure development, Limas developed StockWatchRetail® a flexible application designed to facilitate easy access without sacrificing performance and accuracy.

Rooted in the same technology that powers StockWatch® Terminal products, StockWatch Retail® offers users comparable functionality with greater ease of access on account of lower communication hardware requirements. Also incorporated is a safety shield that ensures user protection by compressing and encrypting all data transmitted. Multiple access points have been duplicated and deployed through strategic alliances with major ISPs thus guaranteeing users both excellent performance and easy access allowing them to monitor real time financial information from any Internet access point within a secure environment.

PT. Limas Centric Indonesia Tbk. has been a strong proponent of domestic technology infrastructure development since commencing operations in 1996. The company’s industry experience and past achievements have equipped it with the expertise required to facilitate the integration of transaction processing and execution as the industry consolidates.

When the Jakarta Stock Exchange took the first step towards Remote Trading last year, PT. Limas Centric Indonesia was appointed to provide its StockTrade® service to all participating members. As an Application Service Provider, StockTrade® offers many advantages to potential users. StockTrade® has undergone the rigorous testing process required by independent auditor PriceWaterHouseCooper and the numerous stringent testing plans dictated by the Jakarta Stock Exchange in order to meet domestic process performance requirements and conform to international standards for system performance, security and network support.

The company’s listing on the Jakarta Stock Exchange allowed its employees the opportunity to share in its success as Limas implemented an employee stock option scheme in 2002 allocating 30 percent of the 40 million warrants available to its staff. In the first distribution, 85 percent of its workforce received stock options in accordance with their performance, an action that has boosted morale and performance significantly.

In September 2002, we replaced our previous performance management system with a more refined one capable of detailing team performance and calculating individual productivity and contribution, which has served to emphasize the importance of personal accountability and individual performance. PT. Limas Centric Indonesia Tbk. has always considered its people its most valuable asset. As such we believe that the prudent management of this vital asset is paramount to continuous growth. We are looking forward to a future of growth and profitability as the productivity of each of our people increases.

Technology will shape the future of the domestic and international financial markets as it continues to play a significant role in industry consolidation. The implementation of scriptless trading in mid 2001 for instance increased the efficiency of the Indonesian capital market by slashing annual registration and paper costs by IDR 624.9 trillion, increasing the volume of market transactions, and reducing the settlement process from T+4 to T+3.(1)

In mid-year 2002 the Jakarta Stock Exchange implemented Remote Trading and as of 23 December, daily market transactions were up by 16.02 percent in volume, 24.39 percent in value, and 10.5 percent in market capitalization compared to 2001. This development has decreased transaction order entry time from 15 seconds to 8 seconds allowing exchange members to process more orders, has minimized the possibility of human error, and facilitated the expansion of business activities through the use of newly available resources.(2)

In 2002 Limas applied its technology, knowledge and industry experience to support various mobile platforms and applications for SMS, WAP and GPRS. We are proud to list among our partners Indonesia’s largest mobile operators who have joined hands with us to meet the demands of the modern mobile user. We see these developments as a manifestation of our commitment to building the future and bringing value to life.

This is the essence of Limas Centric Indonesia .