The economic climate at the beginning of 2003 was mixed as uncertainty and a number of inopportune events impacted markets worldwide. Early on in the year coalition forces led by the United States went to war in Iraq prompting caution on the part of investors. This slowed markets and business spending and although the situation appeared to improve mid-year, businesses around the region suffered further setbacks as outbreaks of SARS were reported in many Asian countries. Indonesia was fortunate to escape a wider epidemic as measures were put in place to ensure prevention.

The Marriott Bombing in Jakarta, though tragic, only briefly impacted financial markets as the government responded swiftly to the crisis demonstrating its commitment to economic and political stability. Continuing reform in the banking sector helped to strengthen the Rupiah to its highest levels against the U.S. Dollar since 1997, and inflation also remained in single digits throughout the year at 5.06 percent a level 50 percent lower than previous year. In 2003 the Indonesian Capital Market distinguished itself as the second best performing market in the world and market capitalization for the Jakarta Stock Exchange increased by over 72 percent to IDR 462 trillion as local participation increased and foreign investment returned.

Perhaps most significant for Limas - in 2003 the company booked a net profit for the first time in its brief history. We are delighted with this development and view it as the starting point from which all our future success and achievements will begin.

Looking ahead several growth engines can be identified, the most prominent being growth in local and international investor participation fueled by a consistent rate of exchange, manageable inflation, and low interest rates that will continue to boost consumer spending and provide access to working capital. Also worthy of mention is the increased access to regional markets under the framework of the ASEAN Free Trade Agreement. Finally, the hope of greater geo-political stability, which if realized should serve to improve investor sentiment and allow companies to focus efforts on their primary objective - growth - making for increased economic activity, improved liquidity, and higher market value.

In closing I would like to thank our partners and shareholders for their confidence and unfailing support; and at the same time express our sincere gratitude to all the staff of PT Limas Centric Indonesia Tbk for their dedication and commitment - I am honored to have shared such a rewarding year with you.