Interim Results

WORLDSEC LIMITED
13 October 1999


                            Worldsec Limited
            Interim Report for the six months ended 30 June 1999

The Directors submit the interim report on Worldsec Limited (the 'Company') and
its subsidiaries (collectively known as the 'Group') for the six months ended 30
June 1999 (the 'Period').

HIGHLIGHTS

*Turnover for the Period increased by 18% as compared with the same period in
 1998 to US$7,489,000.

*Profit from ordinary activities after taxation and minority interests for the
 Period was US$8,000, a huge improvement from the loss of US$4,505,000 in the
 same period in 1998.

DIVIDEND

The Directors do not recommend the payment of an interim dividend.

REVIEW OF OPERATIONS AND PROSPECTS

Asian economies are beginning to recover from 1998's sharp recession, with the
recovery driven by a pick-up in export demand. Over the course of this year,
forecasts of economic growth have been regularly revised upwards. Korea and
Taiwan have been at the forefront of recovery, with their export demand buoyed
by the cyclical recovery in the electronics sector.

Low and falling inflation rates, high savings and large current account
surpluses stemming from the recovery in exports have allowed Asian central banks
to cut interest rates to very low levels. At the same time, Asian governments
have been pursuing reflationary policies. The combination of loose monetary
policies and export-led economic recovery has been reflected in strong Asian
equity markets putting them among the world's top-performing this year.

Although there has been progress made in restructuring some of Asia's troubled
banks and in introducing needed reforms in several regional economies,
structural weaknesses uncovered by the Asian currency crisis remain. In
Thailand, for example, the restructuring and recapitalisation of its banking
system, which has to date resulted in foreign-bank branches doubling their share
of bank assets, is far from complete. In Indonesia, the number of private
commercial banks has been nearly halved to 82 from 160, but problems in the
banking system remain. Furthermore, the credibility of Indonesia's reforms has
been tarnished by a scandal over a payment by Bank Bali to a company linked to
the ruling Golkar party. The healing process in Asia has begun but a return to
robust economic health will take time; those countries with stronger legal and
political structures are likely to be at the vanguard of recovery because such
infrastructures facilitate the corporate restructuring that is essential for
full economic recovery.

Our reaction to the recession in Asia has been to curtail our expansion plan. We
also implemented measures to downsize some of our offices and cut costs
including salary costs. Reduced costs coupled with a modest increase in turnover
enabled the Group to breakeven during the first six months of the current
financial year.

Competition in the financial services industry remains intense. We continue to
experience downward pressure on commission rates. Although the volume of our
business has improved, the bias against dealing with smaller brokers persists.
We have been in discussions with a number of parties interested in investing in
Worldsec. Such discussions could lead to Worldsec becoming part of a larger
group thereby strengthening our competitive position in the industry.

With economic recovery still fragile, the strong performance of Asian stock
markets has raised valuations to levels that could be vulnerable to negative
news. The improved sentiment of international institutional investors towards
investing in Asian equity markets that has been evident this year could be
undermined by the recent rapid strengthening of the yen. With our margins under
pressure, any fall off in investor interest in Asian equities would be negative
and it may be optimistic to expect a return to profitability this year.

We believe the nadir in the current economic cycle is past, but we also believe
recovery in Asia will be a gradual process. Many Asian countries need more time
to implement structural reforms, particularly legal and political reforms. Such
reforms will pave the way for sustainable long-term growth. Asia's ability to
sustain above average long term economic growth has always been its main
attraction for international institutional investors, so while we are rather
cautious about the short-term prospects of the Asian stockmarkets, we remain
convinced about their longer term potential.

By order of the Board

Henry Ying Chew Cheong 
Deputy Chairman and Chief Executive Officer
13 October 1999

CONSOLIDATED PROFIT AND LOSS ACCOUNT


                              Unaudited       Audited
                          Six months ended     Year
                                              ended
                 Notes 30.6.1999  30.6.1998 31.12.1998
                       
                         US$'000   US$'000   US$'000
                                            
Turnover            3    7,489     6,362    18,539
Fees and commission     (1,482)   (1,015)   (2,559)
payable
                         6,007     5,347     15,980
Other operating income     517       313      1,326

                         6,524     5,660     17,306
Staff costs             (4,346)   (6,138)   (12,033)
Other operating costs   (2,249)   (3,219)    (6,827)
                                            
Operating loss before                             
exceptional items          (71)   (3,697)   (1,554)

Exceptional items   4        -    (1,018)   (2,069)
                                            
Operating loss      3      (71)   (4,715)   (3,623)
Gain on disposal                            
of a subsidiary              -         -         43
Interest                                    
receivable and             324       528      1,341
similar income
Interest payable                            
and similar               (117)     (128)    (1,167)
charges
                                            
Profit/(loss) on                            
ordinary activities        136    (4,315)   (3,406)
before taxation
Tax on profit on    5     (134)     (144)     (260)
ordinary
activities
                                            
Profit/(loss) on                            
ordinary                     2    (4,459)   (3,666)
activities after
taxation
Equity minority     6        6       (46)      (67)
interest
                                            
Profit/(loss) for                           
the financial                8    (4,505)   (3,733)
period/year
                                            
Earnings/(loss)     7    0 cent  (35 cents) (29 cents)
per share
                                            
                                            
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES

                             Unaudited       Audited
                         Six months ended     Year
                                              ended
                     30.6.1999  30.6.1998  31.12.1998
                      US$'000    US$'000    US$'000
                                            
Profit/(loss) for the   8         (4,505)   (3,733)
period/year
Deficit arising on                          
revaluation of           -         -         (1,677)
investments and
tangible fixed assets
Currency translation    (68)        (105)       126
differences
                                            
Total recognised losses (60)       (4,610)   (5,284)
                                            
RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS

                             Unaudited       Audited
                         Six months ended     Year
                                              ended
                      30.6.1999  30.6.1998  31.12.1998
                        US$'000   US$'000   US$'000
                                            
Profit/(loss) for the   8         (4,505)   (3,733)
period/year
Other recognised gains                      
and (losses) relating   (68)      (105)     (1,551)
to the period/year
Issue of shares         -         -          1,355
                                            
Net reduction in                            
shareholders' funds     (60)      (4,610)   (3,929)
during the period/year
Shareholders' funds     30,992    34,921    34,921
brought forward
                                            
Shareholders' funds     30,932    30,311    30,992
carried forward
                                            
CONSOLIDATED BALANCE SHEET

                             Unaudited       Audited
               Notes  30.6.1999  30.6.1998  31.12.1998
                      US$'000    US$'000    US$'000
Fixed assets                                
Intangible assets       -         9         -
Tangible fixed          1,373     1,466     1,526
assets
Investments         8   5,043     5,944     5,041
Purchased           9   1,084     -         1,183
goodwill
                        7,500     7,419     7,750
                                            
Current assets                              
Debtors                 39,695    17,203    11,883
Bank deposits and  10   45,455    55,399    47,612
cash
                                            
                        85,150    72,602    59,495
Creditors:                                  
Amounts falling    11  (61,684)  (49,435)  (36,213)
due within one year
                                            
Net current             23,466    23,167    23,282
assets
                                            
Total assets less                           
current liabilities     30,966    30,586    31,032

Provisions for                              
liabilities and    12     (30)      (30)      (30)
charges
Equity minority     6      (4)     (245)      (10)
interest
                                            
Net assets              30,932    30,311    30,992
                                            
Capital and                                 
reserves
Called up share    13   13,367    12,900    13,367
capital
Reserves                17,565    17,411    17,625
                                            
Equity                  30,932    30,311    30,992
shareholders'
funds
                                            
                                            
CONSOLIDATED CASH FLOW STATEMENT

                             Unaudited       Audited
                         Six months ended     Year
                                              ended
                      30.6.1999  30.6.1998  31.12.1998
                         US$'000   US$'000   US$'000

Net cash outflow from                       
operating activities    (5,609)   (7,633)   (3,407)
(Note 14)
                                            
Returns on investments                      
and servicing of
finance
Interest received from     324       528       1,341
banks
Interest paid on bank                       
loans and overdrafts      (117)     (128)     (1,167)
                                            
Net cash inflow from                        
returns on investments     207       400       174
and servicing of
finance
                                            
Tax paid                   (79)      (61)      (888)
                                            
Capital expenditure and                     
financial investment
Purchase of fixed          (82)      (303)     (485)
assets
Purchase of investments      -      (1,570)     (607)
                                            
Net cash outflow from                       
capital expenditure and    (82)     (1,873)   (1,092)
financial investment
                                            
Acquisition and                             
disposal
Net cash outflow from                       
disposal of a                 -         -       (175)
subsidiary
Purchase of business          -         -      (1,768)
                                            
Net cash outflow from                       
acquisition and               -         -      (1,943)
disposal
                                            
Equity dividend paid          -         -         (258)
                                            
Net cash outflow before                     
use of liquid resources     (5,563)   (9,167)   (7,414)
and financing
                                            
Management of liquid                        
resources
Decrease/(increase) in                      
time deposits of               176       (7)      (380)
maturity exceeding 1 day
                                            
Financing                                   
Capital element of                          
payments under hire             -         (3)       (6)
purchase contracts
                                            
Decrease in cash (Note 15)    (5,387)   (9,177)   (7,800)

                                            
NOTES TO THE INTERIM REPORT


1    BASIS OF CONSOLIDATION

The Group's financial statements consolidate the financial statements of the
Company and the subsidiary undertakings included in the Group.

2    ACCOUNTING POLICIES

The financial statements set out in this report have been prepared under the
historical cost convention, as modified by the revaluation of certain fixed
assets, in accordance with accounting principles generally accepted in the
United Kingdom.

The accounting policies adopted in preparing this report are consistent with
those adopted in preparing the consolidated financial statements of the Group
for the year ended 31 December 1998.

The directors continue to adopt the going concern basis in preparing the interim
report.

3    ANALYSES OF TURNOVER, OPERATING LOSS AND NET ASSETS

                              Unaudited       Audited
                          Six months ended   Year Ended
                         30.6.1999 30.6.1998 31.12.1998
                          US$'000   US$'000   US$'000
                                             
Turnover analysed by                        
class of business
   Broking                 6,796     5,479     17,182
   Corporate finance         693       639      1,098
   Investment advisory       -         244        259
                                             
                           7,489     6,362     18,539
Geographical analysis                       
of turnover
   Hong Kong               3,702     4,668     14,709
   Malaysia                  219       387        630
   Philippines               594       162        388
   Thailand                2,497       598      1,441
   Others                    477       547      1,371
                                             
                           7,489     6,362     18,539
                                             
Operating loss analysed                     
by class of business
   Broking                (233)   (4,966)    (3,759)
   Corporate finance       162       129          1
   Investment advisory     -         122        135
                                             
                           (71)   (4,715)    (3,623)
                                             
The net assets utilised in the Group relate substantially to broking activities.

4    EXCEPTIONAL ITEMS

                              Unaudited       Audited
                          Six months ended   Year Ended
                         30.6.1999 30.6.1998 31.12.1998
                          US$'000   US$'000   US$'000

Provision for doubtful          -    (1,018)   (1,148)
receivables
Provision for offices          -         -       (921)
downsizing
                                -    (1,018)   (2,069)

Provision for doubtful receivables were made for certain receivables arising in
the ordinary course of broking activities.

5    TAX

                              Unaudited       Audited
                          Six months ended   Year Ended
                         30.6.1999 30.6.1998 31.12.1998
                           US$'000   US$'000    US$'000

The charge comprises:                       
UK Corporation Tax at                       
31% - current year             45        72       144
Hong Kong Profits Tax                       
at 16% - current year          85        34       100
Other overseas taxation         4        38        16
                                             
                              134       144       260
                                             
6    EQUITY MINORITY INTEREST

The minority interest relates to the interests in PB Worldsec Securities
Advisors Sdn. Bhd.

7    EARNINGS/(LOSS) PER SHARE

                              Unaudited       Audited
                          Six months ended   Year Ended
                         30.6.1999 30.6.1998 31.12.1998
                           US$'000   US$'000    US$'000
                                            
Profit/(loss) for the                       
financial period/year           8    (4,505)    (3,733)
                                            
Earnings/(loss) per        0 cent (35 cents) (29 cents)
                                            
                          Number     Number      Number
Weighted average number                     
of shares in issue      13,367,290  12,900,000  13,021,623

                                             
8    INVESTMENTS

                              Unaudited       Audited
                         30.6.1999 30.6.1998 31.12.1998
                          US$'000   US$'000   US$'000

Exchange memberships -                      
at directors' valuation     3,853     5,361     3,851
Unlisted investments -      1,190       583     1,190
at cost
                            5,043     5,944     5,041

9    PURCHASED GOODWILL

Purchased goodwill represents the excess of considerations paid over the fair
value of the securities and futures dealing businesses, exchange memberships and
tangible fixed assets acquired in 1998 from Jin Loong Securities Company Limited
and Jin Loong Futures Limited.

Purchased goodwill is amortised over a period of seven years using the straight
line method starting from the date of acquisition.


10   ANALYSIS OF CASH

                              Unaudited       Audited
                         30.6.1999 30.6.1998 31.12.1998
                          US$'000   US$'000   US$'000

Bank deposits and cash     45,455    55,399    47,612
Bank loans and             (5,347)   (5,660)        -
overdrafts
                           40,108    49,739    47,612
Less:                                       
Cash at bank - trust      (25,997)  (31,815)  (27,938)
accounts
Time deposits of                            
maturity exceeding 1       (2,118)   (1,921)   (2,294)
day
                                             
Cash (Note 16)             11,993    16,003    17,380

11   CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

                              Unaudited       Audited
                         30.6.1999 30.6.1998 31.12.1998
                          US$'000   US$'000   US$'000

Bank loans and              5,347     5,660     -
overdrafts
Trade creditors            53,877    41,206    33,817
Dividend payable              -         258       -
Taxation and social           -         555       -
security
Other creditors,                            
accruals and deferred       2,460     1,753     2,396
income
Obligations under hire                      
purchase contracts            -           3         -
                                             
                           61,684    49,435    36,213
                                             


12   PROVISIONS FOR LIABILITIES AND CHARGES

The amount represents provision for deferred taxation which is the tax effect of
the excess of depreciation allowances claimed for tax purposes over the
depreciation charged in the financial statements. The tax effect of other timing
differences, which includes valuation surplus on the valuation of land and
building and exchange memberships and tax losses carried forward, are not
significant. There was no movement in the provision for deferred taxation during
the Period. The Group had no significant unprovided deferred taxation at 30 June
1999.

13   CALLED UP SHARE CAPITAL

                              Unaudited       Audited
                         30.6.1999 30.6.1998 31.12.1998
                          US$'000   US$'000   US$'000

Authorised:                                 
  ordinary shares of   50,000,000 50,000,000 50,000,000
  US$1 each            ========== ========== ==========           
                                            
Called up, issued and                       
fully paid:
  ordinary shares of                        
  US$1 each            13,367,290 12,900,000 13,367,290
                       ========== ========== ==========                      
NOTES TO THE INTERIM REPORT (CONTINUED)

14    RECONCILIATION OF OPERATING LOSS TO NET CASH OUTFLOW FROM OPERATING
      ACTIVITIES

                              Unaudited       Audited
                          Six months ended   Year Ended
                         30.6.1999 30.6.1998 31.12.1998
                          US$'000   US$'000   US$'000

Operating loss                (71)   (4,715)   (3,623)
Depreciation                  235       191       484
Amortisation of                 -         6        15
intangible assets
Amortisation of                99       -         197
purchased goodwill
Exchange difference           (70)      (61)       (9)
(Increase)/decrease in    (27,867)   (2,473)    2,971
debtors
Decrease in cash at                         
bank - trust accounts       1,941     8,507     12,384
Increase/(decrease) in     20,060    (7,948)   (14,303)
trade creditors
Increase/(decrease) in                      
other creditors and            64    (1,140)    (1,523)
accruals
                                             
Net cash outflow from                       
operating activities       (5,609)   (7,633)    (3,407)
                                             
15   RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS

                              Unaudited       Audited
                          Six months ended   Year Ended
                         30.6.1999 30.6.1998 31.12.1998
                          US$'000   US$'000   US$'000

Decrease in cash           (5,387)   (9,177)   (7,800)

Cash outflow from                           
increase in liquid              -         7       380
resources

Cash inflow from                            
decrease in liquid           (176)       -         -
resources

Cash outflow from                           
repayment of hire               -         3         6
purchase contracts
                                             
Movement in net funds      (5,563)   (9,167)   (7,414)
                                            
Net funds brought          19,674    27,088    27,088
forward
                                             
Net funds carried          14,111    17,921    19,674
forward
                                             
16   ANALYSIS OF NET FUNDS

                              Unaudited       Audited
                         30.6.1999 30.6.1998 31.12.1998
                          US$'000   US$'000   US$'000

Cash in hand and                            
deposits repayable on      17,340    21,663    17,380
demand

Bank loans and             (5,347)   (5,660)       -
overdrafts
                                             
Cash (Note 10)             11,993    16,003    17,380

Obligations under hire                      
purchase contracts             -         (3)       -

Time deposits of                            
maturity exceeding 1        2,118     1,921     2,294
day
                                             
Net funds                  14,111    17,921    19,674
                                             
17   INTERIM REPORT

The interim report will be posted to shareholders on or about 25 October 1999.


CORPORATE INFORMATION

Board of directors

Non-Executive Chairman
David Archibald Evelyn LYLE

Executive directors
Henry Ying Chew CHEONG (Deputy Chairman and Chief Executive Officer)
Leonard Carlton POON
Paul Kwok Kin CHENG (Chief Operating Officer and Finance Director)
Winnie Hui Ming PAO
Alastair GUNN-FORBES

Non-executive directors
Mark Chung FONG
HO Soo Ching
WEE Sin Tho
Keigo YOKOYAMA
Takumi MUKAIYAMA (Alternate to Keigo YOKOYAMA)

Company secretary
John Martin MAGUIRE

Registered office address
Cedar House, 41 Cedar Avenue, Hamilton HM12, Bermuda

Registration number
EC21466 Bermuda

Principal bankers
The Hongkong and Shanghai Banking Corporation Limited
1 Queen's Road, Central, Hong Kong

The Bank of Tokyo-Mitsubishi, Ltd.
7-1 Marunouchi, 2-chome, Chiyoda-ku, Tokyo 100, Japan

RIZAL Commercial Banking Corporation
RCBC Building, 333 Sen. Gil Puyat Avenue, Makati, Metro Manila,
Philippines

Auditors
Deloitte Touche Tohmatsu, Certified Public Accountants
26th Floor, Wing On Centre, 111 Connaught Road Central, Hong Kong

Solicitors
Linklaters
One Silk Street, London EC2Y BHQ, England

Principal share registrar and transfer office
The Bank of Bermuda Limited
Bank of Bermuda Building, 6 Front Street, Hamilton HMDX, Bermuda

International branch registrar
IRG (Jersey) Limited
Piermont House, 33-35 Pier Road, St Helier, Jersey, Channel Islands

United Kingdom transfer agent
IRG plc
Bourne House, 34 Beckenham Road, Beckenham, Kent BR3 4TU, England

Investor relations
For further information about Worldsec Limited, please contact:
The Chief Executive Officer
Worldsec Group
11th Floor, Bank of America Tower, 12 Harcourt Road, Central, Hong Kong


PRINCIPAL OPERATING SUBSIDIARIES


HONG KONG

Worldsec Brokerage Limited
Worldsec Futures Limited
Worldsec International Limited
Worldsec Nominees Limited

Address:   11th  Floor,  Bank of America Tower, 12 Harcourt  Road,  
           Central, Hong Kong
Telephone: +(852)  2867 7288            Fax:  +(852)  2810 0281


Worldsec Corporate Finance Limited

Address:  Rms  3301-02,  Bank of America Tower, 12 Harcourt Road,  
          Central, Hong Kong
Telephone:+(852)  2971 4288             Fax:  +(852)  2537 8830


BANGKOK

Worldsec International Limited representative office

Address:  Rm  2922/217, 14th Floor, Charn Issara Tower II, 
          New  Petch  Buri Road, Huaykwang, Bangkok 10310, Thailand
Telephone:+(662)  718  1818             Fax:  +(662)  718 1828


KUALA LUMPUR

PB Worldsec Securities Advisors Sdn. Bhd.

Address:  11.2,  11th  Floor  Menara PanGlobal, 8 Lorong P.  Ramlec  50250,
          Kuala Lumpur, Malaysia
Telephone:+(603)  201  3011             Fax:  +(603)  201 2531


LONDON

Worldsec International (U.K.) Limited

Address:  2nd Floor, 6 Broadgate, London, EC2M 2QS, England
Telephone:+(44171)  972 0881            Fax: +(44171)  972 0882


MANILA

Worldsec International Securities (Philippines) Inc.

Address:  10th  Floor,  Tower  One, Ayala Triangle,  Ayala  Avenue,  
          Makati City, Philippines
Telephone:+(632)  848  6360             Fax:  +(632)  848 6373


NEW YORK

Worldsec International Securities Inc.

Address:  36th Floor, 153 East 53rd Street, New York, N.Y. 10022, USA
Telephone:+(1212)  371 0888             Fax:  +(1212)  754 0076


SHANGHAI

Worldsec Investment Consulting (Shanghai) & Co. Ltd.

Address:  Rm  G,  15th Floor, Heng Ji Tower, 99 Huaihai Road (E.), 
          Shanghai 200021, China
Telephone:+(8621)  6386 4668            Fax: +(8621)  6386 5727


TAIPEI

Worldsec Investment Consulting (Taiwan) & Co. Ltd.

Address:  6th Floor, 29 An Ho Road, Section 1, Taipei, Taiwan
Telephone:+(8862)  2751 3737            Fax: +(8862)  2731 2966