RIN Rii

RNS No 8712c
RICEMAN INSURANCE INVESTMENTS PLC
27 May 1999

                   RICEMAN INSURANCE INVESTMENTS PLC
      Preliminary Statement of Results for the year to 31 January 1999

CHAIRMAN AND CHIEF EXECUTIVE'S REVIEW

This is my first report to you as Chairman and Chief Executive of your company,
and it is disappointing to have to report that the Group sustained further
significant losses in the year ended 31 January 1999. The results for the year
show an unaudited loss of #1,134,973 against a loss of #336,423 for the
previous financial year. The basic loss per share amounted to 1.72p (1998:0.34p)
and the Board is not recommending the payment of a dividend.

Since its admission to the AIM market in September 1995, your Board has
undertaken a programme of establishing associated insurance companies in Russia
and four states of the former Soviet Union. It was therefore an inevitable
consequence that the devaluation of the Russian Rouble in July 1998, coupled
with generally weak international economic conditions, would have a dramatic
effect on the business of your Company, and the level of these losses is a
direct result of the significant change in market conditions which ensued.

Following my appointment to the Board on 30 June 1998, a line-by-line review of
expenditure has been effected in respect of London office expenses. and as a
result, central overheads started to reduce in the second half of the year.

In the Interim Report to 31 July 1998, shareholders were informed of the loss of
certain large clients which had occurred. Accordingly, a detailed review has
been carried out on the associated insurance companies, and they have since
shown some success both in expanding repeat small and medium business, and
reducing costs, although the benefits will not materialise until the current
financial year.

Russia: Moscow

This has proved to be a very difficult market. Accordingly, the Moscow office
was reorganised in January 1999 and, to be prudent, we have provided #219,826
against our investment. Since the year end, the outlook for the Moscow office
has become more optimistic.

Uzbekistan: Tashkent

Following the loss of our major business to the state insurance company, which
was reported in the last Interim Statement, and in view of the continued
non-convertibility of the Uzbek Som, we continue to keep under review the
viability of our presence in Uzbekistan. Again, to be prudent, we have made a
provision at the year end of #39,216 against our investment.

Azerbaijan: Baku

Anglo Azerbaijan has continued to develop throughout the period and has
established improved levels of small and medium-sized renewals.

Kyrgyzstan: Bishkek

In the last few months, Anglo-Kyrgyz has developed beyond the break-even point
and has started to produce steady growth. Work continues on developing larger
business accounts in co-operation with our joint venture partner, the State
Property Fund.

Georgia: Tbilisi

Following a recent change in local legislation, the capital required for
insurance companies has increased significantly and as a result the number of
local insurance companies has reduced. Your directors are cautiously optimistic
of the future potential of Georgia and have agreed to increase the investment in
Anglo-Georgia to maintain its status.

Future Developments

Your board is looking at four or five new countries with a view to opening new
Anglo insurance companies. Accordingly, we are reviewing different options
available to us to raise fresh new capital to finance this expansion program.

Board Changes

On 1 December 1998, Robert Alford resigned as Chairman and Chief Executive
Officer in order to pursue his personal interests. The Board would like to
extend its sincere thanks to him for his contribution to the Group during the
period since its establishment on AIM.

On 7 April 1999, Martin Roberts and Francis Mathew were appointed to the Board
as Executive Directors. Mr Roberts has responsibility for underwriting matters,
and Mr Mathew has responsibility of operations in the former Soviet Union.

I would like to extend the Board's sincere thanks to all employees, both
overseas and in London, for their efforts during a very difficult period.

Kamran Amin
Chairman and Chief Executive


                CONSOLIDATED PROFIT AND LOSS ACCOUNT

                Year Ended 31 January 1999

                                                           1999        1998
                                                              #           #
 
         TURNOVER                                       381,741   1,242,248
         Administration expenses                     (1,565,927) (1,675,093)  

         OPERATING LOSS                              (1,184,186)   (432,845)
         Interest receivable                             49,684      96,495
         Interest payable and similar charges              (471)        (73)

         LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION
         Taxation                                    (1,134,973)   (336,423)
                                                              0     115,264

         LOSS ON ORDINARY ACTIVITIES AFTER TAXATION  (1,134,973)   (221,159)

         BASIC LOSS PER SHARE                            (1.72)p     (0.34)p

         All activities derive from continuing operations.

         There are no recognised gains or losses other than the loss
         attributable to shareholders disclosed in the above profit and loss
         account. 

                CONSOLIDATED BALANCE SHEET

                31 January 1999

                                                           1999        1998
                                                              #           #

         FIXED ASSETS
         Tangible assets                                 38,773      56,844
         Investments                                    362,723     512,604

                                                        401,496     569,448
         CURRENT ASSETS
         Debtors                                        688,139     900,900
         Cash at bank                                   651,279   1,544,245

                                                      1,339,418   2,445,145

         CREDITORS: amounts falling due within one 
                    year                               (794,127)   (932,833)  

         NET CURRENT ASSETS                             545,291   1,512,312

         TOTAL NET ASSETS                               946,787   2,081,760

         CAPITAL AND RESERVES
         Called up share capital                         65,939      65,939
         Share premium account                        1,896,685   1,896,685
         Profit and loss account                     (1,015,837)    119,136

         TOTAL EQUITY SHAREHOLDERS' FUNDS               946,787   2,081,760


1. This Preliminary Statement of Results has been prepared on the basis of the
   accounting policies set out in the Group's statutory accounts for the year
   to 31 January 1998 with the exception of turnover being accounted for on a
   received basis as opposed to a receivable basis. The effect of this change to
   the year ended 31 January 1998 is immaterial and accordingly last year's
   figures have not been restated

2. This Statement of Results for the year to 31 January 1999 does not constitute
   statutory accounts for that period. Statutory accounts for that period have
   still to be audited and filed with the Registrar of Companies. It is
   expected that these will be available shortly. The results for the year ended
   31 January 1998 are an abridged version of the Group's statutory accounts for
   that period which received an unqualified auditor's report and have been
   filed with the Registrar of Companies.

3. Copies of this Statement of Results are available from:

   Riceman Insurance Investments PLC
   130 Minories 
   London EC3N 1NU

END

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