GAINSLOSSES FROM INCREASEDECREASE IN VALUE OF SECURITIES AND GOVERN- MENT RECAPITALIZATION BONDS

PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS June 30, 2004 and 2003, and April 30, 2003 Expressed in millions of Rupiah, unless otherwise stated 124

40. GAINSLOSSES FROM INCREASEDECREASE IN VALUE OF SECURITIES AND GOVERN- MENT RECAPITALIZATION BONDS

The lossesgains from decreaseincrease in value of securities and Government recapitalization bonds arising from the mark to market of the trading portfolio were as follows: For the 6-month For the 6-month For the 2-month For the 4-month period ended period ended period ended period ended June 30, 2004 June 30, 2003 June 30, 2004 April 30, 2003 Securities 20,990 18,418 49,960 31,542 Government Recapitalization Bonds 70,062 264,426 484,414 748,840 91,052 282,844 434,454 717,298 41. GAINS FROM SALE OF SECURITIES AND GOVERNMENT RECAPITALIZATION BONDS The gains from the sale of securities and Government Recapitalization Bonds were as follows: For the 6-month For the 6-month For the 2-month For the 4-month period ended period ended period ended period ended June 30, 2004 June 30, 2003 June 30, 2003 April 30, 2003 Securities 143,593 201,702 189,032 12,670 Government Recapitalization Bonds 715,621 1,162,236 850,484 311,752 859,214 1,363,938 1,039,516 324,422 42. GENERAL AND ADMINISTRATIVE EXPENSES This account consists of the following: For the 6-month For the 6-month For the 2-month For the 4-month period ended period ended period ended period ended June 30, 2004 June 30, 2003 June 30, 2003 April 30, 2003 Depreciation and amortization of premises and equipment Note 16a 237,874 147,448 56,579 90,869 Rent 168,002 167,122 54,847 112,275 Communications 135,687 89,603 29,774 59,829 Promotions 93,468 95,103 39,020 56,083 Repairs and maintenance 93,312 80,563 34,156 46,407 Electricity, water and gas 76,142 30,486 8,293 22,193 Public relations 72,376 47,739 15,560 32,179 Professional fees 70,282 23,132 10,090 13,042 Office supplies 62,333 42,129 22,566 19,563 Transportation 17,586 16,999 8,173 8,826 Rental of office equipment 9,162 8,006 4,210 3,796 Research and development 1,052 2,857 2,297 560 Others 76,381 69,992 10,307 59,685 1,113,657 821,179 295,872 525,307 Professional fees include audit and tax services amounting to Rp4,915, Rp4,867 and Rp1,630 for the six-month periods ended June 30, 2004, two-month period ended June 30, 2003, and the four-month period ended April 30, 2003, respectively. PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS June 30, 2004 and 2003, and April 30, 2003 Expressed in millions of Rupiah, unless otherwise stated 125

43. SALARIES AND EMPLOYEE BENEFITS