SUMMARY OF SIGNIFICANT DIFFERENCES BETWEEN ACCOUNTING PRINCIPLES

PT BANK MANDIRI PERSERO AND SUBSIDIARIES Notes to the Consolidated Financial Statements Continued December 31, 2002 and 2001 Expressed in millions of Rupiah, unless otherwise stated - 145 -

64. RECONCILATION OF NET INCOME AND SHAREHOLDER’S EQUITY TO THE AMOUNTS DETERMINED UNDER IAS

The following is a summary of the adjustments to shareholder’s equity as of December 31, 2002 and 2001 and net profit for the years then ended, which would be required if IAS had been applied by Bank Mandiri instead of Indonesian GAAP in the preparation of its consolidated financial statements. 2002 2001 Net profit as reported in the consolidated financial statements prepared under Indonesian GAAP 3,585,589 2,745,757 IAS adjustments – increase decrease due to: Allowance for possible losses on earning assets 215,445 955,627 Allowance for possible losses on commitments and contingencies 77,277 351,232 Employee benefits 94,096 10,437 Change in fair value of derivatives 52,333 - Securities and government bonds reclassified to trading - 293,303 De-recognition of provisions - 995,393 Deferred income taxes 2,478 184,562 Net decrease increase in reported net profit 5,783 430,644 Net profit in accordance with IAS 3,579,806 3,176,401 Net earnings per share 0.842 0.747 2002 2001 Shareholder’s equity as reported in the consolidated financial statements prepared under Indonesian GAAP 14,434,510 10,776,785 IAS adjustments – increase decrease due to: Allowance for possible losses on earning assets 2,480,984 2,265,539 Allowance for possible losses on commitments and contingencies 387,174 464,451 Employee benefits 3,955 90,141 Change in fair value of derivatives 52,333 - Deferred income taxes 843,561 846,039 Net increase in reported shareholder’s equity 1,968,309 1,974,092 Shareholder’s equity in accordance with IAS 16,402,819 12,750,877 PT BANK MANDIRI PERSERO INDEX TO ADDITIONAL INFORMATION DECEMBER 31, 2002 AND 2001 Appendix Balance Sheets Parent Company Only …………………………………………………... Appendix 1 Statements of Profit and Loss Parent Company Only ………………………………….. Appendix 2 Statements of Changes in Shareholder’s Equity Parent Company Only …………….. Appendix 3 Statements of Cash Flows Parent Company Only ……………………………………… Appendix 4