SHAREHOLDER’S EQUITY Continued

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 - 105 -

33. SHAREHOLDER’S EQUITY Continued

Premises and Equipment Revaluation Increment Premises and equipment revaluation increment of Rp9,788 as of December 31, 2002 and 2001 relates to the revaluation increment of premises and equipment of PT Usaha Gedung BDN and PT Bumi Daya Plaza, subsidiaries of Bank Mandiri. Premises and equipment of PT Usaha Gedung BDN, which were acquired prior to September 12, 1986 were revalued on January 1, 1987 based on Government Regulation No. 45 dated October 2, 1986. The increment in value of land and buildings based on the appraisal conducted by PT Vigers Hagai Sejahtera as of December 31, 2002 and 2001 Notes 15.d is not recognized in the accounts of the Bank. Distribution of Net Profit Based on the resolution of the Shareholder during its general meeting held on June 14, 2002 and June 27, 2001, the shareholder approved the distribution of the 2001 and 2000 prior to restatement arising from changes in accounting policies net profit as follows: 2001 2000 Total Dividends 1,372,878 1,011,219 2,384,097 Small industry and cooperative development fund “PUKK” 15,000 11,081 26,081 Environmental development fund 12,458 - 12,458 Directors’ bonus tantiem 4,923 - 4,923 Reserve: General reserve 350,200 500,000 850,200 Special reserve 990,298 500,137 1,490,435 Total reserve 1,340,498 1,000,137 2,340,635 2,745,757 2,022,437 4,768,194 The dividends and directors’ bonus tantiem from 2001 net profit were paid to the Shareholder and directors and executive officers of the Bank on June 26, 2002 and July 17, 2002, respectively. The allocation for PUKK and environmental development fund was paid on July 18, 2002. Based on the Ministry of Finance letter No. S-607MK.62001 dated October 18, 2001, the dividends from 2000 net profit were paid on October 30, 2001 and November 29, 2001. The allocation for PUKK of Rp11,081 was paid on April 19, 2002. The Ministry of State-Owned Enterprise through its letter No. KEP-167M-MBU2002 dated December 19, 2002, decided to establish additional reserves amounting to Rp600,000 from the net profit for the six-month period from January 1 to June 30, 2002. 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 - 106 -

33. SHAREHOLDER’S EQUITY Continued