INTEREST INCOME 2004 12 Full Audited Financial Statements w Notes

PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS December 31, 2004 and 2003, and April 30, 2003 Expressed in millions of Rupiah, unless otherwise stated 129

40. GAINS FROM SALE OF SECURITIES AND GOVERNMENT RECAPITALIZATION BONDS

Eight-Month Four-Month Year Ended Year Ended Period Ended Period Ended December 31, December 31, December 31, April 30, 2004 2003 2003 2003 Securities 218,892 254,884 242,214 12,670 Government Recapitalization Bonds 1,365,343 1,868,554 1,556,802 311,752 1,584,235 2,123,438 1,799,016 324,422

41. GENERAL AND ADMINISTRATIVE EXPENSES

Eight-Month Four-Month Year Ended Year Ended Period Ended Period Ended December 31, December 31, December 31, April 30, 2004 2003 2003 2003 Depreciation and amortization of premises and equipment 533,559 340,993 250,124 90,869 Rent 346,168 344,068 231,793 112,275 Promotions 321,910 255,305 199,222 56,083 Repairs and maintenance 313,723 225,111 178,704 46,407 Communications 301,263 226,736 166,907 59,829 Professional fees 256,084 203,132 190,090 13,042 Public relations 198,343 184,255 152,076 32,179 Electricity, water and gas 153,664 94,701 72,508 22,193 Office supplies 117,450 100,937 81,374 19,563 Transportation 51,671 32,848 24,022 8,826 Office equipment 20,889 16,860 13,064 3,796 Research and development 8,469 9,713 9,153 560 Others 365,479 214,883 137,584 77,299 2,988,672 2,249,542 1,706,621 542,921 Professional fees include audit and tax services amounting to Rp21,227, Rp16,437 and Rp1,630 for the year ended December 31, 2004, the eight-month period ended December 31, 2003, and the four-month period ended April 30, 2003, respectively. 42. SALARIES AND EMPLOYEE BENEFITS Eight-Month Four-Month Year Ended Year Ended Period Ended Period Ended December 31, December 31, December 31, April 30, 2004 2003 2003 2003 Salaries, wages, pension and tax allowances Note 43 1,337,272 1,133,364 748,509 384,855 Holidays THR, leave and related entitlements 302,524 256,798 183,030 73,768 Employee benefits in kind 148,397 128,716 100,474 28,242 Training and development 125,648 98,303 91,074 7,229 Provisionreversal for post-employment benefit expenses Note 28 84,837 312,609 312,609 - Compensation expense on stock options Note 33 24,942 9,897 9,897 - Bonuses and others 378,137 350,481 231,738 118,743 2,401,757 1,664,950 1,052,113 612,837 In accordance with PSAK No. 24 Revised 2004 regarding Employee Benefits, the Bank have accrued tantiem expense in 2004.