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The Kowloon Motor Bus Holdings Limited


Report of the Auditors

To the Board of Directors of The Kowloon Motor Bus Company (1933) Limited
(Incorporated in Hong Kong with limited liability)

We have reviewed the Scheme of Control Statement for the period ended 31 August 1997 and its related notes ("the Statement") on pages 90 to 93 for which the Directors of the Company are solely responsible.

On the basis of our review, nothing has come to our attention which indicates that the Statement has not been properly prepared from the books and records of the Company and is not in accordance with the terms as set out in the Public Bus Services Ordinance.

KPMG Peat Marwick
Certified Public Accountants

Hong Kong, 16 April 1998


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