OPERATIONAL REVIEW

"Contra Vision" bus body advertising, which makes the windows of the upper saloon available for

advertising purposes, was launched in December 1995. As the advertising space is enlarged substantially,

we believe this new product will be well accepted by the users.

Despite a relatively unfavourable economic climate, the Company achieved satisfactory growth in bus

advertising revenue in 1995.

Bus Shelter Advertising

More light boxes are being installed on new bus shelters for advertising purposes. The connection of

power supply to the light boxes is being carried out.

Comprehensive Depot Renovation

During 1995, a schedule was formulated for the comprehensive renovation of all permanent depots

within the next 5 years. By systematically up-grading the depot facilities to meet current user

requirements, the overall productivity in the depots will be constantly improved and modernised.

Depot Automation

In 1995, we took a major step in depot automation. By using a newly installed Chinese character interface

computer in the workshop area, shop floor workers can issue on-line spare part requisitions to our stores

section. The central spare part inventory data base is then updated in real time. This function is available

22 hours per day with the remaining two hours being used for other housekeeping tasks.

We have also implemented a computerised Wide Area Network connecting the Local Area Networks

(“LAN”)_at_the_KMB Headquarters and the KMB Overhaul Centre. The connection with LANs in other

major depots is under way.

Certificate of Fitness (COF) Work carried out in Shenzhen

KMB has constantly endeavoured to find ways of curbing or counteracting increases in operating costs.

In October 1995, an agreement was reached with a Hong Kong contractor for a pilot exercise to carry out

bus overhaul work in Shenzhen under KMB's stringent quality control.

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ITHE KOWLOON MOTOR BUS COMPANY (1933) LIMITED

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