UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-KSB

(Mark One)

/X/   Annual Report Pursuant to Section 13 or 15(d) of The Securities Exchange
      Act of 1934

      For the Fiscal Year Ended December 31, 1998

/_/   Transition Report Pursuant to Section 13 or 15(d) of The Securities
      Exchange Act of 1934

                         Commission File Number 0-28144

                               TRIMOL GROUP, INC.
                 ----------------------------------------------
                 (Name of small business issuer in its charter)

          Delaware                                               13-3859706
-------------------------------                              -------------------
(State or other jurisdiction of                               (I.R.S. Employer
 incorporation or organization)                              Identification No.)

           1285 Avenue of the Americas, 35th Floor, New York, NY 10019
           -----------------------------------------------------------
               (Address of principal executive offices)       (Zip Code)

Issuer's telephone no.: (212) 554-4394

Securities registered pursuant to Section 12(b) of the Exchange Act: None

Securities registered pursuant to Section 12(g) of the Exchange Act: Common
Stock

Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter
period that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days. Yes / X / No /___/

Check if there is no disclosure of delinquent filers in response to Item 405 of
Regulation S-B contained in this form, and no disclosure will be contained, to
the best of the Registrant's knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this Form 10-KSB or any
amendment to this Form 10-KSB. / X /

State the issuer's revenues for its most recent fiscal year. $11,412,000.

State the aggregate market value of the voting stock held by non-affiliates
computed by reference to the price at which the stock was sold, or the average
bid and asked prices of such stock as of a specified date within 60 days.
$25,599,000 (based upon the average of the closing bid ($10.00) and closing
asked ($11.00) prices on February 26, 1999).

State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date.

                Class                     Outstanding as of February 26, 1999:
      Common Stock, par value              12,023,000 shares of Common Stock
            $.01 per share

                       DOCUMENTS INCORPORATED BY REFERENCE

                                      NONE
<PAGE>

       Transitional Small Business Disclosure Format. Yes /___/ No / X /
<PAGE>

                               TRIMOL GROUP, INC.

                                TABLE OF CONTENTS

                                                                            PAGE

                                     PART I

Item 1.      Description of Business ......................................   5
Item 2.      Description of Property ......................................  23
Item 3.      Legal Proceedings ............................................  23

Item 4.      Submission of Matters to a Vote of Security Holders ..........  23

                                     PART II

Item 5.      Market for Common Equity and Related .........................   24
             Stockholder Matters

Item 6.      Management's Discussion and Analysis or ......................   25
             Plan of Operation                                             

Item 7.      Financial Statements .........................................   32

Item 8.      Changes in and Disagreements with Accountants ................   32
             on Accounting and Financial Disclosure

                                    PART III

Item 9.      Directors, Executive Officers, Promoters and .................   34
             Control Persons; Compliance with Section 16(a)
             of the Exchange Act

Item 10.     Executive Compensation .......................................   36

Item 11.     Security Ownership of Certain Beneficial .....................   37
             Owners and Management

Item 12.     Certain Relationships and Related Transactions ...............   38

Item 13.     Exhibits, List and Reports on Form 8-K .......................   39

FINANCIAL STATEMENTS ......................................................  F-1

SIGNATURES ................................................................   40


                                        3
<PAGE>

                                EXPLANATORY NOTES

I.    REFERENCES HEREIN TO $ OR U.S. $ ARE TO UNITED STATES DOLLARS. REFERENCES
      HEREIN TO MDL ARE TO THE MOLDOVAN LEU.

II.   THE OFFICIAL CURRENCY IN MOLDOVA, WHERE THE REGISTRANT'S OPERATIONS ARE
      SITUATED, IS THE MOLDOVAN LEU.


                                        4
<PAGE>

                                     PART I

Item 1. Description of Business

General

      Trimol Group, Inc. (the "Company" or "Registrant"), was organized on May
6, 1953 under the laws of the State of Delaware. Although since its
incorporation the Company has engaged in several different businesses and has
effected several name changes, for at least three years prior to January 6,
1998, the Company did not engage in any material operations.

The Reorganization

      Pursuant to an Agreement and Plan of Reorganization effective on January
6, 1998, (the "Reorganization Agreement"), by and among the Company, Edward F.
Cowle, H. DeWorth Williams, then officers, directors and principal stockholders
of the Company, and Gold Hill Mines, Inc., an Idaho corporation, then a
principal stockholder of the Company (that was majority owned by Mr. Cowle), and
Magnum Associates Ltd. ("Magnum"), a corporation organized under the laws of
Ireland, and Starbeam, Ltd. ("Starbeam"), a corporation organized under the laws
of Ireland (Magnum and Starbeam shall hereinafter sometimes be collectively
referred to as the "Target Stockholders"), the Company acquired (the
"Acquisition"), all of the issued and outstanding capital stock of the Targets
(as defined below), from the Target Stockholders in exchange for an aggregate of
10,000,000 shares of common stock, par value $.01 per share (the "Common Stock")
of the Company.

      Pursuant to the terms of the Reorganization Agreement, effective as of
January 6, 1998, Ed Cowle, Joseph Mancini and Robyn Mancini resigned as officers
and directors of the Company and certain of the beneficial owners of the
10,000,000 shares of Common Stock issued in the Acquisition set forth elsewhere
herein became officers and directors of the Company.

      Prior to the Acquisition, the Target Stockholders owned all of the issued
and outstanding capital stock of the following four holding corporations:
Maximilia, Ltd., a corporation organized under the laws of Ireland
("Maximilia"); Sturge Ltd., a corporation organized under the laws of Ireland
("Sturge"); Jolly LLC, a limited liability corporation organized under the laws
of Wyoming ("Jolly LLC"); and Paul Garnier Ltd., a corporation organized under
the laws of Ireland ("Garnier"). Garnier, together with Maximilia,


                                        5
<PAGE>

Sturge and Jolly LLC shall sometimes hereinafter be referred to collectively, as
the "Targets."

      Jolly LLC owns sixty-five (65%) percent of the issued and outstanding
capital stock of Jolly Alon Limited, a Moldovan corporation ("Jolly Alon" or the
"Hotel"), that operates and manages the Jolly Alon Hotel in Chisinau, Moldova
and rents stores and offices located on the hotel property, with the remaining
thirty-five (35%) percent of the issued and outstanding capital stock of Jolly
Alon being owned by the Government of the Republic of Moldova; Sturge and
Maximilia each own fifty (50%) percent (one hundred (100%) percent in the
aggregate) of the issued and outstanding capital stock of Banca Commerciala pe
Actiuni "Export-Import," a Moldovan corporation ("Bank"), which owns a
commercial bank in Moldova; and Maximilia owns fifty-five (55%) percent and
Garnier owns fifteen (15%) percent (seventy (70%) percent in the aggregate) of
the issued and outstanding capital stock of Exim Asint S.A., a Moldovan
corporation which owns a property and casualty insurance business in Moldova
("Insurance Company"), with the remaining thirty (30%) percent being owned by
the Bank.

      On May 6, 1998, pursuant to a stock purchase agreement dated May 3, 1998,
the Company acquired all of the issued and outstanding shares of the capital
stock of Intercomsoft Ltd. in exchange for 1,000,000 shares of the Company's
Common Stock.

      The Hotel, the Bank, the Insurance Company and Intercomsoft shall
sometimes hereinafter be collectively referred to as the "Asset Entities."

      As a result of the Acquisition of the Targets by the Company, the Targets
became wholly-owned subsidiaries of the Company, which, in turn, and as
described above, own capital stock of the Asset Entities which now constitute
the Company's business operations.

The Business Operations of the Asset Entities

      The following discusses the business operations of the Bank, the Hotel,
the Insurance Company and Intercomsoft, in that order.

Banca Commerciala pe Actiuni "Export-Import"

      Background. The Bank, which before June 1996 was named "Banca de
Export-Import a Moldovei S.R.L.," was established in April 1994 and, in
accordance with a resolution of the Republic of Moldova ("Moldova"), was to be
owned sixty-five (65%) percent by foreign


                                        6
<PAGE>

investors and thirty-five (35%) percent by the Government of Moldova. The Bank
has its main branch located in Chisinau, with two branches located in Ungeni and
Komrat and four exchange offices in Chisinau.

      The Bank received its General Banking License from the National Bank of
Moldova in April 1994 and began activity as a new commercial bank in June 1994.

      The Bank was previously a Moldovan extension of the Vnesh-Econom Bank of
the Soviet Union (now a Russian bank), which then became an international
division of the National Bank of Moldova.

      In September 1996, the Government of Moldova's ownership interest was
repurchased by the Bank for approximately U.S. $700,000. As a result of the
Reorganization Agreement, it is a second-tier wholly-owned subsidiary of the
Company.

      The Bank conducts a variety of commercial banking activities in Moldova.
These activities include, among other things, receipt of monetary deposits,
granting credit, transactions in foreign currency, financing international
transactions, and investing in government securities. The Bank is, under
Moldovan law, an authorized dealer permitted to engage in foreign currency
transactions and is licensed to buy and sell Moldovan Government securities.

      Although the Bank's license permits it to engage in most of the services
that a commercial bank in the United States or Western Europe would engage in,
its actual activities vary in respect of those of United States or Western
European banks.

      Services Provided by the Bank. The Bank accepts funds from depositors on a
demand or time deposit basis. Interest is paid on both demand and time deposits.
Additionally, those persons and entities who deposit funds on demand are charged
a fee for withdrawing their funds. Additional services provided include, but are
not limited to, the following:

      (a)   picking up and delivering of cash;

      (b)   providing short term interest bearing loans that in most instances
            are collateralized with assets in excess of the amount of the loan;

      (c)   arranging foreign currency transactions including documentary
            letters of credit and collection;


                                        7
<PAGE>

      (d)   transfers of client funds within Moldova and internationally through
            wire (or cross) transfers of funds and/or Western Union payments;

      (e)   issuing and cashing traveler's checks;

      (f)   rental of safety deposit boxes;

      (g)   acceptance of utility (telephone, electric) or rental (on government
            owned properties) payments from customers and non-customers; and

      (h)   bidding on Moldovan government securities at auctions and purchasing
            same. The Bank also participates in such auctions on its own behalf
            as principal. See "-- Investments."

      Fees are charged for the above services, with borrowers being charged
interest.

      In Moldova, the concept of a "check," either personal or commercial has
not yet been accepted. Transactions are completed in cash or by transfer of
funds. Credit cards are not generally accepted nor are long term loans,
mortgages and equipment financing currently used. Loans are secured with
collateral. Personal non-collateralized loans are not accepted. The Bank's loans
are made on a short term (three to six months) basis and occasionally yearly.

      The above transactions can be engaged in with either persons or legal
entities.

      Funds on Deposit. During the last four fiscal years funds deposited by the
Bank's customers had, as a percentage of deposits, the following sources.


                                        8
<PAGE>

================================================================================
                                         1995       1996        1997      1998  
                                         ----       ----        ----      ----  
--------------------------------------------------------------------------------
Interest Bearing Accounts                 42%        32%         27%       50%  
--------------------------------------------------------------------------------
Demand Accounts(1)                                                              
                                          58%        67%         72%       50%  
--------------------------------------------------------------------------------
Interbank Credits                          *          1%          1%        *   
================================================================================
*     Less than 1%.                                                           
                                                                      
      Specific Agreements. In April 1996, a trilateral agreement was signed
between Dresdner Bank AG, Triex-Petrol S.A. (a company 80% owned by the
Government of Moldova) and the Bank concerning the financing of imports of oil
products into Moldova.

      An oil dealer nominated by Dresdner Bank imports oil products into Moldova
and the Dresdner Bank finances the transactions under letters of credit issued
by the Bank. The oil products are later sold on the local market by the Moldovan
Government which collects payment in local currency. The funds are then
converted into U.S. dollars by the Bank and used for repayment to Dresdner Bank.

      The Government of Moldova issued a standby guarantee signed by the
Minister of Finance of Moldova which states that it will repay the indebtedness
to Dresdner Bank if the other parties do not fulfill their obligations. This
agreement expires in 2001. The maximum line of credit authorized is U.S
$50,000,000, while the largest amount outstanding to date has been U.S.
$8,000,000.

      In 1995, an agreement was signed between the Government of Moldova and the
United States for financing imports into Moldova of grain products from the
United States. Under this agreement the Bank issues letters of credit for its
clients in favor of the grain supplier in the United States. The letters of
credit provide for a corresponding agency of the United States to guarantee the
payment to the supplier upon receipt of the documents confirming delivery of the
goods.

      In both instances the Bank charges a fee for the issuance of its letters
of credit.

----------
      (1) Interest is now paid on Demand Accounts.


                                        9
<PAGE>

      Investments. In addition to charging fees and interest for the services
indicated above, the Bank also obtains revenues by participating in auctions for
and purchasing interest bearing treasury bills issued by the Moldovan Government
and interest earned on funds deposited in correspondent foreign banks.

      The Bank has also made investments in other enterprises, including the
Insurance Company.

      Loans to affiliated parties are made on the same basis as to
non-affiliates.

      Borrowers. The Bank attempts to diversify its portfolio of loaned funds to
avoid a concentration of risk.

      During the Bank's fiscal year ended December 31, 1998, the Bank issued an
aggregate of approximately $22,740,000 in loans. The Bank's largest borrowers
identified by business categories and their approximate borrowings are as
follows:

            Carpet Factory, major stockholder         $525,000
            Food Distributors                         $470,000
            Supermarket                               $230,000
            Gasoline Station                        $1,498,000
            Oil Products Broker                     $1,000,000

      Competition. The Bank considers its potential competitors to fall into
several categories. The first are government owned banks. The second group
consists of newer banks that have yet to establish themselves. The Company
believes that the Bank's principal competitors are three to four other banks,
only one of which has a liquid asset-to-total asset ratio which is approximately
the same as the Bank (approximately 50%) while the other principal competitors
have such ratios ranging from approximately 30% to 40%. The Company believes
that it competes on the basis of overall customer service, interest rates and
other terms and conditions of loans, the professionalism of its staff, service
offerings (especially in the areas of cash transport and foreign exchange),
community reputation and the fact of its foreign ownership, which the Bank
believes enhances its attractiveness to depositors and other customers.

      Government Regulation. The license granted to the Bank by the National
Bank of Moldova authorizes the Bank to do the following, among other things:

      (1)   accept deposits (demand and time) which may or may not bear
            interest;


                                       10
<PAGE>

      (2)   grant credits (consumer or factoring) and financing of commercial
            transactions;

      (3)   loan funds for its or its clients' accounts;

      (4)   provide cash services;

      (5)   issue payment documents (travelers checks and bank promissory
            notes);

      (6)   engage in foreign currency exchange; and

      (7)   act as a financial consultant.

      The Company believes it is in compliance with the banking laws, rules and
regulations of banks in Moldova.

      Sales and Marketing. The Bank advertises its service in local newspapers
and on local radio stations and also offers "promotional" items to its customers
such as pens and calendars.

      Administration. Executive Directors (six persons).

      Non-policy management of the Bank is conducted by the following
departments:

      Funds Management (six persons) - having responsibility over lending,
depositor relations and investments.

      Analysis (two persons) - having responsibility over financial analysis,
reporting, development and planning.

      International (nine persons) - having responsibility over international
transfers, export-import controls, dealing with foreign correspondent banks,
foreign currency dealings including conversions and rendering foreign currency
exchange services to clients.

      Cash (five persons) - processing of cash and coin in local and foreign
currencies.

      Exchange (eight persons) - provides cash currency exchange services in
five exchange offices in Chisinau.

      Computer Operations (seven persons) - development of software,
maintenance, selecting software and hardware supplies and overseeing
installation.


                                       11
<PAGE>

      Accounting (ten persons) - Accounting and customer service.

      Internal Auditing (one person) - internal auditing, monitoring accounting
and operations.

      Security (eighteen persons) - internal security and cash transportation.

      Legal (two persons) - legal representation.

      Maintenance (twelve persons) - provides maintenance, support and
miscellaneous auxiliary services.

      Marketing (three persons) - marketing research and advertising.

      Two Remote Branches (thirty persons) - general banking activities.

      The Bank's operations are augmented by a computer system with terminals
available to all necessary persons with security access, as appropriate,
installed. Bank personnel developed the Bank's computer system which covers
virtually all aspects of the Bank's operations (cash deposits, payments,
crediting, account controls, currency exchange transactions, traveler's check
transactions, past due obligations of Bank customers, client indexes, internal
reporting, interfacing with the National Bank of Moldova, account maintenance,
analysis of Bank activity and record-keeping of assets, salary, materials,
etc.).

      The Bank's computer is connected to various outside services, including
the Internet for information gathering, swift for international settlements and
Reuters for foreign exchange rates and other similar services.

      Personnel. At December 31, 1998, the Bank employed approximately 119
persons, consisting of 89 in its main office, and 30 in its two remote branches.
All employees have one year employment agreements which are renewable for one
year terms by mutual agreement or subject to compliance with the Bank's annual
employee testing requirements. Notwithstanding such employment agreements,
discharge is permitted for incompetence and other similar situations. As all
employers in Moldova, the Bank is required to contribute an amount equal to 30%
of an employee's salary to a government mandated pension system.

Jolly Alon Limited


                                       12
<PAGE>

      In October of 1991, the Government of Moldova established Seabeco Moldova,
SA ("SEMSA") to be 65% owned by a private investor with the remaining 35% to be
owned by the Government of Moldova. At that time, the Government of Moldova
transferred the hotel in Chisinau that it owned to SEMSA. The hotel was known as
the Seabeco Moldova Hotel. Thereafter, the Hotel and SEMSA changed their names
to Jolly Alon Limited and Jolly Alon Hotel, respectively.

      Originally opened approximately 30 years ago, the Hotel is primarily used
by visiting foreign diplomats, other foreign embassy employees, dignitaries and
businessmen. The private investor began a program of reconstruction and
refurbishment with its own funds which program currently continues, including
the construction of a "wing" currently occupied by the German Embassy and the
addition of a sixth floor to the then five story hotel. Other improvements
include the installation of fuel storage tanks and the construction of the
Hotel's HVAC facilities. The Hotel is situated on government-owned land, which
has been rented to the Hotel for a fifty year term and which is located at M.
Chibortero Street, Chisinau, Moldova.

      Chisinau is the capital of Moldova, located approximately 800 miles from
Moscow, 350 miles from Budapest, 350 miles from Bucharest and 300 miles from
Kiev. The Hotel is located approximately twenty minutes from Chisinau's airport
which is serviced by flights from such cities as Athens, Amsterdam, Berlin,
Bucharest, Istanbul, Kiev, Paris, Minsk, Odessa, Prague, Sofia, Warsaw,
Budapest, Frankfurt, Moscow, Tel Aviv and Vienna by Air Moldova, Transaero, Air
Moldova International, Moldavian Airlines and Tarom.

      The Hotel is centrally located, near Moldova's Parliament, its President's
residence, and adjoins a substantial public park.

      Operations. The Hotel's revenues are primarily derived from the rental of
its modern well appointed guest accommodations and from restaurant and bar
operations, leasing of space to the German Embassy and leasing of private
business offices (to business tenants, including Coopers and Lybrand).

      The Company considers the Hotel to be the only "first class" hotel in
Chisinau carrying Moldova's designation as a four star hotel with accommodations
for up to 120 guests in 80 hotel rooms. Hotel rooms range from single occupancy
rooms to suites as follows: single (forty rooms), double (twenty-nine rooms),
luxe (three rooms), deluxe (six rooms) and suites (three). Hotel rooms range in
price from $95.00 for a single room to $295.00 for a suite with discounts
offered for extended residence. Reduced rates are offered


                                       13
<PAGE>

during the fall and winter "off-season". All rooms have bath and shower
facilities, are air-conditioned, have satellite delivered color TV and direct
dial telephones for local and international calls.

      Additional services owned and operated by the Hotel are a full service
restaurant opened for guest buffet breakfast (complimentary) and lunch and
dinner with a full range of food and beverage offerings, bars, saunas, an indoor
swimming pool, beauty salon, barbershop, room service and a small (sixty person)
casino, all serviced by a multi-lingual staff. The Hotel leases retail office
space to a clothing boutique, fragrance, jewelry and publications concession and
a seller of local artifacts. A small foreign currency exchange office is
provided by the Bank.

      In addition to revenues from room rentals to business/diplomatic
travelers, the Hotel also provides business services, meeting/conference rooms,
notarial service, interpretation to and from major European languages, limousine
services and tourist services.

      Clientele. Hotel guests are primarily business men, both foreign and from
the republics which had comprised the USSR, diplomats and other embassy
personnel. The area in which the Hotel is located does not have any significant
tourism and such travelers comprise only a small number of the Hotel's guests.
An unscientific and informal guest survey encompassing the last three years
indicates Hotel usage from personnel from the embassies of over twenty countries
(including the United States, Great Britain, Israel and Pakistan),
multi-national corporations and international agencies. Regular guests of the
Hotel include personnel from international financial agencies and institutions.

      Average unaudited monthly occupancy rates for the years ended December 31,
1997 and 1998 approximated 38% and 48%, respectively.

      Competition. In its locale, the Hotel's competition consists of two other
hotels only one of which the Company considers to be of a similar class but
lacking the range of services that the Hotel offers. The other hotel is state
owned. The Company believes that it competes with the other hotels in its locale
on the basis of its physical appearance, the range and quality of services and
other amenities offered.

      Insurance. Through the Insurance Company, the Hotel maintains insurance to
cover comprehensive casualty losses from occurrences such as flood, fire and
other natural disasters generally in the


                                       14
<PAGE>

amount of U.S. $6,800,000 (with the Hotel being a 20% coinsurer for earthquakes)
and U.S. $200,000 of general accident liability insurance.

      Sales and Marketing. The Hotel's sales and marketing activities to date
have included joining an Internet system advertising its services, advertising
in local newspapers and on local radio, the distribution of brochures to
airlines servicing Moldova, diplomatic embassies and other foreign missions; and
providing discounts to tour operators and their clients.

      Administration and Personnel. The non-policy day-to-day operations of the
Hotel are managed by an in-house management staff of nine persons. Overall
operations are overseen by a General Director whose responsibilities include
day-to-day budgeting and finance, oversight of employee hiring and assignments
and the maintenance of good relations with vendors and Hotel clientele.

      Among the General Director's staff are several other directors who assist
in the overall Hotel operations, including a financial and technical director, a
deputy and a hotel manager. The financial director assigns duties to the
administrative staff involved in the Hotel's financial organization (accounting
and record-keeping) and their hiring and firing.

      The financial director is also responsible for Hotel leases (with and to
third parties) and contracting for supplies and arranging for their
distribution. The Hotel manager is responsible for the oversight of service
personnel, their adherence to the Hotel's policies regarding client contact and
a dress code, "plant" maintenance (including the Hotel's physical appearance,
computers and other equipment), reservation control, upkeep of the Hotel's
services to its clientele, with personal attention to government
representatives, and the determination of those situations appropriate for
discounted rentals. The technical director is responsible for the maintenance of
technical and electro-technical equipment, exterior maintenance and the
maintenance of the HVAC, telephone, fire alarm and security systems and business
equipment (telecopiers, etc.).

      The Hotel's administrative staff consists of accountants, cashiers, and
other clerical personnel.

      The Hotel's remaining staff may be categorized as Hotel service staff
including a staff manager, porters, maids and laundress (42 persons), security
(12 persons), technicians, such as engineers, carpenters, drivers and mechanics
(20 persons), food service staff such as restaurant and bar persons, cooks and a


                                       15
<PAGE>

confectioner (60 persons), casino staff (12 persons) and miscellaneous staff (5
persons).

Exim Asint SA (the "Insurance Company")

      The Insurance Company has engaged in the insurance business since it began
operations in 1995. The Insurance Company's business consists of issuing and
underwriting policies principally for property and casualty liability insurance,
exclusively to policyholders in Moldova. The Insurance Company also derives a
portion of its revenues from investments made with policy reserves.

      The Insurance Company has received government licenses to issue, and
offers, the following types of insurance coverage: comprehensive liability
property; travelers' medical insurance; third-party automobile; government
mandated third-party automobile liability; cargo; and personal accident.

      Comprehensive Liability Property Insurance. The Insurance Company offers
comprehensive liability/multi-peril liability insurance providing coverage of
100% of the actual cost of property losses resulting from fire, robbery,
larceny, or certain other natural disasters. Damage from earthquakes is covered
at 80% of the actual cost.

      Travelers' Medical Insurance. The Insurance Company offers three
travelers' medical insurance plans for Moldovan permanent residents traveling
abroad. The plans are distinguished by the United States dollar amount of
coverage afforded by each plan, which is $15,000, $30,000 or $50,000,
respectively. It is customary for certain countries to disallow entry to
visitors who do not possess medical insurance covering accidents or illnesses
suffered while traveling, as opposed to pre-existing conditions and illnesses.

      Automobile Insurance. The Insurance Company offers third-party liability
insurance coverage for automobile accidents, which coverage is mandated for all
drivers by the Moldovan Government. Under this coverage, a policyholder whose
automobile is damaged is covered for up to 280,000 MDL in damage, and the victim
can receive up to $70 monthly for up to 18 months in disability payments (the
average approximate Moldovan monthly salary). This automobile insurance
customarily excludes from coverage certain hazardous activities, including
off-road use, riots, labor actions or other civil disobedience, transportation
of explosives, hazardous or flammable content, and accidents sustained while the
vehicle was used for commercial purposes. The Insurance Company does not offer


                                       16
<PAGE>

insurance which covers injuries to passengers due to the driver's negligence,
nor is the concept of such liability currently recognized under Moldovan law.

      Personal Accident Insurance. Personal accident insurance is offered and
can cover an insured for up to a specified amount, for death or disability.

      Cargo Insurance. The Insurance Company offers insurance which covers
damage sustained to commercial goods while in transit.

      The number of insurance policies issued by the Insurance Company, by
industry segment in the last three calendar years, are as follows:

                                          1996         1997         1998
                                          ----         ----         ----

      Comprehensive                         36          242          179
      Travelers' Medical                   581        2,757        2,216
      Third-Party Automobile                 9        1,035        1,076
      Personal Accident                     --           19            2
      Other (Cargo, etc.)                   14           14           27
                                          ----        -----        -----

      TOTAL:                               640        4,067       3,500

      Use of Reinsurance. The Insurance Company has entered into agreements with
certain other insurance companies whereby such companies provide reinsurance to
the Insurance Company. Reinsurance is an insurance industry practice of
alleviating the primary insurer's risk by means of the assumption by an
insurance company, acting as a reinsurer, of a portion of the underlying
policy's risk in return for a portion of the premiums generated from such
policy. Such reinsurers are typically larger and better capitalized insurance
companies. The Insurance Company utilizes reinsurance in order to limit its
maximum exposure to significant losses from several policies at or about the
same time, or very large losses from any one policy, resulting from events
including but not limited to, natural disasters. Reinsurance is customarily
renegotiated on a year-to-year basis.

      Under a reinsurance agreement, the primary insurer ordinarily assumes the
first portion of a claim ("FIRST TIER") and then it and the reinsurer share the
risk of coverage thereafter with the reinsurer assuming more of the claims, and
risk, for coverage above the FIRST TIER, while sharing, proportionately, the
amount of the premium for the coverage in excess of the FIRST TIER. However, the
primary insurer is allowed to take a "commission" (or retain an amount of the
premium not proportionate to the risks retained by


                                       17
<PAGE>

the primary insurer or assumed by the reinsurer). Although the Insurance Company
cedes insurance to the reinsurer pursuant to such agreements, it is not relieved
from its obligations to policyholders. The failure of reinsurers to honor their
obligations could result in significant losses to the Insurance Company.

      The Insurance Company's principal reinsurer is Munchener
Ruckversicherungs-Gesellschaft ("Munchener"), and it has other reinsurers to
cover its comprehensive liability insurance policies. Under its agreement with
Munchener (the "Munchener Agreement"), the Insurance Company grants to Munchener
15% of gross premium income, and settles the reinsurance account with Munchener
in either United States dollars or Deutsche Marks ("DM"), with Munchener not to
reinsure accounts once the combined ratio of incurred losses and fixed
commissions exceeds 140% of the premium income.

      The Insurance Company has entered into a Fire First Surplus Reinsurance
Agreement with Munchener (the "Munchener Fire Agreement"), pursuant to which
Munchener acts as a reinsurer with regards to private and commercial
policyholders in Moldova, or for policyholders for which the Insurance Company
insures as primary insurer. Pursuant to the Munchener Fire Agreement, certain
risks are divided into classifications such that natural disasters and
"malicious damage" to buildings and their contents, are insured for up to
$95,000 damage, and other lines of coverage are offered for an aggregate of up
to $350,000 of coverage. The second classification is limited to burglary, hail,
and glass breakage with regards to buildings and their contents only, with any
one casualty insured up to $20,000 and up to an aggregate of $240,000.

      The Insurance Company is heavily dependent upon Munchener for reinsurance.
Reinsurance is a product used by primary insurers to alleviate risks undertaken
when underwriting insurance policies, and borne when substantial claims and
losses result from multiple policyholders, or from very large claims and losses
of holders in the event of major catastrophes (such as natural disasters).
Munchener is the Insurance Company's primary reinsurer. The Company believes
that the loss of Munchener as a reinsurer, or the reduced capacity or
inclination of Munchener to act as a reinsurer for policies underwritten by the
Insurance Company, would not materially adversely affect the ability of the
Insurance Company to absorb a significant number of large claims and losses, or
any one significant claim and loss, suffered as a result of underwriting
policies, as other international reinsurers are available to the Insurance
Company at rates competitive with Munchener.

      Mandatory Insurance Claims Reserves. The Moldova Ministry of Finance
requires that insurance companies maintain reserves in an


                                       18
<PAGE>

amount at least 50% to 60% of its current premiums to cover losses and claims.
The Insurance Company also maintains a reserve at specific rates of net earned
premiums, which reserve is set according to market experience as a whole and is
not necessarily intended to cover future claims lodged with the Insurance
Company.

      Investments. The Insurance Company receives additional revenues from the
investment of premium fund reserves which are controlled by the Moldova Ministry
of Finance. The Insurance Company's reserves, as of December 31, 1998, were
allocated as follows (all amounts in MDL):

                      2,369   in cash
                     95,206   working capital; and
                    214,984   bank deposits.

      Sales and Marketing. The Insurance Company is heavily dependent on
personal contacts and visits to potential clients, as well as attendance at
trade conferences, newspaper and yellow page advertisements and the efforts of
commission agents who are not employees of the Insurance Company or other
subsidiaries/affiliates of the Company for the marketing of its insurance
products. The Insurance Company employs both full-time and part-time sales
agents who work strictly on a commission basis.

      The Insurance Company sells insurance policies from its main office in
Chisinau and a small marketing extension office located at the Bureau of
Registration (automobile) in Chisinau. The Insurance Company also has a sales
representative in the German Embassy located in a wing of the Hotel, who sells
premium medical insurance to persons applying for visas to travel to countries
within the European Union ("EU").

Customers

      In 1996 the Insurance Company issued a total of 640 policies, in 1997 --
4067 policies and in 1998 -- 3,500 policies. In 1997- 98, the Bank, Universal
Bank and the Hotel accounted for approximately 13.3%, 11% and 10.6% of the
Insurance Company's premiums, respectively. The Insurance Company also receives
client referrals from the Bank of persons/entities seeking insurance upon
collateral used to obtain Bank loans and provides insurance to the Hotel.

Competition


                                       19
<PAGE>

      According to the Insurance Company management, there are 37 other
insurance companies currently operating in Moldova. Five other companies issue
policies together with automobile registration. Approximately one-half of such
companies are Government-owned. The Insurance Company faces fierce competition.

      Competition is primarily based on the rating of premiums, as well as name
recognition and quality of customer service. The Insurance Company's management
believes that other insurance companies in Moldova are applying premium rates
higher than those for comparable policies for western Europe policyholders.
Management believes that the prevalence of local insurance companies which are
not reinsured gives the Insurance Company a competitive edge as such competitors
are and have disregarded their assumed effective risk and endangered their
capital in the process. Management believes that its underwriting policies are
more prudent than its competitors and its pricing system is based on
consideration of the attendant risks and collaboration with reinsurers. The
Insurance Company endeavors to compete with such companies on the basis of
offering superior service and prompt payment of claims.

Currencies

      Business is conducted in MDL. However, reinsurance business is conducted
in United States dollars (US$) or Deutsche Marks. In 1993, Moldova had
encountered hyperinflation. During the 1996, 1997 and 1998 calendar years, the
rates of inflation in Moldova were approximately 15.1%, 15% and 18.5%,
respectively.

Intercomsoft

      Intercomsoft is a technology-intensive company engaged in the development
and production of computerized, electronic, photo identification (hereinafter
described) systems utilized in the production of a variety of essential
identification ("ID") documents.

      Intercomsoft has leased such systems in the Republic of Moldova which
utilizes such systems and related technology for national document production,
including passports, national identification documents, drivers' licenses and
other essential identification products which are processed by Moldovan
government employees. Other applications of the technology utilized by
Intercomsoft include police and military use, access control, high security
identification, government identification, and company identification products,
among many others.


                                       20
<PAGE>

      An important aspect of the computerized document production systems leased
by Intercomsoft is that it can be readily connected to any existing computer
mainframe or central database (such as a national population registry) to
capture millions of records and images of data. These records (and images) are
stored and printed at high level speed to accommodate the needs and demands of
the customer.

      The computerized document production systems marketed by Intercomsoft
consist principally of a technology of laser printing on plastic which can print
up to 450 high quality cards an hour, utilizing a secured proprietary process.
At the heart of all of such systems is "ID-SOFT," an ID application generator
software which allows these systems to integrate into any given project, such
features as fingerprints, palm geometry and signatures, to name just a few.

      These systems operate on a variety of specially designed consumable
materials which include security features to safeguard the end-product. These
safety features, coupled with a related secured printing process, help make the
end-product a more secure document.

      Governments control and mass produce various types of national
identification documents and cards such as passports, drivers' licenses, and
national or regional identification cards. Such documents and cards generally
provide their owners with the ability to exercise special rights, obtain
benefits, or effect transactions. The use of fraudulent identification cards
creates national security risks by enabling unauthorized access to sensitive
information or secure public facilities. In addition, holders of fraudulent
documents or cards can improperly obtain certain benefits and rights such as
welfare, or other governmental benefits and access to bank accounts. The costs
associated with such fraud, as well as the cost generated by related law
enforcement actions are significant. In an effort to combat forgery and fraud,
photographic identification cards encapsulated within laminated pouches were
developed. However, photographic identification cards can be replicated using
widely available advanced color copiers and printers, and laminated pouches have
proven easy to delaminate. Consequently, governments are seeking solutions that
will heighten security, reduce costs associated with forged or fraudulent
identification documents or cards and enable cost-effective production of secure
and durable documents and cards. Moreover, due to the increasing sophistication
of the technology available for the production of identification documents
containing advanced security features, there has been an increase in the cost of
producing identification documents.


                                       21
<PAGE>

      The Company believes that Intercomsoft represents the "state-of-the-art"
in secure document production in the Republic of Moldova. Because of the
state-of-the-art technology it offers, Intercomsoft has secured a license from
the Moldovan Government for official national document production in the
Republic of Moldova as described below.

Supply Agreement with the Republic of Moldova

      In April 1996, Intercomsoft was awarded a ten year contract by the
Ministry of Economics, Republic of Moldova (the "Supply Agreement"), to provide
a National Register of Population and National Passport System. Accordingly,
Intercomsoft supplies all of the equipment, technology, software and materials
necessary to produce all national passports, drivers' licenses, vehicle permits,
identification cards and other national documents in the Republic of Moldova.

      Intercomsoft markets state-of-the-art essential document production
technology in a manner which has enabled it to position itself as a leading
international marketer of technology and equipment for the production of secure
government documents.

Current Products

      Intercomsoft currently produces and supplies a number of Moldovan
essential documents including:

            (a)   Travel Documents
            (b)   Passport Documents
            (c)   Picture Identification Cards
            (d)   Drivers' Licenses
            (e)   Car Licenses
            (f)   Tax and other Government Authorized Cards
            (g)   Other Documents

      Intercomsoft produces and supplies such documents in Moldova pursuant to
the Supply Agreement that addresses each of the above noted products.

Competition

      By virtue of Intercomsoft's Supply Agreement to produce various Government
mandated essential documents, Intercomsoft supplies all of such documents to the
Government of Moldova and,


                                       22
<PAGE>

accordingly, Intercomsoft has no competition for its products in Moldova.

Item 2. Properties

      The Bank's main branch is located at bd. Stefan cel/Mare, 6, MD-2001,
Chisinau, Moldova occupying approximately 1300 square meters of space in a Bank
owned building. The Bank's two branches are leased from non-affiliated third
parties and located in the Moldovan cities of Ungeni (approximately 110 square
meters) and Komrat (approximately 214 square meters) at an aggregate annual
rental cost of $9,000 for such two branches. The Bank's office premises are
insured against fire, burglary, earthquake and water (flood) risks by a policy
issued by the Insurance Company.

      Until September of 1997, private land ownership was not permitted in
Moldova. The Company utilizes the land on which the Hotel is located pursuant to
a fifty-year lease from the Government of Moldova. Based upon the Company's
interpretation of current Moldovan law, the Company believes that the owner of a
building has the primary right to purchase the land on which it is situated once
the building is wholly privately owned. The Company has not yet submitted a
request for the acquisition of the land on which the Bank's main branch is
located.

      The Insurance Company leases approximately 100 square meters of office
space from the Bank pursuant to a 27-year operating lease with the Bank, under
which the Bank received payment in the form of equity shares in the Insurance
Company, such shares in the aggregate having been valued at $24,840. The
Insurance Company also maintains desk space, along with other insurance
companies, at automobile registration offices in Moldova. The Insurance Company
believes its present leased office space will be suitable to meet its needs for
the next several years.

Item 3. Legal Proceedings

      Neither the Company nor any of its subsidiaries were, to its knowledge, a
party to or otherwise involved in any material legal proceedings as of December
31, 1998.

Item 4. Submission of Matters to a Vote of Security Holders

      No matters were submitted to a vote of the Company's security holders
during the Company's last fiscal quarter ended December 31, 1998.


                                       23
<PAGE>

                                     PART II

Item 5. Market for Common Equity and Related Stockholder Matters

      No shares of the Company's Common stock have been registered with the
Securities and Exchange Commission (the "Commission") or any state securities
agency or authority, pursuant to the registration requirements of the Securities
Act of 1933, as amended (the "Act") and similar state securities laws. During
its fiscal years ended December 31, 1996 and 1997, it is believed that there was
no active market for the Company's Common Stock. Since January 30, 1998, the
Company's Common Stock has been traded on the OTC Bulletin Board under the
trading symbol "TMOL". Because no active trading market existed during 1996 and
1997, no historical price information for the Company's shares is included for
such years.

      Beginning with the Company's reorganization on January 6, 1998, the
Company's Common Stock began trading, opening at $.01 on January 6, 1998 and
closing at $10.50 on December 31, 1998 with a high during the year of $15.00.

      The ability of an individual stockholder to trade his/her shares in a
particular state may be subject to various rules and regulations of that state.
A number of states require that an issuer's securities be registered in their
state or appropriately exempted from registration before the securities are
permitted to trade in that state.

      As of February 26, 1999, there were 251 holders of record of the Company's
Common Stock.

      As of February 26, 1999, the Company has issued and outstanding 12,023,000
shares of Common Stock. Of this total, 1,000,000 shares may be deemed to have
been issued in transactions more than two years ago and may be sold or otherwise
transferred without restriction pursuant to the terms of Rule 144 ("Rule 144")
of the Act, without the volume limitations of said rule unless held by an
affiliate or controlling shareholder of the Company. Of the 12,023,000 shares,
the Company has identified 9,585,000 shares as being held by affiliates of the
Company. The remaining 2,438,000 shares may be deemed to be free from
restrictions and, if so, may be sold and/or transferred without further
registration under the Act.

      The 9,585,000 shares presently held by affiliates or controlling
shareholders of the Company may be sold pursuant to Rule 144,


                                       24
<PAGE>

subject to the volume and other limitations set forth under Rule 144. In
general, under Rule 144 as currently in effect, a person (or persons whose
shares are aggregated) who has beneficially owed restricted shares of the
Company for at least one year, including any person who may be deemed to be an
"affiliate" of the Company (as the term "affiliate" is defined under the Act),
is entitled to sell, within any three-month period, an amount of shares that
does not exceed the greater of (i) the average weekly trading volume in the
Company's common stock during the four calendar weeks preceding such sale or
(ii) 1% of the shares then outstanding. A person who is not deemed to be an
"affiliate" of the Company and who has held restricted shares for at least two
years would be entitled to sell such shares without regard to the resale
limitations of Rule 144.

      Dividend Policy. The Company has not declared or paid cash dividends or
made distributions in the past, and the Company does not anticipate that it will
pay cash dividends or make distributions in the foreseeable future. The Company
currently intends to retain and reinvest future earnings, if any, to finance its
operations.

Item 6. Management's Discussion and Analysis of Financial Condition
and Results of Operations

RESULTS OF OPERATIONS

      The following discussion and analysis should be read in conjunction with
the Company's financial statements and notes thereto appearing elsewhere in this
report.

General

      The Company, through its wholly-owned subsidiaries, owns 65% of the issued
and outstanding shares of capital stock of the Hotel with the remaining
thirty-five (35%) percent of the issued and outstanding shares of capital stock
of the Hotel being owned by the Government of Moldova; 100% of the issued and
outstanding shares of capital stock of the Bank; 100% of the issued and
outstanding shares of capital stock of the Insurance Company; and 100% of the
issued and outstanding shares of capital stock of Intercomsoft which is the
exclusive supplier to the Government of the Republic of Moldova of the
technology and equipment required to manufacture secured essential government
documents (e.g. passports, drivers' licenses, etc.). The Company's interests in
the Bank, the Hotel and the Insurance Company were acquired on January 6, 1998.
The Company's interest in Intercomsoft was acquired on May 6, 1998. As the Bank,
the Hotel, the Insurance Company and Intercomsoft were entities under common
control during their fiscal years ended December 31, 1997 and 1998, their
individual operations for those two years are compared below.

      The acquisition of Intercomsoft has been accounted for in a manner similar
to a pooling of interest since the Company and Intercomsoft are enterprises
under common control. The Company's financial statements have been restated to
include the results of operation, financial position and cash flows of
Intercomsoft for all periods presented as though it had always been a part of
the Company.

      The Official currency of the Republic of Moldova is the Moldovan Leu.


                                       25
<PAGE>

The Bank

      Revenues. The Bank derives its revenue from charging fees for its
services, interest charged on loans, interest earned on funds deposited in
correspondent banks and investing in securities issued by the Moldovan
government.

      During the year ended December 31, 1998 ("1998"), the Bank had interest
income of approximately $2,546,000, an increase of approximately $118,000 or
approximately 5% from the year ended December 31, 1997 ("1997") interest income
level of approximately $2,428,000. The largest component of the Bank's interest
income was interest earned on loans which was approximately $1,976,000 and
$1,453,000, or approximately 77% and 60% of the Bank's total interest income
during 1998 and 1997, respectively. The increase both in dollars and as a
percentage of interest income of interest earned on loans was the result of the
Bank more aggressively marketing its lending services and the Bank's retention
of prior year's earnings to increase funds available for lending by the Bank.
The remaining components of the Bank's interest income were interest earned on
securities and interest earned on deposits with correspondent banks. During
1998, the Bank earned approximately $386,000 in interest on securities,
approximately 15% of the Bank's total interest income in 1998, and approximately
$181,000 or approximately 7% of its interest income from interest earned on
deposits with correspondent banks. During 1997, the Bank earned approximately
$657,000 in interest on securities, approximately 27% of the Bank's total
interest income in 1997 and approximately $319,000 or 13% of its interest income
from interest earned on deposits with correspondent banks. The reason for the
foregoing declines in interest earned on securities and on deposits with
correspondent banks was the Bank's greater focus on commercial loans which have
a greater return than securities and deposits with correspondent banks and
management allocating less funds to securities investments and deposits with
local banks.

      In addition to interest income, the Bank also had non-interest income of
approximately $1,578,000 during 1998 in comparison to approximately $1,868,000
in 1997, a decline of approximately $290,000 or 16%. The principal component of
the Bank's non-interest income was exchange trading and commissions of
approximately $1,019,000 and $1,123,000 which represented approximately 65% and
60% of the Bank's non-interest income during 1998 and 1997, respectively.
Another component of the Bank's non-interest income consisted of financial
advisory service fees of approximately $515,000 and $745,000 or approximately
33% and 40% of the Bank's non-interest income during 1998 and 1997,
respectively, 


                                       26
<PAGE>

representing a decline of approximately $230,000 or 31%. Both the decline in
financial advisory service fees and exchange trading and commission non-interest
income were related to the devaluation of the Moldovan Leu. Financial advisory
service fees are paid in the Moldovan leu and represented less U.S. Dollars when
converted. Although the Bank's allowance for possible loan losses increased in
raw dollars from approximately $572,000 in 1997 to approximately $912,000 in
1998, when the allowance is measured as a percentage of the amount of
outstanding loans (approximately $4,867,000 and $6,343,000 in 1997 and 1998,
respectively,) the increase represented an approximate 2% increase.

      Expenses. Offsetting the Bank's interest income during 1998 was interest
expense of approximately $903,000, approximately 35% of interest income,
comprised principally of interest paid on deposits. During 1997, interest
expense was approximately $767,000 or 32% of total interest income.

      Offsetting the Bank's non-interest income during 1997 and 1998 was
non-interest expenses of approximately $1,849,000 and $1,539,000, respectively,
comprised principally of salaries and related costs of approximately $673,000
and $724,000, respectively, communication and transportation expenses of
approximately $299,000 and $153,000, respectively, approximately $279,000 and
$100,000 of outside services and processing costs, respectively, and
approximately $40,000 and $115,000 of marketing and development costs,
respectively. From 1997 to 1998 budget cutting measures resulted in reductions
in communications and transportation expenses and outside services and
processing costs. Marketing and development costs increased from 1997 to 1998 to
counter increased competition from new banks. Salaries increased from 1997 to
1998 as a result of increased Bank staffing levels.

      Net Income. For 1998, the Bank's net interest income, after allowance for
possible loan losses of approximately $773,000, was approximately $1,773,000
with non-interest income and revenues combined of approximately $3,539,000. The
Bank's 1998 income was offset by interest expenses of approximately $903,000 and
non-interest expenses of $1,613,000 thereby reducing income before taxes to
approximately $1,023,000, with income taxes of approximately $130,000 resulting
in net income of approximately $893,000 from the Bank's business in 1998. Net
income was approximately 21% of the Bank's aggregated total non-interest income
and interest income for 1998. During 1997, the Bank's net interest income, after
allowance for possible loan losses of approximately $674,000, was approximately
$987,000 with non-interest income of approximately $1,962,000. The Bank's 1997


                                       27
<PAGE>

income was offset by interest expenses of approximately $767,000 and
non-interest expenses of approximately $1,849,000, which reduced income before
taxes to approximately $1,101,000, with income taxes reducing net income to
approximately $892,000 in 1997. Net income was approximately 20% of the Bank's
aggregated total non-interest income and interest income for 1997. 

The Hotel

      During 1998, the Hotel's revenues of approximately $2,545,000 were
principally derived from (a) rental of guest accommodations (approximately
$1,689,000 or 66% of the Hotel's revenues); (b) restaurant operations
(approximately $464,000 or 18% of the Hotel's revenues); and (c) leasing of
stores and offices (approximately $325,000 or 13%). 1998 Hotel revenues declined
by approximately $170,000 or approximately 6% from approximately $2,715,000 in
1997. The Hotel's 1997 revenues were principally derived from the same sources
as in 1998 approximately as follows: (a) $1,610,000 or 61%; (b) $789,000 or 28%;
and (c) $263,000 or 9% from (a) guest accommodation rentals; (b) restaurant
operations; and (c) the leasing of stores and offices, respectively.

      Total cost of revenues for the Hotel for 1997 and 1998 were approximately
75% of revenues.

      Although the Hotel experienced a decline in revenues of approximately
$170,000 from 1997 to 1998 principally caused by a decline in revenues from
restaurant operation flowing from increased restaurant competition and a reduced
level of disposable income due to the devaluation of the Moldovan Leu. This
decline was offset by new management's budget cutting measures resulting in the
Hotel running more efficiently with labor and related expenses, operating
equipment purchases and maintenance costs all declining. Also offsetting the
decline in revenues was reduced costs of food and beverage, flowing from the
reduced demand and cost cutting measures which reduced selling, general and
administrative expenses.

      The end result of the foregoing was that in 1997 the Hotel sustained a
loss of approximately $98,000 (or -3% of revenues) while in 1998 the Hotel
derived net income of approximately $408,000 or 16% of its revenues,
representing an improvement of $506,000 or a positive variance of 19% when net
income is measured as a percentage of revenues. The foregoing dollar amounts are
stated before giving effect to the minority (35%) interest of the


                                       28
<PAGE>

Republic of Moldova.

Intercomsoft

      Intercomsoft derives its revenue from being the exclusive supplier of the
technology required to produce secure essential documents (e.g. passports,
drivers' licenses, etc.), to the Government of the Republic of Moldova. During
1997 and 1998, Intercomsoft had revenues from operations of approximately
$4,346,000 and $4,138,000, respectively. Management attributes this approximate
5% decrease in revenues to normal fluctuations in Moldovans seeking drivers'
licenses and passports. However, Intercomsoft was able to reduce its cost of
revenues which were approximately $2,008,000, or 46% of revenues in 1997, to
approximately $1,663,000 or 40% of revenues in 1998. This decline in cost of
revenues is the result of a decline in equipment expenditures. Intercomsoft also
realized a small sum of income from financing activities in 1998 while receiving
only a nominal sum from these activities in 1997. As a result, Intercomsoft was
able to increase its profitability with net income in 1998 of approximately
$2,361,000 from approximately $2,214,000 in 1997.

The Insurance Company

      Although the Insurance Company began operations in 1995 it is still in a
development stage. The Insurance Company derives its revenues from premium
payments from its insureds and from the investment of its insurance reserves.
Although the Insurance Company earned approximately $266,000 and $209,000 in
gross premiums during 1997 and 1998, respectively, earned premiums ceded to
reinsurers approximated $177,000 and $139,000 in those years resulting in
approximately $89,000 and $70,000 in net premiums earned of the Insurance
Company's total revenues of approximately $204,000 and $232,000 for 1997 and
1998, respectively. During 1997 and 1998, the Insurance Company also received
net interest income of approximately $54,000 and $67,000, respectively. During
1997 and 1998, the Insurance Company also had approximately $54,000 and $53,000
of other income, respectively, and reinsurance commissions of approximately
$15,000 and $42,000. The Insurance Company's total expenses of approximately
$252,000 in 1998 resulted in net loss of approximately $20,000 during 1998 as
compared to a net income of approximately $31,000 in 1997 following total
expenses of $176,000.


                                       29
<PAGE>

The Company

      From 1997 to 1998, the Company's revenues declined by approximately
$356,000 or approximately 3% from approximately $11,629,000 to $11,273,000,
respectively. However, operating expenses declined at an approximate 10% rate by
approximately $665,000 from approximately $6,933,000 in 1997 to approximately
$6,268,000 in 1998. The decline in revenues was offset by operating expense
savings, resulting in net income (after deductions for income taxes and the
Republic of Moldova's minority interest in the Hotel) of approximately
$3,073,000 in 1997 and approximately $2,950,000 in 1998 or approximately 26% of
revenues in both years.

Liquidity & Capital Resources

      The Company believes that its existing source of liquidity and its current
revenues and cash flow, will be adequate to sustain its current operations and
to satisfy its current working capital and capital expenditure requirements for
the next twelve months. The Company has no current plans for material capital
expenditures.

      The Company plans to continue seeking other acquisition candidates, both
domestically and internationally, which may be acquired through the issuance of
securities and/or the payment of available cash, or both.

Year 2000 Compliance

      The Company is aware of the issues associated with the programming code in
existing computer systems as the millennium (Year 2000) approaches. The "Year
2000" problem is pervasive and complex as virtually every computer operation
will be affected in some way by the rollover of the latter two digit year value
to 00. The issue is whether computer systems will properly recognize date
sensitive information when the year changes to 2000. Systems that do not
properly recognize such information could generate erroneous data or cause a
system to fail. Management of the Company, however, has assessed the "Year 2000"
compliance expense and related potential effect on the Company's earnings and
believes it is compliant as to the Hotel, Insurance Company, Intercomsoft and
itself. Most of the recordkeeping of the Hotel, Insurance Company and
Intercomsoft is done in manual format or with a manual back-up. Computerized
information is kept on staff PCs which are believed to be year 2000 compliant,
as to the Hotel, Insurance Company, Intercomsoft and itself. Additionally, in
the locale of the operations of the Operating Entities computerized record
creation 


                                       30
<PAGE>

and maintenance is not widespread and the Hotel, Insurance Company and
Intercomsoft clientele and supply bases are not believed to be computer
dependent. The Bank has performed an analysis of its Year 2000 Compliance. The
Bank's Year 2000 remediation plan is expected to be completed in the summer of
1999 at an approximate cost of $20,000. The Bank has received assurances from
most of its key customers, clients and vendors that they are Year 2000
compliant. The Bank has received assurances from all of its key vendors which
sell and/or maintain software to or from it, as the case may be, that the key
vendors software is Year 2000 compliant.


                                       31
<PAGE>

Item 7. Financial Statements

      The Company's consolidated financial statements for the year ended
December 31, 1998 have been examined to the extent indicated in their reports by
KPMG Accountants N.V., an affiliate of KPMG International, independent certified
public accountants, and have been prepared in accordance with generally accepted
accounting principles and pursuant to Regulation S-B, as promulgated by the
Securities and Exchange Commission. The aforementioned financial statements are
included herein in response to Item 7 of this Form 10-KSB.

Item 8. Changes in and Disagreement with Accountants on Accounting and Financial
Disclosure

      (a) On March 30, 1999, the Company dismissed its prior independent
accountants, Jones, Jensen & Company, LLC ("JJC"), effective April 20, 1998. The
decision to change accountants was approved by the Company's Board of Directors.

      JJC's reports on the Company's financial statements for its fiscal years
ended December 31, 1996 and 1997 did contain a going concern qualification, with
an explanatory paragraph that the Company was then a development stage company
with no prior significant operations and that unless the Company was then able
to obtain significant outside financing there was substantial doubt about its
ability to continue as a going concern.

      It is believed by current management of the Company that during the audits
for the fiscal years ended December 31, 1996 and 1997 to the date hereof, there
were no disagreements between the Company and JJC on any matters of accounting
principles or practices, financial statement disclosure or auditing scope or
procedure, which disagreements, if not resolved to the satisfaction of JJC,
would have caused it to make a reference to the subject matter of the
disagreements in connection with its reports.

      (b) Effective January 6, 1998, the Company engaged Braude Bavly ("BB"), a
member of KPMG International, as independent auditors for the Company. Effective
January 26, 1999, the Company released BB as independent accountants for the
Hotel, the Bank, the Insurance Company and Intercomsoft. That decision was
approved by the Company's Board of Directors. BB's reports on the Hotel's,
Bank's and Insurance Company's financial statements, for the nine month periods
ended September 30, 1996 and 1997 and/or the years ended December 31, 1996 and
1997 did not contain an adverse opinion or disclaimer of opinion. From the dates
of the foregoing audits


                                       32
<PAGE>

to the date hereof, there were no disagreements between the Company and BB on
any matters of accounting principles or practices, financial statement
disclosure, or auditing scope or procedure, which disagreements, if not resolved
to the satisfaction of BB, would have caused it to make a reference to the
subject matter of the disagreements in connection with its reports.

      (c) The Company has requested that JJC furnish it with a letter
addressed to the Securities and Exchange Commission stating whether or not it
agrees with the above statements. A copy of such letter, dated April 1, 1999
is filed as Exhibit 16.1 to this Form 10-KSB.

      (d) The Company has requested that BB furnish it with a letter addressed
to the Securities and Exchange Commission stating whether or not it agrees with
the above statements. A copy of such letter, dated April 9, 1999 is filed as
Exhibit 16.2 to this Form 10-KSB.

      Effective January 26, 1999, the Company engaged KPMG Accountants, N.V. as
its principal independent accountant. During the last two fiscal years and the
subsequent interim period to the date hereof, the Company did not consult KPMG
Accountants, N.V. regarding any of the matters or events set forth in Item
304(a)(2)(i) and (ii) of Regulation S-K.


                                       33
<PAGE>

                                    PART III

Item 9. Directors, Executive Officers, Promoters and Control Persons; Compliance
with Section 16(a) of the Exchange Act

      The directors and executive officers of the Company are as follows:

      Name                    Age         Position
      ----                    ---         --------

      Boris Birshtein         51          Chairman of the Board

      Ted Shapiro             63          Chief Executive Officer,
                                          President and Director

      Shmuel Gurfinkel        52          Chief Financial Officer
                                          and Director

      Robert L. Blessey       53          Secretary and Director

      The biographical information concerning the directors and executive
officers of the Company, as supplied to the Company by them, is as follows:

      Mr. Birshtein has been the Chairman of the Board of Directors of the
Company since January 1998, and since 1994 Mr. Birshtein has also been the
Chairman of the Board of Directors of the Bank. Since 1997, Mr. Birshtein has
also been the Chairman of the Board of Directors and principal shareholder of
Global Telcomm Group, Ltd. ("Global Telcomm"), a privately held, development
stage international telecommunications firm. From 1994 to the present, Mr.
Birshtein has also been a principal shareholder of various corporations
conducting business in Moldova, including a television station, a publishing
house, and a chain of duty free stores in Moldova. From 1981 to 1996, Mr.
Birshtein was the Chairman of the Board of Directors of Seabeco Group, a Swiss
corporation which he founded in 1981 ("Seabeco"). Seabeco specialized in trading
fertilizers and metals in Eastern Europe. In 1992, Mr. Birshtein became a full
member of the International Information Academy, which has a general consultive
status with the Economic and Social Counsel of the United Nations. Mr. Birshtein
previously served as the Chairman of the Supreme Economic Council under the
President of the Republic of Moldova. In 1997, Mr. Birshtein received his Ph.D.
in Philosophy and was confirmed as a full Professor at the International
Information Academy. Mr. Birshtein is the author of two books, 


                                       34
<PAGE>

Reform -- Problems of Market Economy Regulations in the CIS Countries, which was
published in 1997 and Moldova Undiscovered, which was published in 1998. In
addition, Mr. Birshtein authored The Shadow Economy, a treatise on the Moldovan
economy after its declaration of independence from the Soviet Union, for which
he was honored with the prestigious International Information Academy Silver
Stylus Award.

      Mr. Shapiro has been the Chief Executive Officer, President and Director
of the Company since January 1998, and from 1997 to the present has been the
Chief Executive Officer and Director of Global Telcomm. From 1992 to 1997, Mr.
Shapiro was the Vice-Chairman of the Board of Directors of EMX Corporation
("EMX"), a research and development technology firm, which is the exclusive
worldwide licensee of numerous patents relating to an international
biotechnology. From 1981 to 1992, Mr. Shapiro was the Chairman of the Board of
Directors of the Patrician Group, Inc. and certain of its affiliated entities
("Patrician"). Patrician was a national privately held real estate firm engaged
in acquiring, selling and managing shopping centers. Patrician owned 71 shopping
centers in 38 states with a gross leasable area in excess of 12 million square
feet.

      Mr. Gurfinkel has been the Chief Financial Officer and Director of the
Company since January 1998. Since 1996, Mr. Gurfinkel also has been a Director
of the Bank. For at least the last five years, Mr. Gurfinkel has been the owner
of the Shmuel Gurfinkel accounting firm in Ramat-Gan, Israel. He has been a
member of the Board of Directors of Beken Metals, Ltd., a subsidiary of Africa
Israel Investments Ltd., since 1997.

      Mr. Blessey has been a Director and Secretary of the Company since January
1998. Since 1997, Mr. Blessey has been Of Counsel to the law firm of Gusrae,
Kaplan & Bruno. From 1990 to 1996, he was Of-Counsel to the law firm of Gold &
Wachtel and from 1974 to 1989, Mr. Blessey was the President and principal
shareholder of the law firm of Doros & Blessey, P.C. From 1990 to the present,
Mr. Blessey has been General Counsel and a member of the Board of Directors of
EMX; from 1997 to the present, Mr. Blessey has been General Counsel and Vice
Chairman of the Board of Directors and General Counsel to Global Telcomm; from
1991 to the present, Mr. Blessey has been General Counsel, Secretary and member
of the Board of Directors of Aldine Metal Products Corp., a privately held,
family owned steel manufacturing company; and from 1964 to the present, Mr.
Blessey has been a Partner in Forar Realty Co., a family owned real estate
partnership.


                                       35
<PAGE>

Item 10. Executive Compensation

      No officer or director of the Company received compensation in excess of
$60,000 in 1998.

      On February 25, 1999, the Company entered into Employment Agreements with
Boris Birshtein, Chairman of the Board (the "Birshtein Employment Agreement")
and Ted Shapiro and Robert L. Blessey, President and Chief Executive Officer and
Secretary, respectively (the "Shapiro Employment Agreement" and the "Blessey
Employment Agreement", respectively). Each of such Employment Agreements are for
a term of five years commencing January 1, 1999 and provide for annual salaries
of $120,000 in the first year of the Term thereof (subject to increase to
$250,000 per year with respect to the Birshtein Employment Agreement and
$200,000 per year with respect to the Shapiro and Blessey Employment Agreements,
in the event that the Company consummates an acquisition of a business with net
pre-tax profits of $3,000,000 or more in such year) and, in each of the
remaining years of the Term thereof, $250,000 per annum in the case of the
Birshtein Employment Agreement, and $200,000 per annum in the case of the
Shapiro and Blessey Employment Agreements. In addition, such Agreements provide
for incentive warrants to be issued to each of such individuals based upon
Excess Net Pre-Tax Profits in each year of the term of such Agreements (100,000
of such warrants for each $1,000,000 of Excess Net Pre-Tax Profits in the case
of the Birshtein Employment Agreement and 50,000 warrants for each $1,000,000 of
Excess Net Pre-Tax Profits in the case of the Shapiro and Blessey Employment
Agreements), up to a maximum of 1,000,000 of such warrants in each such year.
Any such incentive warrants will have a five year term and will be exercisable
at the market price of the Company's Common Stock on the date of issuance. Each
of such Employment Agreements also provide for annual bonuses based upon Excess
Net Pre-Tax Profits in each year of the term of such Agreements (10% thereof in
the case of the Birshtein Employment Agreement and 5% thereof in the case of the
Shapiro and Blessey Employment Agreements). Excess Net Pre-Tax Profits being
defined in such Agreements as the amount by which net pre-tax profits in each
year exceed the net pre-tax profits in the immediately preceding year.

      Such Employment Agreements require each of such individuals to spend a
substantial portion of their time in the performance of their duties thereunder,
and provide for certain other specified fringe benefits and change of control
severance payments.

      All employees of the Bank, the Hotel and the Insurance Company in Moldova
are subject to government-mandated one-year employment


                                       36
<PAGE>

agreements. Employers may terminate employees only for good cause, such as
incompetence. Employees may be required to remain as employees for several weeks
after providing notice of an intention to resign, if needed by the employer.

Item 11. Security Ownership of Certain Beneficial Owners and Management

      The following table sets forth information, to the best knowledge of the
Company as of February 26, 1999, with respect to each person known by the
Company to own beneficially more than 5% of the Company's outstanding Common
Stock, each director and all directors and officers as a group.

================================================================================
                                                     Beneficial
                                              Ownership of Common Stock
                                              -------------------------
--------------------------------------------------------------------------------
                                                                 Approximate
                                                                Percentage of
Name of Beneficial Owners              Number of Shares           Ownership
-------------------------              ----------------         -------------
--------------------------------------------------------------------------------
Boris Birshtein(1)                         8,195,000                68.2
--------------------------------------------------------------------------------
Ted Shapiro(2)                             1,390,000                11.6
--------------------------------------------------------------------------------
Shmuel Gurfinkel(3)                           --                     --
--------------------------------------------------------------------------------
Robert L. Blessey(4)                          --                     --
--------------------------------------------------------------------------------
All executive officers
and directors as a group
(4 persons)(5)                             9,585,000                79.7
================================================================================

----------
      (1)   Mr. Birshtein is the Chairman and a Director of the Company. Such
            shares are owned of record by Magnum and Starbeam. Magnum and
            Starbeam are corporations organized under the laws of Ireland. The
            capital stock of such entities is owned by Mr. Birshtein.

      (2)   Mr. Shapiro is the Chief Executive Officer, President and a Director
            of the Company.

      (3)   Mr. Gurfinkel is the Chief Financial Officer and a Director of the
            Company.

      (4)   Mr. Blessey is a Director and Secretary of the Company. 

      (5)   See Footnotes (1) - (4).


                                       37
<PAGE>

Item 12. Certain Relationships and Related Transactions

      In December 1997, Mr. Birshtein contributed $215,000 to the Bank.

      In September 1996, the Bank repurchased from the Government of Moldova the
thirty-five (35%) percent of its outstanding capital stock (the "35% Interest")
not owned by Mr. Birshtein for approximately $700,000.

      In 1996, 1995 and 1994, the Company declared dividends on its outstanding
capital stock. The aggregate dollar amount of such dividends that Mr. Birshtein,
as a stockholder of the Bank, was entitled to receive was approximately
$2,250,000. Mr. Birshtein, however, elected not to receive such dividend
payments so that the Bank could use such funds to repurchase the 35% interest of
the Bank held by the Government and to increase its capitalization.

      In 1995, Mr. Birshtein contributed approximately $300,000 to the Insurance
Company for start-up and working capital costs.

      In 1994, Mr. Birshtein purchased sixty-five (65%) percent of the issued
and outstanding capital stock of the Bank for $650,000. Such funds were used for
start-up costs and working capital.

      Several other entities in Moldova, which are affiliates of Mr. Birshtein,
are customers of the Bank and borrow funds from the Bank on an arm's length
basis.

      The Insurance Company has issued to the Hotel a $6,800,000 comprehensive
liability policy (including $5,500,000 for earthquake damage) and received
premiums of approximately $65,000 from the Hotel in 1997.

      The Insurance Company maintains a current account and deposit accounts
with the Bank.

      The Insurance Company insures the property of the Bank.

      The Company believes all insurance transactions with affiliates are on
terms comparable to the standard terms and rates offered to regular commercial
insureds.


                                       38
<PAGE>

Item 13. Exhibits, List and Reports on Form 8-K

      a.    Exhibits

            Exhibit No.       Description of Document
            -----------       -----------------------

            2                 Agreement and Plan of Reorganization,
                              effective January 6, 1998, by and among
                              the Company, Edward F. Cowle, H. DeWorth
                              Williams, Gold Hill Mines, Inc., Magnum
                              Associates Ltd. and Starbeam, Ltd.(1)

            3                 By-Laws(2)

            4                 Specimen of Certificate of Common
                              Stock(2)

            16.1              Letter dated April 1, 1999 from Jones,
                              Jensen & Company, LLC.(3)

            16.2              Letter dated April 9, 1999 from Bavly & Co.(3)

            21                List of Subsidiaries(3)

            23.1              Consent of KPMG Accountants, N.V., an
                              affiliate of KPMG International(3)

      b.    Reports on Form 8-K

      No current reports on Form 8-K were filed during the last quarter of the
Company's fiscal year ended December 31, 1998.

----------

      (1)   Incorporated by reference to the Company's Report on Form 8-K, filed
            on January 6, 1998 and as amended on March 5, 1998 and as amended as
            of March 27, 1998.

      (2)   Incorporated by reference to the Company's Registration Statement on
            Form 10-SB.

      (3)   Filed herewith.


                                       39
<PAGE>

KPMG Accountants N.V.
Chisinau, April 9, 1999
This report consists of 30 pages

Trimol Group, Inc.

Consolidated financial statements as of December 31, 1998


                                      F-1
<PAGE>

Trimol Group, Inc.

Contents

Report

Report of the independent auditors                                           F-3

Financial statements

Consolidated balance sheet                                                   F-4

Consolidated statement of operations                                         F-5

Statement of changes in shareholders' equity                                 F-6

Consolidated statement of cash flow                                          F-7

Notes to the consolidated financial statements                               F-9


                                      F-2
<PAGE>

Trimol Group, Inc.

Report of the independent auditors

To the Board of Directors and Shareholders of
Trimol Group, Inc.

We have audited the accompanying consolidated balance sheet of TRIMOL GROUP, INC
and subsidiaries ("the Company") as of December 31, 1998 and the related
consolidated statement of operations, changes in shareholders' equity and cash
flow for the year ended December 31, 1998 of TRIMOL GROUP, INC. and for the year
ended December 31, 1997 of predecessor companies to the TRIMOL GROUP, INC. These
financial statements are the responsibility of the Company's management. Our
responsibility is to express an opinion on these financial statements based on
our audit.

We conducted our audit in accordance with generally accepted auditing standards
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provide a reasonable basis for our
opinion.

In our opinion, the consolidated financial statements referred to above present
fairly, in all material respects, the financial position of the Company as of
December 31, 1998 and the results of its operations and cash flows for the years
ended December 31, 1998 and December 31, 1997, in conformity with generally
accepted accounting principles in the United States.


KPMG Accountants N.V.
Certified Public Accountants (Netherlands)
A Member of KPMG International


Amstelveen, The Netherlands, April 9, 1999


                                      F-3
<PAGE>

Trimol Group, Inc.

Consolidated balance sheet

-------------------------------------------------------------------------------
                                                        Note  December 31, 1998
-------------------------------------------------------------------------------
(In Thousands of US Dollars)

Assets
Cash and cash equivalents                                   6             4,173
Interest bearing deposit                                                    215
Held to maturity securities                                 7             1,136
Loans                                                            6,343
Less: allowance for possible loan losses                          (912)
                                                             ---------
Loans, net                                                  8             5,431
Reinsurance recoverable                                     9               148
Property, plant and equipment                              10             7,165
Other assets                                               11             1,123

                                                                      ---------
Total assets                                                             19,391
                                                                      =========

Liabilities
Non interest bearing deposits                                    2,330
Interest bearing deposits                                        4,532
                                                             ---------
Total deposits                                             12             6,862
Acceptances outstanding                                    13               264
Insurance policy and claim reserves                        14               274
Other liabilities                                          15             2,226

                                                                      ---------
Total liabilities                                                         9,626
                                                                      =========

Minority interest                                          16             2,199

Shareholders' equity
Preferred Stock: 10,000 shares authorized of US$ 1.00 
par value, no shares issued and outstanding.                                 --
Common Stock: 30,000,000 shares authorized of US$ 0.01 
par value, 12,023,000 shares issued and outstanding.                        120
Additional paid in capital                                                6,018
Retained earnings                                                         1,428

                                                                      ---------
Total shareholders' equity                                                7,566
                                                                      =========

                                                                      ---------
Total liabilities and shareholders' equity                               19,391
--------------------------------------------------------------------------------

The accompanying notes are an integral part of the financial statements.


                                      F-4
<PAGE>

Trimol Group, Inc.

Consolidated statement of operations

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------
                                                     Note     Year ended     Year ended
                                                                December       December
                                                                31, 1998       31, 1997
---------------------------------------------------------------------------------------
(In Thousands of US Dollars, except per share data)
<S>                                                    <C>    <C>            <C>       
Revenues
Revenues from hotel                                    17          2,545          2,715
Revenues from document processing                                  4,154          4,344
Loan interest                                                      1,978          1,453
Other interest                                                       632          1,029
Insurance premiums                                     18             70             89
Commissions and fees                                               1,721          1,837
Other revenues                                                       173            162
                                                         ------------------------------
Total revenues                                                    11,273         11,629

Interest expense                                                     895            767

                                                         ------------------------------
Total revenues, net of interest expense                           10,378         10,862
                                                         ==============================
Provision for benefits, claims and credit losses
Provision for credit losses                             8            773            674
Provision for benefits and claims                       9             23             --

                                                         ------------------------------
                                                                     796            674
                                                         ==============================
Operating expenses
Cost of revenue from hotel                                         2,042          2,114
Cost of revenue from document processing                           1,792          2,131
Other operating expenses                                           2,434          2,688

                                                         ------------------------------
Total operating expenses                                           6,268          6,933
                                                         ==============================

                                                         ------------------------------
Income from operations before income taxes and 
minority interest                                                  3,314          3,255
                                                         ------------------------------

Provision for income taxes                             19            221            216
Minority interest, net of income taxes                               143            (34)

                                                         ------------------------------
Net income                                                         2,950          3,073
                                                         ==============================

Net earnings per share in US$ (basic and diluted)                   0.25           0.28

                                                         ------------------------------
Weighted average number of shares outstanding                 12,000,953     11,000,000
---------------------------------------------------------------------------------------
</TABLE>

The accompanying notes are an integral part of the financial statements.


                                      F-5
<PAGE>

Trimol Group, Inc.

Statement of changes in shareholders' equity

-------------------------------------------------------------------------------
                                                  Year ended         Year ended
                                           December 31, 1998  December 31, 1997
-------------------------------------------------------------------------------
(In Thousands of US Dollars)                                  
                                                              
Common stock                                                  
Balance, January 1                                       110                110
Issue of common stock                                     10                 -- 
                                                              
                                           ------------------------------------
Balance, December 31                                     120                110
                                           ====================================
                                                              
Additional paid-in capital                                    
Balance, January 1                                     5,934              5,934
Issue of common stock                                     84                 --
                                                              
                                           ------------------------------------
Balance, December 31                                   6,018              5,934
                                           ====================================
                                                              
Retained earnings                                             
Balance, January 1                                      (338)              (391)
Net income                                             2,950              3,073
Dividend paid to outside shareholders                 (1,184)            (3,020)
                                                              
                                           ------------------------------------
Balance, December 31                                   1,428               (338)
                                           ====================================
                                                              
                                           ------------------------------------
Total shareholders' equity                             7,566              5,706
-------------------------------------------------------------------------------

The accompanying notes are an integral part of the financial statements.


                                      F-6
<PAGE>

Trimol Group, Inc.

Consolidated statement of cash flow

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------
                                                                                  Year ended          Year ended
                                                                           December 31, 1998   December 31, 1997
----------------------------------------------------------------------------------------------------------------
(In Thousands of US Dollars)                                                                   
<S>                                                                                  <C>                 <C>     
Cash flow from operating activities                                                            
Net income                                                                             2,950               3,073
                                                                                               
Adjustments to reconcile net income to net cash provided by                                    
operating activities                                                                           
                                                                                               
Income and expenses not involving cash flow                                                    
Depreciation                                                                             656                 493
Provision for credit losses                                                              773                 674
Provision for benefits and claims                                                         23                  --
Minority interest                                                                        143                 (34)
                                                                           -------------------------------------
                                                                                       1,595               1,133
                                                                           -------------------------------------
                                                                                               
Changes in assets and liabilities                                                              
Net decrease in other assets                                                             527                 343
Net decrease in other liabilities                                                     (1,324)                674
Net decrease in reinsurance recoverable                                                  (26)                (94)
                                                                           -------------------------------------
                                                                                        (823)                923
                                                                           -------------------------------------
Total adjustments                                                                        772               2,056
                                                                           -------------------------------------
Net cash provided by operating activities                                              3,722               5,129
                                                                           =====================================
                                                                                               
Cash flow from investing activities                                                            
Proceeds from redemptions of securities held to maturity                              14,246              16,695
Purchase of securities held to maturity                                              (13,354)            (15,764)
Proceeds from sale of equipment                                                          163                  --
Purchase of equipment                                                                   (517)               (588)
Net increase in loans                                                                 (1,912)             (1,406)
                                                                           -------------------------------------
Net cash used for investing activities                                                (1,374)             (1,063)
                                                                           =====================================
                                                                                               
Cash flow from financing activities                                                            
Net decrease in deposits                                                              (1,070)             (2,505)
Payment of dividends                                                                  (1,184)             (3,020)
Proceeds from issue of share capital                                                      --                 214
                                                                           -------------------------------------
Net cash used for financing activities                                                (2,254)             (5,311)
                                                                           =====================================

----------------------------------------------------------------------------------------------------------------
</TABLE>


                                      F-7
<PAGE>

Trimol Group, Inc.

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------
                                                                                  Year ended          Year ended
                                                                           December 31, 1998   December 31, 1997
----------------------------------------------------------------------------------------------------------------
(In Thousands of US Dollars)                                                                   
<S>                                                                                    <C>                <C>  
Increase in cash and cash equivalents                                                     94              (1,245)
Cash and cash equivalents at beginning of period                                       4,079               5,324
                                                                                               
                                                                           -------------------------------------
Cash and cash equivalents at end period                                                4,173               4,079
                                                                           =====================================
                                                                                               
Supplemental disclosure of cash flow information                                               
Interest paid                                                                            882                 732
Income taxes paid                                                                        161                  90
                                                                                               
----------------------------------------------------------------------------------------------------------------
</TABLE>

Refer to Note 2 for the non cash investing and financing transactions related to
the acquisition of Trimol and Intercomsoft.

The accompanying notes are an integral part of the financial statements.


                                      F-8
<PAGE>

Trimol Group, Inc.

Notes to the consolidated financial statements
(In Thousands of US Dollars)

Note 1 - Basis of presentation

The audited consolidated financial statements of Trimol Group, Inc. (the
"Company"), formerly Nutronics International Inc., included herein have been
prepared in accordance with generally accepted accounting principles in the
United States of America.

The comparative financial information comprises the combined financial
information of the entities that acquired the Company in the reverse acquisition
as described in Note 2. As a result of the transaction the common stock and
shareholders' equity of the predecessor group has been adjusted to reflect the
capital structure of the Company.

Note 2 - Acquisitions

(a) General

Trimol Group, Inc. (the "Company"), was organized on May 6, 1953 under the laws
of the State of Delaware. Although since its incorporation the Company has
engaged in several different businesses and has effected several name changes,
for at least three years prior to January 6, 1998, the Company did not engage in
any significant operations. In May 1995, the Company determined that it should
become active in seeking potential operating businesses and business
opportunities with the intent to acquire or merge with such businesses and
thereafter began to consider and investigate potential business opportunities.

On January 6, 1998 the Company acquired all of the shares of four corporations
that own capital stock of three companies with business operations in Moldova.
The capital stock owned in these companies comprises all of the issued and
outstanding shares of an insurance company Exim Asint S.A. and the bank Banca
Comerciala pe Actiuni "Export - Import", and 65% of the issued and outstanding
shares of the Jolly Alon Limited, a hotel. The shares in the holding
corporations were acquired in exchange for an aggregate of 10,000,000 shares of
the Company's common stock with a par value of US$0.01 per share. The
transaction was concluded with Magnum Associates Ltd. ("Magnum"), a corporation
organized under the laws of Ireland, and Starbeam, Ltd. ("Starbeam"), a
corporation organized under the laws of Ireland, the parent companies of the
holding companies and corporations that are owned by a principal stockholder of
the Company.

Furthermore, on May 6, 1998, the Company acquired all of the issued and
outstanding shares of Intercomsoft Limited, an Irish corporation, in exchange
for 1,000,000 shares of the Company's common stock with a par value US$0.01 per
share.

(b) Accounting for the acquisitions

As a result of the January 6, 1998 acquisitions, the new shareholders retained a
controlling interest in the combined group. For this reason, the business
combination was accounted for using the reverse purchase method.
Trimol Group, Inc. had no significant net assets as at January 6, 1998.

The acquisition of Intercomsoft has been accounted for in a manner similar to a
pooling of interest since the Company and Intercomsoft were enterprises under
common control. The sole shareholder of Intercomsoft was the majority
shareholder of the Company. The Company's financial statements include the
results of operation, financial position and cash flow of Intercomsoft as though
it had been a part of the Company for the whole year.

(c) The holding corporations

By virtue of the January 6, 1998 acquisitions, the Company owns all of the
issued and outstanding capital stock of the following four holding corporations:
Maximilia Ltd., a corporation organized under the laws of Ireland ("Maximilia");
Sturge Ltd., a corporation organized under the laws of Ireland ("Sturge"); Jolly
LLC, a limited liability company organized under the laws of Wyoming ("Jolly
LLC"); and Paul Garnier Ltd., a corporation organized under the laws of Ireland
("Garnier").

Jolly LLC owns sixty-five (65%) percent of the issued and outstanding capital
stock of Jolly Alon Limited, with the remaining thirty-five (35%) percent of the
issued and outstanding capital stock being owned by the Government of the
Republic of Moldova; Sturge and Maximilia each own fifty (50%) percent of the
issued and 


                                       F-9
<PAGE>

Trimol Group, Inc.

outstanding capital stock of Banca Comerciala pe Actiuni "Export-Import,"; and
Maximilia owns fifty-five (55%) percent and Garnier owns fifteen (15%) percent
of the issued and outstanding capital stock of Exim Asint S.A., with the
remaining thirty (30%) percent being owned by Banca Comerciala pe Actiuni
"Export-Import".

(d) The operating companies

Exim Asint S.A. (the "Insurance Company") began operations at the beginning of
1995. The Insurance Company is active in the general insurance sector and
provides property and liability coverage to the Moldovan market. Commencing in
the last quarter of 1997, the Insurance Company also provides reinsurance
services to the Moldovan insurance market.

Banca Comerciala pe Actiuni "Export - Import" ("Exim Bank" or the "Bank")
formerly known as "Banca de Export-Import", was established on April 26, 1994.
The Bank received its General Banking License from the National Bank of Moldova
on April 29, 1994 and began activity as a new bank on June 1, 1994. The Bank's
activities include, inter alia, receipt of monetary deposits, granting credit,
transacting in foreign currency, financing international trade, issuing credit
cards, investment in securities, retaining and managing marketable documents and
other assets for other parties, and managing payments.

Jolly Alon Limited (the "Hotel") was established as Seabeco Moldova S.A. on
October 15, 1991. On February 4, 1997 it changed its name to Jolly Alon Limited.
The Company operates and manages the Jolly Alon Hotel and rents stores and
offices located on Hotel property. The principal guests of the Hotel are
business persons from all over the world and diplomats. The tourism sector with
respect to Hotel guests is marginal and, accordingly, seasonability is not a
factor.

Intercomsoft Limited ("Intercomsoft") was incorporated on February 1995 as a non
resident Irish registered Company. Intercomsoft supplies equipment and auxiliary
materials intended for production of computerized documents (passports, drivers'
licenses, car licenses and ID cards), and the software that is necessary for the
operation of this equipment, and provides it to the Moldovan Ministry of
Economics, which is Intercomsoft's sole client (for more details see note 21).

Note 3 - Risks

Concentration of risks that may have a significant impact on the Company are as
follows:

1.    Political and current economic environment in Moldova. The current
      political and economic situation of the Republic of Moldova, could have a
      material effect on the Company's business.

2.    Concentration of credit risk. The Moldovan Ministry of Economics is
      Intercomsoft's only client. Accordingly, if the Ministry breaches the
      contract with Intercomsoft by non payment of fees due to it, it could have
      a material adverse effect on the Company.

Note 4 - Significant accounting policies

The significant accounting policies followed in the preparation of the financial
statements are:

(a) Financial statements In Thousands of US Dollars

(1)   General

The Company operates in Moldova, and the currency of operation is the Moldovan
leu ("MDL"). Until December 31, 1997 Moldova was considered to be a country with
hyperinflation. During 1998 the three year accumulative rate of inflation was
less than 100%. Based on expectations regarding the economic situation and
projections of inflation, management considers Moldova to be a country with
hyperinflation.

(2)   Principles of remeasurement

(a) Balance sheet

Monetary assets and liabilities, including losses and loss adjustment reserves,
were translated according to the exchange rate of the US dollar as of the date
of the balance sheet. Non-monetary items were translated according to the
exchange rate of the US dollar as of the date of the related transactions.
Foreign currency assets and liabilities are translated at prevailing rates.
Gains or losses resulting from translation are credited or charged to the
relevant statement of income items.

(b) Statement of income


                                      F-10
<PAGE>

Trimol Group, Inc.

Items expressing transactions in the reporting period are included according to
the average exchange rate of the US dollar in the month of the transaction.
Components related to non-monetary items were adjusted on the same basis as the
related balance sheet items.

The financing item expresses financing income and expenses in US dollar values
as well as the erosion of monetary balances during the year.

(c) Exchange rate of the US dollar

The exchange rate of the Moldovan leu to the US dollar was 4.6605 to 1.00 as of
December 31, 1997 and was 8.3226 to 1.00 as of December 31, 1998, resulting in a
devaluation of the Moldovan leu of 78.58%.

(d) Principles of consolidation

The consolidated financial statements of the Company include the accounts of the
Company and its operating subsidiaries, the Insurance Company, the Bank, the
Hotel and Intercomsoft and its holding companies, Maximilia Ltd., Sturge Ltd.,
Jolly LLC and Paul Garnier Ltd. as of December 31, 1998.

Intercompany balances have been eliminated in the consolidation.

(e) Use of Estimates

In accordance with generally accepted accounting principles, management of the
Company has made a number of estimates and assumptions relating to the reporting
of assets and liabilities and the disclosure of contingent assets and
liabilities to prepare these financial statements. Actual results could differ
from those estimates.

(f) Cash and cash equivalents

Cash and cash equivalents are defined as cash on hand, cash items in the process
of collection and amounts due from correspondent banks and the National Bank of
Moldova. With respect to the Hotel business, the Company regards all its liquid
investments, whose maturity as of the date of the investment is less than three
months, as cash equivalents. With respect to the insurance business, cash
equivalents consist of short term highly liquid investments that are both (a)
readily convertible to known amounts of cash and (b) so near to maturity that
they present an insignificant risk of changes in value due to changing interest
rates.

(g) Provision for doubtful accounts

Provisions for doubtful accounts are made on the basis of identification of
specific accounts whose collection is in doubt.

(h) Securities

Securities which the Company has the intent and ability to hold to maturity are
included in held to maturity securities and are stated at cost, adjusted for
accretion of discount based upon the maturity value. Declines in the fair value
of individual held-to-maturity securities below their cost that are other than
temporary have resulted in write-downs of the individual securities to their
fair value. The related write-downs have been included in earnings as realized
losses.

Premiums and discounts are recognized in interest income using the interest
method over the period to maturity.

(i) Loans

Loans are stated at the principal amount outstanding, net of any unearned
income. Interest on loans is recognized on the accrual basis and is credited to
interest income based upon the principal amount outstanding

Loans are considered impaired and are placed on nonaccrual status when
collection of all or a portion of principal or interest in accordance with
contractual terms, is in doubt. Interest on nonaccrual loans is credited to
principal or recognized as income on a cash basis.

(j) Allowance for possible loan losses

The allowance for possible loan losses is established through provisions for
possible loan losses charged against income. Loans deemed to be uncollectible
are charged against the allowance for possible loan losses, and subsequent
recoveries, if any, are credited to the allowance.

The allowance for possible loan losses is based upon management's estimate of
the amount necessary to maintain the allowance at a level adequate to absorb
estimated potential loan losses.


                                      F-11
<PAGE>

Trimol Group, Inc.

The determination of the adequacy of the allowance for possible loan losses
hinges upon various judgments and assumptions, including but not necessarily
limited to, management's assessment of potential losses on individual loans,
Moldovan and international economic conditions, loan portfolio composition,
transfer risks, and prior loan loss experience.

(k) Property, plant and equipment

Buildings, equipment and improvements are stated at cost less accumulated
depreciation computed on a straight-line basis. The useful life of the premises
and equipment is based on management's estimate of the period during which
economic benefits can be derived from these assets.

In accordance with the Statement of Financial Accounting Standards (SFAS) No.
121, "Accounting for the Impairment of Long-Lived Assets and Long-Lived Assets
to be Disposed Of", the Company examines the possibility of decreases in the
value of fixed assets when events or changes in circumstances reflect the fact
that their recorded value may not be recoverable.

(l) Inventories

Inventories are included according to the lower of cost or market value. Cost of
inventories is determined by the first in first out method.

(m) Deferred income taxes

Pursuant to SFAS 109, "Accounting for Income Taxes", deferred tax assets or
liabilities are recognized for the estimated future tax effects attributable to
temporary differences and carryforwards. A temporary difference is the
difference between the tax basis of an asset or liability and its reported
amount in the financial statements. Deferred tax assets and liabilities are
determined at currently enacted income tax rates applicable to the period in
which the deferred tax assets and liabilities are expected to be realized or
settled. As changes in tax laws or rates are enacted, deferred tax assets and
liabilities are adjusted through the provision for income taxes.

(n) Financial instruments

In the ordinary course of business, the Bank has entered into off-balance sheet
financial instruments consisting of commitments to extend credit, commercial
letters of credit, and guarantees. Such financial instruments are recorded in
the financial statements when they are funded or when related fees are incurred
or received.

(o) Foreign exchange contracts

Foreign exchange contracts which qualify under applicable accounting guidelines
as hedges of foreign currency exposures are revalued at the spot rate with any
forward premium or discount recognized over the life of the contract in net
interest revenue. Gains and losses on foreign exchange contracts which qualify
as a hedge of a firm commitment are deferred and recognized as part of the
measurement of the related transaction, unless deferral of a loss would lead to
recognizing losses on the transaction in later periods.

(p) Income recognition

Income from services and rental of rooms is included in the income statement
when the service is performed.

(q) Operating expenses

Operating expenses from services and rental of rooms is included in the income
statement when the service is performed. Materials acquired necessary for the
document processing are included in the income statement immediately.

(r) Gross premiums written

All insurance premiums due with respect to insurance contracts entered into in
the period, are included in gross written premiums irrespective of whether they
relate in whole or in part to a later period. Gross reinsurance ceded and
unearned premiums are included within gross written premiums, outwards
reinsurance premiums and unearned premiums, respectively. Gross premiums are net
of premium reimbursements. The insurance premiums are both direct and assumed
premiums.

(s) Recognition of premium revenue

Property, liability and assumed premiums are generally recognized as revenue on
a pro rata basis over the policy 


                                      F-12
<PAGE>

Trimol Group, Inc.

term. The portion of premiums that will be earned in the future are deferred and
reported as unearned premiums.

(t) Reinsurance

Reinsurance is accounted for depending on whether the "reinsurance risk" is
received or transferred. In the normal course of business, the Insurance Company
seeks to reduce the loss that may arise from catastrophes or other events that
cause unfavorable underwriting results by reinsuring certain levels of risk in
various areas of exposure with other insurance enterprises or reinsurers.

Amounts recoverable from reinsurers are estimated in a manner consistent with
the claim liability associated with the reinsured policy.

(u) Deferred policy acquisition costs

Commissions and other costs of acquiring insurance that vary with and are
primarily related to the production of new and renewal business, are deferred
and amortized over the terms of the policies or reinsurance treaties to which
they relate.

(v) Losses and loss adjustment reserve

The Insurance Company has been operating since the beginning of 1995. The actual
results have not provided the Insurance Company with sufficient historical
experience to make current estimates of loss reserves.

The liability for losses and loss adjustment expenses includes an amount
determined for losses incurred but not yet reported, which is the Insurance
Company's best estimate and is based on the instructions prescribed by the
insurance supervisor of Moldova and the regulations thereunder. In terms of
these regulations, the Insurance Company is required to maintain a reserve at
specific rates of net premiums earned. These required reserves are based on
market experience as a whole and are intended to cover future claims lodged with
the Insurance Company. In addition, individual claims known but not paid are
provided for.

Such liabilities are necessarily based on estimates and, while management
believes that the amount is adequate, there is a high degree of uncertainty
surrounding the reserves and the ultimate liability may be materially different
from the amounts provided.

The reinsured share of losses and loss adjustment reserve is disclosed
separately as an asset in the balance sheet.

(w) Employees' benefits

Contributions are made by the Company to the Government's health, retirement
benefit and unemployment accounts at the statutory rates in force during the
period, based on gross salary payments. The cost of these payments is charged to
the statement of income in the same period as the related salary cost.

(x) Net income per share

Net income per share of share (basic and diluted) capital has been computed on
the basis of the weighted average number of shares of common stock outstanding
in the year. The number of shares outstanding for periods prior to the
acquisitions has been assumed to be 11,000,000 shares, representing 10,000,000
shares issued in the January 6, 1998 acquisition and 1,000,000 shares issued to
acquire Intercomsoft.

Note 5 - Business segment information

Business segment information for the year ended December 31, 1998 is as follows:

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------
                                  Bank       Hotel   Insurance    Document       Holding                
                            operations  operations  operations  processing    activities  Eliminations   Consolidated
---------------------------------------------------------------------------------------------------------------------
(In Thousands of US                                                                                     
Dollars)                                                                                                
<S>                              <C>         <C>           <C>       <C>                          <C>          <C>   
Total revenues                   4,312       2,665         270       4,154            --          (128)        11,273
Interest expense                   895          --          --          --            --            --            895
                         --------------------------------------------------------------------------------------------
</TABLE>


                                      F-13
<PAGE>

Trimol Group, Inc.

<TABLE>
<S>                             <C>          <C>           <C>       <C>            <C>           <C>          <C>   
Total revenues, net of                                                                                  
interest expense                 3,417       2,665         270       4,154            --          (128)        10,378
Provision for benefits,                                                                                 
claims and credit losses           773          --          23          --            --            --            796
Operating expenses               1,621       2,166         267       1,792           550          (128)         6,268
                         --------------------------------------------------------------------------------------------
                                                                                                        
Income from operations                                                                                  
before income taxes and                                                                                 
minority interest                1,023         499         (20)      2,362          (550)           --          3,314
Provision for income                                                                                    
taxes                             (130)        (91)         --          --            --            --           (221)
Minority interest, net                                                                                  
of taxes                            --        (143)         --          --            --            --           (143)
                         --------------------------------------------------------------------------------------------
                                                                                                        
Net income (loss) for                                                                                   
the year                           893         265         (20)      2,362          (550)           --          2,950
=====================================================================================================================
                                                                                                        
Fixed assets                       954       6,095         116          --            --            --          7,165
Other assets                     9,828         447         441       1,618           231          (339)        12,226
                         --------------------------------------------------------------------------------------------
Total assets                    10,782       6,542         557       1,618           231          (339)        19,391
=====================================================================================================================
</TABLE>


                                      F-14
<PAGE>

Trimol Group, Inc.

Business segment information for the year ended December 31, 1997 is as follows:

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------
                                  Bank       Hotel   Insurance    Document       Holding                 
                            operations  operations  operations  processing    activities  Eliminations   Consolidated
---------------------------------------------------------------------------------------------------------------------
(In Thousands of US                                                                                      
Dollars)                                                                                                 
<S>                             <C>          <C>           <C>       <C>              <C>         <C>          <C>   
Total revenues                   4,390       2,817         209       4,344            --          (131)        11,629
Interest expense                  (767)         --          --          --            --            --           (767)
                         --------------------------------------------------------------------------------------------
                                                                                                         
Total revenues, net of                                                                                   
interest expense                 3,623       2,817         209       4,344            --          (131)        10,862
Provision for benefits,                                                                                  
claims and credit losses           674          --          --          --            --            --            674
Operating expenses               1,849       2,908         176       2,131            --          (131)         6,933
                         --------------------------------------------------------------------------------------------
                                                                                                         
Income from operations                                                                                   
before income taxes and                                                                                  
minority interest                1,100         (91)         33       2,213            --            --          3,255
Provision for income                                                                                     
taxes                             (208)         (7)         (1)         --            --            --           (216)
Minority interest, net                                                                                   
of taxes                            --          34          --          --            --            --             34
                         --------------------------------------------------------------------------------------------
                                                                                                         
Net income (loss) for                                                                                    
the year                           892         (64)         32       2,213            --            --          3,073
=====================================================================================================================
                                                                                                         
Fixed assets                       962       6,423          81          --            --            --          7,466
Other assets                    10,928         462         574         405            --           (46)        12,323
                         --------------------------------------------------------------------------------------------
Total assets                    11,890       6,885         655         405            --           (46)        19,789
=====================================================================================================================
</TABLE>

(a) Segmental information

The Company has five reportable segments: (1) banking, (2) hotel, (3) insurance,
(4) document processing and (5) holding activities. The accounting policies of
the segments are the same as those described in the "Significant Accounting
Policies." Segment data includes inter-segments transactions. The Company
accounts for inter-segment revenues and transfers as if the revenues or
transfers were to third parties, that is, at current market prices. All revenues
are derived from operations and long-lived assets are located in Moldova.


                                      F-15
<PAGE>

Trimol Group, Inc.

Note 6 - Cash and due from banks

-------------------------------------------------------------------------------
                                                              December 31, 1998
-------------------------------------------------------------------------------
(In Thousands of US Dollars)

Cash                                                                      1,969
Current account with National Bank of Moldova                             1,031
Current accounts with foreign banks                                       1,192
                                                              -----------------
                                                                          4,192

Less: Allowance for doubtful accounts                                       (19)

                                                              -----------------
                                                                          4,173
===============================================================================

Note 7 - Held to maturity securities

All securities in the portfolio held by the Bank are Moldovan Government
securities issued for periods of time between 14 and 91 days and are held to
maturity.

These securities are issued into circulation by the Ministry of Finance of
Moldova as electronic records. The securities are issued for periods not
exceeding 364 days.

These securities are sold at a discount and repurchased at par value. These
securities are sold at auctions arranged by the National Bank of Moldova
following the instructions of the Ministry of Finance of Moldova. The auctions
are attended by commercial bank dealers that have correspondent accounts with
the clearing center of the National Bank. The Bank is a licensed professional
participant in the securities market and has an agreement with the National Bank
to service transactions in respect of Moldovan Government securities. The
redemption of these securities is effected by the Ministry of Finance from
Government funds.

The yield of the Moldovan Government securities in 1998 was between 19% and 39%.
Amortized cost of these securities approximates market value.


                                      F-16
<PAGE>

Trimol Group, Inc.

Note 8 - Loans

(a) Composition of loans:

-------------------------------------------------------------------------------
                                                              December 31, 1998
-------------------------------------------------------------------------------
(In Thousands of US Dollars)

Commercial, financial and agricultural                                    5,693
Real estate, mortgage                                                       591
Installment loans to individuals                                             59
                                                              -----------------
                                                                          6,343

Less: Allowance for possible loan losses                                   (912)

                                                              -----------------
                                                                          5,431
===============================================================================

The interest on loans in MDL in 1998 was between 16% and 60%. The interest on
loans in other currencies in 1998 was between 14% and 33%.

(b) Impaired loan information:

-------------------------------------------------------------------------------
                                                              December 31, 1998
-------------------------------------------------------------------------------
(In Thousands of US Dollars)

Impaired loans (all carrying an allowance for loan losses)                  605
Allowance for impaired loans                                               (307)

                                                              -----------------
                                                                            298
                                                              =================

Average impaired loans during the year                                      700
===============================================================================

No interest was recognized on impaired loans on a cash basis for the above year.

(c) Analysis of the change in the allowance for possible loan losses:

-------------------------------------------------------------------------------
                                                              December 31, 1998
-------------------------------------------------------------------------------
(In Thousands of US Dollars)

Balance as of January 1                                                     572
Provisions during the year                                                  773
Write-offs                                                                 (433)

                                                              -----------------
Balance as of December 31                                                   912
===============================================================================

Note 9 - Reinsurance recoverable

Composition of balance of reinsurance recoverable:


                                      F-17
<PAGE>

Trimol Group, Inc.

--------------------------------------------------------------------------------
                                                              December 31, 1998
--------------------------------------------------------------------------------
(In Thousands of US Dollars)

Provision for unearned premiums                                              26
Losses and loss adjustment reserves                                         122

                                                              ------------------
                                                                            148
================================================================================

Movements in losses and loss adjustment reserve:

-------------------------------------------------------------------------------
                                                              December 31, 1998
-------------------------------------------------------------------------------
(In Thousands of US Dollars)

Balance as of January 1, 1998                                               207
Less reinsurance recoverable                                                113
                                                              -----------------
Net balance as of January 1, 1998                                            94

Incurred related to
Current period                                                               22
Prior years                                                                   1
                                                              -----------------
Total incurred                                                               23

Paid related to
Current period                                                               (8)
Prior years                                                                  (1)
                                                              -----------------
Total paid                                                                   (9)

Net balance as of end of the year                                           108
Add: net recoverable from reinsurance                                       122

                                                              -----------------
                                                                            230
===============================================================================

(a)   The loss and loss adjustment reserve are management's best estimate and
      have been established in accordance with applicable Moldovan legislation.
      The calculation is based on the premium earned on which a rate is applied
      in accordance with the particular insurance category. The rates are
      estimates as prescribed by Moldovan law and the reserves are subject to a
      high degree of uncertainties which are normal, recurring and inherent in
      the property and liability insurance sectors. Future experience, changes
      in the law and the results of litigation may all impact materially on
      ultimate claim costs.
(b)   The basic assumption underlying many methods used in the estimation of
      general insurance loss reserves is that past experience provides an
      appropriate basis for predicting future events, with adjustment for
      current trends affecting past experience. As the Insurance Company is
      relatively new and has little of its own historical experience, the best
      method of calculation is considered to be the framework of the calculation
      provided by applicable Moldovan legislation.
(c)   The Insurance Company cedes insurance to other companies, the major one
      being Munchener Ruckversicherungs Gesellschaft (Munich Re). These
      reinsurance contracts do not relieve the Insurance Company from its
      primary obligations to policyholders. Failure of reinsures to honor their
      obligations could result in losses to the Insurance Company. In order to
      reduce its credit risk, the Insurance Company seeks to do business only
      with financially sound reinsurance companies and regularly reviews the
      financial strength of reinsures used. No provision for uncollectible
      amounts has been made since none of the receivables is deemed 


                                      F-18
<PAGE>

Trimol Group, Inc.

      to be uncollectible. As of December 31, 1998 an unearned premium reserve
      of US$ 14,000 and losses and a loss adjustment reserve of US$ 47,000 were
      associated mainly with a single reinsurer.

Note 10 - Property, plant and equipment

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------
                                                           Period of
                                                        depreciation
                                                          (in years)    December 31, 1998
-----------------------------------------------------------------------------------------
(In Thousands of US Dollars)                                             
<S>                                                             <C>                <C>
Buildings (a)                                                     40                5,463
Vehicles, machinery and improvements                               5                2,032
Furniture and equipment                                           10                1,266
Operating equipment                                             5-10                  287
                                                                         ----------------
                                                                                    9,048
Less: Accumulated depreciation and amortization                                    (1,883)
                                                                         ----------------
                                                                                    7,165
=========================================================================================
</TABLE>

(a) Including:
(1) Building at a cost of US$ 342,994 in which the Bank is located. 
(2) Building at a cost of US$ 113,963 in which the Insurance Company is located.
(3) Building at a cost of US$ 5,006,000 in which the Hotel is located (see note
b).

(b) Included in the cost of the building is the right to use the land including
the land on which the Hotel is located and its immediate surroundings, for a
term of 50 years.


                                      F-19
<PAGE>

Trimol Group, Inc.

Note 11 - Other assets

-------------------------------------------------------------------------------
                                                              December 31, 1998
-------------------------------------------------------------------------------
(In Thousands of US Dollars)

Trade accounts receivable by the Hotel                                       73
Accrued income of Intercomsoft                                              160
Accrued interest receivable                                                 218
Prepayments                                                                 170
Due from related party                                                      133
Inventories                                                                 131
Deferred acquisition cost                                                     6
Other                                                                       232

                                                              -----------------
                                                                          1,123
===============================================================================

Note 12 - Deposits

(a)(1) All deposits are from Moldovan branches. There are no deposits in excess
       of US$ 100,000.

(a)(2) Non interest bearing deposits are mainly demand deposits in MDL.

(b)(1) Demand deposits in foreign currency of non Moldovan residents do not bear
       interest.

       Demand deposits in foreign currency of enterprises do not bear interest.

       Since October 1998, demand deposits of companies in MDL bear interest of
       3%. Demand deposits of private persons bear interest at 2%.

       Interest on time deposits in MDL in 1998 was between 7% and 60%. Interest
       on time deposits in US$ in 1998 was between 2% and 12%. Time deposits as
       at December 31, 1998 had maturities of less than one year.

(2)    Interest bearing deposits according to currency base (see note 25).

Note 13 - Customers' acceptance liability

The balance includes four customers' acceptance of liability, regarding import
of products.

Note 14 - Insurance policy and claim reserves

-------------------------------------------------------------------------------
                                                       Note   December 31, 1998
-------------------------------------------------------------------------------
(In Thousands of US Dollars)                                  
                                                              
Losses and loss adjustment reserves                       9                 230
Provision for unearned premiums                                              44
                                                              
                                                              -----------------
                                                                            274
===============================================================================

Note 15 - Other liabilities

-------------------------------------------------------------------------------
                                                              December 31, 1998
-------------------------------------------------------------------------------


                                      F-20
<PAGE>

Trimol Group, Inc.

(In Thousands of US Dollars)

Due to Related party (a)                                                  1,162
Supercom Limited (b)                                                        378
Accrued expenses of the Company (c)                                         345
Accrued audit fees                                                           60
Other liabilities                                                           281
                                                              -----------------
                                                                          2,226
===============================================================================

(a) Comprise a liability to Magnum and is repayable on demand.
(b) On August 25, 1995 Intercomsoft entered into an agreement with Supercom Ltd.
("Supercom") for the purchase of equipment for the production of computerized
documents (passports, drivers' licenses, vehicle licenses and ID documents).
Pursuant to the agreement, Supercom provides Intercomsoft with the guidance and
support required for installation and operation of the equipment, as well as the
materials required for production of its products. Supercom receives 25% of
Intercomsoft's profits, payable on a quarterly basis. Delays in payment will
result in Intercomsoft's obligation to pay a penalty equal to 0.2% of the
overdue sum for each delayed day.
(c) Accrued expenses of the Company include, among other things, expenses
incurred by and payable to officers of the Company in the amount of US$ 225,000.

Note 16 - Minority interest

The minority interest comprises the 35% interest of the Government of Moldova in
the Hotel.

Note 17 - Revenues from hotel business

-------------------------------------------------------------------------------
                                                    December 31,   December 31,
                                                            1998           1997
-------------------------------------------------------------------------------
(In Thousands of US Dollars)

Room rental                                                1,689          1,610
Restaurant                                                   464            789
Stores and offices                                           325            263
Other                                                         67             53

                                                 ------------------------------
                                                           2,545          2,715
===============================================================================

Note 18 - Gross written and earned premiums

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------
                                                            For the year ended December 31, 1998
--------------------------------------------------------------------------------------------------------------------------
                                        Gross  Change in   Insurance  Reinsurance   Change in UPR   Reinsurance        Net
Kind of Insurance                    premiums  UPR gross    premiums        ceded     reinsurance      premiums   premiums
--------------------------------------------------------------------------------------------------------------------------
(In Thousands of US Dollars)                                                                       
<S>                                       <C>         <C>         <C>         <C>              <C>           <C>         <C>
Cargo                                       2         --           2           --              --            --          2
Property                                  142         52          90          102              13            89          1
Medical                                    51          7          44           20               3            17         27
</TABLE>


                                      F-21
<PAGE>

Trimol Group, Inc.

<TABLE>
<S>                                       <C>         <C>        <C>          <C>              <C>          <C>         <C>
Compulsory car                             18          2          16            9               1             8          8
Employee's accident                        17          2          15            3              --             3         12
Car                                        38          5          33           15               2            13         20
Reinsurance                                10          1           9           10               1             9         --
                                                                                                   
                                  ----------------------------------------------------------------------------------------
                                          278         69         209          159              20           139         70
==========================================================================================================================
</TABLE>

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------
                                                            For the year ended December 31, 1997
--------------------------------------------------------------------------------------------------------------------------
                                        Gross  Change in   Insurance  Reinsurance   Change in UPR   Reinsurance        Net
Kind of Insurance                    premiums  UPR gross    premiums        ceded     reinsurance      premiums   premiums
--------------------------------------------------------------------------------------------------------------------------
(In Thousands of US Dollars)
<S>                                       <C>         <C>        <C>          <C>              <C>          <C>         <C>
Cargo                                       3         --           3           --              --            --          3
Property                                  172         18         154          135               7           128         26
Medical                                    82          7          75           41               3            38         37
Compulsory car                             19         10           9           10               5             5          4
Employee's accident                        19          5          14            5               3             2         12
Car                                        15          4          11            6               2             4          7
Reinsurance                                 1          1          --           --              --            --         --

                                  ----------------------------------------------------------------------------------------
                                          311         45         266          197              20           177         89
==========================================================================================================================
</TABLE>

Note 19 - Income tax

(a) The tax rate for the Bank is 16%. The tax is calculated over the net profit,
taking into account tax exempted items, such as interest income earned on
Moldovan Government securities.
(b) Intercomsoft is a non resident Irish Company, that is a wholly owed and
controlled from outside of Ireland and does not undertake any activities within
this jurisdiction, therefore, Intercomsoft will not be subject to Irish tax.
Intercomsoft delivers in Moldova the equipment to the Ministry of Economics of
Moldova. In this case, the Ministry of Economics is the importer of these
services and is the subject of taxation. As a result of the above, Intercomsoft
is not a subject to taxation in the Republic of Moldova, because it is not
carrying out any business activity in Moldova.
(c) On March 3, 1998, the Hotel received a letter from the tax authorities in
Chisinau stating that a reduced tax rate of 16% will be in effect in the years
1997 - 2001, the first five years in which the Hotel is subject to taxation. The
Hotel tax rate as from 2002 will be 25% for the next 10 years.
(d) Deferred tax claims and liabilities are not material. The Company does not
have losses that can be offset against future profits.

Composition of income taxes for the year ended December 31, 1998:

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------
                                    Bank        Hotel    Insurance    Document         Holding
                              operations   operations   operations  processing      activities       Consolidated
-----------------------------------------------------------------------------------------------------------------
(In Thousands of US Dollars)

<S>                                  <C>           <C>          <C>         <C>             <C>               <C>
Current                              130           91           --          --              --                221
Deferred                              --           --           --          --              --                 --
                          ---------------------------------------------------------------------------------------
</TABLE>


                                      F-22
<PAGE>

Trimol Group, Inc.

<TABLE>
<S>                                  <C>          <C>           <C>         <C>             <C>               <C>
Income taxes, before
minority interest                    130           91           --          --              --                221
Income tax on minority
interest                              --          (31)          --          --              --                (31)
                          ---------------------------------------------------------------------------------------
Total income taxes                   130           60           --          --              --                190
=================================================================================================================
</TABLE>

Composition of income taxes for the year ended December 31, 1997:

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------
                                    Bank        Hotel    Insurance    Document         Holding
                              operations   operations   operations  processing      activities       Consolidated
-----------------------------------------------------------------------------------------------------------------
(In Thousands of US Dollars)
<S>                                  <C>           <C>          <C>         <C>             <C>               <C>
Current                              208            7            1          --              --                216
Deferred                              --           --           --          --              --                 --
                          ---------------------------------------------------------------------------------------

Income taxes, before
minority interest                    208            7            1          --              --                216
Income tax on minority
interest                              --           (2)          --          --              --                 (2)

                          ---------------------------------------------------------------------------------------
Total income taxes                   208            5            1          --              --                214
=================================================================================================================
</TABLE>


                                      F-23
<PAGE>

Trimol Group, Inc.

The reconciliation of the statutory income tax rate to the Company's effective
income tax applicable to income from continuing operations (before minority
interest) for the year ended December 31, 1998 was as follows:

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------
                                        Bank       Hotel   Insurance    Document       Holding
                                  operations  operations  operations  processing    activities      Consolidated
----------------------------------------------------------------------------------------------------------------
<S>                                   <C>         <C>         <C>           <C>         <C>                 <C>  
Statutory tax rate                     32.0%       32.0%       32.0%        0.0%         35.0%              32.0%
No subject to taxation                                                                                     (22.3%)
Operating loss not carry
forward                                   --          --      (32.0%)         --        (35.0%)              5.4%
Benefits under the Foreign
Investment Law                        (16.0%)         --          --          --            --              (4.8%)
Tax rate reduction                        --      (16.0%)         --          --            --              (2.5%)

Tax exempt interest on
Moldovan Government securities         (3.3%)         --          --          --            --              (1.0%)
Other, net                                --        2.2%          --          --            --              (0.1%)
                               ---------------------------------------------------------------------------------
Effective income tax rate              12.7%       18.2%        0.0%        0.0%          0.0%               6.7%
================================================================================================================
</TABLE>

The reconciliation of the statutory income tax rate to the Company's effective
income tax applicable to income from continuing operations (before minority
interest) for the year ended December 31, 1997 was as follows:

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------
                                        Bank       Hotel   Insurance    Document
                                  operations  operations  operations  processing  Consolidated
----------------------------------------------------------------------------------------------
<S>                                   <C>         <C>         <C>           <C>          <C>  
Statutory tax rate                     32.0%       32.0%       32.0%        0.0%          32.0%
No subject to taxation                                                                   (21.8%)
Benefits under the Foreign
Investment Law                        (16.0%)         --          --          --          (5.4%)
Tax rate reduction                        --      (16.0%)         --          --          (0.4%)
Different accounting
principles                                --      (23.7%)     (27.0%)         --           1.3%
Other, net                              2.9%          --          --          --           0.9%
                               ---------------------------------------------------------------
Effective income tax rate              18.9%       (7.7%)       3.0%        0.0%           6.6%
==============================================================================================
</TABLE>


                                      F-24
<PAGE>

Trimol Group, Inc.

Deferred income taxes as at December 31, 1998 can be analyzed as follows:

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------
                                      Bank       Hotel   Insurance      Document     Holding
                                operations  operations  operations    processing  activities    Consolidated
------------------------------------------------------------------------------------------------------------
(In Thousands of US Dollars)
<S>                                     <C>        <C>          <C>           <C>       <C>             <C>  
Deferred tax assets
Net operating loss carry
forwards                                --          --           6            --         193             199

Property plant and equipment,
principally due to
differences in depreciation              5          24          --            --          --              29
                               -----------------------------------------------------------------------------

Gross deferred tax assets                5          24           6            --         193             228
Valuation allowance                     (5)        (24)         (6)           --        (193)           (228)
                               -----------------------------------------------------------------------------
Deferred tax assets after
valuation allowance                     --          --          --            --          --              --

Deferred tax liability                  --          --          --            --          --              --

                               -----------------------------------------------------------------------------
Net deferred tax liability              --          --          --            --          --              --
============================================================================================================
</TABLE>

Note 20 - Related party transactions

The Company transacts business at times with related parties while conducting
its commercial activities. Such transactions are on substantially the same terms
as those prevailing at the time for comparable transactions with unrelated
parties.

The Hotel acquires most of its fixed assets from related parties. For 1998 the
Hotel invested in fixed assets for an amount of US dollars 160,000.

Note 21 - Off balance sheet commitments

(a) The Company has signed leases as a lessor for offices forming part of the
Hotel property. The leases are for a term of one year and may be renewed at year
end.

--------------------------------------------------------------------------------
Lessor: Rental commitments for the Hotel as at December 31, 1998
--------------------------------------------------------------------------------
                                                   Area (square    Annual rental
Name of the lessee                                      meters)             fees
--------------------------------------------------------------------------------
German Embassy                                              360              216
JV Miig                                                     184               36
PriceWaterhouseCoopers                                      336               25


                                      F-25
<PAGE>

Trimol Group, Inc.

Others (nine)                                        10-50 each        2-12 each
--------------------------------------------------------------------------------
(b) On April 29, 1996 Intercomsoft entered into an agreement with the Moldovan
Economic Ministry ("the lessee") for the lease of equipment for the production
of computerized documents, which it purchased from Supercom for a period of ten
years. Pursuant to the agreement, Intercomsoft will also provide professional
training in the use of the equipment, maintenance and consulting services, and
regular supply of supplementary equipment. According to the agreement the lessee
will be entitled to receive ownership of the equipment at the end of the lease
period.

According to the agreement, the lessee will pay to Intercomsoft each month US$
10 for each passport and US$ 4.50 for any other documents.

Note 22 - Commitments and contingent liabilities

(a) Off-balance sheet financial instruments

Notional amounts of the Bank's financial instruments with off-balance sheet
risk:

--------------------------------------------------------------------------------
                                                               December 31, 1998
--------------------------------------------------------------------------------
(In Thousands of US Dollars)

Foreign exchange contracts                                                   618
Guarantees                                                                   352
Letters of credit                                                             51
Unutilized credit lines                                                      268

--------------------------------------------------------------------------------
(b) As of December 31, 1998 no liens were registered on the Bank's securities in
favor of the National Bank of Moldova.

(c) Starting from April 1, 1998 the Bank began foreign exchange operations for
its own position. The maximum allowed exposure to currency fluctuations of the
Bank has been established by the National Bank of Moldova at US$ 1 million.

Note 23 - Regulatory matters

(a) The Bank maintains at all times a level of reserves in MDL equal to 15% of
the amount of the total attracted funds in MDL and hard currency. At least 30%
of the total amount of reserves must be kept in MDL at a correspondent account
with the National Bank of Moldova.

The Bank may conduct operations that will reduce its balance in the account
below the level of the required reserves. In such case until the end of the
report period the Bank must increase the amount of the required reserves so that
the average amount of MDL for the report period meets the required level.

The National Bank may change at its discretion the norm of the level of the
required reserves in conformity with the monetary and currency policy of the
Republic of Moldova.

(b) The maximum foreign currency exchange exposure (the difference in MDL
between the total assets and the total liabilities, including off balance sheet
items, for each currency divided by the total normative capital) that is
authorized by the National Bank of Moldova is 10% for each currency or 20% for
all the foreign currencies taken together. Since November 25, 1998 the maximum
exposure for the US dollar is 15% and for all foreign currencies 22%.

(c) Tax related issues which could affect the banking sector in Moldova, in
accordance with the Tax Code and the 1998 State budget adopted by the Parliament
of Moldova include:

(1)   Income from Moldovan Treasury Bills will not be taxable as in the current
      year.

(2)   Interest paid by banks on deposits of private clients will not be taxed
      until 1999.


                                      F-26
<PAGE>

Trimol Group, Inc.

(d) Starting from December 31, 1998 all the banks in Moldova must have and
maintain a ratio of total normative capital to risk weighted assets equal to at
least 10%. On December 31, 1999 this ratio is to be increased to 12%.

(e) Starting from April 1, 1998 the Bank began foreign exchange operations for
its own position. The maximum allowed exposure to currency fluctuations of the
Bank has been established by the National Bank of Moldova at US$ 1 million.

(f) According to Moldovan law, insurance companies must create a reserve fund by
transferring, on an annual basis, an amount of not less than 5% of the profit
after taxation. This reserve fund is not allowed to be greater than 15% of
shareholder's equity.

Note 24 - Financial instruments

(a) Balance sheet financial instruments

In the normal course of business, the Bank provides to its customers a wide
variety of financial instruments. These financial instruments involve various
degrees of risk, as follows:

(1) Credit risk - in conducting business activities, the Bank is exposed to the
possibility that borrowers may default on their obligations to the Bank. To
minimize this risk the Bank evaluates each customers' credit worthiness on a
case by case basis. The amount of collateral obtained, if it is deemed necessary
by the Bank upon the extension of credit, is based on management's credit
evaluation of the client. Collateral held varies but may include accounts
receivable, inventory, property, plant and equipment.

The Bank strives to maintain a credit risk profile that is diverse in terms of
industry and borrower concentration.

For significant group concentration of credit risk see Note 8.

(2) Market risk - in the normal course of business, the Bank is exposed to
market risks which include both price and liquidity risks.

Price risk arises from fluctuation in interest rates, foreign exchange rates and
commodity and equity prices that may result in changes in the value of financial
instruments.

Liquidity risks arise from the possibility that the Bank may be unable to
satisfy current and future financial commitments.

(a) Balance sheet financial instruments

In order to reduce the above risks, the Bank acts to balance its assets and
liabilities from the standpoint of repayment dates and currency basis, in light
of the fact that interest rates related to the Bank's financial instruments are
fixed.

(b) Off-balance sheet financial instruments

The Bank is a party to financial instruments with off-balance sheet risk in the
normal course of business to meet the financing needs of its customers. These
financial instruments include commitments to extend credit, letters of credit
and financial guarantees. These instruments involve, to varying degrees,
elements of credit in excess of the amount recognized in the statements of
financial condition. The contract or notional amounts of those instruments
reflect the extent of the Bank's involvement in particular classes of financial
instruments.

The Bank's exposure to in the event of non-performance by the other party to the
financial instrument for commitments to extend credit, letters of credit, and
financial guarantees written is represented by the contractual notional amount
of those instruments. The Bank uses the same credit policies in making
commitments and conditional obligations as it does for on-balance sheet
instruments.

Unless noted otherwise, the Bank requires collateral or other security to
support financial instruments with credit risk.

Commitments to extend credits are agreements to lend funds to a customer as long
as there is no violation of any condition established in the contract.
Commitments generally have fixed expiration dates or other termination clauses
and may require payment of a fee. The Bank acts to limit these credit risks in
the same way as for balance sheet credit risk.

Financial guarantees written are conditional commitments issued by the Bank to
guarantee the performance of a customer to a third party. Those guarantees are
primarily issued to support public and private borrowing 


                                      F-27
<PAGE>

Trimol Group, Inc.

arrangements, including commercial paper and similar transactions. The credit
risk involved in issuing letters of credit is essentially the same as that
involved in extending loan facilities to customers. The Bank holds deposits as
collateral supporting those commitments for which collateral is deemed
necessary.

Regarding off-balance sheet financial instruments see Note 22.

(c) Fair value of financial instruments

The carrying value of short-term financial instruments, among which the foreign
exchange contracts, as well as receivables and payables arising in the ordinary
course of business, approximates fair value because of the relatively short
period of time between their origination and expected realization. Quoted market
prices are used for most investments and for loans where available. For
performing loans where no quoted market prices are available, contractual cash
flows are discounted at quoted secondary market rates or estimated market rates
if available. Otherwise, sales of comparable loan portfolios or current market
origination rates for loans with similar terms and risk characteristics are
used. For loans with doubt as to collectibility, expected cash flows are
discounted using an appropriate rate considering time of collection and a
premium for the uncertainty of the flows. The value of the collateral is also
considered.

Information pertinent to the estimation of fair value of those financial
instruments is included in:

(1) Carrying amounts in the balance sheets.

(2) Effective interest rates, as follows:

Securities - Note 7 
Loans - Note 8(a) 
Deposits - Note 12(b)

(3)      Currency bases - Note 25

(4)      Maturity dates - Note 26


                                      F-28
<PAGE>

Trimol Group, Inc.

NOTE 25 - BANK: ASSETS AND LIABILITIES CLASSIFIED ACCORDING TO CURRENCY BASES

<TABLE>
<CAPTION>
                                                                            December 31, 1998

                                                                                                            Non-monetary
                                          MDL         US$        German Mark    Soft currency*     Other        items         Total
                                                                        In Thousands of US Dollars
                                                                        --------------------------
<S>                                      <C>         <C>              <C>         <C>                <C>          <C>        <C>   
ASSETS
Cash and due from Bank                   1,292         994            350             12             33                       2,681
Time deposits with banks                                                                                                   
Held to maturity security                1,136                                                                                1,136
Loans                                    2,578       3,765                                                                    6,343
Less allowance for possible loan losses   (712)       (200)                                                                    (912)
Customer's acceptance liability                                                                                            
Investments in investee                                                                                            24            24
Bank premises and equipment                                                                                       954           954
Other assets                               126         385                                                                      511
                                                                                                                           
Total assets                             4,420       4,944            350             12             33           978        10,737
                                                                                                                           
LIABILITIES                                                                                                                
Non-interest bearing deposits              906       1,334             90                                                     2,330
Interest bearing deposits                2,405         944                         1,161             22                       4,532
                                         3,311       2,278             90          1,161             22                       6,862
Total deposits                                                                                                             
Acceptances outstanding                                116            139                             8                         263
Other liabilities                           86         118             --              3             --                         207
                                                                                                                           
Total liabilities                        3,397       2,512            229          1,164             30                       7,332
                                                                                                                           
Difference                               1,023       2,432            121         (1,152)             3           978         3,405
</TABLE>

*     Including Rumanian leu and currencies of the former Soviet Union


                                      F-29
<PAGE>

Trimol Group, Inc.

NOTE 26 - BANK: ASSETS AND LIABILITIES CLASSIFIED ACCORDING TO MATURITY DATES

<TABLE>
<CAPTION>
                                                                                  December 31, 1998

                                                            From 1 month    From 3 months     From 1 year   Without fixed
                                           Up to 1 month     to 3 months        to 1 year      to 3 years        maturity     Total
                                                                              In Thousands of US Dollars
                                                                              --------------------------
<S>                                                <C>             <C>              <C>                <C>            <C>    <C>   
ASSETS
Cash and due from Bank                             2,681                                                                      2,681
Time deposits with banks
Held to maturity security                          1,044              92                                                      1,136
Loans                                              1,228           1,219            3,838              58                     6,343
Less allowance for possible loan losses             (449)            (57)            (405)             (1)                     (912)
Customer's acceptance liability
Investments in investee                                                                                                24        24
Bank premises and equipment                                                                                           954       954
Other assets                                         511                                                                        511

Total assets                                       5,015           1,254            3,433              57             978    10,737

LIABILITIES
 Non-interest bearing deposits                     2,330                                                                      2,330
Interest bearing deposits                          1,175             494            2,863                                     4,532
                                                   3,505             494            2,863                                     6,862
Total deposits
Acceptances outstanding                              263                                                                        263
Other liabilities                                    207                                                                        207

Total liabilities                                  3,975             494            2,863                                     7,332

Difference                                         1,040             760              570              57             978     3,405
</TABLE>


                                      F-30
<PAGE>

                                   SIGNATURES

      In accordance with Section 13 or 15(d) of the Exchange Act, the Registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.

                                                 TRIMOL GROUP, INC.


Dated: April 14, 1999                        By: /s/ Ted Shapiro
                                                 -------------------------------
                                                 Ted Shapiro, President

      In accordance with the Exchange Act, this report has been signed below by
the following persons on behalf of the Registrant and in the capacities and on
the dates indicated:


Dated: April 14, 1999                        By: /s/ Boris Birshtein
                                                 -------------------------------
                                                 Boris Birshtein, Chairman of
                                                 the Board


Dated: April 14, 1999                        By: /s/ Ted Shapiro
                                                 -------------------------------
                                                 Ted Shapiro, President, Chief
                                                 Executive Officer and Director


Dated: April 14, 1999                        By: /s/ Shmuel Gurfinkel
                                                 -------------------------------
                                                 Shmuel Gurfinkel, Chief
                                                 Financial Officer and Director
                                                 (Principal Accounting Officer)


Dated: April 14, 1999                        By: /s/ Robert L. Blessey
                                                 -------------------------------
                                                 Robert L. Blessey, Secretary
                                                 and Director


                                       40
<PAGE>

                               TRIMOL GROUP, INC.

                                Index of Exhibits

Exhibit No.             Description of Document
-----------             -----------------------

2                       Agreement and Plan of Reorganization, effec-
                        tive January 6, 1998, the Company, Edward F.
                        Cowle, H. DeWorth Williams, Gold Hill Mines,
                        Inc., Magnum Associates Ltd. and Starbeam,
                        Ltd.(1)

3                       By-Laws(2)

4                       Specimen of Certificate of Common Stock(2)

16.1                    Letter dated April 1, 1999 from Jones, Jensen
                        & Company, LLC.(3)

16.2                    Letter dated April 9, 1999 from Bavly & Co.(3)

21                      List of Subsidiaries(3)

23.1                    Consent of KPMG Accountants, N.V., an af-
                        filiate of KPMG International (3)

----------
      (1)   Incorporated by reference to the Company's Report on Form 8-K, filed
            on January 6, 1998 and as amended on March 5, 1998 and as amended as
            of March 27, 1998.

      (2)   Incorporated by reference to the Company's Registration Statement on
            Form 10-SB.

      (3)   Filed herewith.