$402,922 for the financial year ended September 30, 1998.

In the previous financial year the company had a loss of $95,000.

In the year to September 30, 1998 the company had a loss from operations of $371,000 on sales of $8.68 million. Expenses increased to $3.71 million compared to $3.11 million the previous financial year.

Interest and finance charges of $144,000 and rental and other income of $113,000 brought the net loss to $402,000, or 91 cents a share. Island Press competes with Bermuda Press (Holdings) Ltd., which publishes The Royal Gazette . Island Press publishes the Bermuda Sun.

CROW LANE BAKERY BUYS MARKETPLACE DIVISION BUC Crow Lane bakery buys MarketPlace division Bermuda Aviation Services Ltd. subsidiary Crow Lane Bakery Ltd. has bought the bakery division of supermarket chain MarketPlace.

The purchase price was not disclosed. Crow Lane Bakery has purchased all assets of the bakery at Shelly Bay. The company will lease the premises for 10 years with an option to renew for an additional five years.

MARSH & MCLENNAN BRANCH TO SET UP COMPANY BUC Marsh & McLennan branch to set up company The principal insurance-related investment branch of Marsh & McLennan Companies, Inc., has moved to set up a new Bermuda-based company.

Global professional services firm Marsh & McLennan Capital, Inc. -- which enjoys annual revenues exceeding $7 billion -- has announced the formation of NM Holdings, Ltd., which will form and capitalise a Lloyd's syndicate.

Subject to final approval from Lloyd's of London, the syndicate is expected to begin underwriting later this year.

NM Holdings and the new Lloyd's venture was expected to be capitalised by insurance-related investment funds managed by Marsh & McLennan Capital. The new syndicate is set to apply to Lloyd's to establish an integrated corporate capital vehicle, comprising a Lloyd's managing agency, Newmarket Managing Agencies, and syndicate Newmarket Corporate Syndicate.

The Lloyd's insurance market has aggregate underwriting capacity of $15.87 billion and is rated A by Standard and Poor's.

Ralph Sharp, the managing director of Duncanson & Holt Syndicate -- which manages four Lloyd's syndicates -- will head Newmarket Managing Agencies once Lloyd's approval has been obtained.

Also after that approval Jonathan Barnes and Robin Todd -- both former Lloyd's syndicate underwriters -- will join as active underwriters. And Peter Tend, formerly of the London office of Assicurazioni Gernerali, will join the group as a class underwriter.

MOTORISTS TO DIG DEEPER IN POCKETS FOR FUEL EGY Motorists to dig deeper in pockets for fuel Drivers are paying more at the pumps as of yesterday. Gas prices rose 1.2 cents to a maximum of 112.1 cents a litre yesterday. The cost of diesel rose 0.3 cents to a maximum of 86 cents a litre while kerosene rose 0.1 cents to 65.3 cents a litre.

HIGH HOPES OVER AMALGAMATION OF LAW FIRMS LEG High hopes over amalgamation of law firms Law firms Hector, Dwyer & Associates and Wakefields have joined forces. The amalgamation will be called Hector, Wakefield, Dwyer & Pettingill. The seven lawyer firm will include Richard Hector, Joseph Wakefield, Mark Pettingill, Dennis Dwyer, Nick Hoskins, Richard Horseman and Yoga Horseman. Mr. Hector said the amalgamation would strengthen the firm.

The firm will be located at Sofia House on Church Street.

DOUBT OVER ACE'S PROPOSED $75M INVESTMENT BUC Doubt over ACE's proposed $75m investment After a ratings downgrade of Capital Re Corp., Bermuda-based ACE Ltd.'s proposed investment of $75 million in the company hangs in the balance.

Moody's rating agency downgraded the financial strength rating of Capital Reinsurance Co. to Aa2 from Aaa and senior long term debt rationg to A1 from Aa3. The downgrade occurred after ACE announced a proposed investment in the company by purchasing common stock. A condition of the closing was the affirmation of Capital Re's triple-A financial strength rating from Moody's.

Reuters stated in a news story that Capital Re said it was currently in discussions with ACE regarding the impact, if any, of the rating action on the pending investment.