Proforma Full Year Financial Statement for the Period Ended 31/12/2007

Balance Sheet

Review of Performance

The Group's net profit attributable to equity holders for the financial year ended 31 December 2007 ("FY2007") declined 22.1% to $54.7 million from $70.3 million in FY2006. Revenue declined to $969.0 million from $1.26 billion in FY2006 mainly due to a significant drop in orders from a major customer.

On a quaterly basis, the Group's 4Q07 net profit attributable to equity holders declined 17.3% to $14.6 million from $17.7 million in 4Q06. 4Q07 Group revenue declined 27.5% to $315.0 million from $434.7 million in 4Q06.

The Goup had expected a recovery in orders from its major customer for 4Q07, which did not materialise. The resulting drop in revenue was mitigated by contributions from new business segments, in particular wireless assessories and ODM, which continued its growth momentum into 4Q07.

The Group has completed a S$51 million rights issue during the period under review, which brought down the Group's gearing to a more comfortable level.

Going forward, the Group will execute a strategic review of each one of its subsidiaries to assess potential growth, profitability and use of working capital. The Group may divest off non-performing subsidiaries to focus on high-growth businesses.

To fuel further growth of the ODM business, the Group will focus on building upon, and better valueing its intellectual property portfolio, and the associated marketing channels.

The management would like to highlight that with the change in strategies, certain businesses will be divested and replaced by new ones. In the course of this process, certain receivables are being finalised. Management will subsequently announce any material impact arising from this process.

Commentary On Current Year Prospects

The Group expects the macroeconomic environment to remain uncertain, with the possibility of a US recession.

Going forward, the Group will embark on an asset-light strategy, which will include the sale-and-leaseback of certain facilities. It will also divest off its non-performing production facilities to improve operational efficiencies. The proceeds from any divestment will go towards the repayment of bank loans and building up its IP portfolio.

The handset ODM business will continue to grow, judging by the positive market response to new products showcased at the recent World Mobile Congress show in Barcelona. The Group expects shipments of the ODM handsets, particulary to emerging markes in Latin America and Eastern Europe to continue to grow.

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