1 FY2001 INTERIM RESULTS August 15, 2001

2 AGENDA  Company Update  Financial Performance  Q&A

3 COMPANY UPDATE By Henry Lim President & CEO

4 MISSION  To be the one of the top knowledge- based, value-added distributors of electronics and IT solutions in the Asia Pacific region;  To be a leading Asian-based creator of innovative proprietary technology products and solutions

5 CORE COMPETENCIES Peripherals and Software Electronic Components Data Networking/ Service Offerings/ Design & Development Strategic Technologies

6 REGIONAL PRESENCE China HK Vietnam Thailand Malaysia S’pore Indonesia India Australia Philippines Korea Taiwan

7 ACHIEVEMENTS (Jan - July 2001)  Corporate –Strengthening Group Dynamics Acquisition of subsidiaries in Vietnam & Australia  Business –New Strategic Partnerships –Four new distributorships secured: Infineon Western Digital Transpoint Technology Stream Machine Inc –Expected to contribute >$80 million to Group revenue in FY2001

8 ACHIEVEMENTS (Jan - July 2001)  Geographic Expansion : China –Achieva Technology China –51% owned by Achieva –49% owned by HK-based Interlead Corporation –Paid up capital : HK$10 million –Distribution and service centre for IT products –Distribution network covering 13 cities and 28 retail outlets in PRC –Expected to contribute S$40 million to Group revenue in 2H

9 PRESENCE IN PRC BEIJING SHANGHAI NANJING WUHAN GUANGZHOU (HQ) SHENZHEN CHONGQING CHENGDU XI’AN SHENYANG JINAN ZHENGZHOU HANGZHOU

10 ACHIEVEMENTS (Jan - July 2001)  Technology –IP and Patents HDD connectivity Notebook batteries Expect to file 7 patents on NanoStorage this year

11 ACHIEVEMENTS (Jan - July 2001)  Technology –NanoStorage Working prototype of controller device on schedule Received engineering sample Expect to demonstrate complete working engineering sample by year-end Nanochip currently raising funds to bring the prototype into production Received in-principle approval for government grant for R&D support

12 ACHIEVEMENTS (Jan - July 2001)  Talent –ESOS –Founder Shares Award Scheme

13 MARKET OUTLOOK - THE BAD NEWS  Visibility for electronics industry still foggy –Singapore’s electronics output declined 26% in Q  Semiconductor industry continues to be affected by inventory overhang  Major global electronics players are reporting losses and cutbacks  Contract manufacturing not expected to recover soon

14 MARKET OUTLOOK - THE GOOD NEWS  PC industry in Asia-Pacific showing signs of initial recovery –Gartner: Asia-Pacific registered a 12.5% y-o-y growth in PC shipments in 2001Q2 Gartner Dataquest, August 2001  Contract manufacturing services expected to recover and hit US$231 billion by up 124% from US$103 billion in 2000 IDC July 2001

15 MARKET OUTLOOK - THE GOOD NEWS  Consolidation of electronics players => new opportunities for stronger players  New emerging markets with strong growth potential : –China 1H 2001 growth : 8% - full year growth expected to be maintained WTO entry Beijing Olympics –India IT hub of South Asia

16 GOING FORWARD  To ride out the storm with prudent management and strategic focus on niche competencies and markets  To expand strategically in high-growth emerging economies such as China  To continue to scale up the value chain to provide a full range of knowledge-based value-added services and solutions  To leverage on existing knowledge base, wide network of customers and vast portfolio of products to develop and deliver new offerings to the market  To grow IP and proprietary products/solutions portfolio in high-growth leading-edge technology sectors  To build up professional talent to strengthen management and technological expertise

17 FINANCIAL PERFORMANCE By Allan Yong Chief Financial Officer

18 GROUP TURNOVER S$million Up 51%

19 TURNOVER BY PRODUCT  FY2000 –1H S$’000 FY2001-1H

20 TURNOVER BY MARKET S$million

21 GROUP PBT S$million

22 PBT BY PRODUCT S$’000

23 NET PROFIT 1,000 2,000 3,000 4,000 5,000 6,000 FY2000-1HFY2001-1H S$’000 3,8923,819 4,382

24 FINANCIAL HIGHLIGHTS  Strong turnover growth  Stable net profit despite margin squeeze  Growth in profit contribution from electronics components  Strategic investments in NanoStorage of $0.8M  Strong balance sheet - cash position – up from $22M to $27M  Inventory down to $31M  Trade receivables –up from $38M to $56M

25 EPS cents

26 NTA PER SHARE cents Up 17.6%

27 FINANCIAL OUTLOOK  Challenging conditions for 1H and outlook for 2H uncertain  Revenues expected to continue growing: Estimated total impact >S$120m for FY2001  Profit margins continue to be pressured with increasing competition and electronics slowdown

28 Q&A