FIRST QUARTER 2008 RESULTS

STATEMENT OF PROFIT AND LOSS FOR THE QUARTER ENDED 31 MARCH 2008 AND 31 MARCH 2007

Review Of Performance

(a) The Group reported revenue of US$124.6 million in 1Q08, an increase of 10.2% over US$113.0 million in 1Q07 on the back of stronger sales in China, India and Thailand. Cost of goods correspondingly increased by 10.5%, impacted by higher cost pressure arising from competitive market conditions. This, coupled with the decrease in the Group's other income by 7.7% and the increase in finance costs, led to a marginal decrease in Group profit after taxation to US$0.1 million in 1Q08. Group gross profit margins held at 6.6%, a marginal decrease from 6.8% in 1Q07.

Cash flow used in operating activities increased from US$8.7 million in 1Q07 to US$16.3 million in 1Q08, largely attributable to an increase in trade debtors and stocks. In spite of its higher trade debtors and stocks, the Group held its cash position at US$13.0 million, a slight decrease from US$13.3 million in the same quarter last year.

(b) On the Group's balance sheet, cash and short term deposits rose from US$9.6 million in 4Q07 to US$13.0 million in 1Q08.

Both trade debtors' and trade creditors' balance increased due to the increase in sales. Trade debtors' balance increased from US$69.9 million in 4Q07 to US$81.4 million in 1Q08. AR turnover increased from 50 days in 4Q07 to 59 days 1Q08. Trade creditors' balance increased from US$69.4 million to US$76.3 million. AP turnover days increased from 53 days in 4Q07 to 59 days in 1Q08. Interest bearing loans and borrowings rose from US$31.4 million in 4Q07 to US$51.2 million this quarter due to higher working capital requirements. Net debt equity ratio stood at 0.9 times in 1Q08 compared to 0.5 times in 4Q07.

Commentary

Notwithstanding the challenging global market conditions in the current financial year, coupled with the weakened US dollar, the Group remains cautiously positive about its overall business performance.

Balance Sheet