MIRA INFORM REPORT

Report Date :

17.08.2007

IDENTIFICATION DETAILS

Name :	FMC TECHNOLOGIES SINGAPORE PTE LTD
Registered Office :	^149 Gul Circle^, Jurong, Singapore^– 629605
Country :	Singapore
Financials (as on) :	31.12.2005
Date of Incorporation :	^10/05/1975
Com. Reg. No.:	^197500778H
Legal Form :	^Pte Ltd
Line of Business :	Manufacture and Repair of other Oilfield & Gasfield Machinery and Equipment.

RATING & COMMENTS

MIRA’s Rating :

A

RATING		STATUS	PROPOSED CREDIT LINE
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large

Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear

Subject Company

FMC TECHNOLOGIES SINGAPORE PTE LTD

Line Of Business

MANUFACTURE AND REPAIR OF OTHER OILFIELD & GASFIELD MACHINERY AND EQUIPMENT.

Parent Company

FMC TECHNOLOGIES, AG

(PERCENTAGE OF SHAREHOLDING: 100%)

Financial Elements

FY 2005

COMPANY

Sales : US$128,436,056

Networth : US$72,139,211

Paid-Up Capital : US$15,044,000

Net result : US$13,798,944

Net Margin(%) : 10.74

Return on Equity(%) : 19.13

Leverage Ratio : 0.62

COMPANY IDENTIFICATION

^{Subject Company : FMC TECHNOLOGIES SINGAPORE PTE LTD}

^{Former Name : FMC SOUTHEAST ASIA PTE LTD}

^{Business Address : 149 GUL CIRCLE}

^JURONG

^{Town : SINGAPORE}

^{Postcode : 629605}

^{County : -}

^{Country : Singapore}

^{Telephone : 6861 3011}

^{Fax : 6861 2012}

^{ROC Number : 197500778H}

^{Reg. Town : -}

PREVIOUS IDENTIFICATION

^{FMC SOUTHEAST ASIA PTE LTD DATE OF CHANGE OF NAME: 01/08/2001}

SUMMARY

^{All amounts in this report are in : USD}

^{Legal Form : Pte Ltd}

^{Date Inc. : 10/05/1975}

^{Previous Legal Form : -}

^{Summary year : 31/12/2006}

^{Sales : 128,436,056}

^{Networth : 72,139,211}

^{Capital : -}

^{Paid-Up Capital : 15,044,000}

^{Employees : 289}

^{Net result : 13,798,944}

^{Share value : 1}

^{Auditor : KPMG}

REFERENCES

^{Litigation : No}

^{Company status : TRADING}

^{Started : 10/05/1975}

PRINCIPAL(S)

^{CHEN MING YOONG S0187458F Director}

DIRECTOR(S)

^{TANG TUCK FOON PATRICK S0006138G Director}

^{Appointed on : 04/06/1990}

^{Street : 60 TREVOSE CRESCENT}

^#03-33

^{THE TREVOSE}

^{Town : SINGAPORE}

^{Postcode : 298090}

^{Country : Singapore}

^{CHEN MING YOONG S0187458F Director}

^{Appointed on : 15/06/1988}

^{Street : 7 DAIRY FARM ROAD}

^#03-01

^{THE DAIRY FARM}

^{Town : SINGAPORE}

^{Postcode : 679037}

^{Country : Singapore}

^{ROBERT EDWARD SULLIVAN F5610362R Director}

^{Appointed on : 01/01/1999}

^{Street : 239 ARCADIA ROAD}

^#03-03

^{THE ARCADIA}

^{Town : SINGAPORE}

^{Postcode : 289845}

^{Country : Singapore}

^{JOHN THOMPSON GREMP Z7542047 Director}

^{Appointed on : 01/01/1999}

^{Street : 1803 GEARS ROAD HOUSTON}

^{Town : TEXAS}

^{Postcode : 77067}

^{Country : United States}

^{YEOH KAR CHOO SHARON S2588551A Company Secretary}

^{Appointed on : 18/10/2004}

^{Street : 28 JALAN LEMBAH THOMSON}

^{NEE SOON CHOW GARDENS}

^{Town : SINGAPORE}

^{Postcode : 577499}

^{Country : Singapore}

FORMER DIRECTOR(S)

^{LIM THIN KONG FRANCIS S1835761E}

^{JONES CHARLES THOMAS B127855}

^{KINNEAR PETER DREW D1630130}

^{WALLIS RICHARD ANTHONY 500149003}

ACTIVITY(IES)

^{OIL WELL EQUIPMENT And SUPPLIES Code: 15390}

^{OIL WELL SERVICES Code: 15420}

^{BASED ON ACRA'S RECORD AS AT 13/08/2007}

^{1) MANUFACTURE & REPAIR OF OTHER OILFIELD & GASFIELD MACHINERY & EQUIPMENT (EG DERRICKS)}

PREMISES/PROPERTY INFORMATIONS

^{Date : 15/03/2007}

^{Tax rate : 10}

^{Site Address : 149 GUL CIRCLE}

^JURONG

^{Town : SINGAPORE}

^{Postcode : 629605}

^{Country : Singapore}

^{Annual Value : 849,000}

* TAX RATE OF 4% MEANS THE ADDRESS (I.E RESIDENTIAL PROPERTY) IS OWNER OCCUPIED.

* TAX RATE OF 10% MEANS THE ADDRESS (I.E RESIDENTIAL PROPERTY) IS PARTIALLY OR FULLY RENTED OUT BY THE OWNER/OWNED BY COMPANY.

* FOR PROPERTIES OTHER THAN RESIDENTIAL PROPERTIES REGARDLESS RENTED OUT OR NOT, THE TAX RATE IS 10% (I.E INDUSTRIAL AND COMMERCIAL PROPERTY).

* ANNUAL VALUE IS THE ESTIMATED ANNUAL RENT THE PROPERTY CAN FETCH IF IT WERE RENTED OUT. THE ANNUAL VALUE IS DETERMINED IN THE SAME MANNER REGARDLESS OF WHETHER THE PROPERTY IS LET-OUT, OWNER-OCCUPIED OR VACANT.

BANKERS

^{CITIBANK N.A.}

^{BANK OF AMERICA NATIONAL ASSOCIATION}

ASSOCIATED COMPANY(IES)

^{PT FMC SANTANA}

SHAREHOLDERS(S)

^{FMC TECHNOLOGIES, AG 30,476,670 Company}

^{Street : RIGISTRASSE 184, 6340 BAAR}

^{Town : -}

^{Postcode : -}

^{Country : Switzerland}

HOLDING COMPANY

^{FMC TECHNOLOGIES, AG UF11535Z % : 100}

SUBSIDIARY(IES)

No Participation In Our Database

PAYMENT HISTORY AND EXPERIENCES

^{Trade Morality : AVERAGE}

^{Liquidity : SUFFICIENT}

^{Payments : REGULAR}

^{Trend : UPWARD}

^{Financial Situation : AVERAGE}

LITIGATION(S)

^{Type Of Case: Magistrate Court - W/S P}

^{Case Number: MCS038967/2001}

Defendant FMC TECHNOLOGIES SINGAPORE PTE LT ROC # : 197500778H

FINANCIAL ELEMENTS

^{Audit Qualification: UNQUALIFIED (CLEAN) UNQUALIFIED (CLEAN)}

^{Date Account Lodged: 01/08/2006}

^{Balance Sheet Date: 31/12/2005 31/12/2004}

^{Number of weeks: 52 52}

^{Consolidation Code: COMPANY COMPANY}

^{--- ASSETS ---}

^{Tangible Fixed Assets: 12,961,094 11,005,991}

^{Investments 1,920,000 1,920,000}

^{Total Fixed Assets: 14,881,094 12,925,991}

^{Inventories: 30,132,234 15,953,519}

^{Receivables: 32,892,908 20,985,433}

^{Cash,Banks, Securitis: 769,018 494,354}

^{Other current assets: 38,086,408 49,496,244}

^{Total Current Assets: 101,880,568 86,929,550}

^{TOTAL ASSETS: 116,761,662 99,855,541}

^{--- LIABILITIES ---}

^{Equity capital: 15,044,000 15,044,000}

^{Profit & lost Account: 57,095,211 46,577,641}

^{Total Equity: 72,139,211 61,621,641}

^{L/T deffered taxes: 1,116,894 1,585,123}

^{Total L/T Liabilities: 1,116,894 1,585,123}

^{Trade Creditors: 25,892,421 22,634,101}

^{Advanced payments: 4,223,119 2,359,605}

^{Provisions: 3,081,341 3,417,469}

^{Other Short term Liab.: 10,308,676 8,237,602}

^{Total short term Liab.: 43,505,557 36,648,777}

^{TOTAL LIABILITIES: 44,622,451 38,233,900}

^{PROFIT & LOSS ACCOUNT}

^{Net Sales 128,436,056 98,741,447}

^{Purchases,Sces & Other Goods: 100,827,410 76,597,245}

^{Gross Profit: 27,608,646 22,144,202}

^{Result of ordinary operations 13,814,473 11,997,454}

^{NET RESULT BEFORE TAX: 13,814,432 11,997,370}

^{Tax : 15,488 2,510,174}

^{Net income/loss year: 13,798,944 9,487,196}

^{Interest Paid: 41 84}

^{Depreciation: 1,474,240 1,329,512}

^{Dividends: 3,281,374 1,333,123}

^{Directors Emoluments: 959,347 887,967}

^{Wages and Salaries: 20,841,299 14,867,868}

^{Financial Income: 127 30}

RATIOS

^{31/12/2005 31/12/2004}

^{Turnover per employee: 444415.42 341665.91}

^{Net result / Turnover(%): 0.11 0.10}

^{Stock / Turnover(%): 0.23 0.16}

^{Net Margin(%): 10.74 9.61}

^{Return on Equity(%): 19.13 15.40}

^{Return on Assets(%): 11.82 9.50}

^{Dividends Coverage: 4.21 7.12}

^{Net Working capital: 58375011.00 50280773.00}

^{Cash Ratio: 0.02 0.01}

^{Quick Ratio: 0.77 0.59}

^{Current ratio: 2.34 2.37}

^{Receivables Turnover: 92.20 76.51}

^{Leverage Ratio: 0.62 0.62}

^{Net Margin : (100*Net income loss year)/Net sales}

^{Return on Equity : (100*Net income loss year)/Total equity}

^{Return on Assets : (100*Net income loss year)/Total fixed assets}

^{Dividends Coverage : Net income loss year/Dividends}

^{Net Working capital : (Total current assets - Total short term liabilities)}

^{Cash Ratio : Cash Bank securities/Total short term liabilities}

^{Quick Ratio : (Cash Bank securities + Receivables)/Total Short term Liabilities}

^{Current ratio : Total current assets/Total short term liabilities}

^{Inventory Turnover : (360*Inventories)/Net sales}

^{Receivables Turnover : (Receivable*360)/Net sales}

^{Leverage Ratio : Total liabilities/(Total equity-Intangible assets)}

FINANCIAL COMMENTS

^{THE FINANCIAL CONDITION OF THE COMPANY WAS SEEN TO BE FAIR TO STABLE IN VIEW OF THE FOLLOWING:}

^{NET WORTH:}

^{THE BALANCE SHEET WAS CONSIDERED PASSABLE WITH NET WORTH IMPROVED BY 17.07% FROM US$61,621,641 IN FY 2004 TO US$72,139,211 IN FY 2005. THIS WAS DUE TO A INCREASE IN ACCUMULATED PROFITS AMOUNT BY 22.58% FROM US$46,577,641 IN FY 2004 TO US$57,095,211.}

^LEVERAGE:

^{IN THE SHORT-TERM, SUBJECT WAS LARGELY FINANCED BY TRADE CREDITORS WHICH MADE 59.51% (2004: 61.76%) OF THE TOTAL SHORT-TERM. TOTAL TRADE CREDITORS COMPRISED OF THE FOLLOWING:}

^{* TRADE PAYABLES - 2005: US$16,955,589 (2004: US$17,048,618)}

^{* AMOUNT DUE TO ULTIMATE HOLDING COMPANY (TRADE) - 2005: US$1,910,897 (2004: US$897,299)}

^{* AMOUNT DUE TO RELATED CORPORATIONS(TRADE) - 2005: US$7,025,935 (2004: US$4,688,184)}

^{OTHER SHORT-TERM LIABILITIES WHICH AMOUNTED TO US$10,308,676 (2004: US$8,237,602) CONSISTED OF THE FOLLOWING:}

^{* DEFERRED INCOME - 2005: US$20,000 (2004: US$169,760)}

^{* EXCESS PROGRESS BILLINGS OVER WORK-IN-PROGRESS - 2005: US$3,776,505 (2004: US$2,806,655)}

^{* OTHER PAYABLES 2005 - US$6,512,171 (2004: US$5,261,187)}

^{IN ALL, LEVERAGE RATIO REMAINED AT 0.62 TIMES (2004: 0.62 TIMES).}

^LIQUIDITY:

^{IN GENERAL, SUBJECT'S LIQUIDITY WAS SUFFICIENT AND HAD IMPROVED AS SEEN FROM THE 16.10% RISE IN NET WORKING CAPITAL (2005: US$58,375,011; 2004: US$50,280,773).}

^{CURRENT RATIO FELL FROM 2.37 TIMES IN FY 2004 TO 2.34 TIMES IN FY 2005 BUT QUICK RATIO RISE TO 0.77 TIMES IN FY 2005 FROM 0.59 TIMES IN FY 2004.}

^{PROFITABILITY:}

^{SUBJECT POSTED A RISE IN REVENUE BY 30.07% AMOUNTING TO US$128,436,056 (2004: US$98,741,447) AND NET INCOME INCREASED BY 45.45% AND AMOUNTING TO US$13,798,944 (2004: US$9,487,196.00). AS A RESULT, NET MARGIN ROSE TO 10.74% (2004; 9.61%).}

^{REVENUE COMPRISED OF THE FOLLOWING:}

^{* SALE OF GOODS - 2005: US$110,778,790 (2004: US$80,199,090)}

^{* SERVICES RENDERED - 2005: US$3,815,070 (2004: US$6,377,879)}

^{* CONTRACT REVENUE FROM PROJECTS - 2005: US$13,842,196 (2004: US$12,164,478)}

^{DEBT SERVICING:}

^{DEBT SERVICING PROBLEMS MIGHT NOT BE EXPECTED IF REVENUE AND EARNINGS CAN BE MAINTAINED AND PAYMENT BY TRADE DEBTORS ARE FORTHCOMING. IT WAS NOTED THAT AVERAGE COLLECTION PERIOD HAS LENGTHENED TO 92 DAYS (2004: 77 DAYS).}

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 10/05/1975 AS A LIMITED PRIVATE COMPANY UNDER THE NAMESTYLE OF "FMC SOUTHEAST ASIA PTE LTD".}

^{SUBSEQUENTLY ON 01/08/2001, SUBJECT CHANGED TO ITS PRESENT NAMESTYLE OF "FMC TECHNOLOGIES SINGAPORE PTE LTD".}

^{AS AT 13/08/2007, THE COMPANY HAS AN ISSUED AND PAID-UP CAPITAL OF 30,476,670 SHARES, OF A VALUE OF S$30,476,670.}

^{PRINCIPAL ACTIVITIES:}

^{SUBJECT IS REGISTERED WITH THE ACCOUNTING AND CORPORATE REGULATORY AUTHORITY (ACRA) AND BE PRINCIPALLY ENGAGED IN THE BUSINESS OF:}

^{1) MANUFACTURE & REPAIR OF OTHER OILFIELD & GASFIELD MACHINERY & EQUIPMENT (EG DERRICKS, TOOL JOINTS)}

^{THE COMPANY IS LISTED IN THE SINGAPORE LOCAL DIRECTORIES UNDER THE CLASSIFICATION OF: OIL EXPLORATION EQUIPMENT & SUPPLIES DURING THE FINANCIAL YEAR UNDER REVIEW, THE PRINCIPAL ACTIVITIES ARE THOSE RELATING TO THE DESIGN, MANUFACTURE AND SALE AND/OR SERVICE OF OIL-WELLS, FOOD, FLUID CONTROL AND AIRLINE EQUIPMENT AND MACHINERY AND THE PROVISION OF RELATED SERVICES.}

^{FROM THE RESEARCH DONE, THE FOLLOWING INFORMATION WAS GATHERED:}

^ACTIVITIES:

^{* MANUFACTURER AND SUPPLIER OF SUBSEA PRODUCTION SYSTEMS}

^{* MANUFACTURING WELLHEAD EQUIPMENT}

^{* TECHNICAL & SALES SUPPORT OF COMPANY'S EQUIPMENT}

^{PRODUCTS OR SERVICES:}

^{* COATERS}

^{* FILLERS & CLOSERS}

^{* FREEZERS AND CHILLERS}

^{* FRYERS & FILTERS}

^{* IN-CONTAINER STERILIZERS}

^{* OVENS & COOKERS}

^{* OILFIELD, DRILLING & MARINE SERVICES}

^{* PRESALES, SALES & AFTER SALES}

^{BRAND NAMES:}

^{* FMC, SUBSEA DRILLING & COMPLETION SYSTEMS}

^{* OCT, EELLHEADS, VALVES & DRILLING EQUIPMENT}

^{IMPORT COUNTRIES:}

^{* UNITED STATES, ETC.}

^{EXPORT COUNTRIES:}

^{* EUROPE}

^{* ASIA}

^{SUPPLIERS REFERENCES:}

^{* FLOWQUIP PTE LTD (SINGAPORE)}

^AWARDS:

^{* SINGAPORE QUALITY CLASS}

^{SUBJECT IS A MEMBER OF FOLLOWING ENTITIES:}

^{* AMERICAN CHAMBER OF COMMERCE}

^{* SINGAPORE MANUFACTURERS' FEDERATION}

^{FROM THE TELE-INTERVIEW CONDUCTED ON 17/08/2007, NO TRADE INFORMATION WAS AVAILABLE AS SUBJECT'S PERSONNEL DECLINED TO PROVIDE.}

^{THE IMMEDIATE AND ULTIMATE HOLDING COMPANIES ARE FMC TECHNOLOGIES, AG, INCORPORATED IN SWITZERLAND, AND FMC TECHONOLOGIES INC., A COMPANY INCORPORATED IN THE UNITED STATES OF AMERICA RESPECTIVELY.}

^{NUMBER OF EMPLOYEES (31 DECEMBER):}

^{* COMPANY - 2005 : 289 (2004: 289; 2003: 246, 2002: 228, 2001: 228; 1999: 199)}

^{REGISTERED AND BUSINESS ADDRESS:}

^{149 GUL CIRCLE}

^JURONG

^{SINGAPORE 629605}

^{DATE OF CHANGE OF ADDRESS: -}

^{- OWNED PREMISE}

^{OTHER BUSINESS ADDRESSES:}

^{6 LOYANG LANE}

^#03-00

^{SINGAPORE 508920}

^{- AIRPORT SYSTEMS DIVISION}

^{- TEL: 6542 9255}

^{6 KWONG MIN ROAD}

^{SINGAPORE 628709}

^{- LOADING SYSTEMS DIVISION}

^{- TEL: 6867 6533}

^{- FAX: 6316 2605}

^{WEBSITE: www.fmctechnologies.com}

^EMAILS:

^{corporate.info@fmcti.com}

^{yeowchuan@fmcti.com}

^{salina.siraj@fmcti.com}

MANAGEMENT

^{THE DIRECTORS AT THE TIME OF THIS REPORT ARE:}

^{1) TANG TUCK FOON PATRICK, A SINGAPOREAN}

^{- HOLDS OTHER DIRECTORSHIPS AS RECORDED IN OUR DATABASE:}

^{FMC WELLHEAD EQUIPMENT SDN BHD}

^{2) CHEN MING YOONG, A SINGAPOREAN}

^{- HOLDS NO OTHER DIRECTORSHIPS AS RECORDED IN OUR DATABASE.}

^{3) ROBERT EDWARD SULLIVAN, A AMERICAN}

^{- BASED IN SINGAPORE}

^{4) JOHN THOMPSON GREMP, A AMERICAN}

^{- BASED IN THE UNITED STATES OF AMERICA}

SINGAPORE'S COUNTRY RATING 2007

Investment Grade

IN SINGAPORE, THE POLITICAL SITUATION REMAINS STABLE.

SINGAPORE BOASTS THE BEST GOVERNANCE IN ASIA, WITH AN EFFECTIVE LEGAL SYSTEM FACILITATING DEBT COLLECTION AND TO A HIGH DEGREE OF FINANCIAL TRANSPARENCY.

EXTERNAL ACCOUNTS HAVE REMAINED SUBSTANTIALLY IN SURPLUS, CONTRIBUTED TO THE DYNAMISM OF THE ELECTRONICS AND PHARMACEUTICALS SECTORS AND TO REPATRIATION OF PROFITS FROM SINGAPORE INVESTMENTS. THE FINANCIAL AND TOURISM SECTORS HAVE ALSO CONTRIBUTED TO THE LARGE CURRENT ACCOUNT SURPLUS.

SINGAPORE CONTINUES TO KEENLY WELCOME FOREIGN INVESTMENT AND OFFERS A VERY OPEN AND WELL-PLANNED ECONOMIC AND POLITICAL ENVIRONMENT. IT HAS BEEN IMPLEMENTING AMBITIOUS DIVERSIFICATION STRATEGY, FOCUSED PARTICULARLY ON THE CHEMICALS AND PHARMACEUTICAL SECTORS.

THE GOVERNMENT USES FOREIGN DIRECT INVESTMENT TO DEVELOP PRIORITY SECTORS (ELECTRONICS, CHEMICALS, BIOTECHNOLOGY). THE AIM IS TO ENCOURAGE THE GROWTH OF HIGH ADDED-VALUE ACTIVITIES AND TURN SINGAPORE INTO A REGIONAL HUB FOR FOREIGN INVESTORS INTERESTED IN ASIA.

CERTAIN SECTORS (MEDIA, LEGAL AND FINANCIAL SERVICES) ARE HOWEVER ONLY PARTIALLY OPEN TO FOREIGN INVESTMENT. THESE SECTORS ARE SLOWLY OPENING UP, BUT THE PROGRESS IS SLOW.

AFTER HIGH GROWTH IN 2006, BUOYED BY THE DYNAMISM OF BOTH EXPORTS AND HOUSEHOLD CONSUMPTION, A SLOWDOWN IS EXPECTED IN 2007.

ASSETS

• MAJOR EXPORTER OF CAPITAL IN ASIA, NOTABLY VIA THE STATE-OWNED TEMASEK HOLDING COMPANY.
• HIGH QUALITY COMPETITIVENESS IN ASIA
• EXCELLENT BUSINESS CLIMATE
• POLITICAL STABILITY.

WEAKNESSES

• SKILLED MANPOWER HAS BEEN LACKING IN THE SECTORS TARGETED FOR DEVELOPMENT.
• AN AGEING POPULATION COULD, ULTIMATELY, AFFECT ECONOMIC PERFORMANCE.
• GROWING INEQUALITY AND THE EMERGENCE OF LONG-TERM UNEMPLOYMENT AMONG THE LEAST SKILLED COULD GENERATE SOCIAL TENSIONS.
• BEING THE WORLD’S MOST OPEN ECONOMY, IT HAS BEEN VULNERABLE TO WORLD ECONOMIC DOWNTURNS.

Manufacturing sector

PAST PERFORMANCE

THE MANUFACTURING SECTOR GREW BY 18.8% COMPARED TO Q2 OF 2006, RIDING ON STRONG GROWTH FROM THE BIOMEDICAL MANUFACTURING AND TRANSPORT ENGINEERING CLUSTERS. TOTAL MANUFACTURING OUTPUT GREW BY 7.8% COMPARED TO OUTPUT IN THE SAME PERIOD LAST YEAR.

THE CHEMICALS CLUSTER GREW 4.1% IN Q2 COMPARED TO LAST YEAR'S SECOND QUARTER. THE OUTPUT OF PETROLEUM ROSE 21.7% FROM A YEAR AGO WHEN OUTPUT WAS LOW ARISING FROM MAINTENANCE SHUTDOWNS IN SOME REFINERY PLANTS. THE PRODUCTION OF PETROCHEMICALS FELL SLIGHTLY BY 0.6%. THE OUTPUT OF SPECIALTY CHEMICALS SHRANK 9.6% ON ACCOUNT OF LESS OUTPUT OF EPOXY COMPOUNDS, MINERAL OIL ADDITIVES AND CHEMICAL CATALYSTS. THE CLUSTER RECORDED A CUMULATIVE GROWTH OF 1.8% IN THE FIRST FOUR MONTHS OF 2007 COMPARED TO THE SAME PERIOD LAST YEAR.

THE GENERAL MANUFACTURING INDUSTRIES GREW 11.3% YEAR-ON-YEAR IN Q2 2007. THE FOOD, BEVERAGES AND TOBACCO INDUSTRIES CONTRIBUTED LARGELY TO THE GROWTH WITH OUTPUT INCREASES OF 18.3%. THE MISCELLANEOUS INDUSTRIES ALSO GREW 14.9%. CUMULATIVE OUTPUT FOR THIS GROUP OF INDUSTRIES GREW 9.8% IN THE FIRST FOUR MONTHS OF THIS YEAR COMPARED TO THE SAME PERIOD IN 2006.

OUTLOOK

THE MANUFACTURING SECTOR IS MORE OPTIMISTIC IN THE NEXT SIX MONTHS ENDING SEPTEMBER 2007, COMPARED TO THE FIRST QUARTER OF THE YEAR. OVERALL, A WEIGHTED 30% OF MANUFACTURERS FORESEE AN IMPROVED OUTLOOK, WHILE 4% PREDICT DETERIORATION. THIS RESULTS IN A NET WEIGHTED BALANCE OF 26% OF MANUFACTURERS EXPECTING BUSINESS CONDITIONS TO IMPROVE, WHICH IS HIGHER THAN THE 7% RECORDED A QUARTER AGO. THE POSITIVE BUSINESS SENTIMENT IS LED BY THE ELECTRONICS CLUSTER.

IN THE CHEMICALS CLUSTER, A NET WEIGHTED 10% OF MANUFACTURERS EXPECT THE BUSINESS ENVIRONMENT IN THE SECTOR TO IMPROVE IN THE NEXT SIX MONTHS ENDING SEPTEMBER 2007. FIRMS IN THE SPECIALTIES AND OTHER CHEMICALS SEGMENTS ARE MORE OPTIMISTIC AS THE TREND OF SALES LEVEL DURING THE APRIL TO SEPTEMBER PERIOD IS EXPECTED TO RISE, FOLLOWING SEASONAL WEAKNESS IN THE FIRST THREE MONTHS OF 2007. OUTPUT IN ALL SEGMENTS OF THE CLUSTER IS PROJECTED TO INCREASE IN THE SECOND QUARTER OF THE YEAR, AS COMPARED TO THE FIRST. THE ONLY EXCEPTION IS IN THE PETROLEUM REFINERY SEGMENT, WHERE SOME MAINTENANCE DOWNTIME IS PLANNED DURING THIS PERIOD.

EXTRACTED FROM: MINISTRY OF TRADE AND INDUSTRY, SINGAPORE

economic development board

CONTACT SINGAPORE

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions