MIRA INFORM REPORT

Report Date :

8^th March, 2007

IDENTIFICATION DETAILS

Name :	GOODYEAR ORIENT COMPANY (PRIVATE) LIMITED

Registered Office :	39 Changi South Avenur 2, Apico Industrial Building, Singapore 486352, Singapore

Country :	Singapore

Financials (as on) :	31.12.2005

Date of Incorporation :	06.12.1917

Legal Form :	Pte Limited

Line of Business :	The purchase of natural rubber for sale to goodyear affiliated companies and marketing and trading of tyres, tubes and related rubber products.

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Good

Payment Behaviour :	Regular

Litigation :	Clear

Company Name

GOODYEAR ORIENT COMPANY (PRIVATE) LIMITED

Line Of Business

THE PURCHASE OF NATURAL RUBBER FOR SALE TO GOODYEAR AFFILIATED COMPANIES AND MARKETING AND TRADING OF TYRES, TUBES AND RELATED RUBBER PRODUCTS

Parent Company

THE GOODYEAR TIRE & RUBBER COMPANY (PERCENTAGE OF SHAREHOLDING: 100%)

Financial Elements

FY 2005

COMPANY

Sales : US$1,203,899,048

Networth : US$121,708,593

Paid-Up Capital : US$4,717,352

Net result : US$29,226,790

Net Margin(%) : 2.43

Return on Equity(%) : 24.01

Leverage Ratio : 1.40

Rating

Credit Rating : Sin $ 50 000 001

BUSINESS INFORMATION REPORT

COMPANY IDENTIFICATION

Subject Company : GOODYEAR ORIENT COMPANY (PRIVATE) LIMITED

Former Name : -

Business Address : 39 CHANGI SOUTH AVENUR 2, APICO INDUSTRIAL BUILDING

Town : SINGAPORE

Postcode : 486352

County : -

Country : Singapore

Telephone : 6838 4795

Fax : 6542 0156

ROC Number : 191700037Z

Reg. Town : -

SUMMARY

^{All
amounts in this report are in: USD
unless otherwise stated}

Legal Form : Pte Ltd

Date Inc : 06/12/1917

Previous Legal Form : -

Summary year : 31/12/2005

Sales : 1,203,899,048

Networth : 121,708,593

Capital : -

Paid-Up Capital : 4,717,352

Employees : 62

Net result : 29,226,790

Share value : -

^{AUDITOR:
PRICEWATERHOUSECOOPERS}

^{BASED
ON ACRA'S RECORD AS AT 29/11/2006}

^{CURRENCY AMOUNT}

^{ISSUED
ORDINARY SGD 8,735,540.00}

^{PAID
UP ORDINARY SGD 8,735,540.00}

REFERENCES

^{Litigation :
No}

^{Company status :
TRADING}

^{Started :
06/12/1917}

PRINCIPAL(S)

^{TAN WENG
CHYE PETER S2138839D Managing Director}

DIRECTOR(S)

TAN WENG CHYE PETER S2138839D Managing Director

Appointed on : 29/04/1988

Street : 4 ARDMORE PARK, #11-01

Town : SINGAPORE

Postcode : 259960

Country : Singapore

GARY A. MILLER 021090564 Director

Appointed on : 01/11/1993

Street : 1225 SPRINGHILL AVENUE, N.E. MASSILLON

Town : OHIO

Postcode : 44646

Country : United States

DARREN R. WELLS 025748175 Director

Appointed on : 31/12/2003

Street : 366 GREENSFIELD LANE, COPLEY, OH 44321

Town :

Postcode :

Country : United States

TAN WENG CHYE PETER S2138839D Director

Appointed on : 29/04/1988

Street : 4 ARDMORE PARK, #11-01

Town : SINGAPORE

Postcode : 259960

Country : Singapore

BRAD S. LAKHIA G5796279N Director

Appointed on : 02/03/2005

Street : 9 ARDMORE PARK, #26-03, ARDMORE PARK

Town : SINGAPORE

Postcode : 259955

Country : Singapore

KOH KIAT LAID IVY S1119387J Company Secretary

Appointed on : 05/07/2006

Street : 8 SPRINGSIDE AVENUE

Town : SINGAPORE

Postcode : 787007

Country : Singapore

FORMER DIRECTOR(S)

^{WALSH J N S01058012}

^{WOLF J D S02175636}

^{KOH KIAT LAID IVY S1119387J}

^{HOWARD GENE CHAPPELL 2043143}

^{MILER G A 021090564}

^{CANDELMO L A DELONG S22433874}

^{FIEDLER L N S22517731}

^{MERCER R E SB0087804}

^{PILLIOD CHARLES JULE E137969}

^{MELLINGER D R SF0643360}

^{HAUMAN RICHARD W SZ4507271}

^{LANGVARDT LARRY W SZ4642536}

^{MILK R W Unknown}

^{OWINGS D L Unknown}

^{DEBORAH JANE THOMAS F5667856P}

^{STEPHANIE WOJTOWICZ 026337431}

^{CHONG LAI LENG S1806160J}

ACTIVITY(IES)

^{RUBBER
BROKERS And DEALERS Code:18680}

^{TYRE
DISTRS And MFRS Code:22750}

^{RUBBER
PRODUCTS Code:18720}

^{TRADING
COMPANIES Code:22190}

^{BASED
ON ACRA'S RECORD AS AT 29/11/2006}

^{1)
WHOLESALE OF RUBBER (INCLUDING RUBBER BROKERS);}

^{PURCHASE
OF NATURAL RUBBER, MARKETING, TRADING OF TYRES AND}

CHARGES

No Charges On Premises/Property In Our Database

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

^{STANDARD
CHARTERED BANK}

^{ABN
AMRO BANK N.V.}

^{OVERSEAS-CHINESE
BANKING CORPORATION LIMITED}

^{DBS
BANK LTD.}

SHAREHOLDERS(S)

THE GOODYEAR TIRE & RUBBER COMPANY 8,735,540 Company

Street : 1144 EAST MARKET STREET, AKRON

Town : OHIO

Postcode : 44316

Country : United States

FORMER SHAREHOLDER(S)

^{GOODYEAR
TIRE & RUBBER CO THE
140,003}

^{GOODYEAR
TIRE & CO THE 140,003}

^{HOWARD
GENE CHAPPELL 1}

^{TAN
WENG CHYE PETER 1}

HOLDING COMPANY

^{THE
GOODYEAR TIRE & RUBBER COMPANY
UF04245Z % : 100}

SUBSIDIARY(IES)

^{GOODYEAR
WINGFOOT K.K.}

Japan

PAYMENT HISTORY AND EXPERIENCES

^{Trade
Morality: GOOD}

^{Liquidity
: SUFFICIANT}

^{Payments
: REGULAR}

^{Trend
: UPWARD}

^{Financial
Situation: AVERAGE}

LITIGATION(S)

No Litigation In Our Database

FINANCIAL ELEMENTS

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

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

^{Date Account Lodged:
07/08/2006}

^{Balance Sheet Date:
31/12/2005 31/12/2004 31/12/2003}

^{Number of weeks: 52 52 52}

^{Consolidation Code:
COMPANY COMPANY COMPANY}

ASSETS

^{Tangible Fixed Assets:
133,132 136,701 192,728}

^{Investments
58,020,903
58,020,903
58,020,903}

^{Total Fixed Assets:
58,154,035
58,157,604         58,213,631}

^{Inventories:
2,937,709
7,447,722          6,653,594}

^{Receivables:
176,462,593
137,035,262
123,852,332}

^{Cash,Banks, Securitis:
36,715,651
11,697,012          9,823,939}

^{Other current assets:
18,022,129
5,638,701          6,979,214}

^{Total Current Assets:
234,138,082
161,818,697
147,309,079}

^{TOTAL
ASSETS: 292,292,117 219,976,301 205,522,710}

LIABILITIES

^{Equity capital:
4,717,352
164,625            164,625}

^{Profit & lost
Account: 116,991,241 107,764,451 85,652,283}

^{TOTAL
EQUITY: 121,708,593 107,929,076
85,816,908}

^{Trade Creditors:
145,810,311
99,105,900
87,790,639}

^{Prepay. & Def. charges: 1,435,133
1,286,667 1,147,919}

^{Due to Bank: - -
18,655,414}

^{Provisions:
3,658,783
2,850,147          3,005,531}

^{Other Short term Liab.:
19,679,297
8,804,511          9,106,299}

^{Total short term Liab.:
170,583,524
112,047,225
119,705,802}

^{TOTAL
LIABILITIES: 170,583,524 112,047,225 119,705,802}

PROFIT & LOSS ACCOUNT

^{Net Sales
1,203,899,048
1,101,146,862
819,328,456}

^{Gross
Profit: 35,243,167 30,013,662 -}

^{Result of ordinary operations -
- 26,585,145}

^{NET RESULT BEFORE TAX:
32,911,675
25,134,805        24,532,048}

^{Tax :
3,684,885
3,022,637         2,797,151}

^{Net income/loss year:
29,226,790
22,112,168        21,734,897}

^{Interest Paid:
445,714 525,505 2,053,097}

^{Depreciation:
38,534 57,722 50,500}

^{Dividends:
20,000,000
-                 -}

^{Purchases,Sces &}

^{Other Goods: 1,168,655,881 1,071,133,200 -}

^{Wages and Salaries:
2,141,216
2,004,057         2,095,684}

^{Financial Income:
334,025 16,674 10,098}

RATIOS

^{31/12/2005
31/12/2004 31/12/2003}

^{Turnover per employee:
19417726.58
17760433.26      13214975.10}

^{Net result / Turnover(%):
0.02
0.02 0.03}

^{Stock / Turnover(%):
0.00 0.01 0.01}

^{Net Margin(%):
2.43
2.01             2.65}

^{Return on Equity(%):
24.01
20.49            25.33}

^{Return on Assets(%):
10.00
10.05            10.58}

^{Dividends Coverage:
1.46
1.46             1.46}

^{Net Working capital:
63554558.00
49771472.00      27603277.00}

^{Cash Ratio:
0.22
0.10             0.08}

^{Quick Ratio:
1.25
1.33             1.12}

^{Current ratio:
1.37
1.44             1.23}

^{Receivables Turnover:
52.77
44.80            54.42}

^{Leverage Ratio:
1.40 1.04 1.39}

^{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 IN VIEW OF} ^{THE
FOLLOWING:}

^{NET WORTH:}

^{THE
BALANCE SHEET WAS CONSIDERED PASSABLE WITH NET WORTH IMPROVED BY} ^{12.77%
FROM US$107,929,076 IN FY 2004 TO US$121,708,593 IN FY 2005.} ^{THIS
WAS DUE TO HIGHER ACCUMULATED PROFIT OF US$116,991,241 (2004:} ^{US$107,764,451);
A RISE OF 8.56% FROM THE PRIOR FINANCIAL YEAR.} ^{THE PAID-UP SHARE
CAPITAL HAS ALSO INCREASED FROM US$164,625 TO} ^{US$4,717,352.}

^{THE
COMPANY ISSUED 8,455,532 ORDINARY SHARES WITH A PAR VALUE OF S$1} ^{PER
SHARE ON 28 FEBRUARY 2005 TO PROVIDE FUNDS FOR GENERAL CORPORATE} ^PURPOSES.

^LEVERAGE:

^{IN THE
SHORT-TERM, SUBJECT WAS LARGELY FINANCED BY TRADE CREDITORS} ^{WHICH
MADE UP 85.48% (2004: 88.45%) OF THE TOTAL CURRENT LIABILITIES} ^{AND AMOUNTED
TO US$145,810,311 (2004: US$99,105,900). THE BREAKDOWN IS} ^AS
FOLLOWS:

^{-HOLDING
CORPORATION - 2005: - (2004: US$ 468,782)}

^{-RELATED
CORPORATIONS - 2005: US$ 5,347,658
(2004: US$16,173,411)}

^{-A
SUBSIDIARY - 2005: US$ 39,632 (2004: US$ 96,056)}

^{-THIRD
PARTIES - 2005: US$140,423,021
(2004: US$82,367,651)}

^{IN
ALL, LEVERAGE RATIO ROSE FROM 1.04 TIMES TO 1.40 TIMES AS A RESULT} ^{OF
A GREATER RISE IN TOTAL LIABILITIES THAN TOTAL EQUITY.}

^LIQUIDITY:

^{IN
GENERAL, SUBJECT'S LIQUIDITY SITUATION WAS PASSABLE AS SEEN FROM} ^{THE
CHANGES IN NET WORKING CAPITAL AND LIQUIDITY RATIOS. CURRENT RATIO} ^{FELL
TO 1.37 TIMES, DOWN FROM 1.44 TIMES AND QUICK RATIO FELL TO} ^{1.25
TIMES FROM 1.33 TIMES IN FY 2004.}

^{NET
WORKING CAPITAL ROSE BY 27.69% FROM US$49,771,472 IN} ^{FY
2004 TO US$63,554,558.}

^{PROFITABILITY:}

^{REVENUE
POSTED AN INCREASE OF 9.33% FROM US$1,101,146,862 IN FY 2004} ^{TO
US$1,203,899,048 AND NET PROFIT ROSE BY 32.18% TO US$29,226,790} ^{(2004:
US22,112,168). HENCE, NET MARGIN ROSE TO 2.43% (2004: 2.01%).}

^{DEBT SERVICING:}

^{DEBT
SERVICING PROBLEMS MIGHT NOT BE EXPECTED IF REVENUE AND EARNINGS} ^{CAN
BE MAINTAINED AND PAYMENT BY TRADE DEBTORS ARE FORTHCOMING. IN} ^{ADDITION,
ITS INTEREST COVERAGE WAS HEALTHY CONSIDERING THAT ITS} ^{INTEREST
EXPENSES WERE LOW AT US$445,714 IN FY 2005 (2004: US} ^$525,505).

^{NOTES TO THE FINANCIAL STATEMENTS:}

^{CONTINGENT LIABILITIES}

^{THE
COMPANY HAS CONTINGENT LIABILITIES IN RESPECT OF BANK GUARANTEES}

^{GIVEN
TO THIRD PARTIES:}

^{COMMODITY
TRADING ON SICOM - 2005: US$1,141,896 (2004: US$1,499,663)} ^{SUPPLY
OF TYRES TO THE GOVERNMENT OF THE REPUBLIC OF SINGAPORE -} ^{2005:
US$92,990 (2004: US$92,990)}

^{THE
DIRECTORS ARE OF THE VIEW THAT NO MATERIAL LIABILITIES WILL ARISE} ^{FROM
THE BANK GUARANTEES AT THE DATE OF THESE FINANCIAL STATEMENTS.}

BACKGROUND/OPERATION

^{THE
COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON} ^{06/12/1917
AS A LIMITED PRIVATE COMPANY AND IS TRADING UNDER ITS} ^{PRESENT
NAMESTYLE AS "GOODYEAR ORIENT COMPANY (PRIVATE) LIMITED".}

^{AS AT
15/01/2007, THE COMPANY HAS ISSUED AND PAID-UP CAPITAL OF} ^{8,735,540
SHARES OF A VALUE OF S$8,735,540.}

^{PRINCIPAL
ACTIVITIES:}

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

^{1)
WHOLESALE OF RUBBER (INCLUDING RUBBER BROKERS);}

^{PURCHASE
OF NATURAL RUBBER, MARKETING, TRADING OF TYRES AND} ^{RELATED
PRODUCTS}

^{DURING
THE FINANCIAL YEAR UNDER REVIEW, THE PRINCIPAL ACTIVITIES OF} ^{THE
COMPANY CONSIST OF THE PURCHASE OF NATURAL RUBBER FOR SALE TO} ^{GOODYEAR
AFFILIATED COMPANIES AND MARKETING AND TRADING OF TYRES,} ^{TUBES AND
RELATED RUBBER PRODUCTS.}

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

^{BACKGROUND OF GOODYEAR GROUP:}

^{GOODYEAR
IS THE WORLD'S LARGEST TIRE COMPANY AND MANUFACTURES AND} ^{MARKETS
TIRES FOR MOST APPLICATIONS. IT ALSO MANUFACTURES AND SELLS} ^{SEVERAL
LINES OF POWER TRANSMISSION BELTS, HOSE AND OTHER RUBBER} ^{PRODUCTS
FOR THE TRANSPORTATION INDUSTRY AS WELL AS CONVEYOR BELTS FOR} ^{VARIOUS
INDUSTRIAL AND CONSUMER MARKETS, IN ADDITION TO RUBBER-RELATED} ^{CHEMICALS
FOR VARIOUS APPLICATIONS.}

^{SUBJECT
ENGAGES IN THE FOLLOWING ACTIVITIES:}

^{*
BUYING AND SHIPPING HIGH QUALITY NATURAL RUBBER FOR GOODYEAR} ^{FACTORIES
ALL OVER THE WORLD INCLUDING ENGINEERED PRODUCTS PLANTS}

^{PRODUCTS
DEALINGS (TYRES):}

^*
PASSENGER

^{*
PICKUP, VAN, 4X4}

^{* OFF
THE ROAD}

^*
AVIATION

^*
RACING

^BRAND:

^*
GOODYEAR

^{GOODYEAR
PLANTATION IN INDONESIA}

^{* 2
ESTATES THAT TOGETHER TOTALS 19,000 HECTARE OF RUBBER, WITH 5}

^{PROCESSING
OPERATIONS}

^{* THE
PLANTATION IS LOCATED 100 KM SOUTH OF MEDAN}

^{* THE
FINISHED PRODUCT IS EXPORTED FROM THE PORT OF BELAWAN TO THE}

^{DIFFERENT
GOODYEAR TYRE PLANTS AROUND THE WORLD.}

^{QUALITY
ASSESSMENT:}

^{* ISO
9002}

^{SUBJECT
IS A MEMBER OF THE FOLLOWING ENTITIES:}

^{* SINGAPORE
INTERNATIONAL CHAMBERS OF COMMERCE}

^{*
AMERICAN CHAMBER OF COMME}

^{FROM
THE TELE-INTERVIEW CONDUCTED ON 04/12/2006, THE FOLLOWING WAS}

^GATHERED:

^{IMPORT
COUNTRIES:}

^*
WORLDWIDE

^{EXPORT
COUNTRIES:}

^*
WORLDWIDE

^{THE SUBJECT
DOES EXPORTS AND SELLS LOCALLY.}

^{NO
OTHER TRADE INFORMATION IS AVAILABLE ON 04/12/2006.}

^{THE
HOLDING CORPORATION, WHICH IS ALSO THE ULTIMATE HOLDING}

^{CORPORATION,
IS GOODYEAR TIRE AND RUBBER COMPANY, INCORPORATED}

^{IN THE
UNITED STATES OF AMERICA.}

^{NUMBER
OF EMPLOYEES (31 DECEMBER):}

^{*
COMPANY - 2005: NOT AVAILABLE (2004: 62; 2003: 62; 2002: 62)}

^{*
GROUP - 2005: - (2004: -)}

^{REGISTERED
AND BUSINESS ADDRESS:}

^{39
CHANGI SOUTH AVE 2}

^{APICO
INDUSTRIAL BUILDING}

^{SINGAPORE
486352}

^{-
RENTED PREMISE}

^{-
OWNED BY ASIA PAINT INTERNATIONAL PTE LTD}

^{- DATE
OF CHANGE OF ADDRESS: 17/08/1998}

^DEALERS:

^SINGAPORE

^{BINTER
& CO}

^{12,
EAST COAST RD}

^{SINGAPORE
428723}

^{TEL:
6345 7611}

^{FAX:
6345 4817}

^{HOCK
TYRE PTE LTD}

^{15
KALLANG WAY 3}

^{SINGAPORE
349108}

^{TEL:
6746 6686}

^{FAX:
6741 2223}

^{TOM'S
TYRE PTE LTD}

^{NO.
281, # 01-11}

^{KAKI
BUKIT AVE 1, SHUN LI INDUSTRIAL PARK}

^{SINGAPORE
416075}

^{TEL:
6749 1268}

^{FAX:
6749 3163}

^{TT
TYRES PTE LTD}

^{3,
INTERNATIONAL ROAD}

^{SINGAPORE
619619}

^{TEL:
6262 1010}

^{FAX:
6262 0060}

^BRUNEI:

^{HOCK
MOTOR CO}

^{NO.19 SIMPANG
21, KM 3,}

^{JALAN
GADONG BE4119,}

^{P.O.BOX
1169, GADONG POST BE3978}

^{BANDAR
SERI BEGAWAN,}

^{NEGARA
BRUNEI DARUSSALAM}

^{TEL:
001-673-2-425133}

^{FAX:
001-673-2-425463}

^WEBSITE:

^{http://www.goodyear.com.sg}

^EMAIL:

MANAGEMENT

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

^{1)
GARY A.MILER, AN AMERICAN}

^{-
BASED IN THE UNITED STATES OF AMERICA.}

^{2)
DARREN R. WELLS, AN AMERICAN}

^{-
BASED IN THE UNITED STATES OF AMERICA.}

^{3)
BRAD S. LAKHIA, AN AMERICAN}

^{-
BASED IN SINGAPORE.}

^{4) TAN
WENG CHYE PETER, A SINGAPOREAN}

^{-
OTHER DIRECTORSHIP(S) IN OUR DATABASE:}

^{GOODYEAR
SINGAPORE PTE LTD}

Singapore’s Country Rating 2006

Investment Grade

IN SINGAPORE, THE POLITICAL SITUATION APPEARS TO BE VERY STABLE.

ECONOMIC GROWTH IS BECOMING MORE MODERATE AS INVESTMENT HAS BEEN FLAT DUE TO INCREASING OIL PRICES AND LESS BUOYANT DEMAND FOR ELECTRONIC PRODUCTS.

ECONOMIC PERFORMANCE HAS REMAINED STRONG, UNDERPINNED BY PHARMACEUTICALS AND SERVICES. EXPORTS HAS BENEFITED FROM THE STEADINESS OF DEMAND FROM ITS MAIN TRADING PARTNERS, MALAYSIA, THE UNITED STATES, CHINA AND HONG KONG. OTHER THAN ITS BALANCED PUBLIC SECTOR ACCOUNTS, LIMITED FOREIGN DEBT AND COMFORTABLE FOREIGN CURRENCY RESERVES HAVE CONTRIBUTED TO SINGAPORE’S STRONG FINANCIAL CONDITION.

AS THE ELECTRONICS SECTOR FACES COMPETITION FROM THE ASIAN ECONOMIES, SINGAPORE HAS BEEN PURSUING DIVERSIFICATION STRATEGY THAT HAS BEEN CONSOLIDATING ITS POSITION. PHARMACEUTICALS ALREADY REPRESENT 10% OF EXPORTS IN COMPARATIVE TO ITS INSIGNIFICANT CONTRIBUTION IN YEAR 1995. ELECTRONICS SECTOR SECTOR’S SHARE HAS DECLINED FROM 80% TO 60% DURING THE SAME PERIOD. THERE IS HIGH RELIANCE ON DEVELOPMENT OF PETROCHEMICAL PRODUCTS, HIGH VALUE-ADDED SERVICES AND BIOTECHNOLOGIES.

ASSETS

ONE OF THE MOST OPEN ECONOMIES IN THE WORLD WITH EXPORTS PLAYING A MAJOR ROLE IN ITS PERFORMANCE.
ONE OF ASIA’S MOST ADVANCED COUNTRIES IN QUALITY COMPETITIVENESS TERMS.
WORKFORCE’S EDUCATION AND SKILL LEVEL IS VERY HIGH.
A MAJOR EXPORT OF CAPITAL IN ASIA, PARTICULARLY THE STATE-OWNED HOLDING COMPANY, TEMASEK.
THE BUSINESS ENVIRONMENT HAS BEEN VERY FAVOURABLE.
GREAT POLITICAL STABILITY.

WEAKNESSES

ECONOMY REMAINED OVERSPECIALISED IN THE ELECTRONICS SECTOR.
MUST ACCELERATE DIVERSIFICATION IN SERVICES TO MAINTAIN ITS LEAD OVER OTHER ASIAN ECONOMIES
REFORMS ARE STILL NEEDED TO FOSTER INNOVATION AND EDUCATION-SYSTEM MODERNIZATION.
AGING POPULATION COULD ULTIMATELY AFFECT ECONOMIC PERFORMANCE.

WHOLESALE AND RETAIL TRADE SECTOR

PAST PERFORMANCE

WITH THE GROWTH IN NON-OIL RE-EXPORTS AND THE RISE IN RETAIL SALES, THE WHOLESALE AND RETAIL TRADE SECTOR GREW BY A ROBUST 15% IN 1Q2006, UP FROM THE 12% GAIN IN 4Q2005.

WHOLESALE TRADE

DOMESTIC WHOLESALE TRADE INDEX

FOLLOWING SEVEN QUARTERS OF DOUBLE-DIGIT GROWTH, THE OVERALL DOMESTIC WHOLESALE TRADE INDEX MODERATED TO 7.5% IN 1Q2006. EXCLUDING PETROLEUM, THE INDEX ROSE BY 14.2% OVER THE SAME PERIOD LAST YEAR.

AT CONSTANT PRICES, THE OVERALL INDEX DECLINED BY 4.4% IN 1Q2006 OVER 1Q2005, MAINLY DUE TO LOWER ACTIVITY IN CHEMICAL AND PETROLEUM SECTORS. EXCLUDING PETROLEUM, IT WAS 7.9% HIGHER THAN A YEAR AGO.

ON A QUARTER-ON-QUARTER BASIS, THE OVERALL INDEX POSTED A DECLINE OF 16.5% COMPARED TO 4Q2005. EXCLUDING PETROLEUM, THE INDEX WERE LOWER BY 8.9%.

MOST OF THE MAJOR SECTORS REGISTERED SLOWER BUSINESS IN 1Q2006 WITH THE EXCEPTION OF TELECOMMUNICATIONS & COMPUTERS AND GENERAL WHOLESALE TRADE.

FOREIGN WHOLESALE TRADE INDEX

AS COMPARED TO 1Q2005, THE OVERALL FOREIGN WHOLESALE TRADE IN 1Q2006 ROSE BY 15.4%. EXCLUDING PETROLUEM, THE INDEX EXPANDED BY 11.5%.

AT CONSTANT PRICES, THE OVERALL INDEX ROSE MARGINALLY BY 0.9% IN 1Q2006 OVER A YEAR AGO. EXCLUDING PETROLEUM, IT WAS UP BY 7.6%.

ON A QUARTER-ON-QUARTER BASIS, THE OVERALL INDEX POSTED A DECLINE OF 9.4% FOLLOWING GROWTH FOR THREE CONSECUTIVE QUARTERS. EXCLUDING PETROLEUM, THE INDEX WERE LOWER BY 8.6%.

AHEAD

WHOLESALERS PREDICTS POSITIVE BUSINESS CONDITIONS FOR THE PERIOD ENDING DECEMBER 2006. THOSE DEALING IN FURNITURE & FURNISHINGS, COSMETICS & TOILETRIES, JEWELLERY & WATCHES, HOUSEHOLD ELECTRICAL APPLIANCES & EQUIPMENT, ELECTRONIC COMPONENTS, SCIENITIFIC & PRECISION EQUIPMENT, ARE AMONG THOSE WHO ARE OPTIMISTIC ABOUT THE BUSINESS OUTLOOK AHEAD.

EXTRACTED FROM : MINISTRY OF TRADE AND INDUSTRY, SINGAPORE

SINGAPORE DEPARTMENT OF STATISTICS

TODAY

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/normal.	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