MIRA INFORM REPORT

Report Date :

21.02.2008

IDENTIFICATION DETAILS

Name :	LINTEC SINGAPORE PRIVATE LIMITED

Registered Office :	20 Bendemeer Road #02-01 Cyberhub

Country :	Singapore

Financials (as on) :	31.12.2006

Date of Incorporation :	25.02.1995

Com. Reg. No.:	199501343E

Legal Form :	Pte Ltd

Line of Business :	Wholesale of Machineries, Spare-Parts and Pressure Sensitive Adhesive Tapes

RATING & COMMENTS

MIRA’s Rating :

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

LINTEC SINGAPORE PRIVATE LIMITED

Line Of Business

WHOLESALE OF MACHINERIES, SPARE-PARTS AND PRESSURE SENSITIVE ADHESIVE TAPES

Parent Company

LINTEC CORPORATION

(PERCENTAGE OF SHAREHOLDING: 100%)

Financial Elements

FY 2006

GROUP

Sales : JPY 6,246,446,000

Networth : JPY 3,342,330,000

Paid-Up Capital : JPY 33,436,000

Net result : JPY 1,046,156,000

Net Margin(%) : 16.75

Return on Equity(%) : 31.30

Leverage Ratio : 0.31

COMPANY IDENTIFICATION

^{Subject
Company :}^{LINTEC SINGAPORE PRIVATE LIMITED}

^{Former
Name :}^-

^{Business
Address :}^{20 BENDEMEER ROAD}

^{#02-01 CYBERHUB}

^{Town :
SINGAPORE}

^{Postcode :}³³⁹⁹¹⁴

^{County :
-}

^{Country :
Singapore}

^{Telephone :}^{6221 5854 / 6278 7072}

^{Fax :}^{6221 6458 / 6278
0372}

^{ROC
Number :}^199501343E

^{Reg.
Town : -}

SUMMARY

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

^{Legal
Form :}^{Pte Ltd}

^{Date
Inc. :}^25/02/1995

^{Previous
Legal Form :
-}

^{Summary
year :}^31/12/2006

^{Sales :}^{6,246,446,000}

^{Networth
:}^{3,342,330,000}

^{Capital :}^-

^{Paid-Up
Capital :}^33,436,000

^{Employees :
-}

^{Net
result :}^{1,046,156,000}

^{Share
value :
1}

^{Auditor :}^{ERNST & YOUNG}

^{BASED ON ACRA'S
RECORD}

^{NO
OF SHARE CURRENCY AMOUNT}

^{ISSUED
ORDINARY 500,000 SGD 500,000.00}

^{PAID-UP ORDINARY - SGD 500,000.00}

REFERENCES

^{Litigation : No}

^{Company status : TRADING}

^{Started :}^25/02/1995

PRINCIPAL(S)

^{HIROSHI SAKAMOTO F0406034L Managing Director}

DIRECTOR(S)

^{HIROSHI SAKAMOTO F0406034L Director}

^{Appointed on : 25/02/1995}

^{Street : 53 TELOK
BLANGAH DRIVE} ^#13-72

^{Town :
SINGAPORE}

^{Postcode : 100053}

^{Country : Singapore}

^{HIROSHI SAKAMOTO F0406034L Managing Director}

^{Appointed on : 24/03/1995}

^{Street : 53 TELOK
BLANGAH DRIVE} ^#13-72

^{Town :
SINGAPORE}

^{Postcode : 100053}

^{Country : Singapore}

^{LOW GEOK ENG SUSIE S0167313J Company Secretary}

^{Appointed on : 01/10/2006}

^{Street : 201
BISHAN STREET 23} ^#08-469

^{Town :
SINGAPORE}

^{Postcode : 570201}

^{Country : Singapore}

^{LEE VYE BON S2028515Z Director}

^{Appointed on : 25/02/1995}

^{Street : 53 TELOK BLANGAH DRIVE} ^#13-72

^{Town :
SINGAPORE}

^{Postcode : 100053}

^{Country : Singapore}

^{SOH LIAN WEI S7137931J Director}

^{Appointed on : 17/07/2006}

^{Street : 14 PARK
VILLAS GREEN}

^{Town :
SINGAPORE}

^{Postcode : 545438}

^{Country : Singapore}

^{LOW PENG FAH S7242232E Director}

^{Appointed on : 17/07/2006}

^{Street : 512 WEST COAST DRIVE} ^#09-347 ^{WEST COAST VISTA}

^{Town :
SINGAPORE}

^{Postcode : 120512}

^{Country : Singapore}

^{MAKOTO IIUMI TE3945984 Director}

^{Appointed on : 07/11/2000}

^{Street : 42-13
YAMATO CHO, ITABASHI-KU}

^{Town : TOKYO}

^{Postcode :}

^{Country : Japan}

^{HITOSHI ASAI TF3739411 Director}

^{Appointed on : 17/07/2006}

^{Street : 3-6-3
YOSHIBA, KUKI}

^{Town : SAITAMA}

^{Postcode : 3460014}

^{Country : Japan}

^{SHIGERU KAWASAKI TF9828369 Director}

^{Appointed on : 17/07/2006}

^{Street : HANANOI
439-13, KASHIWA CITY}

^{Town : CHIBA
PREFECTURE}

^{Postcode :}

^{Country : Japan}

ACTIVITY(IES)

^{IMPORTERS And
EXPORTERS
Code:11760}

^{MACHINE TOOLS - ACCESSORIES Code:13250}

^{COMMISSION
MERCHANTS
Code:4990}

^{ADHESIVES And GLUING
EQUIPMENT
Code:150}

^{BASED ON ACRA'S RECORD
AS AT 29/11/2007}

^{1) GENERAL WHOLESALE
TRADE (INCLUDING GENERAL IMPORTERS & EXPORTERS);}

^{IMPORT, EXPORT AND SALE
OF MACHINERIES, SPARE PARTS}

^INDUSTRIES

CHARGES

No Charges On Premises/Property In Our Database

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

SHAREHOLDERS(S)

^{LINTEC CORPORATION 500,000 Company}

^{Street : 23-23,
HONCHO ITABASHI-KU}

^{Town: TOKYO}

^{Postcode: 1730001}

^{Country: Japan}

HOLDING COMPANY

^{LINTEC CORPORATION 985723402 % :
100}

SUBSIDIARY(IES)

^{LINTEC ADVANCED
TECHNOLOGIES (PHILIPPINES) INC}

^{LINTEC ADVANCED
TECHNOLOGIES (MALAYSIA) SDN BHD}

^{LINTEC BKK PTE LIMITED}

PAYMENT HISTORY AND EXPERIENCES

^{Trade Morality :
AVERAGE}

^{Liquidity : ABUNDANT}

^{Payments : REGULAR}

^{Trend :
UPWARD}

^{Financial Situation : GOOD}

FINANCIAL ELEMENTS

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

^{Date Account
Lodged: 08/06/2007}

^{Balance Sheet
Date: 31/12/2006 31/12/2005}

^{Number of
weeks:
52 52}

^{Consolidation
Code: CONSOLIDATED CONSOLIDATED}

^{--- ASSETS ---}

^{Preliminary Exp 1,023,000
560,000}

^{Intangible Fixed
Assets: 41,000 -}

^{Tangible Fixed
Assets: 171,558,000 213,531,000}

^{Investments 11,422,000 11,422,000}

^{Total Fixed Assets:
184,044,000
225,513,000}

^{Inventories: 369,763,000 271,709,000}

^{Receivables: 1,391,331,000 1,394,058,000}

^{Cash,Banks, Securitis: 2,348,448,000 1,682,281,000}

^{Other current
assets: 85,044,000 90,659,000}

^{Total Current Assets:
4,194,586,000
3,438,707,000}

^{TOTAL ASSETS:
4,378,630,000
3,664,220,000}

^{--- LIABILITIES ---}

^{Equity capital: 33,436,000 33,436,000}

^{Reserves: 15,536,000 5,238,000}

^{Profit &
lost Account: 3,287,320,000 2,449,948,000}

^{Other: 6,038,000 5,432,000}

^{Total Equity:
3,342,330,000
2,494,054,000}

^{L/T deffered
taxes: 8,946,000 12,282,000}

^{Other long term
Liab.: 1,059,000 1,871,000}

^{Total L/T Liabilities:
10,005,000
14,153,000}

^{Trade
Creditors:
753,575,000
890,135,000}

^{Prepay. & Def.
charges: 35,548,000 30,022,000}

^{Short term
liabilities:
1,096,000
898,000}

^{Provisions: 230,374,000 230,521,000}

^{Other Short term
Liab.: 5,702,000 4,437,000}

^{Total short term Liab.:
1,026,295,000
1,156,013,000}

^{TOTAL LIABILITIES:
1,036,300,000
1,170,166,000}

^{--- PROFIT &
LOSS ACCOUNT ---}

^{Net Sales 6,246,446,000 5,148,263,000}

^{NET RESULT BEFORE
TAX: 1,252,724,000 1,268,109,000}

^{Tax :
206,568,000
240,189,000}

^{Net income/loss
year: 1,046,156,000 1,027,920,000}

^{Interest Paid: 159,000 13,000}

^{Depreciation: 112,527,000 80,844,000}

^{Dividends: 208,178,000 -}

^{Directors Emoluments: 36,972,000 26,066,000}

^{Wages and
Salaries:
253,212,000
215,010,000}

^{Financial
Income:
866,000
638,000}

RATIOS

^{31/12/2006 31/12/2005}

^{Net result /
Turnover(%): 0.17 0.20}

^{Stock / Turnover(%): 0.06 0.05}

^{Net Margin(%): 16.75 19.97}

^{Return on Equity(%): 31.30 41.21}

^{Return on Assets(%): 23.89 28.05}

^{Dividends Coverage: 5.03 5.03}

^{Net Working capital: 3168291000.00 2282694000.00}

^{Cash Ratio: 2.29 1.46}

^{Quick Ratio: 3.64 2.66}

^{Current ratio: 4.09 2.97}

^{Receivables Turnover: 80.19 97.48}

^{Leverage Ratio: 0.31 0.47}

^{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}

^{Net
Working capital : (Total current
assets/Total short term liabilities)/1000}

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

^{NET WORTH:}

^{THE BALANCE SHEET WAS
CONSIDERED SOUND WITH NET WORTH IMPROVED BY} ^{34.01% FROM JPY2,494,054,000 IN FY 2005 TO JPY3,342,330,000 IN FY} ^{2006. THIS WAS DUE TO HIGHER ACCUMULATED PROFIT OF JPY3,287,320,000} ^{(2005:
JPY2,449,948,000); A RISE OF 34.18% FROM THE PRIOR FINANCIAL} ^YEAR.

^LEVERAGE:

^{IN THE SHORT-TERM,
SUBJECT WAS LARGELY FINANCED BY TRADE CREDITORS} ^{WHICH MADE UP 73.42% (2005: 77.00%) OF THE
TOTAL CURRENT LIABILITIES} ^{AND AMOUNTED TO JPY753,575,000 (2005:
JPY890,135,000). THE BREAKDOWN} ^{WAS AS FOLLOWS:}

^{*HOLDING COMPANY- 2006:
JPY387,838,000 (2005: JPY675,553,000)}

^{*RELATED COMPANY- 2006:
JPY217,863,000 (2005: JPY142,326,000)}

^{*THIRD PARTIES- 2006:
JPY147,874,000 (2005: JPY72,256,000)}

^{IN ALL, LEVERAGE RATIO
FELL FROM 0.47 TIMES IN FY 2005 TO 0.31 TIMES} ^{AS A RESULT OF A FALL IN TOTAL
LIABILITIES AND RISE IN TOTAL EQUITY}

^LIQUIDITY:

^{IN GENERAL, SUBJECT'S
LIQUIDITY SITUATION WAS ADEQUATE AS SEEN FROM} ^{THE RISE IN NET WORKING CAPITAL AND
LIQUIDITY RATIOS. CURRENT RATIO} ^{ROSE TO 4.09 TIMES, FROM 2.97 TIMES
AND QUICK RATIO IMPROVED TO 3.64} ^{TIMES FROM 2.66 TIMES IN FY 2005.}

^{SIMILARLY, NET WORKING
CAPITAL IMPROVED BY 38.79% FROM} ^{JPY2,282,694,000 IN FY 2005 TO JPY3,168,291,000.}

^{CASH AND CASH
EQUIVALENTS COMPRISED OF:}

^{*CASH IN HAND- 2006:
JPY69,000 (2005: JPY134,000)}

^{*CASH AT BANK- 2006:
JPY2,348,379,000 (2005: JPY1,682,147,000)}

^{PROFITABILITY:}

^{REVENUE POSTED AN
INCREASE OF 21.33% FROM JPY5,148,263,000 IN FY 2005} ^{TO JPY6,246,446,000 NET PROFIT ROSE BY
1.77% TO JPY1,046,156,000} ^{(2005: JPY1,027,920,000). HENCE, NET
MARGIN FELL TO 16.75% (2005:} ^19.97%).

^{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
JPY159,000 IN FY 2006 (2005: JPY13,000).}

^{NON-CURRENT ASSETS:}

^{THE FOLLOWING ITEM IS
CLASSIFIED UNDER PRELIMINARY:}

^{*DEFERRED TAX ASSETS-
2006:1,023,000 JPY (2005: JPY560,000)}

^{NOTES TO THE FINANCIAL
STATEMENT:}

^REVENUE:

^{*PROFIT AFTER INCOME TAX
- 2006: JPY1,046,156,000 (2005: JPY1,027,920)} ^{(LESS) MINORITY INTEREST - 2006: JPY606,000
(2005: JPY192,000)} ^{NET PROFIT AFTER MINORITY INTEREST - 2006:
JPY1,045,550,000 (2005:} ^{JPY1,027,728,000}

BACKGROUND/OPERATION

^{THE COMPANY WAS
INCORPORATED IN THE REPUBLIC OF SINGAPORE ON} ^{25/02/1995 AS A LIMITED PRIVATE COMPANY
AND IS TRADING UNDER ITS} ^{PRESENT NAMESTYLE AS "LINTEC SINGAPORE
PRIVATE LIMITED".}

^{THE COMPANY HAS AN
ISSUED AND PAID-UP CAPITAL OF} ^{500,000 SHARES, OF A VALUE OF S$500,000.}

^{PRINCIPAL ACTIVITIES:}

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

^{1) GENERAL WHOLESALE
TRADE (INCLUDING GENERAL IMPORTERS & EXPORTERS);} ^{IMPORT, EXPORT AND SALE OF MACHINERIES,
SPARE PARTS}

^{2) WHOLESALE ON A FEE OR
CONTRACT BASIS (EG COMMISSION AGENCIES);} ^{PRESSURE-SENSITIVE ADHESIVE TAPES FOR SEMI-CONDUCTOR AND RELATED} ^INDUSTRIES

^{THE
COMPANY IS LISTED IN THE SINGAPORE LOCAL DIRECTORIES UNDER THE} ^{CLASSIFICATION
OF: TRADING COMPANIES.}

^{DURING THE FINANCIAL
YEAR(S), UNDER REVIEW, SUBJECT'S PRINCIPAL} ^{ACTIVITIES ARE IMPORT, EXPORT AND SALE OF MACHINERIES, SPARE-PARTS
AND} ^{PRESSURE SENSITIVE ADHESIVE TAPES}

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

^BACKGROUND:

^{LINTEC SINGAPORE WAS
ORIGINALLY ESTABLISHED ON 21 DECEMBER 1993 AS THE} ^{REPRESENTATIVE OFFICE OF LINTEC
CORPORATION, JAPAN. IT WAS AMONG THE} ^{FIRST FEW OFFICES TO BE
REGISTERED OUTSIDE JAPAN AND IT SERVED AS THE} ^{MAIN COMMUNICATING AND
COORDINATING CHANNELS FOR ALL THE INTERNATIONAL} ^{CUSTOMERS OF LINTEC
JAPAN IN THE SEMICONDUCTOR INDUSTRY.}

^{PRODUCTS DEALING:}

^{INDUSTRIAL MATERIAL:}

^{* LAG SYSTEM}

^{* LAG PRINT}

^{* WINDOW FILMS}

^{* MARKING FILMS}

^{* LUMIDEAR}

^{* TACK LINER}

^{* PRESSURE-SENSITIVE
ADHESIVE PRODUCTS FOR CAR}

^{LABEL STOCK:}

^{* SPECIALTY APPLICATION
PRODUCT}

^{* PRIME LABELS AND
STICKERS}

^{PRINTING MACHINE:}

^{* LPM-300GT}

^{* LPM-300 IT}

^{* LPM FLATBED MACHINES}

^{* LPM IN-LINE OPTIONS}

^{* LPM ACCESSORIES}

^{NO OTHER TRADE
INFORMATION WAS AVAILABLE AS TELE-INTERVIEW WAS NOT} ^{GRANTED BY SUBJECT'S PERSONNEL}

^{THE IMMEDIATE AND
ULTIMATE HOLDING COMPANY IS LINTEC CORPORATION,} ^{INCORPORATED IN JAPAN}

^{REGISTERED AND BUSINESS ADDRESS:}

^{20 BENDEMEER ROAD}

^{$02-01 CYBERHUB}

^{SINGAPORE 339914}

^{DATE OF CHANGE OF
ADDRESS: 01/09/2003}

^{WEBSITE:
http://www.lintec.com.sg}

^{EMAIL: -}

MANAGEMENT

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

^{1) HIROSHI SAKAMOTO, A
JAPANESE}

^{- BASED IN SINGAPORE}

^{2) LEE VYE BON, A
SINGAPOREAN}

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

^{3) SOH LIAN WEI, A
SINGAPOREAN}

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

^{4) LOW PENG FAH, A
SINGAPOREAN}

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

^{5) MAKOTO IIUMI, A
JAPANESE}

^{- BASED IN JAPAN}

^{6) HITOSHI ASAI, A
JAPANESE}

^{- BASED IN JAPAN}

^{7) SHIGERU KAWASAKI, A
JAPANESE}

^{- BASED IN JAPAN}

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.

WHOLESALE AND RETAIL TRADE SECTOR

PAST PERFORMANCE

THE WHOLESALE AND RETAIL TRADE SECTOR GREW BY 6.6% IN 3Q 2007, WEAKER THAN THE 8.4% GROWTH IN 2Q 2007. ALTHOUGH NON-OIL RE-EXPORTS STRENGTHENED IN THE QUARTER, RETAIL SALES RECORDED SLOWER GROWTH.

DOMESTIC WHOLESALE TRADE INDEX

THE OVERALL DOMESTIC WHOLESALE TRADE ROSE BY 4.6% IN 3Q 2007 OVER 3Q 2006.

EXCLUDING PETROLEUM, DOMESTIC SALES GREW BY 7.5%.

THE RISE IN THE OVERALL INDEX WAS MAINLY DUE TO HIGHER SALES OF FOOD, BEVERAGES AND TOBACCO (45.7%), TIMBER, PAINTS AND CONSTRUCTION MATERIALS (23.3%). OTHER WHOLESALE SEGMENTS THAT REPORTED BETTER BUSINESS WERE WHOLESALING OF INDUSTRIAL AND CONSTRUCTION MACHINERY (9.7%) TELECOMMUNICATIONS AND COMPUTERS (8.3%) AND CHEMICALS AND CHEMICAL PRODUCTS (6.8%).

ON THE OTHER HAND, WHOLESALE SEGMENTS THAT REPORTED LOWER SALES WERE ELECTRONIC COMPONENTS (-19.4%), HOUSEHOLD EQUIPMENT AND FURNITURE (-4.4%), SHIP CHANDLERS AND BUNKERING (-3.1%).

AT CONSTANT PRICES, THE OVERALL DOMESTIC WHOLESALE TRADE ROSE BY 4.9% IN 3Q 2007 OVER 3Q 2006. DOMESTIC SALES EXCLUDING PETROLEUM ROSE BY 9.1%.

ON A QUARTER-OVER-QUARTER BASIS, THE OVERALL DOMESTIC WHOLESALE TRADE IN 3Q 2007 ROSE BY 12.2% OVER 2Q 2007. EXCLUDING PETROLEUM, IT GREW BY 8.2%.

THE MAJORTIY OF THE WHOLESALE SECTORS RECORDED HIGHER DOMESTIC SALES IN 3Q 2007 OVER PREVIOUS QUARTER. SHIP CHANDLERS AND BUNKERING EXPANDED BY 27.9%, MAINLY DUE TO HIGHER BUNKER SALES.

THE GENERAL WHOLESALE TRADE SECTOR FELL IN 3Q 2007 AFTER RECORDING STRONG GROWTH IN 2Q 2007.

FOREIGN WHOLESALE TRADE INDEX

THE OVERALL FOREIGN WHOLESALE TRADE FOR 3Q 2007 ROSE BY 4.3%, IN COMPARISON TO 3Q 2006. EXCLUDING PETROLEUM, IT EXPANDED BY 9.0%

MOST OF THE SECTORS REPORTED HIGHER SALES. DOUBLE-DIGIT GROWTH RATES FOR OVERSEAS SALES WERE RECORDED BY FOOD, BEVERAGES AND TOBACCO (51.2%) AND TIMBER, PAINT AND CONSTRUCTION MATERIALS (15.5%). OTHER WHOLESALE SECTORS THAT REGISTERED BETTER BUSINESS IN 3Q 2007 WERE CHEMICALS AND CHEMICAL PRODUCTS (7.6%) AND TELECOMMUNICATIONS AND COMPUTERS (5.0%)

FOREIGN SALES OF SHIP CHANDLERS AND BUNKERING, GENERAL WHOLESALE TRADE, INDUSTRIAL AND CONSTRUCTION MACHINERY AND ELECTRONIC COMPONENTS REGISTERED INCREASES OF 2.6% TO 6.1 %IN 3Q 2007, IN CONTRAST TO THE LOWER SALES IN THE PREVIOUS QUARTER.

AT CONSTANT PRICES, THE OVERALL INDEX ROSE BY 8.0% IN 3Q 2007 OVER 3Q 2006.

EXCLUDING PETROLEUM, FOREIGN WHOLESALE TRADE GREW BY 12.0%.

ON A QUARTER-OVER-QUARTER BASIS, THE OVERALL FOREIGN WHOLESALE TRADE IN 3Q 2007 ROSE BY 4.9% OVER 2Q 2007. EXCLUDING PETROLEUM, IT GREW BY 8.2%.

ALL WHOLESALE SECTORS RECORDED BETTER BUSINESS IN 3Q 2007 WITH THE EXCEPTION OF CHEMICALS AND CHEMICAL PRODUCTS. WHOLESALE TRADE OF FOOD, BEVERAGES AND TOBACCO, AND SHIP CHANDLERS AND BUNKERING BOTH GREW BY 17.1%. WHOLESALE OF ELECTRONIC COMPONENTS ROSE BY 12.5%.

RETAIL TRADE

THE OVERALL RETAIL SALES ROSE BY 1.3%, WEAKER THAN THE 7.9% IN 2Q 2007. MOTOR VEHICLES FELL BY 6.8% COMPARED TO THE 2.4% GROWTH IN 2Q 2007. EXCLUDING MOTOR VEHICLES, RETAIL SALES ROSE BY 5.7%, A DECLINE FROM THE 11.O% IN 2Q 2007.

OUTLOOK

GENERALLY, WHOLESALERS ARE POSITIVE ABOUT THEIR BUSINESS PROSPECTS IN THE COMING MONTHS, WITH A NET WEIGHTED BALANCE OF 24% OF FIRMS EXPRESSING POSITIVE BUSINESS SENTIMENTS. THIS APPLIES PARTICULARLY TO FIRMS IN THE WHOLESALING OF FOOD AND BEVERAGES, WEARING APPAREL AND FOOTWEAR, COSMETICS AND TOILETRIES, AND HOUSEHOLD AND ELECTRICAL APPLIANCES.

AS A RESULT OF YEAR-END FESTIVE SHOPPING, A NET WEIGHTED BALANCE OF 31% OF RETAILERS EXPECTS BUSINESS TO IMPROVE IN THE COMING MONTHS. THE RETAIL SECTORS THAT ARE FORECASTING BETTER BUSINESS INCLUDING DEPARTMENT STORE AND SUPERMARKET OWNERS, WEARING APPAREL AND FOOTWEAR, FURNITURE AND FURNISHINGS, AND JEWELLERY AND WATCHES.

EXTRACTED FROM: MINISTRY OF TRADE AND INDUSTRY

SINGAPORE DEPARTMENT OF STATISTICS

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