MIRA INFORM REPORT

Report Date :

30.05.2008

IDENTIFICATION DETAILS

Name :	INTEST PTE. LTD.
Registered Office :	^4010 Ang Mo Kio Avenue 10 ^#05-01/02 ^Techplace 1
Country :	Singapore
Financials (as on) :	31.12.2006
Date of Incorporation :	^30.04.1990
Com. Reg. No.:	^199002034W
Legal Form :	^Pte Ltd
Line of Business :	^The Supply of Services and Trading of Products to the Semiconductor Industries

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear

Subject Company

INTEST PTE. LTD.

Line Of Business 

^{THE SUPPLY OF SERVICES AND TRADING OF PRODUCTS TO THE SEMICONDUCTOR INDUSTRIES.}

Parent Company

^{INTEST CORPORATION}

(PERCENTAGE OF SHAREHOLDING: 100.00%)

Financial Elements

FY 2006

COMPANY

Sales : S$11,917,000

Networth : S$ 2,672,000

Paid-Up Capital : S$ 150,000

Net result : S$ 1,987,000

Net Margin(%) : 16.67

Return on Equity(%) : 74.36

Leverage Ratio : 0.50

COMPANY IDENTIFICATION

^{Subject Company : INTEST PTE. LTD.}

^{Former Name :}

^{Business Address : 4010 ANG MO KIO AVENUE 10}

^#05-01/02

^{TECHPLACE 1}

^{Town : SINGAPORE}

^{Postcode : 569626}

^{County :}

^{Country : Singapore}

^{Telephone : 6552 2404}

^{Fax : 6552 2414}

^{ROC Number : 199002034W}

^{Reg. Town :}

SUMMARY

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

^{Legal Form : Pte Ltd}

^{Date Inc. : 30/04/1990}

^{Previous Legal Form : -}

^{Summary year : 31/12/2006}

^{Sales : 11,917,000}

^{Networth : 2,672,000}

^{Capital : -}

^{Paid-Up Capital : 150,000}

^{Employees : 20}

^{Net result : 1,987,000}

^{Share value : -}

^{Auditor : KPMG}

^{BASED ON ACRA'S RECORD}

^{NO OF SHARES CURRENCY AMOUNT}

^{ISSUED ORDINARY 150,000 SGD 150,000.00}

^{PAID-UP ORDINARY - SGD 150,000.00}

REFERENCES

^{Litigation : No}

^{Company status : TRADING}

^{Started : 30/04/1990}

PRINCIPAL(S)

^{LOH KIM SING S2591505D Managing Director}

DIRECTOR(S)

^{ROBERT EDWARD MATTHIESSEN 152128579 Director}

^{Appointed on : 01/01/2000}

^{Street : 28 MIDBRIDGE DRIVE, NJ 08055}

^{Town: MEDFORD}

^Postcode:

^{Country: United States}

^{CORNELIS HOL Director}

^{Appointed on : 30/04/1990}

^{Street : AUFELD 15 D-84168}

^{Town: LOIZENKIRCHEN-AHAM}

^Postcode:

^{Country: Germany}

^{LEE TENG KENG S0157786G Director}

^{Appointed on : 25/03/1992}

^{Street : 618 ANG MO KIO AVENUE 4}

^#13-1059

^{Town: SINGAPORE}

^{Postcode: 560618}

^{Country: Singapore}

^{LOH KIM SING S2591505D Director}

^{Appointed on : 01/09/2005}

^{Street : 133 LORONG AH SOO}

^#08-418

^{Town: SINGAPORE}

^{Postcode: 530133}

^{Country: Singapore}

^{LOH KIM SING S2591505D Managing Director}

^{Appointed on : 01/09/2005}

^{Street : 133 LORONG AH SOO}

^#08-418

^{Town: SINGAPORE}

^{Postcode: 530133}

^{Country: Singapore}

^{TEO CHIN KEE S2622115C Company Secretary}

^{Appointed on : 21/04/2006}

^{Street : 21 ELIAS ROAD}

^#02-01

^{RIS GRANDEUR}

^{Town: SINGAPORE}

^{Postcode: 519929}

^{Country: Singapore}

ACTIVITY(IES)

^{MACHINERY Code:13260}

^{BASED ON ACRA'S RECORD}

^{1) WHOLESALE OF MACHINERY AND EQUIPMENT;}

^{SUPPLY OF SERVICES AND TRADING OF PRODUCTS TO THE SEMI-CONDUCTOR}

CHARGES

No Charges On Premises/Property In Our Database

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

SHAREHOLDERS(S)

^{INTEST CORPORATION 150,000 Company}

^{Street : 7 ESTERBROOK LANE CHERRY HILL}

^{NJ 08003}

^Town:

^Postcode:

^{Country: United States}

HOLDING COMPANY

^{INTEST CORPORATION UF06694D % : 100}

SUBSIDIARY(IES)

No Participation In Our Database

PAYMENT HISTORY AND EXPERIENCES

^{Trade Morality : AVERAGE}

^{Liquidity : SUFFICIENT}

^{Payments : REGULAR}

^{Trend : UPWARD}

^{Financial Situation : AVERAGE}

FINANCIAL ELEMENTS

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

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

^{Date Account Lodged: 02/10/2007}

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

^{Number of weeks: 52 52}

^{Consolidation Code: COMPANY COMPANY}

^{--- ASSETS ---}

^{Tangible Fixed Assets: 32,000 78,000}

^{Total Fixed Assets: 32,000 78,000}

^{Inventories: 123,000 108,000}

^{Receivables: 2,315,000 2,310,000}

^{Cash,Banks, Securitis: 1,503,000 971,000}

^{Other current assets: 33,000 59,000}

^{Total Current Assets: 3,974,000 3,448,000}

^{TOTAL ASSETS: 4,006,000 3,526,000}

^{--- LIABILITIES ---}

^{Equity capital: 150,000 150,000}

^{Reserves: 54,000 8,000}

^{Profit & lost Account: 2,468,000 2,041,000}

^{Total Equity: 2,672,000 2,199,000}

^{Trade Creditors: 638,000 931,000}

^{Prepay. & Def. charges: 86,000 35,000}

^{Provisions: 504,000 120,000}

^{Other Short term Liab.: 106,000 241,000}

^{Total short term Liab.: 1,334,000 1,327,000}

^{TOTAL LIABILITIES: 1,334,000 1,327,000}

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

^{Net Sales 11,917,000 9,036,000}

^{Purchases,Sces & Other Goods: 7,303,000 6,569,000}

^{Gross Profit: 4,614,000 2,467,000}

^{NET RESULT BEFORE TAX: 2,496,000 575,000}

^{Tax : 509,000 119,000}

^{Net income/loss year: 1,987,000 456,000}

^{Interest Paid: 509,000 119,000}

^{Depreciation: 50,000 82,000}

^{Dividends: 1,560,000 1,650,000}

^{Wages and Salaries: 867,000 785,000}

^{Financial Income: 77,000 42,000}

RATIOS

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

^{Turnover per employee: 595850.00 451800.00 Net result / Turnover(%): 0.17 0.05 Fin. Charges / Turnover(%): 0.04 0.01 Stock / Turnover(%): 0.01 0.01 Net Margin(%): 16.67 5.05 Return on Equity(%): 74.36 20.74 Return on Assets(%): 49.60 12.93 Dividends Coverage: 1.27 0.28 Net Working capital: 2640000.00 2121000.00 Cash Ratio: 1.13 0.73 Quick Ratio: 2.86 2.47 Current ratio: 2.98 2.60 Receivables Turnover: 69.93 92.03 Leverage Ratio: 0.50 0.60}

^{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}

^{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 21.51% TO S$2,672,000 (2005: S$2,199,000). THIS WAS ATTRIBUTED TO A RISE IN ACCUMULATED PROFITS BY 20.92% TO S$2,468,000 IN FY 2006 FROM S$2,041,000 IN FY 2005.}

^LEVERAGE:

^{IN THE SHORT-TERM, SUBJECT WAS LARGELY FINANCED BY TRADE CREDITORS WHICH MADE UP 47.83% (2005: 70.16%) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO S$638,000 (2005: S$931,000). TRADE CREDITORS CONSISTED OF THE FOLLOWING:}

^{* TRADE PAYABLES - 2006: S$190,000 (2005: S$320,000)}

^{* HOLDING COMPANY (TRADE) - 2006: S$32,000 (2005: S$154,000)}

^{* RELATED CORPORATIONS (TRADE) - 2006: S$416,000 (2005: S$457,000)}

^{OVERALL, THE LEVERAGE RATIO HAD IMPROVED TO 0.50 TIMES (2005: 0.60 TIMES), INDICATING THAT THE COMPANY'S TOTAL LIABILITIES WERE LESS SUBSTANTIAL IN RELATION TO ITS TOTAL EQUITY.}

^LIQUIDITY:

^{IN GENERAL, SUBJECT'S LIQUIDITY SITUATION WAS CONSIDERED PASSABLE AS SEEN FROM NET WORKING CAPITAL AND LIQUIDITY RATIOS. BOTH CURRENT AND QUICK RATIOS ROSE TO 2.98 TIMES (2005: 2.60 TIMES) AND 2.86 TIMES (2005: 2.47 TIMES) RESPECTIVELY.}

^{NET WORKING CAPITAL INCREASED BY 24.47% FROM S$2,121,000 IN FY 2005 TO S$2,640,000 IN FY 2006.}

^{CASH AND CASH EQUIVALENTS ROSE BY 54.79% FROM S$971,000 IN FY 2005 TO S$1,053,000 IN FY 2006.}

^{PROFITABILITY:}

^{SUBJECT POSTED AN INCREASE IN REVENUE OF 31.88% WHICH AMOUNTED TO S$11,917,000 (2005: S$9,036,000). SIMILARLY, NET PROFIT ROSE BY 3.34 TIMES WHICH AMOUNTED TO S$1,987,000 (2005: S$456,000). AS A RESULT, NET MARGIN ROSE TO 16.67% (2005: 5.05%).}

^{REVENUE CONSISTED OF:}

^{* SALE OF EQUIPMENT - 2006: S$11,557,000 (2005: S$8,698,000)}

^{* COMMISSION INCOME - 2006: S$ 360,000 (2005: S$ 338,000)}

^{DEBT SERVICING:}

^{DEBT SERVICING PROBLEMS MIGHT NOT BE EXPECTED IF REVENUE AND EARNINGS CAN BE MAINTAINED AND PAYMENTS BY TRADE DEBTORS ARE FORTHCOMING.}

^{IT WAS NOTED THAT AVERAGE COLLECTION PERIOD HAS SHORTHENED TO 70 DAYS (2005: 92 DAYS).}

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 30/04/1990 AS A LIMITED PRIVATE COMPANY AND IS TRADING UNDER ITS PRESENT NAMESTYLE AS "INTEST PTE. LTD.".}

^{THE COMPANY HAS AN ISSUED AND PAID-UP CAPITAL OF 150,000 SHARES, OF A VALUE OF S$150,000.}

^{PRINCIPAL ACTIVITIES:}

^{SUBJECT IS REGISTERED WITH THE ACCOUNTING AND CORPORATE REGULATORY}

^{AUTHORITY (ACRA) TO BE PRINCIPALLY ENGAGED IN THE BUSINESS OF:}

^{1) WHOLESALE OF MACHINERY AND EQUIPMENT;}

^{SUPPLY OF SERVICES AND TRADING OF PRODUCTS TO THE SEMI-CONDUCTOR}

^INDUSTRIES

^{THE COMPANY WAS LISTED IN THE SINGAPORE LOCAL DIRECTORIES UNDER THE CLASSIFICATION OF: TESTING EQUIPMENT-SEMI CONDUCTOR}

^{DURING THE FINANCIAL YEAR(S), UNDER REVIEW, SUBJECT'S PRINCIPAL ACTIVITIES ARE THOSE RELATING TO THE SUPPLY OF SERVICES AND TRADING OF PRODUCTS TO THE SEMICONDUCTOR INDUSTRIES.}

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

^{BACKGROUND (IMMEDIATE AND ULTIMATE HOLDING COMPANY:}

^{INTEST CORPORATION WAS FOUNDED IN 1981 IN CHERRY HILL, NEW JERSEY. WE}

^{DESIGN, MANUFACTURE, AND MARKET PRODUCTS THAT ARE USED PRIMARILY BY SEMICONDUCTOR MANUFACTURERS TO TEST THEIR INTEGRATED CIRCUITS AND WAFER PRODUCTS. OUR PRODUCT LINES INCLUDE TEST HEAD MANIPULATORS, DOCKING HARDWARE, TESTER INTERFACES, AND THERMAL TEST SYSTEMS. RECOGNIZING THE WORLDWIDE NATURE OF THE SEMICONDUCTOR INDUSTRY AND ITS NEED FOR SERVICE AND CLOSE TECHNICAL SUPPORT, WE ESTABLISHED OPERATIONS IN JAPAN IN 1987, SINGAPORE IN 1990, AND GERMANY IN 2000. THROUGH THESE INTEST SUBSIDIARIES, WE QUICKLY BECAME KNOWN FOR OUR UNSURPASSED WORLDWIDE SERVICE AND SUPPORT, WHICH HAS BEEN AN IMPORTAN FACTOR IN OUR GROWTH AND PROFITABILITY.}

^{WE CONDUCTED OUR INITIAL PUBLIC OFFERING IN 1997. WITH THIS ADDITIONAL CAPITAL, WE ACCELERATED OUR INTERNAL GROWTH AND EXPANDED OUR MARKET PRESENCE WITH IMPORTANT RELATED TECHNOLOGIES. WE ACQUIRED TESTDESIGN CORPORATION, A MANUFACTURER OF TESTER INTERFACE PRODUCTS, IN 1998, AND TEMPTRONIC CORPORATION, WHICH MAKES THERMAL TEST SYSTEMS, IN 2000. IN 2002, WE ACQUIRED INTELOGIC TECHNOLOGIES GMBH, NOW KNOWN AS}

^{INTESTLOGIC GMBH, A GERMAN MANUFACTURER OF COMPACT MANIPULATORS AND DOCKING PRODUCTS.}

^{INTEST TEST HEAD MANIPULATOR AND DOCKING HARDWARE PRODUCTS ARE MANUFACTURED IN NEW JERSEY, GERMANY, AND SINGAPORE. OUR THERMAL TEST SYSTEMS ARE MADE IN MASSACHUSETTS AND OUR TESTER INTERFACE PRODUCTS ARE MADE IN CALIFORNIA. ALL OF THESE PRODUCTS ENABLE SEMICONDUCTOR MANUFACTURERS TO ENHANCE THEIR OWN PROFITABILITY BY IMPROVING THE EFFICIENCY OF THEIR IC AND WAFER TEST PROCESSES.}

^{OUR END-USER CUSTOMERS ARE AMONG THE WORLD'S MOST IMPORTANT MANUFACTURERS OF SEMICONDUCTORS, INCLUDING ANALOG DEVICES, FREESCALE SEMICONDUCTOR (FORMERLY THE MOTOROLA SEMICONDUCTOR GROUP), INTEL, SONY, ST MICROELECTRONICS, AND TEXAS INSTRUMENTS. OUR OEM CUSTOMERS INCLUDE THE MAJOR AUTOMATIC TEST EQUIPMENT (ATE) SUPPLIERS ACCRETECH, CASCADE MICROTECH, CREDENCE SYSTEMS CORPORATION, ELECTROGLAS, LTX, TERADYNE AND VERIGY.}

^ACTIVITIES:

^{* WORLD LEADER IN THE DESIGN, MANUFACTURING AND SUPPLY OF TEST HEAD}

^{MANIPULATORS AND DOCKING HARDWARE FOR THE SEMICONDUCTOR INDUSTRY.}

^{PRODUCTS OR SERVICES:}

^{* LABORATORY SERVICES}

^{* LABORATORY TESTING}

^{* SEMICONDUCTOR COMPONENTS}

^{* SEMICONDUCTOR PARAMETRIC TEST SYSTEMS}

^{* SEMICONDUCTOR SERVICES}

^{* SEMICONDUCTORS}

^{QUALITY ASSESSMENT:}

^{ISO 9001:2000}

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

^{THE IMMEDIATE AND ULTIMATE HOLDING COMPANY IS INTEST CORPORATION, INCORPORATED IN UNITED STATES OF AMERICA.}

^{NUMBER OF EMPLOYEES:}

^{* 20 - AS OF 2006}

^{REGISTERED AND BUSINESS ADDRESS:}

^{4010 ANG MO KIO AVENUE 10}

^#05-01/02

^{TECHPLACE 1}

^{SINGAPORE 569626}

^{DATE OF CHANGE OF ADDRESS: 09/04/2001}

^{- RENTED PREMISE}

^{- PREMISE OWNED BY: HSBC INSTITUTIONAL TRUST SVC (S) LTD AS TRUSTEE OF}

^{ASCENDAS REAL ESTATE INVESTMENT TRUST}

^{WEBSITE: http://www.intest.com(IMMEDIATE AND ULTIMATE HOLDING COMPANY}

^{EMAIL : cslay@intest.com.sg}

^{jamalahmad@intest.com.sg}

MANAGEMENT

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

^{1) ROBERT EDWARD MATTHIESSEN, AN AMERICAN}

^{- BASED IN USA}

^{2) CORNELIS HOL, A DUTCH}

^{- BASED IN GERMANY}

^{3) LEE TENG KENG, A SINGAPOREAN}

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

^{4) LOH KIM SING, A SINGAPOREAN}

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

^{MICRO COMPONENT TECHNOLOGY ASIA PTE LTD}

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 6.0% IN 4Q 2007, SLOWER THAN THE 6.8% GROWTH IN 3Q 2007. RETAIL SALES FELL BY 2.5%, FOLLOWING A 1.5% GROWTH IN 3Q 2007.

DOMESTIC WHOLESALE TRADE INDEX

THE OVERALL DOMESTIC WHOLESALE TRADE ROSE BY 22.2% IN 4Q 2007 OVER 4Q 2006.

EXCLUDING PETROLEUM, DOMESTIC SALES GREW BY 4.8%.

THE RISE IN THE OVERALL INDEX WAS MAINLY DUE TO HIGHER SALES OF PETROLEUM AND PETROLEUM PRODUCTS (47.3%), TIMBER, PAINTS AND CONSTRUCTION MATERIALS (29.8%). OTHER WHOLESALE SEGMENTS THAT REPORTED DOUBLE-DIGIT GROWTH WERE WHOLESALING OF GENERAL WHOLESALE TRADE, HOUSEHOLD EQUIPMENT AND FURNITURE AND CHEMICALS AND CHEMICAL PRODUCTS.

ON THE OTHER HAND, WHOLESALE SEGMENT THAT REPORTED LOWER SALES WERE ELECTRONIC COMPONENTS (-35.8%).

AT CONSTANT PRICES, THE OVERALL DOMESTIC WHOLESALE TRADE ROSE BY 1.6% IN 4Q 2007 OVER 4Q 2006. EXCLUDING PETROLEUM, DOMESTIC SALES ROSE SLIGHTLY BY 0.2%.

ON A QUARTER-OVER-QUARTER BASIS, THE OVERALL DOMESTIC WHOLESALE TRADE IN 4Q 2007 ROSE BY 7.1% OVER 3Q 2007. EXCLUDING PETROLEUM, DOMESTIC SALES CONTRACTED BY 2.9%.

THE MAJORTIY OF THE WHOLESALE SECTORS RECORDED HIGHER DOMESTIC SALES IN 4Q 2007 OVER PREVIOUS QUARTER. PETROLEUM AND PETROLEUM PRODUCTS EXPANDED BY 20.0%. GENERAL WHOLESALE TRADE AND INDUSTRIAL AND CONSTRUCTION MACHINERY ALSO REGISTERED

DOUBLE-DIGIT GROWTH OVER PREVIOUS QUARTER.

ON THE OTHER HAND, SALES OF FOOD, BEVERAGES AND TOBACCO AND ELECTRONIC COMPONENTS FELL IN 4Q 2007 OVER 3Q 2007.

FOREIGN WHOLESALE TRADE INDEX

THE OVERALL FOREIGN WHOLESALE TRADE FOR 4Q 2007 ROSE BY 27.0%, IN COMPARISON TO 4Q 2006. EXCLUDING PETROLEUM, IT EXPANDED BY 15.3%

MOST OF THE SECTORS REPORTED HIGHER SALES. DOUBLE-DIGIT GROWTH RATES FOR OVERSEAS SALES WERE RECORDED BY FOOD, BEVERAGES AND TOBACCO (40.6%) PETROLEUM AND PETROLEUM PRODUCTS (39.9%) SHIP CHANDLERS AND BUNKERING (24.3%) INDUSTRIAL AND CONSTRUCTION MACHINERY (18.2%) CHEMICALS AND CHEMICAL PRODUCTS (16.4%) ELECTRONIC COMPONENTS (12.1%) TIMBER, PAINT AND CONSTRUCTION MATERIALS (11.1%).

ON THE OTHER HAND, OVERSEAS SALES OF TELECOMMUNICATIONS AND COMPUTERS FELL BY 2.8%

IN 4Q 2007 OVER 4Q 2006.

AT CONSTANT PRICES, THE OVERALL INDEX ROSE BY 11.5% IN 4Q 2007 OVER 4Q 2006.

EXCLUDING PETROLEUM, FOREIGN WHOLESALE TRADE GREW BY 15.1%.

ON A QUARTER-OVER-QUARTER BASIS, THE OVERALL FOREIGN WHOLESALE TRADE IN 4Q 2007 ROSE BY 11.7% OVER 3Q 2007. EXCLUDING PETROLEUM, IT GREW BY 6.0%.

ALL WHOLESALE SECTORS RECORDED BETTER BUSINESS IN 4Q 2007 WITH THE EXCEPTION OF THE ELECTRONIC COMPONENTS SECTOR. THOSE SECTORS THAT REGISTERED DOUBLE-DIGIT GROWTH WERE WHOLESALE SECTORS OF PETROLEUM AND PETROLEUM PRODUCTS, TELECOMMUNICATIONS AND COMPUTERS, INDUSTRIAL AND CONSTRUCTION MACHINERY AND CHEMICALS AND CHEMICAL PRODUCTS.

RETAIL TRADE

THE OVERALL RETAIL SALES CONTRACTED BY 2.5%, IN CONTRAST TO THE 1.5% GROWTH IN 3Q 2007. THE SECTOR THAT RECORDED THE LARGEST DECLINE WERE MOTOR VEHICLES, FOLLOWED BY PROVISION AND SUNDRY SHOPS, FOOD AND BEVERAGES, WATCHES AND JEWELLERY AND MEDICAL GOODS AND TOILETRIES. EXCLUDING MOTOR VEHICLES, RETAIL SALES ROSE BY 5.2%, A DECLINE FROM THE 6.O% GROWTH IN 3Q 2007.

NEWS

SURPRISING DROP IN RETAIL SALES

RETAIL SALES FELL UNEXPECTEDLY IN FEBRUARY, THE FIRST TIME IN SEVEN MONTHS, AS INFLATION HIT 26 YEAR HIGHS AND WORRIES GREW ABOUT THE WORLD ECONOMY. SHOPS, SUPERMARKETS AND OTHER RETAILERS SAW REVENUES FELL 1.3% FROM A YEAR EARLIER, AS CAR SALES DECLINED 10.6% AND FOOD AND BEVERAGES SALES PLUNGED 21.8%.

THE OVERALL CONTRACTION BY THE SECTOR WOULD HAVE BEEN BIGGER IF NOT FOR MUCH HIGHER PRICES THIS YEAR. IN CONSTANT PRICES TERMS, SALES FELL 5.7%. THIS IS THE WORST READING SINCE THE 5.0% DECLINE IN MARCH 2007, IF ONE WERE TO IGNORE THE 2.0% CONTRACTION IN JULY THAT WAS DUE TO THE HIKE IN THE GOODS AND SERVICES TAX,” SAID HSBC ECONOMIST PRAKRITI SOFAT.

ANALYSTS SAID RISING LIVING COSTS AND UNCERTAINTY ABOUT THE ECONOMY WOULD AFFECT SINGAPORE CONSUMER’S SPENDING THIS YEAR. MANY, HOWEVER, REMAIN LARGELY OPTIMISTIC ABOUT THE DOMESTIC RETAIL SCENE, SAYING THE POOR FEBRUARY SHOWING COULD BE A STATISTICAL BLIP.

DOMESTIC DEMAND CONDITIONS REMAIN POSITIVE, HELPED BY THE GOVERNMENT WHICH IS GIVING CASH FROM LAST YEAR’S SURPLUS TO THE WHOLE POPULATION AND ISSUING FOOD VOUCHERS TO THE POOR. “LOW INTEREST RATES AND A HEALHY JOBS MARKET SHOULD KEEP SPENDING FIRM,” SAID HSBC’S MS SOFAT. SHE ADDED THAT FEBRUARY’S DECLINE WAS DUE LARGELY TO A HIGH BASE SET THE PREVIOUS YEAR AND PREDICTED THAT MARCH SALES WOULD BOUNCE BACK WITH A 15.0% SURGE. ALSO, IF COMPARED WITH JANUARY, FEBRUARY SALES ROSE 8.8% AFTER ADJUSTING FOR SEASONAL EFFECTS. THIS WAS THE STRONGEST PERFORMANCE IN FOUR YEARS, SHE SAID.

CIMB-GK ECONOMIST SONG SENG WUN SAID MUCH OF THE POOR PERFORMANCE CAME ON THE BACK OF WEAKER CAR SALES. EXCLUDING THOSE, RETAIL SALES WOULD HAVE RISEN 2.9%. CAR SALES HAVE BEEN HURT SINCE OCTOBER BY RISING CERTIFICATE OF ENTITLEMENT PRICES, CAUSED BY AN EXPECTED CUT IN QUOTAS FROM NEXT MONTH AND SURGING PUMP PRICES.

OUTLOOK

GENERALLY, WHOLESALERS ARE POSITIVE ABOUT THEIR BUSINESS PROSPECTS IN THE COMING MONTHS, WITH A NET WEIGHTED BALANCE OF 4% OF FIRMS EXPRESSING POSITIVE BUSINESS SENTIMENTS. THE MAJORITY OF WHOLESALERS OF PETROLEUM AND PETROLEUM PRODUCTS, CHEMICALS AND CHEMICAL PRODUCTS, INDUSTRIAL MACHINERY AND EQUIPMENT AND COMPUTERS AND ACCESSORIES FORECAST BUSINESS OUTLOOK TO REMAIN THE SAME IN THE FIRST SIX MONTHS OF 2008 COMPARED WITH THE LAST SIX MONTHS IN 2007.

A NET WEIGHTED BALANCE OF 12% OF RETAILERS PREDICTS LESS FAVOURABLE BUSINESS CONDITIONS FOR THE PERIOD ENDING JUNE 2008. AS A RESULT OF THE REDUCED CERTIFICATE OF ENTITLEMENT (COE) QUOTA, MOTOR VEHICLES RETAILERS ARE ESPECIALLY CONCERNED WITH THE SALES.

EXTRACTED FROM: MINISTRY OF TRADE AND INDUSTRY, SINGAPORE

SINGAPORE DEPARTMENT OF STATISTICS

THE STRAITS TIMES

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