Extracted from Annual Report 2007

Dear Shareholders,

We are pleased to present our annual report for FY2007.

Performance Review

The financial year ended 30 September 2007 proved to be challenging as sales declined by 17% from $383.4 million to $320.0 million. Net profit attributable to equity holders of the Company was $8.0 million, a decrease of 73% as compared with the $29.3 million recorded for the 2006 financial year.

The performance of the Group is affected by the 23% drop in sales from $333.7 million to $258.3 million experienced by the Flexible Printed Circuits (FPC) division. The FPC division, which is reliant on the telecommunications sector, accounted for 81% of the Group s revenues.

The FPC division lost market share due to uncertainties arising from the proposed voluntary general offer launched by Multi-Fineline Electronix, Inc. This was compounded by the slowdown in sales orders by major customers from the various segments the Group operates in: personal communications and wireless portables, display and imaging, and data storage. There was a marked decline in high volume products. The price erosion for high volume products, lower capacity utilisation, higher provisions for inventory obsolescence, price appreciation of precious metals and the weaker US-dollar had a negative impact on our margins.

The silver lining came from two new areas the FPC division diversified into: the automotive and IC (integrated circuits) packaging segments which provided positive results. However, the gains derived from new customers secured and new product lines such as IC packaging could not offset the overall decline.

On a brighter note, the PCB division posted a healthy 24% jump in sales to $61.6 million from $49.7 million as a result of increased orders from new and existing customers in the power supply segment. The Group benefited from its specialty in high-layer count and thick copper PCB power supply applications. However, rising raw material costs and higher outsourcing expenses due to internal capacity constraints translated into lower gross margins.

Operational Strategy

Our priorities in manufacturing are to improve margins, develop technology for fineline production, boost our output quality and capabilities while not forgetting our environmental responsibility.

More operations, including assembly activities, will be moved to Malaysia. This is in line with our continual efforts to lower costs and improve margins. Additional production space will be added on in Malaysia for the move and for the R2R (roll-to-roll) process. This process will enhance production cycle times and productivity. As part of our green initiatives and better waste management, a new and larger waste treatment system has also been implemented.

Our two separate PCB production sites in China will be consolidated by April 2008. Following this exercise, significant cost reductions due to economies of scale especially with respect to cycle times, logistical support and management efficiency are expected. In total, the PCB capacity will be expanded by approximately 30%.

Activities in Singapore will continue to focus on the development of technology and marketing. However, certain design activities will be transferred to the Group s production sites in China and Malaysia to enhance our value proposition to customers.

Research and Development

Our research and development efforts will be centred on the production process of FPCs incorporating advanced features such as blind and buried vias. These also include fineline technology, IC packages and rigid-flex manufacturing. Our team has scored some initial success in the IC packaging and will continue refining the development of a flex-based substrate for the IC packaging technology. In the pipeline is a project focused on developing a flex-based substrate for embedded components in IC packaging. This particular technique will enhance the package s functional performance and density.

Outlook

The short-term outlook remains challenging as the lower sales trend experienced in the second half of FY2007 financial year is expected to extend into FY2008. Nonetheless, the longer-term objective is to rebuild the business and regain the confidence of our customers.

New customers in existing segments are being won over even as we diversify into other market sectors. Our production facility in Malaysia will be able to take on the automotive segment in 2008. These and other new programmes that will come on-stream are expected to contribute to our top line over the next few years.

The longer-term outlook is positive. In anticipation of increase requirement for assembly capacity by a new customer, we are in the midst of expanding our assembly capacity and an additional 60,000 square feet of space will come online in the second half of FY2008.

Dividends

A final tax exempt dividend of one cent per ordinary share has been recommended by the directors. Once approved by shareholders at the Annual General Meeting on 21 January 2008, the dividends will be paid on 14 February 2008.

The interim tax exempt dividend of two cents per share was paid on 12 September 2007. Total dividends for FY2007 amounted to three cents per share.

Appreciation

We wish to thank all our shareholders and customers for their continued support and understanding through these challenging times.

We thank our fellow directors for their commitment and perseverance during this period. Finally, we would also like to commend our management and staff for their dedication and loyalty.