Investors

At the operating level, the Group is likely to report earnings of S$0.4 million for the first half-year ended June 30, 2001. This was due primarily to weak performance at eBworx Limited, which had been affected by the political and economic uncertainty in the Philippines, the weak semiconductor industry, and lower contribution by the Group's networking and infrastructure division. The significant one-time charges against earnings in the first half-year were as follows:

• S$1.91 million for provision of doubtful debts by the Group's United States-based subsidiary, W-Industries, Inc., following the filing for Chapter 11 bankruptcy protection in April 2001 by its client, Friede Goldman Halter, Inc.,
  
  
• S$0.71 million for restructuring costs incurred by Servelec Limited, the Group's United Kingdom-based subsidiary, and
  
  
• S$0.21 million for provision of doubtful debts and S$0.76 million for restructuring costs incurred by eBworx Limited, the Group's e-consulting subsidiary.

Despite the weak performance of the Group in the first half-year, the Directors are optimistic that the outlook for the second half-year will be profitable, based on strong order books of S$64 million as at June 30, 2001. Management will discuss the Group's business outlook for the second half in relation to this announcement when the Company reports its fiscal half-year results in August 2001.