Investors

Details of Infinite

Infinite, founded in the Philippines in 1994, provides internet site development, e-commerce, intranet and extranet. It assists clients to design and implement internet solution with total integration to the clients' other application systems.

In 1998, Infinite set up a sales and marketing office in San Francisco. Today, over 90% of its revenue comes from the US. Beginning this year, it reorganized its operations, making San Francisco the corporate headquarters as well as its place of incorporation. It plans to set up sales and marketing offices in Los Angles, New York and Houston.

Infinite has a strong development team of approximately 30 software engineers in Manila, the Philippines.

Infinite has over 150 customers including British Airways, Siemens, Saatchi & Saatchi, Procter & Gamble, Warner Brothers, Cable and Wireless, Andersen Consulting, Shell Oil, Nike and Sony. Some of the examples of the work it has done include:

• 'VooDoo Cycles (www.voodoo-cycles.com)'

  Infinite redesigned the current site and added e-commerce capability. The user can customize his own bike online and take a look at his creation and price it.

• 'Procter & Gamble (multimedia presentation)'

  A seven-minute animated program designed for sales representatives.

Details of and Rationale for the Transaction

CSE will subscribe for US$1,400,000 of new shares in Infinite and purchase US$600,000 of vendor shares.

The aggregate consideration was agreed upon among the parties on a willing buyer, willingly seller basis and will be paid for by CSE in cash using internal resources.

The net tangible asset value of Infinite at 31 December 1999, after taking into account the subscription of US$1.4 million of new shares, is US$1.8 million. Revenue for 1999 is US$469,317 and profit for the same period is US$4,280.

CSE's investment in Infinite is in line with the Group's plan to grow and expand its E-Consulting business. The transaction is not expected to have any material effect on the earnings per share and the net tangible assets per share of CSE for the financial year ending 31 December 2000.

No Director of CSE has any interest, direct or indirect, in the transaction. The Board of Directors is not aware of any substantial shareholder of CSE having any interest, direct or indirect, in the transaction and has not received any notification of any interest in the transaction from any substantial shareholder.

Submitted by Tan San-Ju, Company Secretary on 18/1/2000 to the SGX