Beyonics achieves 17% rise in interim net profit to $10.1 million

SINGAPORE - 14 February 2003 - Mainboard-listed Beyonics Technology Limited (Beyonics), a leading integrated manufacturing services provider, today reported a 17% increase in net profit to $10.1 million for the six months ended 31 January 2003, from $8.6 million in the same period last year.

Despite a 7% decline in sales turnover to $287.3 million, from $308.6 million previously, the Group achieved better margins due to higher cost efficiencies and productivity.

Based on the weighted average of shares, earnings per share rose to 1.15 cents from 1.00 cent previously. Directors have not proposed an interim dividend.

"We have improved our gross margin to 8% from 7% previously, as a result of our cost efficiency measures and productivity programmes implemented over the last two years. We are very pleased that these programmes are beginning to filter through our bottomline and deliver tangible results. We will continue to drive and motivate our people to excel and give their best performance," said Mr Goh Chan Peng, Chief Executive Officer of Beyonics

In the last two years, Beyonics implemented two quality and productivity programmes – FAST LIFE ("Flexibility, Accuracy, Speed, Timeliness, Leadtime, Inventory, Floorspace and Efficiency) which encourages the staff to not just meet, but exceed customers' expectations, and internal corporate objectives; and the Continuous Improvement Programme which aims at constantly improving cost efficiencies and staying competitive.

During the interim period, Group turnover was affected by lower average selling prices of products and services, as well as the strengthening of the Sing dollar against the US dollar.

However, despite the lower average selling prices, Beyonics was able to achieve higher turnover for the Precision Engineering Division, which rose 7.5% to $56.5 million, due to its continuing focus on the improvement of product quality which has led to increased consumer confidence.

The Contract Manufacturing (CM) Division saw a decrease in turnover of 8.2% to $220.1 million as a result of lower average selling prices and lower orders due to the uncertain economic environment.

During the period under review, fixed assets in the Group increased by $18 million largely due to plant and machinery arising from the acquisition of Pacific Plastics Pte Ltd which has operations in Suzhou and Nanjing and purchase of machinery for its operations in Malaysia and Thailand.

Looking ahead, Mr Chay Kwong Soon, Chairman of Beyonics, said, "We will continue to focus on cost efficiencies and seek new avenues of growth through strategic partnerships. In addition, we believe that with our move to higher value-added activities; diversification into the medical products industry; and expansion of our facilities into low-cost regions, we are well-positioned to meet the challenges ahead and achieve our goal of becoming a first-tier electronic manufacturing services provider."

About Beyonics Technology Limited

Mainboard listed Beyonics Technology Limited was founded in Singapore in 1981 and has since then established itself as a significant player in the electronics landscape in Singapore. Its core businesses comprise Contract Manufacturing, Precision Machining, Precision Plastic Moulding, Metal Stamping as well as the Industrial Distribution of electronic and IT components.

The Group, which aims to be the industrial leader for the provision of integrated manufacturing services, counts among its key customers, multinationals such as Seagate Technology, Hewlett Packard, Quantum, Hauppauge, IBM and Baxter. It currently has manufacturing facilities in Singapore, Malaysia, Batam, Thailand and China. For more information, visit www.beyonics.com.

Submitted by Tay Peng Huat, Company Secretary on 14/02/2003 to the SGX