CEO Statement

For the financial year ended 31 December 2007, we are pleased to announce that our Group revenue and net profit have increased by 47% to $136.1 million and 58% to $7.1 million respectively. For the first time in 24 years of business, we have achieved recordbreaking sales of over $100 million.

The Group’s core retail business in IT products and services has increased by 49% to $135.3 million in FY2007. This increase is mainly attributed to the opening of four additional superstores and three specialty stores.

In the past year, we have also enhanced our loyalty programme for our members, resulting in a significant increase in our membership by 67% year on year. Our members are able to purchase selected products at attractive discounts and accumulate points for redemption for expensive gifts like digital cameras and LCD TVs.

New categories such as home entertainment, mobile phones and digital cameras have also contributed to enhancing sales. To increase sales going forward, we aim to open new stores and focus on selected product categories.

Where retail expansion is concerned, we have already confirmed new leases of three superstores in Jurong, Sembawang and Tampines. These locations are expected to begin operations by the end of 2008 and in Q1 2009.

For FY2008, we will continue to seek locations at affordable rentals for specialty stores. We target to open our first flagship store in Malaysia by Q3 2008, with more stores to follow thereafter in order to enjoy economies of scale.

The electronic signage service business registered a turnover of $0.8 million in FY2007 and has diversified into architectural and commercial lighting services. We expect an improved performance from this business unit in FY2008.

A final tax-exempt one-tier dividend of 2.3 cents per ordinary share has been proposed, subject to shareholders’ approval during the AGM to be held on 18 April 2008. We had declared and paid out an interim taxexempt one-tier dividend of 1.0 cent per ordinary share in August 2007. This brings the total dividend to 3.3 cents per ordinary share for FY2007.

I would like to thank my fellow directors, management team and all employees for their hard work and commitment to the Company. In addition, I also appreciate the invaluable support rendered to us by our suppliers and business associates.