Future Plans

(a) Acquisitions, Joint Ventures and Strategic Alliances

Our subsidiary MCG has entered into an agreement with a German company to establish a company in the PRC for the manufacture of motion control components. The initial investment sum is approximately S$257,000.

In addition, we have entered into an agreement with a Taiwanese company to invest an initial sum of approximately S$150,000 to acquire a 19% stake in it by 31 December 2005. The Taiwanese company is engaged in the research and development and the manufacture of motion control components.

We entered also into an agreement with Goh Yiu Jin to acquire a 67% stake in a Singapore company known as JM Vistec System Pte Ltd, which is engaged in the business of the manufacture and sale of vision related products. Under the agreement, our subsidiary MCG will subscribe for 67% of the equity stake in the JM Vistec for a consideration of $300,000.

Through these acquisitions, joint ventures and strategic alliances, we hope to create opportunities for us to compete more effectively against our competitors by manufacturing our own motion control components and enhancing our technical abilities through design and development efforts.

(b) To expand and develop our existing operations

We have plans to expand and develop our operations in countries where we currently have a presence such as the PRC, Thailand and the Philippines. We intend to expand our sales network in these countries, through the establishment of more sales offices and increase our sales staff, to increase our sales activities. In addition, we intend to increase our assembly capabilities in the PRC and Thailand through the acquisition of more equipment.

(c) To expand geographical coverage of our markets

Currently, our principal markets are Singapore and the Greater China. In order to expand our customer base and sales and business networks, we have plans to expand our geographic coverage through the expansion of our businesses into new markets in Asia, including Indonesia, India and Vietnam. This would give us access to the customer base in these countries and allow us to establish new business networks in these countries.

(d) To establish an integrated computerised system for our operations

We intend to establishment of an integrated computerised system, namely Enterprise Resource Planning ("ERP"), for our operations. The establishment of the ERP will facilitate our operations, including the accounting functions of our Group and the ordering of stocks, resulting in better management and better internal control. The ERP will allow us to have access to real-time inventory information thereby increasing our efficiency over the control of our inventory.