Innotek Limitedq4 Fy2008 Press Release

InnoTek Limited (Formerly known as Magnecomp International Limited) 1 Finlayson Green, #15-02, Singapore 049246. Tel: (65) 6535 0689 Fax: (65) 6533 2680 Reg. No. 199508431Z

2680

InnoTek Posts Marginal 6.1% Decline In FY08 Revenue; Proposes 5 Cents Dividend §

Reports loss of S$7.0 million largely due to one-time charges of approximately S$8.6 million coupled with lower sales and margins for wholly owned subsidiary MSF

§

Remains in healthy financial position with positive operating cash flow and a net cash position of approximately S$27.6 million

§

Received S$24.4 million subsequent to year end upon completion of the disposal of the entire interest in Magnecomp Precision Technology Public Company Limited (MPT). Proposed final dividend payout of 5 cents per share from proceeds received.

S$ Mil Continuing Operations MSF Turnover

FY’08

FY’07

Change

Change %

421.5

448.9

(27.4)

(6.1)

MSF Profit/ (Loss) Corporate Group Net Profit/ (Loss) Basic EPS (cents)

(6.1) (0.9) (7.0) (3.00)

19.4* (4.1) 15.3* 6.39*

(25.5) 3.2 (22.3) (9.39)

NM NM NM NM

* Excludes one-time gain of S$1.4 million or 0.58 cents per ordinary share, net of minority interest, from the acquisition of Exerion NM Not meaningful MSF Mansfield Manufacturing Company Limited & its subsidiaries

SINGAPORE, 24 February 2009 – Mainboard Listed InnoTek Limited (“InnoTek” or “the Group”) today reported that its sales for the fiscal year ended 31 December 2008 (“FY08”) declined 6.1% year-on-year to S$421.5 million as order flows from customers slowed with lower global demand for flat screen TVs in the wake of a sudden global economic downturn.

The

Group’s

wholly-owned

precision

metal

components

business,

Mansfield

Manufacturing Company Limited (“MSF”) incurred a net loss of S$6.1 million mainly due to one-time charges of approximately S$8.6 million, which includes write-off for early

Media Release – InnoTek Posts Marginal 6.1% Decline in FY08 Revenue 24 February 2009 Page 2 of 3 ________________________________________________________________________

termination of certain China facilities, impairment on investments, write-off of fixed assets and provision for costs relating to the relocation of a subsidiary’s production facility in the Czech Republic and deferred tax assets. MSF was also affected by lower margins as a result of higher material prices, depreciation expenses with enlarged operations and operating costs with increased labor wages in China and a stronger Renminbi during the period under review.

The Group’s corporate division incurred a loss of S$0.9 million mainly due to foreign exchange loss in 1H08 as a result of the weakening of the US currency, which affected proceeds from the sale of its subsidiary, Magnecomp Precision Technology Public Company Limited (MPT). This is offset by fair value gains in re-measurement of investment securities, reversal of warranties pursuant to disposal of MPT and higher interest income.

As a result of the above factors, the Group reported a net loss from continuing operations of S$7.0 million.

The Group remained in a healthy financial position, having generated S$28.6 million of positive operating cash inflow in FY08. As at 31 December 2008, the Group has a cash balance of approximately S$93.1 million with total borrowings of S$65.5 million, amounting to a net cash position of S$27.6 million.

Subsequent to the year end, the Group received S$24.4 million from the sale of its remaining 10.0% stake in the paid-up capital of its former subsidiary MPT. With the proceeds, the Directors have proposed a first and final dividend of 5 cents per share for FY2008.

The Directors believe that the healthy balance sheet and liquidity position will open up more opportunities for the Group in today’s weakened global economy and turbulent financial markets. It will continue to pursue its merger and acquisition growth strategy with a focus on earnings-accretive businesses that can provide synergies and complement its precision metal manufacturing business.

2

Media Release – InnoTek Posts Marginal 6.1% Decline in FY08 Revenue 24 February 2009 Page 3 of 3 ________________________________________________________________________

The Group will continue to manage costs and improve operational efficiency. It will undertake a review of its operations and will consider consolidating its manufacturing facilities and scaling down its operations to improve profitability. The Directors are of the view that these measures will enable the Group to tide over this period of difficulty and be ready to capitalise on any improvement in the economic conditions.

In the medium-term, the Directors expect the macro operating environment to remain challenging and as such, wishes to advise shareholders that the Group is not expected to be profitable in Q1’09. ~ End ~

About InnoTek Limited Singapore Exchange MainBoard-listed, InnoTek Limited (together with its subsidiaries “the Group”) is a precision metal components manufacturer, serving the consumer electronics, office automation and automotive industries. With over 10 manufacturing facilities across China and Europe, the Group’s wholly owned subsidiary, Mansfield Manufacturing Company Limited (“MSF”), provides precision metal stamping, commercial tool and die fabrications, sub-assembly work and frame manufacturing services to a strong and diversified base of Japanese and European end-customers. For more information, visit: www.innotek.com.sg.

InnoTek Limited contact: InnoTek Ltd 1 Finlayson Green, #15-02, Singapore 049246 Tel: (65) 6535 0689, Fax: (65) 6533 2680 Linda Sim, [email protected] Yong Kok Hoon, [email protected] Investor relations contact: WeR1 Consultants Pte Ltd 29 Scotts Road Singapore 228224 Tel: (65) 6737 4844, Fax: (65) 6737 4944 Lai Kwok Kin, [email protected] Roger Ng, [email protected]

3