Innotek's 2q'09 Net Profit Rises Sharply To S$4.4 Million

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

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InnoTek’s 2Q’09 Net Profit Rises Sharply To S$4.4 Million; Group Expects To Report Profit For FY2009 After Losses in FY2008


Group benefiting from combination of lower material costs and better costmanagement and operational efficiencies achieved by subsidiary Mansfield Manufacturing Company Limited (“MSF”) despite marginally lower revenue due to lower global demand for flat panel TVs following financial and economic crises




1H’09 net profit rises to S$3.6 million from S$2.8 million in 1H’08




Group remains in healthy financial position with positive operating cash flow and a net cash position of approximately S$43.0 million




Group expects to return to profitability in FY2009 after net loss of S$7.0 million in FY2008, and will continue to explore M&A opportunities

S$ Mil Continuing Operations* MSF Turnover

2Q’09

2Q’08

Change

Change %

93.1

93.9

(0.8)

(0.9)

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

7.0 * (2.6) 4.4 1.89 *

0.4 (0.2) 0.2 0.06

6.6 (2.4) 4.2 1.83

NM NM NM NM

* Include reversal of S$2.4 million or 1.03 cents per share provided in 1Q’09 for certain trade debtors NM Not meaningful MSF Mansfield Manufacturing Company Limited & its subsidiaries

Media Release – InnoTek’s 2Q’09 Net Profit Rises Sharply to S$4.4 million 12 August 2009 Page 2 of 3 ________________________________________________________________________

SINGAPORE, 12 August 2009 – Mainboard Listed InnoTek Limited (“InnoTek” or “the Group”) announced today that its net profit after tax for the quarter ended 30 June 2009 (“2Q’09”) rose 32-fold to S$4.4 million from S$0.2 million a year earlier on continued improvements in operational efficiency and costmanagement, as well as lower raw material prices. The sharp increase in profit was achieved despite a marginal decline in revenue to S$93.1 million from S$93.9 million, recorded by its wholly owned precision metal components business, Mansfield Manufacturing Company Limited (“MSF”). MSF posted a net profit of S$7.0 million in 2Q’09, up from S$0.4 million, over the comparative period. The Group’s 2Q’09 net profit included a reversal of S$2.4 million of provision for doubtful debts initiated in 1Q’09 in view of the economic crisis. For the six months ended 30 June 2009 (“1H’09) InnoTek reported a net profit of S$3.6 million, up 31.4% from S$2.8 million. Half-year revenue declined to S$176.7 million from S$201.9 million due to lower stamping and assembly sales as a result of lower global demand for flat panel TVs. At the corporate level InnoTek recorded a loss of S$2.6 million in 2Q’09, compared to S$0.2 million in 2Q’08, due mainly to a foreign exchange loss of S$1.1 million (due to weakening of US$). In 2Q’08 the Group had recorded a reversal of provision of warranties and additional proceeds arising from the sale of Magnecomp Precision Technology Public Company Limited completed in November 2007. The Group recorded an earnings per share (fully diluted) of 1.89 cents for 1Q’09, up from 0.06 cent in 1Q’08; and EPS of 1.56 cents for 1H’09, up from 1.18 cents in 1H’08. The Group remains in a healthy financial position, having generated S$18.1 million of positive operating cash flow in 2Q’08. As at 30 June 2008, the Group had a cash balance of approximately S$95.0 million with total borrowings of S$52.0, amounting to a net cash position of S$43.0 million. Commenting on the outlook, the Group said some indications of order flow stabilization had returned following concerted efforts by various Governments in recent months to inject liquidity and revive economic growth.

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Media Release – InnoTek’s 2Q’09 Net Profit Rises Sharply to S$4.4 million 12 August 2009 Page 3 of 3 ________________________________________________________________________

While fluctuations of raw material prices could impact margins, the Group will continue to improve operational efficiencies and cost management. “While the outlook in the coming months remains uncertain, the Directors expect that in the absence of any further deterioration of business conditions, the Group will record a profit for FY2009,” management commented. The Group will continue to explore merger and acquisition opportunities with caution, focusing on earnings-accretive businesses and will stringently evaluate feasible investment opportunities. ~ 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] Mona Leong, [email protected]

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