Sunningdale Tech Ltd Fy2008 Press Release

Sunningdale Tech Ltd 51 Joo Koon Circle Singapore 629069 Co Reg No. 199508621R

Sunningdale Tech Reports FY08 loss due to non-cash impairment charges 4Q08 improved over year ago at operating level
Loss of S$97.5 million for FY08 due to non-cash impairment loss on goodwill of S$95.0 million and non-cash exchange loss of S$7.7 million
4Q08 results showed improved gross margin of 13.6% compared to 11.7% in 3Q08 and 7.9% in 2Q08 due to cost reduction measures and business development efforts


Realignment of manufacturing footprint to be substantially completed in FY2009 and deliver greater savings

SINGAPORE – 24 February 2009 – Singapore Exchange Mainboard-listed Sunningdale Tech Ltd (“Sunningdale Tech” or “the Group”) announced today a net loss of S$97.5 million for the financial year ended 31 December 2008 (“FY08”), compared to a net profit of S$12.1 million in FY2007. The loss was mainly due to a non-cash impairment loss on goodwill of S$95.0 million and non-cash exchange loss of S$7.7 million. Excluding these charges, the Group would have recorded a net profit of S$5.2 million. FY2008 Group revenue declined marginally by 5.2% to S$365.0 million from S$385.1 million in FY07 as revenue showed improvement in the fourth quarter of 2008 (“FY08”). 4Q08 revenue rose to S$95.8 million compared to S$95.5 million in 3Q08 and S$89.7 million in 4Q07. The increase came from the Consumer/IT and Tooling segments.

Tel : 65 6861 1161 • Fax : 65 6863 4173 • WEB: http//www.sdaletech.com

Gross profit margin has also improved from quarter to quarter. 4Q08 gross margin was 13.6%, compared to 11.7% and 7.9% for 3Q08 and 2Q08 respectively. This reflected the success of the Group’s efforts to improve efficiency by consolidating its operations and moving production to more cost competitive locations. It also benefited from a decline in oil prices, which hit a high during 2Q08. The Group generated S$8.4 million of positive operating cash inflow and ended the year with a total cash position of S$41.6 million. It also continued to reduce overall bank borrowings, which declined to S$88.0 million as at 31 December 2008 from S$93.7 million as at 31 December 2007. Net tangible asset per ordinary share stood at 28.24 cents as at end-December 2008 compared to 27.49 cents as at end-December 2007. “We focused our effort in 2008 to manage for cash flow, but the rate at which resin prices rose and the US dollar weakened in the first half drove us to aggressively take down our cost structure. Our consolidation of plants, without impacting customer orders, and stringent cost cutting measures paid off as our gross margins improved in the second half in spite of worsening macro conditions,” said Mr. Khoo Boo Hor,, CEO of Sunningdale Tech. “We expect 2009 to be a challenging year as the global financial crisis that started in the second half of 2008 begins to make its impact felt in the real economy. Now more than ever, it is necessary for us to focus on strengthening the company’s fundamentals. We plan to consolidate further, and will move the majority of our parts business out of Singapore, as well as move all auto parts production out of Mexico into Asia. We expect to see tangible savings in 2009. We will also continue to intensify efforts to develop new revenue streams but will only venture into new businesses if our existing capacity allows it. In these uncertain times, we are taking a prudent approach in managing our capital expenditure.” added Mr Khoo. As part of its strategy to realign its manufacturing footprint, the Group has started to move its injection molding business, except for Healthcare and some precision parts, out of Singapore to Johor, Malaysia. This is expected to be completed by April 2009.

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In addition, the Group will be moving the production of bezels and climate control components from Mexico to its Asian facilities, which are technically stronger in decorative plastic technology. ~ End of Release ~ About Sunningdale Tech Ltd SGX Main Board-listed Sunningdale Tech Ltd is a leading integrated supplier of precision engineered plastic components in the region offering a wide range of services from product design, precision tooling and moulding to finishing processes and assembly. Focusing on four key business segments – Automotive, Telecommunications, Consumer/IT and Healthcare – Sunningdale Tech has manufacturing facilities located in nine locations including Singapore, Malaysia, Indonesia, China and Mexico. For more information, please contact: Sunningdale Tech Ltd Ms SOH Hui Ling Chief Financial Officer Email: [email protected] Tel: (65) 6864 4751 Fax: (65) 6861 0651 Issued on behalf of the Company by: WeR1 Consultants Pte Ltd Mr Roger Ng Senior Associate Consultant Email: [email protected] Address: 29 Scotts Road, Singapore 228224

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