Response To SGX's Queries On Acquisition Of Shares In Ascend Computer Rental Pte Ltd

May 12, 2004

With regard to the queries raised by the Singapore Exchange Securities Trading Limited in its letter dated 12 May 2004 in relation to the acquisition of shares in Ascend Computer Rental Pte Ltd, the Board of Directors of the Company wishes to respond as follows:

Question 1: Factors taken into account in arriving at the consideration as required by Rule 1010(3)

The total consideration of S$850,000/-, which is payable in four stages, was negotiated on an "arm's length, willing-buyer-willing-seller" basis taking into consideration, among other things, the financial performance, customer base and future prospects of Ascend Computer Rental Pte Ltd.

Question 2: Information required by Rule 1010 (5)

The audited net tangible assets of Ascend Computer Rental Pte Ltd amounted to S$317,158 as at 31 December 2003. The audited net profits attributable to the 40% stake acquired was approximately S$103,082 for the six-month period ended 31 December 2003.