General Announcement
Press Release - CDW'S First Half net Profit Falls But Expects Better Second Half Interim Dividend Of 0.4 US Cent per Share Share Declared
10 Aug 2005

The initial public offering of the company's shares was sponsored by DBS Bank Limited.

Press Release - embargoed till 5:05 p,m. on 10 August 2005


SINGAPORE, 10 August 2005- CDW Holding Limited ("CDW" or the "Group"), a Japanese-managed precision components specialist announced a 27.2% decline in net profit for the half year ended 30 June 2005 but management expressed confidence in a business rebound in the second half of the year in view of the Group's solid fundamentals and the implementation of the appropriate business strategies to take advantage of changing business dynamics.

In the first half of 2005, Group revenue was US$44.7 million, operating profit was US$5.9 million and net profit was US$5.1 million, representing declines of 1.6%, 27.4% and 27.2% respectively as compared with the first half of 2004.

An interim dividend of 0.4 US cent per share is proposed and will be payable to the shareholders on 23 September 2005.

Due to general pricing pressure on its products, the Group recorded a drop in net profit margin by 4.1 percentage points to 11.4% for the first half of 2005. A slowdown in the orders of LCD BLUs also led to a flattening in revenue.

"Despite this, we believe that the decline in revenue is short-term, and does not reflect significant changes in the Group's fundamental strengths." said Mr Yoshimi, the Chairman and CEO of the Group. In the second quarter, CDW encountered delays in the launch of new product models which affected our customers.

"The fundamentals underlying the Group's growth remain intact," said Mr Yoshimi. "Japanese manufacturers continue to pursue a trend of outsourcing their production processes to low cost centres such as the PRC. There is also a continuous growth in mass demand for mobile communication equipment, as well as for consumer, IT and entertainment products. In addition, we continue to witness rising consumer affluence, especially in the PRC and rapid technological innovation, leading to higher upgrade rates and shorter replacement cycles. And, CDW is in the right place and the right time to benefit from these development."

However, Mr Yoshimi emphasized it is imperative for the Group to further strengthen its business strategies in view of the rapidly evolving market landscape. Among others, it needs to further improve its competitiveness in the face of competition from other producers. The Group also needs to develop a broader and more diversified customer base. Equally important is to continue increasing our responsiveness to market changes as new model rollouts of IT / communications products, especially of mobile phones are more frequent resulting in smaller production quantities and shorter product cycles.

An important element of CDW's business expansion plan is to identify products and industries with promising growth as well as to develop specialized products for targeted sectors. It will also expand its product range and capabilities to meet the diverse outsourcing needs of customers, especially in the design of the latest products. To expend its production capacity and widen its geographical coverage, the Group's new factory in Dongguan will commence operation in the second half of 2005.

The Group will maintain and strengthen its existing customer base by becoming their lead supplier of select strategic products. At the same time, in a bid to diversify the customer base the Group will step up its efforts to secure new clients. The opening of the Dongguan factory will allow CDW to achieve the duo goals of product and client diversification.

Looking forward, Mr Yoshimi expects growth fundamentals for the Group to remain sound and expressed confidence that the results of the second half of the year will be better.

For any information regarding CDW, please contact:

Mr. Edwin Tay / Mr. Pual Heng
Ferringtom Consultants Pte Ltd

Tel: (65) 6536 5831 / (65) 6536 5863