Singapore, 15 August 2003 - ASIAN information technology (IT) vendor IPC Corporation Ltd ('IPC' or the 'Group) today announced its unaudited results for the period ended 30 June 2003.

Group revenue was S$12.184 million, a rise of 9.2 per cent when compared to S$11.154 million recorded for the same period in the previous year.

The Group's IT businesses accounted for approximately 26 per cent of revenue with the remaining 74 per cent generated from the residential and commercial property development project in Zhuhai, China.

The increase in Group revenue was attributed to the increase of approximately 50 per cent in sales from the property development project. However, overall revenue was weighed down by a 34 per cent decrease in revenue from the Group's IT businesses.

Revenue and margins from the Group's IT businesses of Thin Computing and e-Services were primarily affected by the lingering weak and uncertain market conditions exacerbated by the Iraqi war and the outbreak of SARS.

Consequently, gross profit decreased by 58.8 per cent to S$1.705 million for the period under review when compared to S$4.139 million recorded for the same period in the previous year.

After writing back a provision of S$4.204 million for contingent liability on IPC Korea which was not materialised, the Group generated an operating profit after tax and extraordinary items attributable to members of the company of S$740,000, a decrease of 83.6 per cent when compared to S$4.504 million recorded for the same period in the previous year.

In terms of the residential and commercial property development project (www.costadelsol.com.cn), the Group has begun construction of the second phase in March 2003 following the positive market response to Phase-I, which was launched in May 2002.

The property market in Zhuhai is being enhanced by recent proceedings on the infrastructural development of a Pearl Delta bridge interconnecting Hong Kong, Macau and Zhuhai.

In the period under review, the Group's property unit in Zhuhai took up a short-term loan of approximately S$13 million to fund the second phase of the property development project in Zhuhai. The property development project, upon completion in phases, comprises 1,610 units of apartments, houses, service apartment and shopping centre retail units.

IPC Chairman and CEO Patrick Ngiam said: "The deteriorating market conditions from the second half of FY' 2002, and the onset of the Iraqi war and the SARS outbreak, continue to plaque the already restrained IT investment trend in the first half of FY' 2003. As such, the Group's IT businesses of Thin Computing and e-Services expect to operate in extremely challenging market conditions.

"The Group, however, remains focused in implementing strategies that bolsters its ability to propel long-term growth prospects. These strategies include enriching the product spectrum, expanding the global distribution network, increasing vertical market penetration, enhancing the online presence and accelerating market growth through strategic business alliances of the Group's IT businesses.

"The Group will also continue to execute the completion of the residential and commercial property development project in Zhuhai, China. Barring any unforeseen circumstances, the Group expects continued contributions from the sales of the completed units of the property project."

About IPC

Listed on the main board of the Singapore Exchange (SGX), IPC Corporation Ltd (IPC) is an established Asian IT vendor in Thin Computing and e-Services with a marketing and sales distribution network in more than 50 countries worldwide.

Group IT Businesses
· Thin Computing
· e-Services

*For more information, please visit our website at www.ipc.com.sg

Thin Computing

ThinSoft (Holdings) Inc. (ThinSoft), a subsidiary of IPC Corporation Ltd, has developed a premium suite of cost effective thin computing solutions that significantly reduce the Total Cost of Ownership (TCO). ThinSoft offers three flagship software product series BeTwin, WinConnect and WinConnect Server XP, which run applications on Windows and Linux. Windows and Linux represent the world's two most dominating operating systems. These solutions address the pervasive computing needs of individuals and organisations in the characteristically dynamic computing and communications environment. The competitive efficiency of the solutions are attributed to the ability to link multiple users to a single host computer with uncompromised computing power as well as concurrent Internet usage.

*For more information, please visit our website at www.thinsoftinc.com
ThinSoft (Stock code: 8096) is listed on the GEM board of the Stock Exchange of Hong Kong.

e-Services

e-IPC, a wholly owned subsidiary of IPC, is a leading Internet infrastructure provider of e-Services for B2B and B2C transactions. e-IPC's value proposition is the full service provision of On-line Exchange (OLX) and On-line Applications (OLA). Since 1996, e-IPC has been operating a premier network in China offering OLX and OLA e-Services to major enterprises in the retail industry in Shanghai.

OLX

OLX enables and facilitates the entire fulfillment cycle in the supply chain from credit check to inquiry to ordering to electronic processing and payment.

OLA

OLA is an on-line access platform to mission critical software applications to fulfill administrative and operational requirements such as data warehousing, data mining and data analysis, enterprise resource planning and customer relationship management.

Broadband Systems Integration

In the area of Broadband Systems Integration, IPC successfully developed and launched EaziSurf; an in-premise broadband solution for the Multi-Dwelling Unit (MDU) market. EaziSurf is a wired and wireless in-premise hardware and software broadband solution for the bandwidth demanding provision of seamless multimedia communications in MDU sites such as hotels and residential condominiums.

*For more information, please visit our websites at www.e-ipc.com.cn and www.essex.com.sg

For more information, please contact:

Leslie Sim
VP, Investor Relations
IPC Corporation Ltd
DID: (65) 6744-2688
Email: leslie.sim@ipc.com.sg