Turnover comprised revenue derived from the IT core businesses of Infocomm Products & Broadband Systems Integration and Thin Computing with approximately 24 per cent and 20 per cent contributions respectively.

Revenue contribution from the property development project in Zhuhai, PRC, was approximately 56 per cent.

The increase in Group turnover was principally a result of an approximately 108 per cent increase in revenue in the Infocomm Products & Broadband Systems Integration core business. The increase was weighed down marginally by an 18 per cent decrease in revenue of the Thin Computing core business.

Group turnover was additionally boosted from the sales of the commercialised residential houses and apartments of the Zhuhai property development project.

In the year under review, operating loss before income tax, minority interests, extraordinary items, interest on borrowings, depreciation and amortisation, bad debts, stock write-off, foreign exchange gain/loss, profit/loss on sales of investments, fixed assets and exceptional items was S$3.103 million, a decrease of 37.6 per cent when compared to S$4.969 million in FY' 2001.

The improved operating results is attributed to an increase of 37.9 per cent in gross profit to S$4.428 million in FY' 2002 when compared to S$3.210 million recorded in the previous year mainly from the IT core businesses.

In the year under review, the Group recorded a net exceptional income of S$2.875 million.

The net exceptional income was primarily derived from the profit of S$5.254 million arising from the dilution of shareholding in the ThinSoft (Holdings) Inc IPO; which was successfully listed the subsidiary ThinSoft (Holdings) Inc on the Growth Enterprise market (GEM) of The Stock Exchange of Hong Kong Limited on 27 February 2002, and the diminution in value of investments of S$1.968 million in VCON Communications. VCON Communications is listed on the 2nd board of the French Stock Exchange.

Consequently, the Group recorded a loss (after tax and extraordinary items) attributable to shareholders of S$1.385 million in FY 2002 as compared to a profit of S$5.086 million in the previous year.

IPC Chairman and CEO Patrick Ngiam said: "Despite deteoriating economic conditions in countries where the Group operates in, the Group registered improved performance to S$17.162 million in FY' 2002. Although this has not translated into profitability, the Group however has significantly reduced the operating loss by 37.6 per cent when compared to the previous year.

"The worsening market conditions in the second half of FY' 2002 exacerbated the weak global IT investment trend leading to increasingly tighter and restrained IT spending. This has negatively impacted the performance of the IT core businesses in the second half of the year and consequently affected Group profitability.

Mr Ngiam added: "In the current year's perceptibly lingering fragile global economy, the Group will prudently continue to focus on implementing strategies that bolsters the Group's ability to propel mid-to-long term growth by further 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 its IT core businesses.

"In addition, the Group will continue to execute the completion and divestiture of the residential property of the Zhuhai property development 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, e-Services & e-Platform solutions and Infocomm Product and Broadband Systems Integration, with a marketing and sales distribution network in more than 50 countries worldwide.

Three Core Business Units
IPC drives three core business units:
· Thin Computing
· e-Services & e-Platform
· Infocomm Product and Broadband Systems Integration

*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-Platform

e-IPC, a wholly owned subsidiary of IPC, is a leading Internet infrastructure provider of e-Services & e-Platform 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.

*For more information, please visit our website at www.e-ipc.com.cn

Infocomm Product and Broadband Systems Integration

Essex Electronics (S) Pte Ltd (Essex) is a wholly owned subsidiary of IPC and is a premier provider of leading-edge telecommunications solutions as well as the provision of systems integration services and support for broadband communications. Essex offers a suite of Digital Enhanced Cordless Telecommunications wireless communications range of terminals and in-premise Wireless Local Loop solutions as well as Integrated Services Digital Network terminals.

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 website 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

Submitted by Bernard Ngiam Mia Hai, Director/Company Secretary on 21/03/2003 to the SGX