24 March 2001

Singapore, 24 March 2001 – Asian Infocomn and e-Services Provider IPC Corporation Ltd ("IPC") today announced Group operating profits after tax and extraordinary items of S$7.661 million for FY’ 2000.

IPC’s positive performance follows its successful corporate restructuring and is a complete reversal of the Group’s S$49.934 million loss for FY’ 1999.

The operating profits of S$7.661 million came largely from the credible and sustained performances of the operating subsidiaries and a net extraordinary gain.

The subsidiaries contributed an operating profit before tax of S$1.898 million while the Group generated a net extraordinary gain of S$20.098 million.

The net extraordinary gain of S$20.098 million at Group level was mainly attributed to the successful completion of the debt restructuring program resulting in a gain of S$77.458 million which was derived from the difference between the cash and shares settlement and the book value of the underlying debts.

The gain of S$77.458 million, together with a gain of S$5.653 million from the sale of an investment in Dazzle Multimedia, were more than adequate to offset the provisions made in respect of investments and receivables due to the complete cessation of the Computers and Peripherals businesses amounting to S$63.013 million.

The operating profits, however, were affected by a charge of S$7.469 million for software acquired and development costs for thin client computing, and a loss of S$1.05 million from the sale of an industrial building.

Despite the charge for the software acquired, the loss incurred from the sale of an industrial building and a 16.6 per cent dip in sales revenue to S$20.511 million due primarily to absence of sales contributions from the cessation of the Computers and Peripherals businesses, IPC continued its turnaround to profitability.

In FY’ 2000, the Group also divested some of its non-core assets, including the sale of an industrial building at Tai Seng Avenue for S$33.1 million which resulted in a loss of S$1.05 million. The Group will continue to divest non-core assets in order to further strengthen its positive cash position to organically fund and expand the growth of the current core businesses.

The Group’s Net Tangible Asset (NTA) per share has also improved significantly from (3.96) cents in FY’ 1999 to 5.91 cents in FY’2000 and is a positive indicator of the Group’s financial position.

IPC Chairman and CEO said: "We are back into the black.

"IPC now operates from a clean slate and a healthy financial position after having successfully completed the corporate restructuring program.

"The company will continue to sustain and drive its core businesses with a renewed vision and sound corporate structure."

Submitted by Bernard Ngiam, Executive Director, IPC Corporation Ltd., on 24 March 2001 to the SGX.

About IPC

Listed on the Singapore Exchange (SGX), IPC Corporation Ltd (IPC) (www.ipc.com.sg) is an established Asian player in infocomn and Internet technology, with a marketing and sales network in more than 50 countries around the world.

IPC drives three core business units:

• Thin Computing
• e-Services for Business-to-Business (B2B) and Business-to-Consumer (B2C) e-Commerce transactions
• Wireless Telecommunications/Broadband Systems Integration

Thin Computing

Austin Federation (S) Pte Ltd is a fully owned subsidiary of IPC. Incorporated in May 1996, Austin has developed a premium suite of affordable Thin Client and Ultra Thin Client solutions that significantly reduce the Total Cost of Ownership (TCO). These solutions successfully marketed under the brand name "Buddy" address the pervasive computing needs of individuals and organisations in the characteristically dynamic computing and communications environment. The solutions' competitive efficiency exists in its ability to link multiple users to a single host computer with uncompromised computing power as well as Internet connection. BeTwin, a pure software product supporting full multimedia, is the latest addition to our premium suite of Ultra Thin Client solutions.

e-Services For B2B & B2C e-Commerce Transactions

IPC offers a range of innovative e-Services for B2B and B2C e-Commerce transactions. The e-Services are geared to provide users maximum operational efficiency in conducting business in demanding information and transaction environments.

Two operational e-Services are being offered:

On-line Exchange (OLX), which enables and facilitates the entire fulfillment cycle in the supply chain among customers, suppliers, merchants and financial institutions from inquiry to ordering to electronic processing and payment.

On-Line Applications (OLA), an online access platform to mission critical software applications to fulfill administrative and operational requirements such as data warehousing, data mining and data analysis, ERP and CRM.

Since 1996, IPC, through its China subsidiary Shanghai Shared Data Network Company Ltd. (SSDN), has successfully been operating and managing a premier network in Shanghai for major enterprises in the retail industry.

Wireless Telecommunications & Broadband Systems Integration

IPC offers a suite of Digital Enhanced Cordless Telecommunications (DECT) wireless communications range of terminals and in-premise Wireless Local Loop (WLL) solutions, as well as Integrated Services Digital Network (ISDN) terminals. The Group also provides broadband systems integration service and support for major telecommunications and cable operators.