The Group is engaged in the manufacture of integrated circuit leadframes through QPL Limited and Talent Focus Industries Limited. As a result of cost reductions, yield enhancements, and productivity gains, the Directors anticipate that the overall performance of the Group will continue to improve. Overall, after taking into the account the completion of the sale of 50 per cent interest in ASAT Limited, ASAT, Inc. and Timerson Limited (the "ASAT Group") to certain independent investors led by Chase Asia Equity Partner, L.P. and the debt restructuring on 29th October, 1999, the Group is in an excellent position to enter a period of sustained growth.

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