News Release-- May 20, 2004

CSAM Reports Fourth Quarter Revenues Up By 52.3%

Computer Systems Advisers (M) Berhad (CSAM) announced its audited results for the financial year ended 31st March 2004 late yesterday.

The Group recorded a revenue of RM85.15 million and a profit before tax of RM5.20 million for the fourth quarter of financial year 2004 (FY04) versus a revenue of RM55.92 million and profit before tax of RM2.34 million recorded in the corresponding quarter of last financial year. This represents a 52.3% increase in revenue and a 122.6% increase in profit before tax when compared to financial year 2003. For the 12 months ended 31st March 2004, the CSAM Group recorded a revenue of RM279.60 million and a profit before tax of RM12.87 million. This compares with a revenue of RM276.44 million and a profit before tax of RM17.44 million recorded in the same twelve months previous financial year.

Earnings Per Share (EPS) for the first twelve months of FY04 is 8.70 sen. Net Tangible Assets (NTA) per share as at 31st March 2004 stands at RM1.82 per share.

"The strong increase in revenue this quarter is attributable to the higher contribution from the IT Outsourcing business of the Group. The Group set out to transform itself into a leading IT Services Provider and it has achieved its goal. This is reflected in the IT Outsourcing business revenue growth of 15 percent this financial year compared to 1 percent the previous financial year," Mr Chuah Tai Eu, Managing Director, CSAM said.

"Our strategy of gaining market share in IT services via this new line of business is starting to be recognised. Barring any unforeseen events, we anticipate that the IT Outsourcing business will continue to bring us a significant growth potential in future years. Indeed, the Group is currently in pursuit of several more outsourcing opportunities with major enterprises in Malaysia," he elaborated.

"CSAM today is a different organisation from what it was 3-5 years ago. Our business model has been quietly, but substantially re-shaped to capitalise on the most promising growth and profit opportunities in the market. For example, CSAM has evolved from providing PC and server to enterprise infrastructure systems and solutions, from storage to information lifecycle management, from break/fix services to managed services and strategic IT outsourcing," Mr Chuah continued.

"The Group will continue to leverage on our ultimate holding company, Computer Sciences Corporation (CSC)'s global experience and capitalise on CSAM's local delivery strengths to provide end-to-end IT solutions and services to help enterprises produce results. With this strategy, I am confident that we are poised to take CSAM to the next level in the years and decades to come," he added.

In terms of revenue mix, IT Infrastructure Systems & Solutions (ITSS) accounted for 56 percent of revenue in the FY2004, compared to 71 percent recorded in the last financial year, Services recorded a 23 percent contribution to revenue compared to 22 percent for the last financial year. Software contributed 6% of total revenues.

"Last quarter's highlights in the ITSS area, include the award of several multi-million ringgit contracts from the local banking and finance sector. Two of the contracts involved the deployment of core banking applications and branch delivery systems while other projects involved IT infrastructure implementations. The recovery that we saw in the last few quarters has picked up momentum quite significantly. The pipelines for the various industries are healthy and we expect that these will translate into continued strength in the business," said Mr Peter Yong, Director, CSAM.

"On the horizon, IDC has forecast higher growth rate of up to 8 percent for IT spending in 2004 and additional growth in the SME segment. In line with this, CSAM is implementing initiatives for the largely untapped SME market which is maturing in the country. The Group is working with the leading ISVs in providing off-the-rack solutions designed specifically for the SME market, which are competitively priced," said Mr Yong.

Corporate highlights include CSAM being ranked as one of the 'Top 100 Companies That Gave The Best Returns' by The Edge in April 2004. The publication ranked the Top 100 companies which had an impressive rate of return of at least 15% per year of compounded annual growth rate, or CAGR and with an investment value that has at least doubled over the last 5 years.

"While the Group has been going through a challenging market environment in recent times, we have not taken our eye away from the ball in terms of creating shareholders' value and practising good corporate governance. Hence, our continued recognition by the industry in these areas should serve to reassure our stakeholders, namely our shareholders, employees and customers, that CSAM will hold itself to a higher standard in whatever it does," concluded Mr Yong.


About Computer Systems Advisers (M) Bhd

Established in 1971, listed on the Main Board of Bursa Malaysia and a component Technology stock in the Bursa Malaysia Composite Index, Computer Systems Advisers (M) Berhad (CSAM) is one of Malaysia's leading IT Service Providers.

CSAM provides a broad range of IT solutions and services, specialising in Systems Integration and Software Services, IT Outsourcing, Customer Services and Support, e-Business and IT Consulting & Professional Services for multinational corporations and small-medium enterprises.

CSAM is the first IT Company in Malaysia to have earned the prestigious MS ISO 9001 Quality Management and Assurance Standard Award for its entire business operations. Today, the company is well represented in 23 offices strategically located throughout East and West Malaysia, with more than 1,200 employees.

CSAM is a member of the Computer Sciences Corporation (CSC), a Fortune 500 company which today has 90,000 employees in more than 800 offices worldwide with a revenue of $14.8 billion for the 12 months ended April 2, 2004.

CSAM & CSC can be reached at www.csam.com.my & www.csc.com respectively, via the Internet.