News Release-- May 20, 2003

CSA Malaysia Announces FY2003 Positive Results

Petaling Jaya — Computer Systems Advisers (M) Berhad (CSAM) announced its audited results for the financial year ended 31st March 2003 late yesterday.

The CSAM Group recorded a Revenue of RM276.44 million and a Profit Before Tax of RM17.44 million in the twelve months ended 31st March 2003. This compares with a Revenue of RM290.20 million and a Profit Before Tax of RM22.75 million recorded in the same twelve months last financial year.

Earnings Per Share (EPS) for the first twelve months of financial year 2003 is 11.56 sen. Net Tangible Assets (NTA) per share as at 31st March 2003 stands at RM1.82 per share.

The Group recorded a Revenue of RM55.92 million and a Profit Before Tax of RM2.34 million for the 4th quarter of financial year 2003 vs. a Revenue of RM52.80 million and Profit Before Tax of RM3.70 million recorded in the corresponding quarter of last financial year.

"The increase in revenue this quarter is attributable to the additional contribution from the software business of the Group," Mr Chuah Tai Eu, Managing Director, CSAM said.

"Our strategy of penetrating new market segments via Com-Line Systems Sdn Bhd (Com-Line), have shown progress. We anticipate that the combined software development resources of CSAM and Com-Line will continue to strengthen, and will bring us a significant growth potential in future years through the leveraging of core competencies, best practices, products, solutions, services, people and customer relationships," elaborated Mr Chuah.

"FY 2003 has been one of the most challenging year in my over 28 years in the industry. Our financial results reflected the situation even with the relentless controls on costs that we imposed throughout the year. While the decline in revenues was not drastic, earnings suffered significantly more. The reason for this was partially due to margin erosions in the systems integration (SI) space but also due to the initial costs resulting from our investments in the outsourcing business and internal technology refresh exercises being recognised in the financial year," added Mr Chuah.

In terms of revenue mix, Systems Integration ("SI") accounted for 71 percent of revenue in the financial year 2003, compared to 72 percent recorded in the last financial year, Services recorded a 28 percent contribution to revenue compared to 27 percent for the last financial year. IT Outsourcing, the newest business segment for this financial year accounted for 1 percent of revenues.

"With the recent award of global outsourcing contracts by Fortune 500 companies, DuPont and Motorola to CSC, the outsourcing business in Malaysia will increase over the coming quarters. CSAM's initiatives in IT Outsourcing, which began more than three years ago have finally started to show results and we are confident that we are on the right track to continue to expand the business," stated Mr Peter Yong, Director, CSAM.

"However, the overall environment for technology capital expenditure in the corporate sector remains relatively soft. Most organisations continue to take a longer time to implement their buying plans even though the requirements for new systems are critical for operating their businesses. The technology investment cycle is still in its infancy in this country relative to the West and as such it is a matter of timing that deferred capital expenditure in technology will resume," said Mr Peter Yong.

On the corporate front, major milestones were achieved with the Kuala Lumpur Stock Exchange (KLSE)'s recent announcement that CSAM is one of the select few that has earned itself the Merit Award 2002 from KLSE. The Award is a reflection of the Company's continued dedication and commitment to excellence in corporate governance and transparency.