News Release-- September 19, 2002

CSA Malaysia Continues Its Upward Performance Trend

Petaling Jaya — Computer Systems Advisers (M) Berhad (CSAM) released its unaudited second quarter results for the financial year 2003 yesterday evening.

The CSAM Group announced a Revenue of RM77.02 million and a Profit Before Tax of RM5.05 million for the quarter ended 30 September 2002. This compares with a Revenue of RM66.41 million and a Profit Before Tax of RM3.98 million in the preceding quarter. This represents an improvement of 16% at the revenue level and 27% at the Profit Before Tax level.

Earnings Per Share (EPS) for the second quarter of the financial year is 3.28 sen, Net Tangible Assets (NTA) per share as at 30 September 2002 stands at RM1.81 per share.

"The Group's overall improvement in performance in the current quarter was largely due to increased IT spending in the manufacturing and services sectors. IT spending, which was postponed due to cautious reaction to an uncertain global situation saw a slight revival and this is reflected in the Group's performance," said Mr Chuah Tai Eu, Managing Director, CSAM.

In terms of revenue mix, Systems Integration ("SI") accounted for 75 percent of total year-to-date revenue, compared to 80 percent recorded in the months of April to September of financial year 2002, Services stands at 24 percent compared to 18 percent for the same period last financial year. IT Outsourcing, the newest business segment for this quarter accounted for 1 percent of revenue.

"The Group's strategy of focusing on providing services that enhance enterprises' IT infrastructure is also reaping results as is seen in the revenue mix by core businesses. CSAM's services business has maintained a strong growth over the last financial year," Mr Chuah continued.

"A recent report by Affin-UOB Securities has identified information and communications technology (ICT) as one of the potential beneficiaries of future growth in the services sector. The CSAM Group has invested significantly in people, processes and infrastructure to ensure that we will continue to be the leader in this area. In addition, our association with Computer Science Corporation (CSC), in its 3rd year, will bring more service and support businesses from Multi-National Corporations to Malaysia and the Group," added Mr Peter Yong, Director, CSAM.

"We expect the Group's performance to continue on an upward trend on the back of an improving business environment. The Group has several major projects in the pipeline including government projects like the Government Multi-purpose Card (GMPC), Traffic Management Projects and Outsourcing Contracts for Multi-National clients," Mr Yong enthused.

"Although, we are seeing an improving trend in the Group's performance, management will continue to be diligent in cost management. Concurrently, CSAM's process transformation initiative will continue to be a key driver in the Group's strategy to increase its operations efficiency and customer satisfaction levels. We must continue to be agile and adaptable to keep pace with the changing market conditions and apply the appropriate business strategies to build the foundation to bring in business in the mid to long-term," said Mr Chuah.

"The difficult conditions that prevailed since October 2001 has added to the urgency of implementing the transformation of the Group's business model instituted by the management of CSAM in 2000. These include enlarging the Services portion of total revenues, investing in building higher value-added businesses such as outsourcing and expanding the software/solutions resources of the Group. We have seen results in the services business and are confident that the outsourcing business will be more prominent in the coming financial year. In the current environment, the Group is conscious of the continual need to enhance the level of our customers' satisfaction and focus on increasing productivity," reiterated Mr Yong.