News Release-- August 16, 2003

CSA Malaysia Achieves PBT Growth Despite Economic Slowdown

Petaling Jaya — Computer Systems Advisers (M) Berhad (CSA Malaysia) announced today its unaudited 1st quarter results for the financial year 2002.

The CSAM Group recorded an increase in Profit Before Tax of RM7.13 million for the first three months of financial year 2002 vs. RM7.09 million recorded in the comparable quarter last financial year 2001. This was on the back of the Group's total Turnover for 3 months of RM82.56 million against RM104.62 million recorded in the months between April to June of last financial year 2001.

On a sequential quarter on quarter basis, the Group's Profit Before Tax increased by 33.1% from RM5.35 million recorded in the previous financial quarter (January to March 2001) to RM7.13 million.

As at 30 June 2001, CSA Malaysia's Group Profit After Tax stands at RM5.01 million. Being so, this brings basic Earnings Per Share (EPS) for the first three months of financial year 2002 to 12.35 sen. Net Tangible Asset (NTA) per share as at 30 June 2001 stands at RM3.30.

In terms of revenue mix, Systems Integration (SI) accounted for 77% of total Turnover for the 1st quarter of FY2002, compared to 90% that was recorded for the months of April to June 2000. Correspondingly as at 30 June 2001, Customer Support & Services (CSS) stands at 18%, whilst IT Outsourcing and Internet Business contributed 3% and 2% respectively.

"Although industry growth rates in the Malaysian IT industry are currently subdued compared to the impressive growth that it had last year, CSAM will continue strengthening its efforts towards maximising efficiency and productivity, whilst reducing operational costs," said Mr. Chuah Tai Eu, Managing Director of CSA Malaysia.

"For the months of April to June 2001, revenue from SI was challenging as a result of the current economic climate. The current economic downturn has made our SI clients more selective in implementing new projects and in committing resources to new IT spending. However, the revenue contribution from CSS grew because of the strong performance that SI experienced over the last 15 months. Therefore, this strong SI growth last year has translated into new CSS contracts in this financial year," Mr. Chuah mentioned.

"IT Outsourcing - a new core business - has started to contribute towards overall revenues of the Group, as well as PBT. For the months of April to June 2001, IT Outsourcing accounted for 3% of the individual quarter's overall revenue. However, at the PBT level, it contributed 6% overall. Going forward, CSAM expects greenfield projects, as well as CSC's global contracts from IT Outsourcing to further boost this segment's contribution towards the overall revenues and profitability of CSAM," explained Mr. Chuah.

"In the immediate future, the Group will continue to dedicate resources towards CSAM's long-term aim of constantly being able to deliver higher value-added solutions & services. It is only through this strategy of being able to offer a value proposition to our clients can we differentiate ourselves," added Mr. Chuah.

"CSAM is also of the view that the present weakening of the Malaysian IT industry is temporary, and that the long-term outlook for the sector is bright. As the economic conditions improve, so will the demand for IT products & services. CSAM on its part, is gearing itself to ensure that it is in a position to take full advantage of opportunities in this upturn once it occurs," quipped Mr. Chuah.