TECKWAH REPORTS STRONG INTERIM 2009 PROFITS INSPITE OF LOWER REVENUE

• Revenue declined 4% from $73.8 million to $71.0 million
• Net profit After Tax rose 163% from $1.9 million to $5.1 million
• Operating activities generated $18.8 million cash flow
• Cash balance stood at $40.1 million

SINGAPORE, 12 August 2009 - Main board listed Teckwah Industrial Corporation Limited (“Teckwah” or “the Group”) today announced an approximately 163 % increase in net profit after tax in spite of decline in revenue for the six months ended 30 June 2009.

The Group’s net profit after tax rose to $5.13 million from $1.95 million registered over the same period a year ago. The higher profitability is mainly attributable to the swift actions by the management in cost management and process improvement resulting in better efficiencies and lower operating cost. The top and senior management took the lead in salary cut of 10% and 5% respectively, and salary freeze for the rest of the staff at the beginning of 2009. Better inventory management, lower raw material and transportation prices and a favorable foreign exchange rate have collectively contributed significantly to the Group’s performance. Changes in the work shift pattern, which resulted in lower utility and labor costs, have also helped the Group’s performance.

Group’s turnover stood at $ 71 million, representing a decline of 3.8% over the turnover of $73.8 million reported in H1 FY2008. The Print Related Business registered a 10% reduction in revenue from $61.3 million to $55.1 million due mainly to the completion of a major project in China in the third quarter of FY2008, as well as weaker demand from customers in Australia and Indonesia. The Non-Print Related Business registered an increase in revenue by 27% from $12.4 million to $15.7 million as a result of new contributions from projects secured in the second half of FY2008.

By business segments, the Print-related business remains as its main revenue contributor accounted for 77.7% of the Group’s turnover. The balance of approximately 22.3% comprises contribution from its Non-print business. By geography, the Singapore operations continue to be the main revenue contributor accounting for 58.9% of the Group’s total revenue. The China operations are the second largest contributor at 26.1%.

Strong operating profit together with efforts in managing inventory, receivable and payable, have enabled the Group to generate a strong cashflow from operations of $18.8 million. As of June 30 2009, the Group maintains healthy cash balance of approximately $40.1 million. The Group’s gearing remains low at 0.01 times.

“We saw strong team spirit among all staff who worked together to overcome the difficult time. Although we have delivered a set of better than expected results, it is not the time to celebrate yet because there are still uncertainties ahead of us. The cost management measures and process improvement initiatives that we have put in place have to be continued and further enhanced.

Although our Print related business, being a core business for Teckwah, will continue to play an important role, the development of our Non-print business is also encouraging,” said Mr. Thomas Chua, Executive Chairman and Managing Director of Teckwah. “With our strong balance sheet, we will capitalize on current lower prices in this downturn to selectively upgrade our facilities and continue to look for business acquisitions that will support the future growth of the Group.”

Barring any unforeseen circumstances, the Group will deliver a higher profit for this financial year as compared to FY 2008.