Venture Corporation Posted Sterling Interim Results, With Record Turnover Of S$906 Million And Net Profit Rising 35% To S$75 Million

SINGAPORE - 30 August 2002 - Mainboard-listed Venture Corporation Limited, a leading global electronics services provider, today reported a record interim turnover of S$906 million for the six months ended 30 June 2002. Net profits rose 35% to S$75 million as the Group recorded an increase in higher value-added activities and higher volume of sales. The favourable results were also attributed to a lower cost structure.

Highlights from Venture's performance for 1HFY2002 include:
? Earnings per share improved to 32.3 Singapore cents, up 35%
? Strong balance sheet with S$333 million in net cash and equivalents
? Net tangible asset backing per share rose 31% to S$3.10

"The underlying strength of our business strategy has kept us resilient and on the path of growth in the face of a difficult business environment," said Mr. Wong Ngit Liong, CEO of Venture Corporation. "We will intensify our efforts to develop and acquire new technologies for the future. We will accelerate growth in the Original Design & Manufacturing (ODM) and E-fulfillment Services (EFS) lines of business in areas such as networking/communications, advanced storage devices and mobile internet appliances."

"On 24 August 2002, we successfully launched our Singapore-designed VP2020 digital color label printer which is a breakthrough product for the tag and label industry," added Mr. Wong. "This milestone launch marks an added dimension to our business model, enabling Venture to work synergistically with our long-standing partners and customers. As demonstrated with the VP2020 solution, we are able to offer HP new opportunity to sell their printhead and ink supplies, thus creating ongoing revenue streams for HP and the Venture Group."

Performance by Lines of Business & Product Segments
In the first half of FY2002, the Group registered strong growth in all its product segments and lines of business.

The Electronics Manufacturing Services (EMS) line of business contributed 72% to the Group's activities while the ODM line of business posted strong contribution of 13%. The EFS line of business also recorded healthy growth and contributed 15%.

Demand for all product segments remained robust. The Printing/Imaging and Networking/Communications segments contributed 36% and 33% respectively while the Computer Peripherals/Data Storage segment registered a 24% contribution. The Test & Measurement/Etc segment contributed the remaining 7%.

Strong Balance Sheet
As at 30 June 2002, Venture had a strong balance sheet with net cash and equivalents of S$333 million.

Inventory at 30 June 2002 was S$195 million, a 29% increase from S$151 million as at 31 December 2001. Inventory turns improved to 8.2x compared to 7.3x as at 31 December 2001.

Shareholders' funds increased 28% to S$749 million. Earnings per share rose 35% to 32.3 Singapore cents while net tangible assets backing per share grew to 310.0 Singapore cents.

Moving ahead, Venture will stay focused on being the Center of Excellence for Global Value Chain Management providing superior end-to-end solutions to its customers worldwide. The Group will continue to expand its range of higher value-added activities and enlarge its customer base in all market segments. The Group continues to extend its global reach as part of its globalization strategy.

About Venture Corporation
Venture Corporation Limited aims to be the best and most reliable electronics services provider and strategic global partner for successful global companies by providing end-to-end expertise in electronics manufacturing services (EMS), original design & manufacturing (ODM) and e-fulfillment services (eFS). Top Fortune 500 companies including HP, Agilent, Cisco Systems, IBM, Motorola as well as other up-and-coming multi-nationals have selected Venture as their global strategic partner for their long-term manufacturing, engineering, product development and design and supply chain management needs. Founded in 1984, the Venture group comprises 24 companies with global clusters of excellence operations in Asia, North America /Mexico and Europe.

Today, Venture is ranked among the top Electronics Services Provider (ESP) companies in the world, bearing testimony to its consistent performance, flawless execution and world-class quality. Its customers often reference Venture as having one of the strongest management and technical expertise. Venture has received numerous accolades from both its customers and the financial community such as "Top 20 Value Creators" by Asian Wall Street Journal in December 2001, "Supplier of the Year", "Best Managed Companies in Singapore" by Asiamoney in January 2002 and "Asia's Best Companies 2001" by FinanceAsia.