Trek 2000 Secures US$10 Million Deal with TEAC, Japan - This Reflects Growing Recognition and Respect of IP Among Global MNCs

Mainboard listed engineering solutions provider, Trek 2000 International Ltd ("Trek" or "the Group") today announced that it has secured a US$10 million contract from TEAC Corporation ("TEAC"), Japan. TEAC is a leader in developing innovative and high-quality storage and audio products worldwide.

Under the terms of the contract, Trek will manufacture ThumbDrives under OEM which will be sold under the TEAC brand name. One of Trek's renowned products, the Trek ThumbDrive, is used by consumers around the world as a portable USB-enabled external data storage device. The ThumbDrive, a patented solution, has received patent approvals in many PCTA countries including Singapore, United Kingdom, South Africa, Nigeria, New Zealand, Mongolia, South Korea and Lebanon.

Commenting on TEAC's latest cooperation with Trek, Mr. Yoshiaki Sakai, President TEAC Japan said: "Being a global brand, TEAC is always searching for powerful solutions to deliver to consumers. Using TEAC products, consumers will always be assured of the quality and integrity of the products they purchase. Trek has demonstrated the abovementioned qualities in their library of patented ThumbDrive solutions. Looking ahead, Trek's growing library of patents, good technology and Research and Development skills will provide more opportunities for both companies to work together in the future."

TEAC is a large conglomerate in Japan and its products are well accepted and recognized around the world. TEAC's products are sold worldwide. Through this latest handshake, Trek will have access to TEAC's global distribution network to introduce more of its solutions to the market. Presently, the other global brands that are cooperating with Trek include IBM, Memorex, Hewlett Packard and Sonnet.

The contract with TEAC is the first major contract that Trek has secured since it opened its representative office in Tokyo in August last year. This office was part of the initiative by the Singapore government, through International Enterprise Singapore (IE Singapore) to help Singapore companies tap into the Japanese market and work with more Japanese companies.

Commenting on this latest contract, Mr. Henn Tan, Executive Chairman and CEO of Trek said: "This is a very important contract for Trek. TEAC's recognition of our technology and our intellectual property ownership is extremely encouraging. It clearly demonstrates the growing global awareness and respect of Intellectual Property ownership by MNCs. As we make further inroads into the Japanese market, I hope we will have the opportunity to work with many more Japanese conglomerates in future."

The Trek ThumbDrive came into being in Year 2000 when Trek introduced this first USB-enabled external data storage device to the world. Over the last three years, the Group's engineers continued to improve upon the generic ThumbDrive solution and have now introduced to the market more than 15 generations of ThumbDrive. ThumbDrives are extremely convenient and easy to use data storage devices. Weighing less than 20 gm, storage capacities of ThumbDrives range from 8 Megabytes to 2 Gigabytes. Moreover, for computers that are operating on Microsoft Windows 2000 or higher versions of Microsoft Windows, ThumbDrives immediately became plug-and-play devices.

Being a portable and convenient device, the popularity of ThumbDrive has risen significantly over the last few years. Becoming increasingly affordable and accessible to consumers, ThumbDrive is rapidly replacing the traditional floppy disk with its powerful storage capacities. Moreover, as laptops join the realm of personal effects for many road warriors, the weight of the laptops will be an important consideration. Floppy disk drives have become optional items rather than essential ones for many laptops today. Unencumbered by floppy disk drives, the weight of laptops is significantly reduced making them more portable for users. On the other hand, there are now more USB ports in computers reflecting the rising usage of USB-enabled devices. Under these circumstances, the ThumbDrives are poised to replace floppy disks as an answer to portable data storage needs, in particular, for transporting data requiring more than 1.44 Megabytes memory size.

The contract with TEAC will commence in April 2004 and will have a significant contribution to the financial performance of Trek in FY2004.