10 May 2006– ESCALATING DEMAND FOR DIGITAL TECHNOLOGY
AND LICENSING FUELS TREKS’ PERFORMANCE

• Net Profit After Tax rose 221% to US$ 1.3 million
• Turnover rose 23% to US$30.8 million
• Intangible IP Assets amounted to US$5.7 million VS R&D expenses of US$0.2 million incurred
• Trek realising costs benefits arising from strategic alliances with OEM customers
• Digital Technology and Licensing businesses remained the main propellant of Trek’s future growth

Main board listed engineering solutions provider, Trek 2000 International Limited (“Trek” or “the Group”) today announced a 221% rise in net profit after tax and on the back of a 23% increase in turnover.

Trek’s performance this quarter is attributable to the growing demand for its digital technology solution and the income stream that is rapidly being generated by its licensing business. Turnover for the quarter ended 31 March 2006 stood at US$30.8 million, representing an increase of 23.3% compared to the turnover of US$25.0 reported in the same quarter last financial year.

The profitability of the Group improved significantly due to stronger market demand, licensing revenue and customised solutions for OEM/ODM customers. Gross margin for the quarter stood at 7.4% (1Q FY2005: 6.2%). Net profit after tax improved significantly rising from US$0.4 million in 1Q FY2005 to US$ 1.3 million in 1Q FY2006, representing an increase of 221%.

Maintaining its high priority, investments in R&D activities continue to grow. The
Group’s growing library of intellectual properties, reflected in its balance sheet as an intangible asset, amounted to US$5.7 million at the close of the quarter under review.

Correspondingly, the quarter also saw a 22% increase in R&D expenses.
Amortization for intangible assets amounted to US$0.4 million for the quarter.

A strong proponent of financial self reliance, the Group continues to maintain its
strong Cash and Cash Equivalents balance which amounted to US$31.2 million at
the close of 1Q FY2006 (FY2005 : US$33.1 million).

“We are very encouraged by the growing acceptance in the market for Trek’s
ThumbDrive® solution and the growing contributions from our licensing business
which has the potentials to generate good yields in the years ahead.” Said Mr. Henn Tan – Chairman and CEO of Trek, “and we are very optimistic about our business in the coming months.”

Going forward, barring any unforeseen circumstances, the Group expects that its
business in the months ahead will be driven by its digital technology and licensing
business activities. In view of the growing demand for its solutions and in its position as one of the leading IP technology-based organisations, Trek expects that its business performance will be better than FY2005.