9 Nov 2006– Trek Reports Strong Performance

• Net profit after tax rose by 58.6%
• Revenue rose to US$25.3M
• Licensing and digital technology business segments are key growth drivers.
• YTD licensing revenue rose 45.8% to US$1.7M.
• YTD revenue contributions from digital technology increased 24.1%
• Trek expects performance in FY2006 to be better than that of FY2005.

SINGAPORE, 9 November 2006 – Mainboard listed engineering solutions provider,
Trek 2000 International Ltd (“Trek” or the “Group”) today announced a 58.6% increase in net profit after tax to US$1.2M on the back of a 9.8% increase in revenue for the 3rd quarter of FY2006.

Revenue for 3QFY2006 stood at US$25.3M compared to US$23.1M in the same period last financial year. The stronger market demand this quarter also translated itself into improvement in the Group’s gross profit margin which rose from 7.4% in 3Q FY2005 to 9.4% this quarter.

Reflecting its stronger business performance this quarter, Trek net profit after tax rose by 58.6% to US$1.2M from US$0.8M in 3QFY2005. The improved profitability is due to the growing contributions from both its licensing and digital technology businesses. Research and Development (“R&D”) is key to the Group’s business activities and this is represented by an increase in R&D expenses. With the consistent investment in the Group’s R&D, expenses an increased by 88.1% to US$0.7M compared to US$0.3M in 3Q FY2005. Marketing and distribution costs also rose by 25.1% from US$0.4M (3QFY2005) to US$0.5M (3QFY2006) mainly attributable to provisions made this quarter. Legal fees incurred amounted to approximately US$0.2M. This is in relation to litigation cost recoveries and damages assessments for Trek’s Intellectual Property (“IP”) rights and the Group’s continuous IP enforcement programme.

Commenting on Trek’s performance this quarter, Mr. Henn Tan – Chairman and CEO said: “The market is rapidly moving towards solutions with proven technology and reliability as data storage and security become increasingly important aspects of the competitive business landscape. This shift has also supported our strategy to focus on profitability and enabled us to turn in better performance todate.”

The Group’s improved performance over the last three quarters has brought its year-todate revenue to US$84.2M and its net profit after tax to US$3.7M compared to the revenue and net profit after tax of US$79.5M and US$2.0M in the same period last financial year. The two key gowth drivers this year were the licensing business which saw an increase of 45.8% from US$1.1M to US$1.7M and the digital technology business which rose by 24.1% from US$45.4M to US$56.3M.

Going forward, both the licensing and digital technology business will continue to
dominate as Trek’s growth drivers and contribute to improve the Group’s margin. Trek remains optimistic about its business prospects for the rest of FY2006 and expects that its business performance for FY2006 will be better than that of the previous financial year.