InnoTek Limited

(Formerly known as Magnecomp International Limited)

1 Finlayson Green, #15-02, Singapore 049246. Tel: (65) 6535 0689 Fax: (65) 6533 2680
Reg. No. 199508431Z

InnoTek Reported Net Profit of S$7.6

Million for FY09; Reversing From A Loss
of S$7.0 Million in FY08; Proposes 5
Cents Dividend
• Net profit was achieved despite FY09 revenue fell to S$361.5 million from S$421.6
million in FY08

• Wholly owned precision metal component specialist Mansfield Manufacturing

Company posts turnaround, with net profit contribution of S$3.0 million in Q4’09
(vs loss of S$9.9 million in Q4’08)

• Group benefits from cost-cutting and operational efficiency improvements as sales

of high-margin products increase while raw material prices decline

• Proposes first and final dividend of 5 cents per share for FY09, unchanged from
FY08

• In absence of deterioration of business conditions, Directors expect financial

performance in Q1’10 and FY10 to improve year-on-year. Group also pursuing
more higher-margin automotive and medical-related products

Dec 31 FY09 FY08 Change Q4’09 Q4’08 Change

S$’000 S$’000 % S$’000 S$’000 %
Turnover
MSF 361,473 421,559 (14.3) 92,747 111,535 (16.8)
Net Profit 7,591 (7,031) NM 3,007 (9,954) NM
MSF 9,255 (6,124) NM 3,158 (8,560) NM
Corporate (1,664) (907) (83.5) (151) (1,394) 89.2
Basic EPS 3.25 (3.00) NM 1.29 (4.26) NM
(cents)

SINGAPORE, 25 February 2010 – InnoTek Limited (“InnoTek” or “the Group”)

announced today net profit after tax of S$7.6 million for the financial year ended 31
December 2009 (“FY09”), a sharp reversal from a loss of S$7.0 million in FY08,
propelled by a turnaround of its wholly owned precision metal component specialist
Mansfield Manufacturing Company Limited (“MSF”).

SGX Mainboard-listed InnoTek said the net profit was achieved despite a fall in
revenue to S$361.5 million in FY09 amidst a global business and economic
slowdown, compared to S$421.6 million in FY08. InnoTek had recorded higher
impairment charges of S$8.5 million in FY08 compared to S$2.8 million in FY09.
 Media Release – InnoTek’s FY09 Net Profit Rises To S$7.6 Million
February 2010
Page 2 of 3
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The strong performance was boosted by a turnaround in the October-December

2009 (“Q4’09”) performance by MSF, which recorded a net profit of S$3.0 million
compared to a loss of S$9.9 million in Q4’08 on turnover of S$92.7 million and
S$111.5 million over the respective quarters.

For the whole of FY09, MSF’s net profit rose to S$9.3 million on turnover of S$361.5
million from a loss of S$6.1 million on turnover of S$421.6 million in FY08, due
mainly to lower material price and improvements in operating efficiency.

While revenue in all business segments fell in FY09, the decline was sharpest in the
Components and Assembly and Tooling business (collectively referred to as
“Precision Components and Sub-assembly”) due to lower demand for LCD TVs and
related products. The Frame business revenue also declined due to lower demand
for printing equipment.

The net profit growth of MSF was offset by a corporate loss of S$1.7 million due
largely to foreign exchange loss attributed to a weaker US dollar. This was however
mitigated by a write-back of tax provision on exemption on remittance of overseas
interest income in FY09.

Earnings per share rose to 3.3 cents in FY09, compared to a loss of 3.0 cents per
share in FY08. Net asset backing per share as at 31 December 2009 stood at 85.8
cents (following dividend payment of 5.0 cents a share in May 2009) compared to
88.6 cents per share a year earlier.

The Group’s financial position remains healthy, having generated S$15 million of
positive operating cash flow in Q4’09. As at 31 December 2009, the Group had cash
and cash equivalents of approximately S$109.3 million and total borrowings of
S$42.8 million, amounting to a net cash position of S$66.5 million or 28.6 cents per
share.

To reward shareholders, the Group has proposed a first and final one-tier tax-
exempt dividend of 5.0 cents per share, unchanged from a year earlier.

Commenting on the outlook, the directors of InnoTek expect business outlook in

FY10 to improve with the stabilization of the global economic environment.

“While the Group continues to improve operational efficiencies and cost-controls, in

the absence of any deterioration of business conditions we expect InnoTek’s
performance in Q1’10 and for FY10 to improve year-on-year,” said Group Managing
Director Mr Yong Kok Hoon.

2
 Media Release – InnoTek’s FY09 Net Profit Rises To S$7.6 Million
February 2010
Page 3 of 3
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The Group will continue to proactively explore appropriate merger and acquisitions
opportunities. “We will maintain our cautious stance, focusing on earnings-accretive
businesses, and stringently evaluate feasible investment proposals,” Mr Yong said.

## End of Release ##

About InnoTek Limited

Singapore Exchange MainBoard-listed, InnoTek Limited (together with its subsidiaries

“the Group”) is a precision metal components manufacturer, serving the consumer
electronics, office automation and automotive industries.

With over 10 manufacturing facilities across China and Europe, the Group’s wholly
owned subsidiary, Mansfield Manufacturing Company Limited (“MSF”), provides
precision metal stamping, commercial tool and die fabrications, sub-assembly work
and frame manufacturing services to a strong and diversified base of Japanese and
European end-customers.

For more information, visit: www.innotek.com.sg

InnoTek Limited contact:

InnoTek Ltd
1 Finlayson Green,
#15-02, Singapore 049246
Tel: (65) 6535 0689, Fax: (65) 6533 2680
Linda Sim, lindasim@innotek.com.sg
Yong Kok Hoon, khyong@innotek.com.sg

Investor relations contact:

WeR1 Consultants Pte Ltd

29 Scotts Road
Singapore 228224
Tel: (65) 6737 4844, Fax: (65) 6737 4944
Lai Kwok Kin, laikkin@wer1.net; May Barza, maybarza@wer1.net