InnoTek Limited

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

SGX-Listed InnoTek Announces Marginally Higher Q212 Revenue From Continuing Operations
MSF (S$ Million) Continuing Operations Turnover Net (Loss) / Profit MSF Net (Loss)/Profit Corporate (Loss)/Profit Total Basic EPS (cents) 70.4 71.0 69.0 2.0 2.9 141.3 152.0 10.7 7.0 Q112 Q212 Q211 Q212 vs Q211 Change % 1H12 1H11 1H12 vs 1H11 Change %

(4.1) (0.4) (4.5) (1.99)

(1.5)* (0.1) (1.6)* (0.99)

0.4 (0.4) 0.0 (0.01)

(1.9) 0.3 (1.6) (0.98)

NM NM NM NM

(5.5)* (0.5) (6.0)* (2.98)

1.2 (1.1) 0.1 0.03

(6.7) 0.6 (6.1) (3.01)

NM 50.6 NM NM

* Excluding S$0.6 million loss from disposal of MICL; ** NM Not Material

SINGAPORE, 14 August 2012 SGX Mainboard-listed InnoTek Limited (InnoTek or the Group) announced today its results for the second quarter ended 30 June 2012 (Q212) showing slight increase in revenue to S$71.0 million from S$69.0 million a year ago from continuing operations of its wholly owned Mansfield Manufacturing Company Ltd (MSF). The precision metal components manufacturers revenue in Q212 improved marginally over Q112 as it recorded higher sales from office automation (OA) and automotive customers. However, this was offset by lower sales to major Japanese TV components customers who were affected by competitors from other countries. The increase of 2.9% or S$2.0 million rise in revenue was mainly due to increase in Stamping Components and Assembly revenue by S$2.7 million from S$65.0 million to S$67.7 million which was partially reduced by a S$0.7 million decline in tooling revenue from S$4.0 million recorded in Q211 to S$3.3 million in Q212. The Groups continuing operations for Q212 reported a net loss of S$1.6 million (excluding loss on disposal of Mansfield Industrial Co. Ltd (MICL)). This is lower than the S$4.5 million loss recorded in Q112 but higher than the break-even situation recorded in Q211. MSF reported S$1.5 million loss in Q212 compared to S$0.4 million profit in Q211. The loss in Q212 was mainly due to lower gross profit (GP) margin as lower-margin OA products continued to record higher sales than higher-margin TV components.

Media Release SGX-Listed InnoTek Announces Marginally Higher Q212 Revenue From Continuing Operations 14 August 2012 Page 2 of 3 _____________________________________________________________________________

GP margin for existing automotive component programmes was also affected by rising costs of steel and labour in China in recent years because the Group had committed to competitive pricing one to two years before mass production in order to secure this new business category. But even with economies of scale from mass production, the higher-than-anticipated inflationary pressures have eroded margins significantly for existing automotive programmes. The Group has taken great care to ensure quotations factor in projected inflation to cover the lifetime of new programmes. MSFs loss for Q212 also included start-up cost relating to the new mobile business amounting to S$0.9 million. For the six months ended 30 June 2012 (1H12), Groups revenue from continuing operations declined by S$10.7 million or 7% to S$141.3 million from S$152.0 million recorded in 1H11. This was mainly due to the decline in Assembly revenue by S$10.8 million which was mitigated by slightly higher demand for Stamping components and Automotive products. The Groups continuing operations in 1H12 reported a net loss of S$6.0 million (excluding loss from disposal of MICL) compared to the break-even situation recorded in 1H11. GP margin declining from 15.6% to 13.1% and retrenchment charges totalling S$1.3 million in Q112 (as a result of reducing indirect labour costs to mitigate pricing pressure) led MSF to incur a loss of S$5.5 million in 1H12. The Company reported a lower loss of S$0.5 million from S$1.1 million in 1H11 mainly due to the higher dividend income of S$0.7 million from Sabana Reits received in 1H12 compared to the first dividend of S$0.5 million received in 1H11 after its IPO in November 2010. Loss per share from the Groups continuing operations for Q212 increased to 0.99 cent from 0.01 cent recorded in Q211. Net asset backing per share as at 30 June 2012 stood at 76.1 cents compared to 84.6 cents as at 31 December 2011. The financial position of the Groups continuing operations remains healthy, with net cash position of S$11.1 million or 4.96 cents per share, comprising cash and cash equivalents of S$33.2 million less total borrowings of S$22.1 million, as at 30 June 2012. Commenting on the results, Group Managing Director of InnoTek, Mr. Yong Kok Hoon, said, Despite some recovery from the supply chain disruption caused by the two natural disasters in Asia in 2011, the ongoing European debt crisis and economic slowdown in China continue to affect the Group which reported a marginal sequential improvement in Q212 revenue from Q112.

Media Release SGX-Listed InnoTek Announces Marginally Higher Q212 Revenue From Continuing Operations 14 August 2012 Page 3 of 3 _____________________________________________________________________________

The directors expect Q312 performance to remain challenging with the current global economic uncertainty and the slower growth in China. Business outlook of the Groups main industry sub-sectors TV components, Office Automation and Automotive components remains dampened as Japanese TV-related customers face fierce competition from other major TV producers from other countries, Mr Yong said. The Group will continue to remain focused on reducing dependence on businesses which offer less strategic value, facing margin pressure or are less stable. At the same time, the Group will continue to work on improving operational efficiency to increase the margin of the existing OA and automotive businesses. ## 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 seven manufacturing facilities in the PRC, the Groups wholly owned subsidiary, Mansfield Manufacturing Company Limited (MSF), provides precision metal stamping, commercial tool and die fabrications and sub-assembly works 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 38A Circular Road, Singapore 049394 Tel: (65) 6737 4844, Fax: (65) 6737 4944 Josephine Auxilio, josephine@wer1.net Lai Kwok Kin, laikkin@wer1.net