InnoTek Limited

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

SGX-Listed InnoTek Announces Q211 Net Profit of S$0.4 Million on Revenue of S$78.7 Million
SINGAPORE, 12 August 2011 Singapore Exchange Mainboard-listed InnoTek Limited (InnoTek or the Group) announced today that it recorded a net profit after tax of S$0.4 million for the second quarter ended 30 June 2011 (Q211) on revenue of S$78.7 million. The Groups revenue in Q211 decreased S$31.9 million or 28.8% to S$78.7 million from S$110.5 million recorded in Q210 as its wholly owned Mansfield Manufacturing Company Limited (MSF) was affected by the supply chain disruption as a result of the March 2011 Japan earthquake and tsunami. The Groups lower revenue was mainly due to reduction in revenue of Stamped Components by S$19.3 million to S$54.2 million from S$73.5 million recorded in Q210 and decline in Assembly revenue by S$9.5 million to S$10.9 million from S$20.4 million recorded in Q210. InnoTeks Q211 net profit of S$0.4 million was S$5.3 million lower than Q210 profit of S$5.7 million as a result of lower revenue and weakening HK$/S$ exchange rate, coupled with the strengthening of the Rmb/HK$. The net profit was mainly attributed to the S$0.9 million profit recorded by MSF after introduction of cost controls to mitigate the revenue reduction. Compared to Q210, MSFs gross profit (GP) margin in Q211 reduced 5 percentage point to 16.0% from 20.7%. As a result of the disruption caused by the Japan earthquake, there was reduction in sales to certain customers of higher-margin TV components, resulting in lower-margin office automation (OA) customers showing a higher revenue contribution in this quarter. This in turn caused decline in GP margin during Q211. The GP margin was also affected by higher steel prices and increase in PRC minimum wages since Q210 and Q111. This has also impacted the GP margin of the automotive components as their prices were agreed at early stage of development before mass production starts. Despite the reduction of GP amount of $10.3 million, MSF net profit reduced by only S$4.7 million, helped by lower administration and selling and distribution expenses. Rental from the investment property also helped to mitigate the reduction in net profit. Corporate reported a loss of S$0.4 million compared to a profit of S$0.1 million in Q210. This includes S$0.4 million net dividend declared by SGX-listed Sabana Reits, offset by exchange loss of S$0.1 million (US$/S$ exchange rate in June

Media Release SGX-Listed InnoTek Announces Q211 Net Profit of S$0.4 Million on Revenue of S$78.7 Million 12 August 2011 Page 2 of 3 _____________________________________________________________________________

2011 was S$1.23 vs S$1.26 in March 2011). The profit of S$0.1 million in Q210 was due to a gain of S$0.6 million from the disposal of Nanoprecision investment. The Company also received a dividend from MSF amounting to S$5.5 million (HK$35.0 million) in Q211. For the six months ended 30 June 2011 (1H11) InnoTeks net profit after tax decreased to S$0.8 million from S$9.2 million in 1H10 on a 16.7% decline in revenue to S$170.0 million from S$204.1 million due to lower demand for LCD TVs with the end of the Japanese governments eco-friendly subsidy scheme and the earthquake-related supply chain crisis which affected certain major OA customers. Earnings per share for Q211 was 0.20 cent. Net asset backing per share as at 30 June 2011 stood at 79.3 cents compared to 85.4 cents as at 31 December 2010 after dividend payment of the 5 cents per share in May 2011. The Groups financial position remains healthy, with net cash position of S$29.4 million or 12.9 cents per share, comprising cash and cash equivalents of S$57.2 million less total borrowings of S$27.9 million, as at 30 June 2011 after payment of S$11.4 million dividend in May 2011. The continued weakness of the U.S. and European economies has recently raised concerns of a possible slowdown in business outlook. Analysing the outlook of the main industry sub-sectors it serves TV components, Office Automation and Automobiles, the Group sees some possible pent-up recovery after a few months of disruption due to the earthquake and tsunami in Japan during Q211, particularly for Q311. While there is continued demand for TV products from emerging markets, this sector is witnessing significant developments including price pressure which has resulted in restructuring by some Japanese players and increasing outsourcing from Japan or China. The challenge for management is the rising wages and material costs within China and the weakening of the US dollar relative to the renminbi (US$/RMB exchange rate was RMB6.594 in December 2010 vs RMB6.463 in June 2011) InnoTek Group Managing Director, Mr Yong Kok Hoon, said, OA and certain automotive components customers, while offering lower margins, are relatively stable as orders have started to increase towards the end of June 2011. However, demand for TV components remains weak. As a result, the product mix will skew towards lower-margin OA products. The Directors expect that in the absence of any deterioration of business conditions, the Groups Q311 performance will be better than that of Q211 and 2H11 performance will improve over 1H11.

Media Release SGX-Listed InnoTek Announces Q211 Net Profit of S$0.4 Million on Revenue of S$78.7 Million 12 August 2011 Page 3 of 3 _____________________________________________________________________________

In the meantime, the Group continues to focus on improving cost management and operational efficiency to mitigate the effects of the earthquake, rising costs due to inflation and the strengthening of the renminbi relative to the weakening US$. It will also continue to diversify its range of products and customer base, he added.
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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 Groups 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 Limited 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