Our Personal Communications Solutions Services will continue to focus on higher margin opportunities such as the provision of value-added services such as integrated fulfillment and retail management services, as well as continue to strengthen our relationships with our principals, vendors, corporate customers and retail consumers.

In Singapore, we provide StarHub Ltd with full fledged integrated customer order fulfillment and supply chain management services, which include inventory planning, procurement and logistics support. We plan to build on our track record and pursue similar opportunities with other regional telecommunications operators.

We believe there is room to further strengthen Personal Communications Solutions Services which will continue to contribute significantly to our overall operations. Regionally, we will continue to focus on growing our overseas markets such as Malaysia and Indonesia by securing new distributorships in these countries. With the roll-out of Wireless@SG Wifi initiative by the Singapore Infocomm Development Authority ("IDA") and the launch of 3G networks, we anticipate increasing demand for higher-value, feature-rich smart phones.

We plan to fully leverage on our retail assets under Planet Telecoms to further strengthen our partnerships with our principals, and also better serve our customers, through innovative retail concepts as well as joint marketing and promotional activities. We will continue to seek out potential ventures, new distributorships and fulfillment opportunities for our Personal Communications Solutions Services around the region.

TELECOMMUNICATIONS SERVICES

We are poised to take advantage of the growing opportunities arising from the convergence of Voice and Data technologies and from the growing regional markets. Consumers are also increasing their use of the internet for both voice and data communications needs. Our strategy is to position ourselves to take advantage of these trends, by becoming a major provider of internet-based Voice and Data services and convergence solutions.

We have also put in place an innovation roadmap for several upcoming internet-based telecommunications products and services. We will continue to evaluate and embrace new technologies and products in the mobile and wireless broadband (internet) space through commercial collaborations and partnerships as well as through mergers and acquisitions.

The outlook for the Malaysia telecommunications sector appears upbeat with the Malaysian government's recent announcement to implement mobile number portability and to issue four WiMAX licences in 2007. We believe N-Wave is a good springboard for us to capitalise on the growing Malaysia telecommunications sector.

NETWORK ENGINEERING SERVICES

Our Network Engineering Services expect to benefit from growth in Singapore and the region as mobile operators continue to enhance their current 2G networks and to roll out 3G networks. In particular, we see strong market opportunities in Indonesia.

We also plan to expand into new markets by leveraging on our technical capability and network building experiences. We will continue our push to diversify our customer base via new customer acquisition in both our existing as well as new markets. To better position ourselves for the opportunities presented by the industry trend towards voice and data as well as fixed and mobile convergences, we will continue to develop a broader base of capabilities, as well as enhance our product and service offerings through partnership arrangements and joint ventures.