5.(d) Any other comments relating to Paragraph 5 NIL

6. Segmental Results Turnover and operating profits by segments

No analysis of operating profit is provided as it is similar to that of the profit before tax save for the share of results of an associated company for 1997 and 1998 which were insignificant. Assets are employed to support the entire activity range and worldwide operations and cannot be meaningfully allocated to either the activities or geographical markets. The "others" includes projects in Asia, Brazil and the Middle East. Projects in Asia cover countries such as China, Hongkong, Korea, Japan, Thailand, Malaysia, Indonesia and Vietnam.

(d) Date payable N.A. (e) Books closing date N.A. (f) Any other comments relating to Paragraph 9 NIL

11. Details of any changes in the company's issued share capital The Company issued the following ordinary shares of $1 each during the year: (a) 47,450 shares for cash at a premium of $19.93 per share to provide working capital; (b) 6,333 shares and 5,700 shares at a premium of $14.00 and $16.50 per share respectively as consideration for the purchase of 100% interest in CIM Infotech Pte Ltd, as approved by the shareholders by special resolution on 8 June 1998. The authorised share capital of the Company was increased from $13,200,000 to $30,000,000 by the creation of an additional 16,800,000 ordinary shares of S$1.00 each as approved by the shareholder by ordinary resolution on 8 December 1998. The Company's subsidiary company, CSE Systems & Engineering (India) Private Limited, issued 421,924 shares of Rs10 each at par for cash to increase its working capital. The Company has approved share options under separate service agreements with 3 of its key executives on 2 March 1998, 1 August 1998 and 1 January 1999 respectively. Under the agreements, the 3 executives are granted options to acquire up to a total of 56,000 ordinary shares of S$1.00 each at par for cash in the Company. The prices at which these share options are to be exercised per share are not less than $10.00 but not more than $21.00, $15.00 and not less than $15.00 but not more than $20.00 respectively. These share options are to be exercised no later than 1 March 2001, 31 July 2000 and 31 December 2001 respectively and are subjected to the executives remaining in the employment of the Company and to the satisfactory performance of their duties. The share options do not carry any rights to participate in share issues of any other company. At 31 December 1998, no option has been exercised.

12. Comparative figures of the group's borrowings and debt securities (a) Amount repayable in one year or less, or on demand

(b) Amount repayable after one year

(c) Any other comments relating to Paragraph 12 NIL 13. Year 2000 ("Y2K") Statement Y2K Compliance Definition The Company defines Y2K compliance to mean that neither the performance nor functionality of its information technology goods and services (whether used internally or supplied to its customers) shall be adversely affected to a significant extent by dates prior to, during and after the Year 2000. In particular, Y2K compliance also means: (i) no valid value for current date will cause any interruption in the operation of its IT systems; (ii) all manipulations of date or time related data will produce the required results for all valid date prior to, during and after the Year 2000; (iii) if the date elements in interface and data storage specify the century, they will permit specification of the correct century either explicitly or by unambiguous algorithms or inferencing rules; and where any date element is represented without a century, the correct century shall be unambiguous for all manipulations involving that element; and (iv) the Year 2000 will be recognised as a leap year. Impact on the Group's Business The Group recognises that the Y2K problem will have some impact on its business as its customers, key business partners and suppliers embark on their own initiatives and programmes to address the problem. There is no absolute assurance that the Y2K problem will not materially affect the Group's operations and financial results. The Group has, however, made all efforts to ensure that any impact on its business will be minimised with no disruption to its provision of IT goods and services or undue exposure to liabilities for the provision of such goods and services which are non-compliant. Actions to Address Y2K Issue As a leading IT company, the Group has since 1997 embarked on an extensive programme to address the Y2K issue with respect to its business as a provider of IT goods and services. All steps were taken to assess the Y2K readiness of its infrastructure and to ensure that all internal systems were Y2K compliant. A comprehensive inventory of hardware and software systems in use across all business units within the Group was compiled by the Group. All critical systems have been identified, assessed and tested. Wherever necessary the systems have been replaced and/or modified to meet the standards of Y2K compliance. The Group is also working closely with its customers and suppliers to prepare for Year 2000. Certification of goods and services as Y2K compliant is underway and vendors are required to furnish statements of compliance for the products which they supply to the Group and its customers. All suppliers are sourced only from vendors who satisfy the criteria for Y2K compliance set by the Group. The Group's Y2K effort is spearheaded by a central Y2K Committee chaired by its Chief Executive Officer and comprising other senior staff members. The Committee sets the Y2K policy guidelines including best practices for the Group and meets regularly to update and review its Y2K programme. Progress of Y2K Effort The Group's Y2K programme has progressed on schedule and its systems are expected to be Y2K ready by June 1999. In addition, the Group is also putting in place contingency plans to support its business and key customers in order to minimise any potential impact to its operations. Estimated Costs of Y2K Programme The estimated cost of the Group's Y2K compliance programme is S$0.5 million of which S$0.1 million has been accounted for in the financial statements made up to 31 December 1998. Out of S$0.5 million, S$0.3 million will be capitalised and S$0.2 million will be expensed off. BY ORDER OF THE BOARD Yvonne Choo Company Secretary 31/3/1999