GP Batteries International Limited

12 June 2001, Singapore - Mainboard-listed GP Batteries International Limited ("GP Batteries"), is pleased to announce today its unaudited results for the year ended 31 March 2001.

Review of Results

The Group's turnover for the year ended 31 March 2001 was S$594.2 million, an increase of 11.8% over the previous year. The consolidated net profit after taxation and minority interests but before extraordinary items was S$25.0 million, representing an increase of 13.2% compared with 2000. Earnings per share based on the weighted average of 103,462,331 (2000: 103,461,168) shares in issue during the year amounted to 24.20 Singapore cents, compared with 21.38 Singapore cents for 2000. The diluted earnings per share, based on the weighted average of 104,022,542 (2000: 103,492,148) after taking into account the dilution adjustment for share options, amounted to 24.07 Singapore cents, compared with 21.38 Singapore cents for 2000.

Business Review

The strong performance in the first half continued into the third quarter of the financial year. In the fourth quarter, sales slackened substantially due to the sudden and sharp slowdown in the U.S. economy. This situation was particularly serious in the personal computer and cell phone industries where excess inventory was critical. The lackluster results in the last quarter affected the overall performance of the Company.

Gold Peak Industries (Taiwan) Limited has commenced mass production of Lithium Ion cylindrical batteries. We successfully introduced the 2100mAh Lithium Ion 18650 battery, which has the highest capacity for batteries of the same size. A full scale sales effort to introduce ourselves to PC manufacturers worldwide and to promote our product is being undertaken.

As part of our continuous effort to upgrade our factories and modernize our quality systems, we have started to introduce QS9000 in our operations. Two of our factories are now QS9000 certified. More will follow, reflecting the commitment of our Group to continuous improvement.

We have continued to refine our electric vehicle batteries. We have been steadily working with OEM manufacturers in the U.S., Europe and China. Our batteries have been installed and tested in several hybrid transport systems and have been demonstrated to increase energy efficiency as well as reduce air pollution.

In the opinion of the Directors, no items, transaction or event of a material and unusual nature has arisen between the date up to which this report refers and the date on which this report is issued which would substantially affect the results of the Company or the Group.

Prospects

The consumer electronics market in general is expected to remain soft due to the slowdown in the U.S. economy. On the other hand, sales in Asia and Europe are expected to be steady.

The Group will continue to benefit from the steady demand for specialty batteries from private label customers and the consumer market under its "GP" brand. New products will be introduced to capitalize on the growing demand worldwide for advanced rechargeable batteries. The Group also expects additional new business opportunities for electric vehicle batteries.

Barring unforeseen circumstances, the Directors expect the Group to achieve another profitable year.

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