News

Points Of Clarification On Report,"Qian Hu Pleased With Shares' Performance

22 July 2002


REUTERS SINGAPORE PTE LTD
18 Science Park Drive
Singapore 118229


Dear Sirs

POINTS OF CLARIFICATION ON REPORT, "QIAN HU PLEASED WITH SHARES' PERFORMANCE"

We refer to the above-captioned report published in the Business Times today, which was based on a report by Reuters published on 19 July 2002.

The report made two statements which we would like to correct and/or clarify:-

1. Statement that "Qian Hu has a revenue target of $100 million by 2005". Please note that at no time did Mr Kenny Yap make any such statement. This statement published in your report may give the incorrect impression of a revenue forecast by the year 2005.

2. Statement that "Mr Yap said he hopes to maintain a net profit margin of 8 to10 per cent.". Mr Kenny Yap made a commentary on our net profit margin range to Reuters weeks ago with reference to our historical results in the last two financial years, which is only now reported. In the last two financial years, FY 2000 and FY 2001, Qian Hu has maintained its net profit margin within this range. This historical statement published in your report together with the statement, "Qian Hu is due to release its half-year results on July 24" may give the erroneous impression of a profit forecast in respect of our half-year results for FY 2002 which are scheduled to be released on 24 July 2002.

We would appreciate if you could kindly publish the above points of correction and clarification.


Yours faithfully,


KENNY YAP KIM LEE
Executive Chairman and Managing Director
QIAN HU CORPORATION LIMITED