WHAT CAN YOU EXPECT FROM METRONIC IN 2007?

LET US HAVE THE DOWNSIDE.

For Q2, Metronic made 57% less money than the corresponding period in 2006. The company cited the slower progress of local projects and the fact that certain major projects that contributed substantially to the previous year's revenue are at their completion stage.

Profit before tax was a dismal RM330,000. The decline in profit was attributed to higher operating expenses as Metronic has acquired an additional three subsidiaries during the current quarter under review.

THE UPSIDE.

The Group expects increasing contribution from overseas operations for the next two quarters.

With the acquisition of a few companies during the current quarter, the Group also expects to have profit contribution from those companies for the current financial year ending 31 December 2007.

Barring any unforeseen circumstances, Metronic should be able to achieve a satisfactory performance for the remaining quarters of the financial year ending 31 December 2007.

Metronic has been on an acquisition trail. The companies they are going into partnership, joint venture or in the process of acquiring include:

Acquisition of Infocon (Beijing) Environment Control Technology Company Limited

A joint venture with FEELingK Co., Ltd to deal with the deployment of Card Notification Solution, Bulk Short Message Services, Voice SMS and the related consultancy, implementation and operations in Malaysia, Pakistan, India, United Arab Emirates, Saudi Arabia, Qatar, Australia, New Zealand.

A partnership with Tariq Mohammed Saeed Abdulla Al Jassmi, a UAE national and Khalid Abdul Karim Faris, a Jordanian national to carry out the business of intelligent building management system, integrated security management, e-project management of mechanical and electrical services and other related activities in the entire Middle-East and North Africa region.

Acquisition of 125 ordinary shares of Hong Kong Dollar 1.00 each in Unilink Development Limited.

Acquisition to acquire 10,000 ordinary shares of HK$1.00 each in HK Broadway Electronics Company Limited representing 100% equity interest in HK Broadway.

A call option between Metronic and Zonemax whereby Zonemax has granted Metronic a call option to acquire 563 Unilink Shares representing approximately 56.25% equity interest in Unilink.

Purchase of 190,000 ordinary shares of USD1.00 each in Hangzhou Heng-Ai Electronic Co, Ltd (''Heng-Ai'') representing 5% of the registered capital in Heng-Ai to Unilink from Edmund Chuah.

Metronic expect some of these companies to be able to deliver to its revenue and profit stream this year.

The share price of Metronic is 17 sen after the recent bonus issue. If all the acquisitions materialises, it will impact positively on the bottom line of Metronic for fiscal year 2007.

Heartsong