As we enter the first months of 2008, we are faced with increasingly uncertain global economic conditions. In the USA, the sub-prime housing loan debacle is threatening to escalate into a full-scale recession. Compounding the problem, commodity and energy prices are now at a record high and do not show significant signs of retreating.

However, the Group is cautiously optimistic about improving our overall performance. We will continue to build upon our leadership position in the medical consumables market. Recent corporate rationalisation, strategic expansion of our core businesses and the broadening of our customer base and strengthening of our Asia Pacific sales have positioned us to better meet the challenges ahead. With stronger Asia-Pacific currencies, Medtecs expects to see a boost to our profit margins from our products and services, and expects to enjoy the fruit of past efforts to build a strong distribution network in the region.

We expect the outsourcing trend for manufacturing and non-core hospital services to increase as this is a good way for our customers to reduce their costs. This bodes well for us. In addition, heightened healthcare awareness, especially with the realisation that bird flu is still a threat, is expected to underpin demand for our products and services. Furthermore, our business is expected to benefit from the global decline in interest rates.

We will continue our on-going programme of corporate structure optimisation with special attention to cost-containment. In the meantime, we will also boost our research and development efforts, acquire of new customers and set up of new marketing channels.

As we embark on a new fiscal year, we wish to take this opportunity to offer our sincere thanks to our management and staff for their contribution to the Company’s achievements in 2007. We would also like to acknowledge our shareholders, business associates, customers and other stakeholders for their support this past year.

We are energized by the opportunities before us, and with your continued encouragement and support, we remain firmly committed to delivering long-term shareholder value and generating profitable growth in the year 2008 and beyond.