MULTIVISION INTELLIGENT SURVEILLANCE LIMITED
ANNOUNCES RESULTS FOR THE FIRST QUARTER OF FINANCIAL YEAR 2004

MultiVision Intelligent Surveillance Limited ("MultiVision"), a Hong Kong-based technology company specialising in the design, development and distribution of digital video surveillance products and solutions, today announced its results for the first quarter ended June 30, 2003.

Highlights

• Turnover of HK$26.4m (S$5.91m), up 94% year-on-year on the back of increased distribution sales in major markets, including Hong Kong, the PRC and the USA
• Net earnings at HK$7.4m, up 185% year-on-year due to:
  - Improved net margins of 28.2%, against 19.4% in the previous corresponding period
  - Lower production costs as a result of greater economies of scale
  - Increased sales in higher-margin products, such as the enterprise-class NetServer Super systems
  - Higher cost savings due to the acquisition of a perpetual license for use of an application software driver
• Earnings per share at 2.14 HK cents, against 0.95 HK cents in the previous corresponding period
  

Business Update

Since the end of the first quarter, MultiVision has:

• Enhanced its shareholder base by successfully placing out 69.6 million new shares, which were 2.5 times subscribed
• Completed a second casino project with Macau-based systems integrator Elixir Group for HK$1.5m
• Signed a contract with Elixir under which Elixir will increase its distribution quota of MultiVision products and solutions to US$4m (S$6.98m), from US$0.5m previously
• Signed a Memorandum of Understanding with China broadband-services provider Jiuzhou Online to deploy internet protocol-based digital video surveillance solutions for enterprise and consumer customers in the PRC
• Secured a US$1m distribution agreement with China conglomerate Great Wall Industrial Co. to penetrate the taxi and defence markets in the PRC

Business Strategy

• As the market environment remains competitive, MultiVision will continue to focus on business expansion, both vertically and laterally, to ensure steady growth in its revenue and profits. Apart from setting up representative offices in London and Dubai by the third quarter of FY2004, MultiVision also intends to seek further strategic alliances with overseas partners in a bid to widen its global market share. In addition, MultiVision will continue to invest in product and solution development to ensure the ongoing roll-out of advanced, high-technology products with hardware compression and high-image resolutions that will help cement its competitive edge.
  
  

Dennis Li, President and Chief Operations Officer of MultiVision, said:

"The first quarter of our FY2004 was a challenging one, in light of the outbreak of SARS and lingering effects of the Iraq war. Nevertheless, MultiVision was able to register strong growth in both profits and sales, a testimony to the confidence our customers have in our products and solutions."

"While the market place is likely to stay competitive over the next few months, MultiVision's prospects remain promising. Over the last few months, we have made significant headway in the burgeoning China market by forging business alliances with partners such as Jiuzhou Online and Great Wall Industrial Co. We have also made inroads into the gaming industry following our success in the vertical market. Given the current level of business activity and our pipeline of orders, we are confident of another strong set of results for the current quarter."

Enquiries:

MultiVision Intelligent Surveillance Limited : +65 6327 5461
Tan Siang Peng : tan_siangpeng@multivision.com.hk

Gavin Anderson & Company Tel : +65 6339 9110
Terence Foo : tfoo@gavinanderson.com.sg
Tan Ee Ching : etan@gavinanderson.com.sg

About MultiVision (Reuters: MVIS.SI; Bloomberg: MVIS SP Equity)

Headquartered in Hong Kong, MultiVision was established in 1986 and is a technology-based company principally engaged in the design, development and distribution of digital video surveillance products and solutions. The Company's products are adapted for use in a diverse range of industries including banking, residential, commercial, utilities, healthcare, and transportation as well as various government agencies. The end-users of MultiVision's products include companies in both the private and public sectors. MultiVision is ISO9001 certified.

MultiVision's products and solutions are marketed to distributors, OEMs of surveillance products and systems integrators for integration into the security and surveillance systems of its end users. The Company's principal markets are in Australia, Hong Kong, Taiwan and the PRC. In addition, as at 30 September 2002, MultiVision had 26 distributors in various countries and/or places including Hong Kong, Taiwan, Macau, the PRC, Thailand, Malaysia, Singapore, Indonesia, Australia, New Zealand, Israel, Ghana, The Middle East, Ireland, UK, Latvia and the USA.

The MultiVision range of digital video surveillance product offers digital video recording and real time monitoring of multiple locations from a central monitoring centre through the routing of signals from various cameras to the central monitoring centre.

For further information, please see www.multivision.com.hk.

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