PRESS RELEASE

MultiVision Extends Strong Interim Performance
with Third Quarter's Net Profit of HK$8.4 Million

• Net profit for first nine months of FY 04 amounted to
  HK$23.9 million, equivalent to 94% of FY 03's full
  year net profit of HK$25.3 million
• Positive outlook for Q4 on recent HK$15.5 million
  contract wins in Greater China including China's Hunan
  Postal Services
• Establishes branch offices in USA and United Kingdom
  to spearhead further penetration of growth segments

SINGAPORE, 26 February 2004 ¡V SGX Main board-listed MultiVision Intelligent Surveillance Limited ("MultiVision"), a leading provider of integrated digital video surveillance products and solutions, today announced that its net profit for the months of October to December 2003 ("Q3 FY04") increased by approximately 40% to HK$8.4 million, compared to HK$6.0 million in the previous corresponding period of October to December 2002 ("Q3 FY03").

Performance Review

Group turnover increased by approximately 48% to HK$34.4 million (Q3 FY03: HK$23.3 million), largely due to the delivery of digital video surveillance products to the Group's distributor partner Elixir Group on the commencement of a major casino and hotel project in Macau.

Profit before tax grew by approximately 40% to HK$10.0 million (Q3 FY03: HK$7.2 million) while average gross profit margin improved from 51% to 57%. Basic and fully diluted earnings per share ("EPS") were 2.02 HK cents (Q3 FY03: basic 1.73 HK cents, fully-diluted 1.44 HK cents). As at 31 December 2003, net asset value backing per share was 56 HK cents.

For the nine months April to December 2003, MultiVision recorded a net profit of HK$23.9 million on the back of group turnover of HK$90.5 million, which is equivalent to 94% of FY 03's full year net profit of HK$25.3 million.

The Hong Kong-based Group attributed the strong growth in bottom line to various factors. Economies of scale facilitated reductions in the general cost of production. Aggressive marketing strategies and the successful implementation of certain projects contributed towards sales of higher margin products such as the solution-based NetCorder Legend Series. In addition, the Group achieved significant cost savings in licensing expenses with the acquisition of a perpetual licence for the Group's application software driver.

Commenting on the Group's performance, President and Chief Operations Officer Mr. Dennis Li said, "We are pleased that buoyant demand worldwide from companies looking to replace their analog products with digital video surveillance solutions are propelling our expansion strategy. The Group has been collaborating with our distribution partners to secure more contracts by leveraging on the combined resources to reduce time-to-market and maximising penetration of the rapidly growing Greater China markets while concurrently penetrating new markets worldwide. We will continue to capitalise on our domain knowledge and experience in analog-to-digital platform migration and the vertical markets and focus on delivering end-to-end solution offerings to our customers."

Distribution and administrative expenses rose by approximately 2.3 times to HK$7.7 million, in line with the considerable expansion in business requiring an increase in headcount and the establishment of branch offices in Macau and Zhuhai, PRC. Product and solution development costs amounted to HK$1.9 million (Q3 FY03: HK$1.6 million) mainly due to the increase in amortisation charges for capitalised product and solution development costs.

During Q3 FY04, the Group chalked up larger increases in inventories and trade receivables in anticipation of order delivery to its distributor partner in Macau. Consequently, the Group's operating activities recorded a net cash outflow of HK$15.6 million compared to Q3 FY 03's net cash inflow of HK$6.7 million.

The Group's investing activities recorded a net cash outflow of HK$23.0 million (Q3 FY03: HK$5.7 million outflow) primarily due to the investment in a joint venture Sino Gear Force Limited in China. Overall, the Group's cash and cash equivalents decreased by approximately HK$38.6 million during Q3 FY04 and totalled HK$78.4 million as at 31 December 2003.

Guidance on Outlook for Q4 and Forecast for FY2004

Recently, the Group secured new contracts from Greater China that raised its profile and reaffirmed its domain expertise in the banking, gaming and hospitality industries. This included a HK$7.2 million contract to install digital video surveillance systems for over 100 branches and 150 ATMs in Hunan province, of which approximately 80% is expected to be completed in Q4 FY04. The Group also secured HK$8.3 million of contracts involving three Macau hotels and casinos as well as Hong Kong's Asia Container Terminal.

Mr. Li said, "We are fortunate to have had a good head start for 2004, in clinching HK$15.5 million of new contracts from Greater China to add to the casino project in Morocco won in December. Based on the net profit of HK$23.9 million achieved for the first nine months of FY2004 and the progress schedules for the new contracts, we are on track to attain the performance targets that we have set for the MultiVision team for FY 2004."

Looking ahead, the worldwide market demand for surveillance products has soared but the Group is expecting competition to intensify as more competitors are drawn into the fray by the heightened awareness of the importance of good security surveillance systems.

Added Mr. Li, "We are keeping a close vigil on competitors rolling out products similar to our newly launched hardware compression-based systems with higher image resolution. The Group is exploring fresh market opportunities and has established branch offices in Florida, USA and London, England to spearhead further penetration of growth segments. In addition, we are actively building on our strategic alliances with telecom operators, e.g., bundling our products with their broadband services, to bring steady and stable growth. To ensure that the Group maintains competitive edge and stays at the forefront of the technology curve, we will not slacken on our investment in product and solution development."

End of release

Issued on behalf of MultiVision Intelligent Surveillance Limited by WeR1 Consultants
Contact Information:

MultiVision Intelligent Surveillance Limited
Tel: (65) 6327 5461, hp: (65) 9763 0679
Ms Tan Siang Peng,
Marketing Manager (Singapore)
tan_siangpeng@multivision.com.hk

WeR1 Consultants Pte Ltd
Tel: (65) 6737 4844, Fax: (65) 6737 4944
Mona Leong, monaleong@wer1.net (65) 9187 4449 or
Lui Weng Kay, luiwk@wer1.net, hp: (65) 9846 8768

About MultiVision Intelligent Surveillance Limited

(Bloomberg: MVIS SP EQUITY/ Reuters: MVIS SI)

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. MultiVision has 27 distributors in various countries and/or places such as Hong Kong, Taiwan, Macau, the PRC, Thailand, Malaysia, Singapore, Indonesia, Australia, New Zealand, Israel, Ghana, the Middle East, Ireland, UK, Latvia and USA.

The MultiVision range of digital video surveillance products 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 a central monitoring centre.

For further information, visit www.multivision.com.hk

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