09:42 KINGBOARD CHEM<00148> - Announcement (7) couple with the continuous outsourcing of manufacturing and components sourcing in the China region, the PCB business is expected to enjoy the benefits of growth in regional business opportunities. The E&E Group has to face and manage various regional challenges, such as power shortage, increases in people and overhead costs adjusting to economic policies for regulating the overheated economy in China. The focus in the financial year ending 30 June 2005 will be on expanding inner-layer capacities rather than outer-layer capacities in view of more high density interconnect and higher layer count businesses being developed or in stage of mass volume ramp-up. LCDs Due to the increasing applications of LCD in various electronic products, the strategy to deploy more efforts in developing the growing LCD module market will continue. In line with the enormous small to medium size LCD module business opportunities as well as to position the E&E Group to higher value-added products, the business of both LCD monochrome modules and color STN modules are expected to expand. The E&E Group also expects the supply of module materials including integrated circuits to improve and be more balanced so that the raw material prices will become more stable in the financial year ahead. With the above efforts and strategy in place, the E&E Group expects that the LCD business will deliver good results in the next financial year following the module business growth in communication and automotive markets. Magnetic Products The E&E Group has strong marketing practice and global sale network in developing custom design and high value Magnetic Products such as magnetic integrated connector and magnetic module for application in communication market. Target key customers have already approved the product samples with new volume business to be kicked off in the year ending 30 June 2005. As global economy continues to improve, the E&E Group expects the results of the magnetic products business to improve in the year ending 30 June 2005. Barring any unforeseen circumstances and based on the aforesaid, the Directors expect that the E&E Group's performance will further improve in the coming financial year. By order of the board of Kingboard Chemical Holdings Limited Cheung Kwok Wing Chairman Hong Kong, 24 January 2005 As at the date of this announcement, the board of Directors consists of Messrs. Cheung Kwok Wing, Chan Wing Kwan, Lam Ka Po, Cheung Kwong Kwan, Cheung Kwok Wa, Cheung Kwok Ping, Cheung Kwok Keung, Chang Wing Yiu and Mok Cham Hung, Chadwick, being the executive Directors, Mr. Lum Gum Wun, being a non-executive Director and Messrs. Tsao Kwang Yung, Peter, Cheng Ming Fun, Paul and Tse Kam Hung, being the independent non-executive Directors.