Gold Peak's Singapore-Listed Member Company GP Batteries Announces Interim Results.

Business Editors

HONG KONG--(BUSINESS WIRE)--Dec. 5, 2001

Gold Peak Industries (Holdings) Limited's (SEHK code: 40) Singapore-listed member company, GP Batteries International Limited, announces its unaudited consolidated results for the six months ended September 30, 2001.

GP Batteries is currently 47.9% owned by the Singapore-listed GP Industries Limited which is 86.5% owned by Gold Peak.

Summary of Results

GP Batteries' turnover for the six months ended September 30, 2001 decreased slightly by 1.5% to S$282.1 million. The operating profit before taxation, interest, depreciation and amortization, and exchange amounted to S$29.1 million, representing a decrease of 11.4% as compared to the same period last year. Other income decreased to S$0.5 million due to lower interest income earned from deposit, and depreciation and amortization for the first six months increased by 22.6% to S$13.5 million. However, income from associated companies continued to contribute significantly to GP Batteries with contribution amounting to S$5.1 million, an increase of 31.4% over the same period last year. This increase was due mainly to the good performance of the major joint venture companies in China. Overall, the consolidated net profit after taxation attributable to members of GP Batteries decreased by 24.2% to S$10.8 million when compared to the previous corresponding period.

Earnings per share for the period based on the weighted average of 103,480,933 (2000: 103,461,168) shares in issue amounted to 10.46 Singapore cents, compared with 13.80 Singapore cents for the previous corresponding period. The diluted earnings per share, based on the weighted average of 103,989,253 (2000: 103,844,885) after taking into account the dilution adjustment for share options, amounted to 10.41 Singapore cents, compared with 13.75 Singapore cents for 2000.

Business Review

The slowdown in the personal computer and cell phone demand which started from the fourth quarter of last fiscal year continued into the first half of the year, causing a sharp reduction of orders from OEM customers. However, strong demand from private-label customers especially the Alkaline 9-volt batteries and the steady consumer sales helped cushion the shortfall. Demand for Nickel Metal Hydride battery remained satisfactory. Margins were affected by the fierce competition due to oversupply, especially in the rechargeable battery market.

GP Batteries' plan to increase the production of the Lithium Ion batteries in Taiwan has been affected due to the sluggish demand for laptop computers. However, the plan to develop other Lithium Ion battery sizes as well as prismatics for cell phones and other electronic applications is continuing as scheduled. With the launch of these batteries in early 2002, GP Batteries will have a comprehensive range of Lithium Ion batteries. This will enhance GP Batteries' competitiveness.

GP Batteries has secured a contract to supply electric vehicle ("EV") batteries for the Advance Hybrid Transport vehicles of the Netherlands. This confirms GP Batteries' position as a major qualified battery supplier in Europe. The implementation of such a new transport system in January 2002 will bring forth an era of environmentally friendly and energy efficient electric mass transit creating a significant demand for EV batteries. The project negotiations to supply Beijing with EV batteries in time for the Olympics 2008 is still in progress.

GP Batteries' plant in Singapore has undergone the QS9000 accreditation audit and has been recommended for certification.

Current Year Prospects

The economy in the US is expected to remain weak with the terrorist attacks on September 11. Demand for batteries is expected to soften and competition will intensify. GP Batteries intends to capitalize on the distribution in Asia to enhance its "GP" brand in the consumer market and explore more business opportunities in China. GP Batteries will increase its efforts in the EV battery market especially for hybrid electric vehicles (HEV).

During the Asian financial crisis, GP Batteries had undertaken a number of measures to streamline its operation which improved its competitive position and cost structure. Some of the measures have been reinstated in view of the current economic climate.

Overall, barring any unforeseen circumstances, GP Batteries' results for the second half-year will remain profitable but would be lower than that of the first half year.

Notes to Editor

Background information on GP Batteries

GP Batteries International Limited, a member company of Gold Peak Industries (Holdings) Limited, is principally engaged in the development, manufacturing and marketing of batteries and battery related products.

GP Batteries has been listed on the main board of the Singapore Exchange Securities Trading Limited since March 1991. It is currently a component stock of the Straits Times Index and BT Singapore Regional Index.

GP Batteries' major production facilities are located in Hong Kong, China, Singapore, Taiwan, Malaysia, Denmark and Poland, supported by marketing and trading offices in Singapore, Hong Kong, Taiwan, China, South Korea, Malaysia, Thailand, Australia, Sweden, Poland, France, Germany, Italy, the United Kingdom, Canada and the United States.

For more information on GP Batteries, please visit www.gpbatteries.com.sg

Gold Peak's ordinary shares are listed on the Hong Kong Stock Exchange. Ordinary share information on Gold Peak may be accessed on the Reuters Equity 2000 service under the symbol 0040 HK and on Bloomberg under the symbol 40 HK. Gold Peak ADRs, each equal to ten ordinary shares, trade on the NASD OTC Bulletin Board under the symbol GPINY.