Singapore-Listed GP Industries Achieves Satisfactory Interim Results; Turnover soars by 44.6%; Profit grows by 9.1%.

HONG KONG -- Gold Peak Industries (Holdings) Limited's Singapore listed subsidiary, GP Industries Ltd., announced its consolidated interim results for the months ended September 30, 2004.

Financial Highlights

--For the three months ended September 30, 2004, GP Industries' sales increased by 46.2% over the corresponding period last year to S$142.7 million. The sales increase was due to a 10.7% sales increase from the Electronics Business and consolidation of S$35 million sales from CIH Limited ("CIHL"), which became a subsidiary of GP Industries Group in April 2004. Profit attributable to shareholders increased to S$14.2 million, representing a 8.0% increase compared to the second quarter last year.

--For the six months ended September 30, 2004, sales increased to S$264.0 million which is 44.6% over the corresponding period last year. The Electronics Business reported a 12.9% sales growth. Consolidation of CIHL contributed S$58 million to the sales growth. Profit attributable to shareholders increased by 9.1% to S$24.5 million when compared to the corresponding period last year.

The Singapore-listed GP Industries is an 87.2%-owned subsidiary of Gold Peak Industries (Holdings) Limited (SEHK code: 40).

Outlook of Singapore-listed GP Industries

Commenting on the prospects of GP Industries, Victor Lo, Chairman of GP Industries, said, "The outlook for the Electronics Business remains optimistic for the rest of the year. However, volatile commodity prices will continue to affect the profit margin of some of GP Industries Group's products. Recent increases on energy costs may affect the sustainability of the global economic recovery. The recent interest rate hike together with the financial austerity programme implemented by the Chinese Government will continue to have an impact on GP Industries' sales and profit contribution from the China market. " Lo is also Chairman & Chief Executive of Gold Peak.

Business Review of Singapore-listed GP Industries

Electronics Business

The Electronics Business continued to perform well with sales growth of 10.7% in the second quarter and 12.9% in the first half year over the corresponding periods last year. Sales of electronics products increased by about 25% in the second quarter and by about 20% in the first half year, mainly from increased sales in professional and commercial electronics products. Profit contribution from components associated companies also grew by 80% in second quarter and 60% in the first half year. As a result, the operating profit before interest and taxation from electronics and components business increased by more than 100% for the second quarter and 60% for the first half year.

Sales from wire harness business rose by about 10% in the second quarter and by about 14% in the first half year with steady profit contribution. While demand from automotive manufacturers in Japan remained steady, demand from customers in the United States registered strong growth. However, the financial austerity programme introduced by the Chinese government suppressed the demand for passenger vehicles and resulted in lower profit contribution from wire harness associated companies in China.

The cable business continued to perform well and sales increased by 28% in the first half year. Profit contribution also improved by 105% in the first half year despite rising material costs.

Sales and profit contribution from the loudspeaker business continued to be steady. Sales of branded speakers increased by about 6% in the first half year.

Singapore-listed CIH Limited - 65.2% owned by GP Industries

For the quarter ended September 30, 2004, the 50:50 joint venture company with Schneider Electric SA, Clipsal Asia Holdings Limited ("CAHL"), recorded an increase in turnover by approximately 30% as compared with the corresponding quarter in 2003. The significant sales growth was due to favourable business sentiments resulting in increased building activities in Asia and the Middle East. However, as only 50% of the turnover of CAHL is proportionally consolidated, CIHL's reported turnover for this quarter decreased by 32.9% to S$34.7 million compared with that of the corresponding quarter in 2003.

Despite rising costs of raw materials, gross profit margin was maintained for the quarter as compared with the same quarter last year. An operating profit was achieved for the quarter which was attributable mainly to an unrealised exchange gain of approximately S$1.8 million recorded on receivables denominated in Australian dollar, which strengthened against the Singapore dollar at the close of this quarter.

In China, the business sentiment during the period under review was relatively stable but competition remained very stiff. In Hong Kong, the improvement in sales continued due to the booming property market. Competition in the other Asian markets remained intense but the overall performance in these markets improved except that in Singapore.

In the light fittings business, the PIERLITE brand was launched in Beijing and Guangzhou with positive response from the market. Aggressive recruitments have started with an aim to strengthen the sales and product development teams.

Singapore-listed GP Batteries - 49.1% owned by GP Industries

Turnover for the quarter ended September 30, 2004 was S$220.8 million, an increase of 3.2% over the corresponding quarter last year. The consolidated net profit after taxation and minority interests for the second quarter was S$7.3 million, a decrease of 41.7%.

For the six months ended September 30, 2004, GP Batteries' turnover was S$440.3 million, an increase of 9.1% over the same period last year. The consolidated net profit after taxation and minority interests was S$20.0 million, representing a decrease of 16.6%.

Turnover increased mainly due to the continued increase in sales of Nickel Metal Hydride and Alkaline primary cylindrical batteries. This was however, negated by the drop in turnover of Nickel Cadmium batteries. Although total sales for Lithium Ion batteries rose, the market conditions has become increasingly competitive since the beginning of second quarter due to surplus supply.

Gross profit margin decreased mainly because raw material costs, especially Nickel and Cobalt, continued to remain at high levels as compared to last year and exceptional expenses incurred in relation to the Cadmium issue in its two plants in Huizhou, China. GP Batteries has paid S$2.5 million during second quarter for compensation, medical and hospital expenses for those workers affected.

Background information on Gold Peak:

Gold Peak Group is an Asian multinational group which owns a diversified portfolio of high-quality industrial investments via its major industrial investment vehicle, the Singapore-listed GP Industries Limited. Its Technology and Strategic Division is primarily engaged in the development of new product technologies and strategic investments. In the industrial sector, the Group has established a leadership position in Asia for most of its product categories including GP Batteries and CLIPSAL electrical installation products.

The parent company, Gold Peak Industries (Holdings) Limited, was established in 1964 and has been listed in Hong Kong since 1984. Currently, Gold Peak holds an 87.2%(a) interest in GP Industries while GP Industries holds a 65.2%(a) interest in CIH Limited ("CIHL") and a 49.1%(a) interest in GP Batteries. GP Industries, GP Batteries and CIHL are listed in Singapore.

Gold Peak Group has manufacturing, research & development, marketing and distribution operations in more than ten countries around the world.

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.

((a) shareholding % as at November 5, 2004)

For more information on Gold Peak or GP Industries, please visit our website at: www.goldpeak.com or www.gp-industries.com