-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 G33n75tLdAaIZPWQd/8HvIYY3/GdhaBIOgnqmgRkTXR70eiMS4Dj0AvrXzekaVrG
 S7hTSjZq1GLHJpeqJMVbdA==

<SEC-DOCUMENT>0000950123-09-017897.txt : 20090626
<SEC-HEADER>0000950123-09-017897.hdr.sgml : 20090626
<ACCEPTANCE-DATETIME>20090626154847
ACCESSION NUMBER:		0000950123-09-017897
CONFORMED SUBMISSION TYPE:	20-F
PUBLIC DOCUMENT COUNT:		9
CONFORMED PERIOD OF REPORT:	20081231
FILED AS OF DATE:		20090626
DATE AS OF CHANGE:		20090626

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			ASIA PACIFIC WIRE & CABLE CORP LTD
		CENTRAL INDEX KEY:			0001026980
		STANDARD INDUSTRIAL CLASSIFICATION:	DRAWING AND INSULATING NONFERROUS WIRE [3357]
		IRS NUMBER:				000000000

	FILING VALUES:
		FORM TYPE:		20-F
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-14542
		FILM NUMBER:		09912909

	BUSINESS ADDRESS:	
		STREET 1:		NO 42 LIU FANG RD
		STREET 2:		JURONG TOWN
		CITY:			SINGAPORE
		STATE:			U0
		ZIP:			00000
</SEC-HEADER>
<DOCUMENT>
<TYPE>20-F
<SEQUENCE>1
<FILENAME>y01848e20vf.htm
<DESCRIPTION>FORM 20-F
<TEXT>
<HTML>
<HEAD>
<TITLE>20-F</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt">&nbsp;</DIV>




<DIV align="center" style="font-size: 14pt; margin-top: 12pt"><B>UNITED STATES SECURITIES AND EXCHANGE COMMISSION</B>
</DIV>

<DIV align="center" style="font-size: 12pt"><B>Washington, D.C. 20549<BR>
<DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV></B>
</DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 12pt"><B>FORM 20-F</B>
</DIV>

<DIV align="center">
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%" style="font-size: 12pt">
<TR style="font-size: 6pt">
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="88%">&nbsp;</TD>
</TR>
<TR valign="top">
    <TD align="center"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><B>REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g)&nbsp;OF THE SECURITIES EXCHANGE ACT OF 1934</B></TD>
</TR>
</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>OR</B></DIV>

<DIV align="center">
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%" style="font-size: 12pt">
<TR style="font-size: 6pt">
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="88%">&nbsp;</TD>
</TR>
<TR valign="top">
    <TD align="center"><FONT face="Wingdings">&#254;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><B>ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934</B></TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 12%"><B><B>For the fiscal year ended December&nbsp;31, 2008</B>
</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>OR</B></DIV>

<DIV align="center">
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%" style="font-size: 12pt">
<TR style="font-size: 6pt">
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="88%">&nbsp;</TD>
</TR>
<TR valign="top">
    <TD align="center"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><B>TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934</B></TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 12%"><B><B>For the transition period from &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; to</B>
</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>OR</B></DIV>

<DIV align="center">
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%" style="font-size: 12pt">
<TR style="font-size: 6pt">
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="88%">&nbsp;</TD>
</TR>
<TR valign="top">
    <TD align="center"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><B>SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934</B></TD>
</TR>
</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>Commission file number 1-14542</B></DIV>

<DIV align="center" style="font-size: 24pt; margin-top: 12pt"><B>ASIA PACIFIC WIRE &#038; CABLE<BR>
CORPORATION LIMITED</B>
</DIV>

<DIV align="center" style="font-size: 10pt">(Exact name of Registrant as specified in its charter)</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 0pt"><B>Bermuda</B><BR>
(Jurisdiction of incorporation or organization)<BR>
<B>7/Fl. B, No.&nbsp;132, Sec. 3<BR>
Min-Sheng East Road<BR>
Taipei, 105, Taiwan<BR>
Republic of China</B><BR>
(Address of principal executive offices)<BR>
Securities registered or to be registered pursuant to Section&nbsp;12(b) of the Act.<BR>
None<BR>
Securities registered or to be registered pursuant to Section&nbsp;12(g) of the Act.<BR>
None<BR>
Securities for which there is a reporting obligation pursuant to Section&nbsp;15(d) of the Act.<BR>
Common Shares<BR>
(Title of Class)</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indicate the number of outstanding shares of each of the issuer&#146;s classes of capital or common
stock as of the close of the period covered by the annual report.
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>13,830,769 Common Shares</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule
405 of the Securities Act.
Yes <FONT face="Wingdings">&#111;</FONT> No <FONT face="Wingdings">&#254;</FONT>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If this report is an annual or transition report, indicate by check mark if the registrant is
not required to file reports pursuant to Section&nbsp;13 or 15(d) of the Securities Exchange Act of
1934. Yes <FONT face="Wingdings">&#111;</FONT> No <FONT face="Wingdings">&#254;</FONT>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indicate by check mark whether the registrant (1)&nbsp;has filed all reports required to be filed
by Section&nbsp;13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12&nbsp;months (or
for such shorter period that the registrant was required to file such reports), and (2)&nbsp;has been
subject to such filing requirements for the past 90&nbsp;days. Yes <FONT face="Wingdings">&#254;</FONT> No <FONT face="Wingdings">&#111;</FONT>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indicate by check mark whether the registrant has submitted electronically and posted on its
corporate Web site, if any, every Interactive Data File required to be submitted and posted
pursuant to Rule&nbsp;405 of Regulation&nbsp;S-T (&#167;232.405 of this chapter) during the preceding 12&nbsp;months
(or for such shorter period that the registrant was required to submit and post such files).
Yes <FONT face="Wingdings">&#111;</FONT> No <FONT face="Wingdings">&#111;</FONT>
</DIV>

<DIV style="MARGIN-TOP: 6pt; FONT-SIZE: 10pt" align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indicate by check mark whether the registrant is a large accelerated filer, an accelerated
filer, a non-accelerated filer, or a smaller reporting company. See the definitions of &#147;large
accelerated filer&#148; and &#147;accelerated filer&#148; in Rule&nbsp;12b-2 of the
Exchange Act. (Check one):
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="22%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="22%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="22%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="22%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="left" valign="top">Large accelerated filer <FONT face="Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Accelerated filer <FONT face="Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Non-accelerated filer <FONT face="Wingdings">&#254;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indicate by check mark which basis of accounting the registrant has used to prepare the
financial statements included in this
filing: U.S. GAAP <FONT face="Wingdings">&#254;</FONT> International Financial Reporting Standards as issued by the International
Accounting Standards Board <FONT face="Wingdings">&#111;</FONT> Other <FONT face="Wingdings">&#111;</FONT>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If &#147;Other&#148; has been checked in response to the previous question, indicate by check mark which
financial statement item the registrant has elected to follow. Item&nbsp;17 <FONT face="Wingdings">&#111;</FONT> Item&nbsp;18 <FONT face="Wingdings">&#111;</FONT>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If this is an annual report, indicate by check mark whether the registrant is a shell company
(as defined in Rule&nbsp;12b-2 of the Exchange Act). Yes <FONT face="Wingdings">&#111;</FONT> No <FONT face="Wingdings">&#254;</FONT>
</DIV>

<DIV style="width: 100%; border-bottom: 1pt solid black; margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>






<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left">
<!-- TOC -->
</DIV>
<DIV align="left">
<A name="tocpage"></A>
</DIV>

<div style="font-size: 10pt; margin-top: 12pt" align="center"><B><U>TABLE
OF CONTENTS</U></B></DIV>

<DIV align="center">
<TABLE border="0" cellspacing="0" cellpadding="0" width="100%" style="font-size:10pt; font-family:'Times New Roman,Times,Serif'">
<TR>
    <TD width="92%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>

</TR>
<tr style="font-size: 8pt">
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td nowrap style="border-bottom: 1px solid #000000"><b>Page</b></td>
<td>&nbsp;</td>
</tr>

<TR valign="bottom">

<TD COLSPAN="5" align="center"><DIV style="margin-left:15px; text-indent:-15px"><A href="#101"><b>Part
I</b></A></DIV></TD>

</TR>

<TR valign="bottom">

<TD align="left"><DIV style="margin-left:15px; text-indent:-15px"><A href="#102">Item
1: Identity of Directors, Senior Management and Advisers</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>

    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">

<TD align="left"><DIV style="margin-left:15px; text-indent:-15px"><A href="#103">Item
2: Offer Statistics and Expected Timetable</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>

    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">

<TD align="left"><DIV style="margin-left:15px; text-indent:-15px"><A href="#104">Item
3: Key Information</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>

    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">

<TD align="left"><DIV style="margin-left:15px; text-indent:-15px"><A href="#105">Item
4: Information on the Company</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">

<TD align="left"><DIV style="margin-left:15px; text-indent:-15px"><A href="#106">Item
5: Operating and Financial Review and Prospects</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">

<TD align="left"><DIV style="margin-left:15px; text-indent:-15px"><A href="#107">Item
6: Directors, Senior Management and Employees</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">66</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">

<TD align="left"><DIV style="margin-left:15px; text-indent:-15px"><A href="#108">Item
7: Major Shareholders and Related Party Transactions</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">71</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">

<TD align="left"><DIV style="margin-left:15px; text-indent:-15px"><A href="#109">Item
8: Financial Information</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">73</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">

<TD align="left"><DIV style="margin-left:15px; text-indent:-15px"><A href="#110">Item
9: The Offer and Listing</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">75</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">

<TD align="left"><DIV style="margin-left:15px; text-indent:-15px"><A href="#111">Item
10: Additional Information</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">76</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">

<TD align="left"><DIV style="margin-left:15px; text-indent:-15px"><A href="#112">Item
11: Quantitative and Qualitative Disclosures About Market Risk</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">93</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">

<TD align="left"><DIV style="margin-left:15px; text-indent:-15px"><A href="#113">Item
12: Description of Securities Other Than Equity Securities</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">95</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">

<TD COLSPAN="5" align="center"><DIV style="margin-left:15px; text-indent:-15px"><A href="#114"><b>Part
II</b></A></DIV></TD>

</TR>

<TR valign="bottom">

<TD align="left"><DIV style="margin-left:15px; text-indent:-15px"><A href="#115">Item
13: Defaults, Dividend Arrearages and Delinquencies</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">96</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">

<TD align="left"><DIV style="margin-left:15px; text-indent:-15px"><A href="#116">Item
14: Material Modifications to the Rights of Security Holders and Use
of Proceeds</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">96</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">

<TD align="left"><DIV style="margin-left:15px; text-indent:-15px"><A href="#117">Item
15: Controls and Procedures</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">96</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">

<TD align="left"><DIV style="margin-left:15px; text-indent:-15px"><A href="#118">Item
16A. Audit Committee Financial Expert</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">97</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">

<TD align="left"><DIV style="margin-left:15px; text-indent:-15px"><A href="#119">Item
16B. Code of Ethics</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">97</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">

<TD align="left"><DIV style="margin-left:15px; text-indent:-15px"><A href="#120">Item
16C. Principal Accountant Fees and Services</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">97</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">

<TD align="left"><DIV style="margin-left:15px; text-indent:-15px"><A href="#121">Item
16D. Exemptions from the Listing Standards for the Audit
Committees</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">98</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">

<TD align="left"><DIV style="margin-left:15px; text-indent:-15px"><A href="#122">Item
16E. Purchases of Equity Securities by the Issuer and Affiliated
Purchasers</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">98</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">

<TD align="left"><DIV style="margin-left:15px; text-indent:-15px"><A href="#123">Item
16F. Change in Registrant&#146;s Certifying Accountant</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">98</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">

<TD align="left"><DIV style="margin-left:15px; text-indent:-15px"><A href="#124">Item
16G. Corporate Governance</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">98</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">

<TD COLSPAN="5" align="center"><DIV style="margin-left:15px; text-indent:-15px"><A href="#125"><b>Part
III</b></A></DIV></TD>

</TR>

<TR valign="bottom">

<TD align="left"><DIV style="margin-left:15px; text-indent:-15px"><A href="#126">Item
17: Financial Statements</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">99</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">

<TD align="left"><DIV style="margin-left:15px; text-indent:-15px"><A href="#127">Item
18: Financial Statements</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">99</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">

<TD align="left"><DIV style="margin-left:15px; text-indent:-15px"><A href="#128">Item
19: Exhibits</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">99</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">

<TD align="left"><DIV style="margin-left:15px; text-indent:-15px"><A href="#129"><b>SIGNATURE</b></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">101</TD>
    <TD>&nbsp;</TD>
</TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y01848exv12w1.htm">EX-12.1</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y01848exv12w2.htm">EX-12.2</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y01848exv13w1.htm">EX-13.1</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y01848exv13w2.htm">EX-13.2</A></FONT></TD></TR>
</TABLE>
</DIV>

<DIV align="left">
<!-- /TOC -->
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->1<!-- /Folio -->

</div>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">










<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>FORWARD-LOOKING STATEMENTS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our disclosure and analysis in this Annual Report on Form 20-F contain some forward-looking
statements. Forward-looking statements give our current beliefs or expectations or forecasts of
future events. You can identify these statements by the fact that they do not relate strictly to
historical or current facts. Such statements may include words such as &#147;anticipate,&#148; &#147;estimate,&#148;
&#147;expect,&#148; &#147;intend,&#148; &#147;plan,&#148; &#147;believe&#148; and other words and terms of similar meaning in connection
with any discussion of future operating or financial performance.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Such statements are not promises or guarantees and are subject to a number of known and
unknown risks and uncertainties that could cause our future results, performance or achievements to
differ significantly from the results, performance or achievements expressed or implied by such
forward-looking statements. Important factors that could cause or contribute to such differences
include our ability to maintain and develop market share for our products, global, regional or
national economic conditions and their impact on demand for our products and services, the
introduction of competing products or technologies, our inability to successfully identify,
consummate and integrate acquisitions, our potential exposure to liability claims, the uncertainty
and volatility of the markets in which we operate, the availability and price for copper, our
principal raw material, the fact that we have operations outside the United States that may be
materially and adversely affected by acts of terrorism or major hostilities, fluctuations in
currency, exchange and interest rates, operating results and other factors that are discussed in
this report and in our other filings made with the Securities and Exchange Commission (the &#147;SEC&#148; or
the &#147;Commission&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In particular, these statements include, among other things, statements relating to:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our business strategy;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our prospects for future revenues and profits in the markets in which we operate;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the possibility that our Common Shares will again be listed on a national exchange;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our dependence on a limited number of suppliers for our raw materials and our
vulnerability to fluctuations in the cost of our raw materials; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our liquidity.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We undertake no obligation to update any forward-looking statements or other information
contained in this Annual Report, whether as a result of new information, future events or
otherwise, except as required by law. You are advised, however, to consult any additional
disclosures we make in our filings with the SEC. Also note that we provide a cautionary discussion
of risks and uncertainties under the &#147;Risk Factors&#148; section of this Annual Report. These are
factors that we think could cause our actual results to differ materially from expected results.
Other factors besides those listed there could also adversely affect us. This discussion is
permitted by the Private Securities Litigation Reform Act of 1995.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>OTHER CONVENTIONS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless otherwise specified, all references in this Annual Report to &#147;Thailand&#148; are to the
Kingdom of Thailand, all references to &#147;Singapore&#148; are to The Republic of Singapore, all references
to &#147;Taiwan&#148; are to Taiwan, The Republic of China, all references to &#147;China&#148; and to the &#147;PRC&#148; are to
The People&#146;s Republic of
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->2<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">China, all references to &#147;Australia&#148; are to the Commonwealth of Australia and all references
to the &#147;U.S.&#148; are to the United States of America.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Most measurements in this Annual Report are given according to the metric system. Standard
abbreviations of metric units (e.g., &#147;mm&#148; for millimeter) have been employed without definitions.
All references in this Annual Report to &#147;tons&#148; are to metric tons, which are equivalent in weight
to 2,204.6 pounds.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;With respect to measurements relating to the manufacture of wire and cable products,
references to &#147;pkm&#148; are to kilometers of twisted pairs of copper wire.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->3<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left">
<A name="101"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Part I</B>
</DIV>

<DIV align="left">
<A name="102"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;1: Identity of Directors, Senior Management and Advisers</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Not applicable)
</DIV>

<DIV align="left">
<A name="103"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;2: Offer Statistics and Expected Timetable</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Not applicable)
</DIV>

<DIV align="left">
<A name="104"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;3: Key Information</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>3.1 Selected Consolidated Financial Data</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following selected consolidated financial data is derived from the consolidated financial
statements of Asia Pacific Wire &#038; Cable Corporation Limited (the &#147;Company&#148;) for the years ended
December&nbsp;31, 2004, 2005, 2006, 2007 and 2008, prepared in accordance with U.S. GAAP.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The selected data set forth below should be read in conjunction with, and is qualified in its
entirety by, the discussion in &#147;Item&nbsp;5: Operating and Financial Review and Prospects&#148; and the
consolidated financial statements and the notes thereto included in &#147;Item&nbsp;18: Financial
Statements.&#148;
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="18" style="border-bottom: 1px solid #ffffff"><B>For the Year Ended December 31,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #ffffff">2004</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #ffffff">2005</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #ffffff">2006</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #ffffff">2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #ffffff">2008</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="18"><B>(in thousands, except per share amounts)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Income Statement Data:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net sales</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">294,256</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">337,262</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">468,117</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">510,841</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">500,798</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cost of sales</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(255,384</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(300,656</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(410,823</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(465,165</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">(488,048</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Gross profit</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38,872</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36,606</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">57,294</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45,676</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,750</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Operating expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(28,867</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(26,553</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(27,612</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(29,451</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(29,044</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Impairment loss</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(134</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3,223</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(86</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(95</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Operating profit/(loss)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,871</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,830</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29,596</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,130</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(16,294</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Exchange gain/(loss)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">233</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3,137</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,464</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">864</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,712</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net interest (expense)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,025</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,747</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(5,181</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(6,063</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(4,779</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Share of net income/(loss) of equity investees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(4,224</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">170</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">73</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">124</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(142</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Gain on liquidation of subsidiary</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,801</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">(Loss)/gain on sale of investment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,161</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(259</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(729</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Others</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">925</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">829</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,536</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,070</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,859</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Income/(loss) before income taxes and
minority interests</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,619</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,686</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32,560</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,160</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(20,068</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Income taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(4,716</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3,860</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(10,257</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(6,298</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,132</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Minority interests</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,427</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,783</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(9,330</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,029</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,551</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net income/(loss)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(2,524</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(4,957</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">12,973</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4,833</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(13,649</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Earnings/(loss) per share<SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(0.18</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(0.36</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.94</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.35</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(0.99</TD>
    <TD nowrap>)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>The calculation of the earnings/(loss) per share is based on 13,830,769 Common
Shares for the years ended December&nbsp;31, 2004, 2005, 2006, 2007 and 2008.</TD>
</TR>

</TABLE>



<P align="center" style="font-size: 10pt"><!-- Folio -->4<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="19" style="border-bottom: 1px solid #000000"><B>As of December 31,</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">2004</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">2005</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">2006</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">2007</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">2008</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="19"><B>(in thousands)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="21" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Balance Sheet Data:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Cash and cash equivalents</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">24,419</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">20,748</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">24,664</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">29,127</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">37,510</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Working capital</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">80,152</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">80,350</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">108,084</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">132,409</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100,428</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">270,433</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">262,938</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">364,565</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">396,116</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">309,798</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total debt</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">57,389</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">58,438</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100,195</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">104,146</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">59,694</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total shareholders&#146; equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">107,146</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">97,622</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">118,765</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">136,783</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">114,129</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>3.2 Exchange Rates</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless otherwise specified, references in this Annual Report to &#147;$,&#148; &#147;U.S. dollars&#148; or &#147;US$&#148;
are to United States dollars; all references to &#147;Bt,&#148; &#147;Thai Baht&#148; or &#147;Baht&#148; are to Baht, the legal
tender currency of Thailand; all references to &#147;S$&#148; are to Singapore dollars, the legal tender
currency of Singapore; all references to &#147;A$&#148; are to Australian dollars, the legal tender currency
of Australia; and all references to &#147;Rmb&#148; are to Chinese Renminbi, the legal tender currency of
China.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless otherwise noted, for the convenience of the reader, translations of amounts from Baht,
Singapore dollars, Renminbi and Australian dollars to U.S. dollars have been made at the respective
noon buying rates in New York City for cable transfers in those currencies as certified for customs
purposes by the Federal Reserve Bank of New York (the &#147;Noon Buying Rate&#148;) on December&nbsp;31, 2008.
The respective Noon Buying Rates on December&nbsp;31, 2008 were US$ 1.00 = Bt 34.72; S$ 1.438; Rmb
6.823; and A$ 1.43. The respective Noon Buying Rates on June 19, 2009, the latest practicable
date before publication of this Annual Report, were US$ 1.00 = Bt 34.09; S$ 1.453; Rmb 6.836 and A$
1.23. No representation is made that the foreign currency amounts could have been or could be
converted into U.S. dollars on these dates at these rates or at any other rates.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Thailand</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Thai Baht is convertible into foreign currencies and is subject to a managed float against
a basket of foreign currencies, the most significant of which is the U.S. dollar. The composition
of the basket for determining the value of the Baht is not made public by the Bank of Thailand.
The following tables set forth, for the periods indicated, certain information concerning the Noon
Buying Rate of the Thai Baht. No representation is made that the Baht or U.S. dollar amounts
referred to herein could have been or could be converted into U.S. dollars or Baht, as the case may
be, at any particular rate or at all.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Year Ended December 31,</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>At Period End</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Average</B><SUP style="font-size: 85%; vertical-align: text-top"><B>(1)</B></SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>High</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Low</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="15"><B>(Bt per $1.00)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2004</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38.80</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40.263</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41.70</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38.80</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2005</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40.99</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40.339</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">42.08</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38.21</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2006</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36.10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37.680</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40.76</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35.19</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2007</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29.50</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32.020</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35.96</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29.28</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2008</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34.72</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33.130</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35.72</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29.36</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>Average means the average of the Noon Buying Rates on the last day of each month
during a year.</TD>
</TR>

</TABLE>



<P align="center" style="font-size: 10pt"><!-- Folio -->5<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The high and low exchange rates for the six months preceding the date of this Annual Report
were:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Month</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>High</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Low</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">December&nbsp;2008</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35.72</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34.40</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">January&nbsp;2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34.98</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34.78</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36.11</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34.90</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">March&nbsp;2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36.25</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35.26</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">April&nbsp;2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35.66</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35.23</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">May&nbsp;2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35.25</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34.31</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

 <DIV align="left">
<DIV style="font-size: 3pt; margin-top: 6pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</div>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Sources: Federal Reserve Bulletin, Board of Governors of the Federal Reserve System. Federal
Reserve Statistical Release H.10(512), from the website of the Board of Governors of the Federal
Reserve System at http://www.federalreserve.gov.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Singapore</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Singapore dollar is convertible into foreign currencies and floats against a
trade-weighted basket of foreign currencies, the composition of which is not made public by
Singapore&#146;s central bank, the Monetary Authority of Singapore, but of which the U.S. dollar is a
component. The following tables set forth, for the periods indicated, certain information
concerning the Noon Buying Rate of the Singapore dollar. No representation is made that the
Singapore dollar or U.S. dollar amounts referred to herein could have been or could be converted
into U.S. dollars or Singapore dollars, as the case may be, at any particular rate or at all.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>At</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Period</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Year Ended December 31,</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>End</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Average</B><SUP style="font-size: 85%; vertical-align: text-top"><B>(1)</B></SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>High</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Low</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="15"><B>(S$ per $1.00)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2004</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.632</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.690</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.729</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.631</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2005</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.663</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.665</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.706</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.618</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2006</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.534</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.580</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.652</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.534</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2007</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.436</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.501</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.543</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.436</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2008</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.438</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.414</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.529</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.347</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>Average means the average of the Noon Buying Rates on the last day of each month
during a year.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The high and low exchange rates for the six months preceding the date of this Annual Report
were:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Month</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>High</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Low</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">December&nbsp;2008</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.531</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.472</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">January&nbsp;2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.511</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.433</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.546</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.451</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">March&nbsp;2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.557</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.506</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">April&nbsp;2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.522</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.477</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">May&nbsp;2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.481</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.441</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->6<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Sources: Federal Reserve Bulletin, Board of Governors of the Federal Reserve System. Federal
Reserve Statistical Release H.10(512), from the website of the Board of Governors of the Federal
Reserve System at http://www.federalreserve.gov.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>China</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The PRC government imposes control over its foreign currency reserves in part through direct
regulation of the conversion of Renminbi into foreign exchange and through restrictions on foreign
trade. The following tables set forth, for the periods indicated, certain information concerning
the Noon Buying Rate of the Renminbi. No representation is made that the Renminbi or U.S. dollar
amounts referred to herein could have been or could be converted into U.S. dollars or Renmimbi, as
the case may be, at any particular rate or at all.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>At Period</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Year Ended December 31,</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>End</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Average</B><SUP style="font-size: 85%; vertical-align: text-top"><B>(1)</B></SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>High</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Low</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="15"><B>(Rmb per $1.00)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2004</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8.277</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8.277</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8.277</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8.276</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2005</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8.070</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8.183</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8.277</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8.070</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2006</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.804</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.958</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8.070</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.804</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2007</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.295</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.581</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.813</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.295</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2008</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.823</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.919</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.295</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.780</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>Average means the average of the Noon Buying Rates on the last day of each month
during a year.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The high and low exchange rates for the six months preceding the date of this Annual Report
were:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Month</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>High</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Low</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">December&nbsp;2008</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.884</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.823</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">January&nbsp;2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.840</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.823</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.847</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.824</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">March&nbsp;2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.844</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.824</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">April&nbsp;2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.836</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.818</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">May&nbsp;2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.833</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.818</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 6pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</div>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Sources: Federal Reserve Bulletin, Board of Governors of the Federal Reserve System. Federal
Reserve Statistical Release H.10(512), from the website of the Board of Governors of the Federal
Reserve System at http://www.federalreserve.gov.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Australia</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following tables set forth, for the periods indicated, certain information concerning the
Noon Buying Rate of the Australian dollar. No representation is made that the Australian dollar or
U.S. dollar amounts referred to herein could have been or could be converted into U.S. dollars or
Australian dollars, as the case may be, at any particular rate or at all.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>At Period</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Year Ended December 31,</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>End</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Average</B><SUP style="font-size: 85%; vertical-align: text-top"><B>(1)</B></SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>High</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Low</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="15"><B>(A$ per $1.00)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2004</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.281</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.361</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.462</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.253</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2005</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.362</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.312</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.377</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.254</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2006</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.268</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.319</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.417</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.264</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->7<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>


<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>At Period</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Year Ended December 31,</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>End</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Average</B><SUP style="font-size: 85%; vertical-align: text-top"><B>(1)</B></SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>High</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Low</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="15"><B>(A$ per $1.00)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2007</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.139</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.184</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.295</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.067</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2008</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.141</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.177</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.647</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.021</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>Average means the average of the Noon Buying Rates on the last day of each month
during a year.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The high and low exchange rates for the six months preceding the date of this Annual Report
were:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Month</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>High</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Low</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">December&nbsp;2008</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.577</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.428</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">January&nbsp;2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.567</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.432</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.582</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.387</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">March&nbsp;2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.587</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.424</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">April&nbsp;2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.441</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.367</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">May&nbsp;2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.372</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.251</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 6pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</div>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Sources: Federal Reserve Bulletin, Board of Governors of the Federal Reserve System. Federal
Reserve Statistical Release H.10(512), from the website of the Board of Governors of the Federal
Reserve System at http://www.federalreserve.gov.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>3.3 Capitalization and Indebtedness</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth our capitalization and indebtedness as of December&nbsp;31, 2008 (in
thousands):
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Short-term debt*</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Bank loan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">15,209</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Trust receipts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">42,753</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">57,962</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Short-term loan from related parties (unsecured)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,732</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total short-term debt</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">59,694</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Shareholders&#146; equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Common stock, $0.01 par value: <BR>
Authorized shares &#150; 20,000,000
shares (50,000,000 shares as of September&nbsp;8, 2008); issued and
outstanding shares &#150; 13,830,769</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">138</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Additional paid-in capital</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">111,541</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Retained earnings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,819</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Accumulated other comprehensive loss</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(13,369</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total shareholders&#146; equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">114,129</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total capitalization</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">173,823</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->8<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>


<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">*</TD>
    <TD>&nbsp;</TD>
    <TD>Certain short-term debt is collateralized by the Company&#146;s land, buildings, machinery and
equipment and a pledge of short-term deposits. Corporate guarantees have also been issued by the
Company and certain of its subsidiaries.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>3.4 Risk Factors</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>3.4.1 Risks Related to the Global Economic and Financial Crisis</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commencing in early 2008, numerous cataclysmic economic and financial events, many of which
are ongoing, roiled global and national financial markets and the international business community,
including the sudden collapse of certain leading financial institutions, widespread default on
various credit instruments, the collapse of the U.S. and other housing markets, a dramatic
de-leveraging of capital investment and other business activities and a marked reduction in the
availability of credit for businesses. As these events unfolded quite quickly and unexpectedly
with numerous unforeseen consequences, the full impact of this crisis has not yet been determined.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dramatic declines in the U.S. housing market in 2008, continuing into 2009, with falling home
prices and increasing foreclosures and unemployment, have resulted in significant write-downs of
asset values by financial institutions, including government-sponsored entities as well as major
commercial and investment banks. These write-downs, initially of mortgage-backed securities but
spreading to credit default swaps and other derivative securities, in turn have caused many
financial institutions to seek additional capital, to merge with larger and stronger institutions
and, in some cases, to fail. Reflecting concern about the stability of the financial markets
generally and the strength of counterparties, many lenders and institutional investors have ceased
to provide, or severely curtailed, funding to even the most credit-worthy borrowers or to other
financial institutions. The continuing shortage of available credit and lack of confidence in the
financial markets has materially and adversely affected the trading price of the Company&#146;s Common
Shares and could materially and adversely impact its access to capital and financial condition.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Continued turbulence in the U.S. and international markets and economy may adversely affect
the Company&#146;s liquidity, its ability to access the capital markets and its financial condition and
the willingness or ability of certain counterparties to do business with the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Governmental Intervention</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On October&nbsp;3, 2008, the then President of the United States, George W. Bush, signed into law
the Emergency Economic Stabilization Act of 2008 (the &#147;EESA&#148;). The legislation was the result of a
proposal by Treasury Secretary Henry Paulson to the U.S. Congress on September&nbsp;20, 2008 in response
to the financial crises affecting the banking system and financial markets and going concern
threats to investment banks and other financial institutions. Pursuant to the EESA, the U.S.
Treasury established the Troubled Asset Relief Program (&#147;TARP&#148;) which granted it the authority to,
among other things, purchase up to $700&nbsp;billion of highly illiquid mortgages, mortgage-backed
securities and certain other financial instruments from financial institutions that have been
written down significantly in value under applicable accounting rules (commonly referred to as
&#147;Toxic Assets&#148;) or, alternatively, invest in debt and equity securities of investment banks and
other financial institutions, in each case for the purpose of stabilizing and providing liquidity
to the U.S. financial markets. The U.S. Treasury has since taken a number of actions to try to stabilize the financial markets and mitigate the risks of financial institution insolvency, including injecting  capital into many financial
institutions under the TARP Capital Purchase Program.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On February&nbsp;13, 2009, the U.S. Congress passed a $787&nbsp;billion economic stimulus measure, the
American Recovery and Reinvestment Act of 2009, which was signed into law by President Barack Obama
on February&nbsp;17, 2009. The stimulus measure includes certain tax cuts and spending programs for
health care, infrastructure, and other matters.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On March&nbsp;23, 2009, Treasury Secretary Timothy Geithner announced the U.S. government&#146;s
proposed multi-part Public-Private Investment Program, intended to provide government support and
other incentives to
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->9<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">attract private investment for the purchase of troubled mortgage and other asset-backed
securities. This program has not yet been implemented and its final form may differ significantly
from that announced by Treasury Secretary Geithner.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;While the Company does not engage in a trade or business within the United States, its
customers and suppliers, and the markets in which the Company engages in its business, are
materially affected by the health of the U.S. economy, which in general has global consequences.
In addition, the availability of credit in the U.S. market also materially impacts credit
availability in the markets in which the Company conducts its business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As the financial crisis has unfolded, the plans of the U.S. government have shifted with
regard to the appropriate measures to stabilize the financial markets. To date, the U.S. Treasury
has publicly discussed several possible investment structures, but has not announced definitive
terms, for the purchase and resale of Toxic Assets. There can be no assurance as to the actual
impact that the aforementioned government interventions will have on the financial markets,
including the extreme levels of volatility and limited credit availability currently being
experienced. The failure of such measures to help stabilize the financial markets and a
continuation or worsening of current financial market conditions would likely materially and
adversely affect the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Actual and Possible Impacts on the Company</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Throughout the second half of 2008, the Company experienced the impact of the economic crisis,
which included lower sales and lower gross margins as compared to the first half of 2008 and the
second half of 2007. The lower second half results in 2008 were primarily due to reduced order
flow from customers and falling commodity prices. Revenue for the second half of 2008 was $226.9
million, representing a 17.1% decline from each of the first half of 2008 and the second half of
2007. Gross margins for the second half of 2008 were $18.0&nbsp;million, representing a 9.3% and 31.0%
decline from the first half of 2008 and the second half of 2007, respectively. Revenue for the
year ended December&nbsp;31, 2008 was $500.8&nbsp;million, representing a 2.0% decline from the year ended
December&nbsp;31, 2007. Gross margins for the year ended December&nbsp;31, 2008 were $37.9&nbsp;million,
representing a 14.7% decline from the year ended December&nbsp;31, 2007. The gross margin amounts for
the second half of 2008 and as of December&nbsp;31, 2008 do not include the effect of the inventory
write-down discussed below.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The recent decreases in commodity prices, including that of copper, resulted in a write-down
of the carrying cost of the Company&#146;s inventory as of December&nbsp;31, 2008. Copper prices on the
London Metal Exchange (the &#147;LME&#148;) have fallen from an average monthly high of $8,685 per metric ton
in April&nbsp;2008 to only $3,072 per metric ton in December&nbsp;2008, representing a decrease of 65%.
Copper prices on the LME have since increased by 54.7% to $4,752 per metric ton from December&nbsp;31,
2008 to May&nbsp;8, 2009. The decrease in copper prices in 2008 resulted in a write-down to inventory
of $25.1&nbsp;million, representing approximately 5.0% of net sales for the year. This significant
write-down to inventory contributed to the net loss of $13.6&nbsp;million in 2008.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company is unable to determine the precise impact of the current global economic crisis on
its operations and cash flow since results are also affected by factors that are unrelated to the
economic crisis, such as the completion of routine purchase cycles by customers and the completion,
suspension or termination of large infrastructure projects. However, the Company has concluded
that current economic uncertainty and falling commodity prices have affected and will likely
continue to have a significant impact on the Company&#146;s operations and cash flow. Specifically, the
operating subsidiaries may encounter greater difficulty in raising new banking facilities and loans
to support their working capital requirements in the current environment where banks are less
willing to offer new facilities. Governments in certain countries, likely China, Thailand and
Singapore, have pledged to increase infrastructure and construction spending to boost or maintain
economic growth. Assuming those pledges are acted upon, those developments will likely have a
favorable impact on our sales of manufactured products. The Company believes that any efforts to
forecast likely 2009 performance with any degree of specificity would be fraught with uncertainty
due to the suddenness and
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->10<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">severity of the financial crisis, the fact that it continues to unfold in material and
unpredictable ways and the rapidly changing nature of the measures being, and proposed to be,
undertaken by the U.S. government and the governments of other countries to address the crisis.
Accordingly, the Company cautions against placing reliance on any efforts to identify trends for
the foreseeable future.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The governments in the countries which we operate in have projected sharp decreases in
economic growth for the fiscal year 2009. For purposes of planning and prudent management, the
Company is presently anticipating that the extremely challenging and difficult economic conditions
now facing the global economy will continue at least into the second half of 2009, and likely into
2010.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In anticipation of potentially lower financial results in 2009, the Company is taking a number
of actions in order to maintain effective operations in the markets it serves. Specifically, the
Company is increasing its efforts to collect its receivables on a timely basis. It is anticipated
that some customers will take a longer time to settle their outstanding debts with the Company as
they face tightening credit and lower sales themselves, however the Company will actively work with
all of its significant customers to reduce collection times and minimize write offs. The Company
is working to reduce its inventory levels through planned lower raw material purchases while
negotiating with suppliers to reduce costs of raw materials and supplies. The Company is also
actively reviewing its operations to determine where operating costs can be reduced. In several of
the Company&#146;s subsidiaries, headcount has been frozen or even reduced and contract staff have been
laid off as deemed necessary. The Company has hedged copper through copper futures contracts in
several instances in order to reduce the effect of the current volatility in copper prices on its
operations. The Company is also negotiating with banks and financial institutions for additional
loans and facilities where necessary.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We believe that the successful implementation of these actions will have a positive effect on
our cash resources, and we intend to continue these measures in order to preserve our liquidity
during this period of anticipated lower results. Currently, in light of falling commodity prices,
our cash requirements for purchases have been reduced, thereby improving our short term cash flow.
The Company will preserve as much of this short term benefit as possible, as we anticipate this
situation will reverse and cash flow will be reduced as a result of lower sales and lower profit
margins in the medium term. While none of the Company&#146;s material lines of credit have been
terminated, the Company&#146;s subsidiaries may encounter greater difficulty in raising new banking
facilities and loans to support their working capital in the current environment where banks are
less willing to offer new facilities. As of December&nbsp;31, 2008, the Company had available and
unused lines of credits from suppliers, banks and other lenders totaling, in the aggregate,
approximately $141&nbsp;million. We believe that available and unused amount of credit is sufficient to
support our current working capital needs.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The macroeconomic events and those specific to the Company may have a material adverse impact
on the Company&#146;s business operations until such time as the global financial crisis has abated and
financial and economic conditions have improved. The Company notes, however, that the foregoing is
subject to a number of unknown variables, including the impact of actions taken or that may be
taken in the future by governmental entities to address the capital needs of banks and other
financial institutions and to increase the flow of credit to businesses.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>3.4.2 Risks Related to the Common Shares and Corporate Governance</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Consolidation of Charoong Thai Group Accounts</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of December&nbsp;31, 2008, the Company effectively owned 50.93% of the issued and outstanding
shares of Charoong Thai Wire and Cable Public Company Limited (&#147;Charoong Thai&#148;). That percentage
ownership constitutes a decrease from the Company&#146;s initial ownership percentage and is
attributable to the exercise of warrants or conversion of convertible securities by third parties.
The Company&#146;s present intention is to maintain majority ownership of the voting securities of
Charoong Thai. However, there may be circumstances under which the Company cannot maintain
majority ownership of Charoong Thai. In the event Charoong Thai determined to make a further
offering of voting securities, or securities convertible into or exchangeable for voting
securities, and the Company was not in a position to fund or finance its participation in the
offering, the
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->11<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">ownership interest of the Company in Charoong Thai could fall below 50%. If the Company&#146;s
holding in Charoong Thai were to fall below 50%, the accounts of the Charoong Thai group, which
includes all of the Company&#146;s Thailand operations, will not be consolidated but instead will be
equity accounted. In such an event, the Company&#146;s accounts will show a fall in revenue and most
categories of assets and liabilities, which events could have a material adverse effect on the
value of the Common Shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Potential Illiquidity of Common Shares</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Approximately 75.4% of our Common Shares are either unregistered securities or registered
securities held by affiliates, which are subject to restrictions on trading. Accordingly,
approximately three quarters of our Common Shares are not freely tradable. In the recent past, the
volume of trading in our Common Shares has not been substantial. This illiquidity may negatively
impact the value of the Common Shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Control of the Company Rests with Majority Shareholder; Controlled Company Exception for Any
Exchange Listing; Risks Related to PEWC</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As the majority shareholder, Pacific Electric Wire &#038; Cable Co., Ltd. (&#147;PEWC&#148;) has sufficient
votes to control the outcome of any matters presented for a shareholder vote, including the
election of the members of the Board of Directors. PEWC may vote its shares in the Company in the
manner that it sees fit. PEWC may also sell, convey or encumber all or a portion of its ownership
interest in the Company without regard to the best interests of the other shareholders of the
Company except to the extent it may be required to comply with the terms of the Amended and
Restated Shareholders&#146; Agreement dated March&nbsp;27, 2009 among the Company, PEWC and SOF Investments,
L.P., a Delaware limited partnership which owns beneficially 9.8% of the issued and outstanding
Common Shares, and except that it may not engage in conduct oppressive to minority interests under
applicable law.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company&#146;s plans include seeking a listing on a national securities exchange, such as
Nasdaq or NYSE Amex Equities (formerly known as the American Stock Exchange), as and when the
Company meets the listing criteria for one of those exchanges. In the event of a listing on a
national securities exchange, the Company intends to rely upon the &#147;controlled company exception&#148;
which will exempt the Company from a requirement to have a board of directors that has a majority
of independent directors. The Company may also rely upon Nasdaq Rule 4350(a) or AMEX Company Guide
Section&nbsp;110, each of which would permit the Company to rely upon the rules of its home country,
Bermuda, which do not require that the board of directors be comprised of a majority of independent
directors. Accordingly, even assuming a listing on a national securities exchange, a majority of
the Company&#146;s Board may not be comprised of directors independent from any affiliation with the
majority shareholder, PEWC.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PEWC, the majority shareholder, is a Taiwanese company engaged in the manufacture and
distribution of wire and cable products in the Taiwan markets. In November&nbsp;2004, certain formers
officers and directors of PEWC (the &#147;Former Executives&#148;) were indicted by the Taipei District
Prosecutors Office for their breach of trust, embezzlement of corporate funds, making of false
accounting records and financial statements, and violation of various Taiwan securities laws. The
most serious allegations of corporate theft and misappropriation were directed at Mr.&nbsp;Hu, the
former chief financial officer of PEWC. As early as 1992, the Former Executives had incorporated a
complex network of companies for the purpose of transferring PEWC funds out of Taiwan and of
acquiring overseas investments for their personal benefit. In addition, they borrowed loans from
banks for their personal benefit and made PEWC a guarantor for such borrowings, which were
eventually repaid by PEWC. In an elaborate concealment scheme, the books of PEWC were balanced by
way of fictitious bank deposits with certain banks incorporated in Vanuatu and other remote
jurisdictions. The fraudulent actions of the Former Executives were uncovered in 2001 and 2002,
when PEWC incurred losses attributable to the scheme equal to approximately $160&nbsp;million and $669
million, respectively.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In May&nbsp;2003, the Taipei Stock Exchange (the &#147;TSE&#148;) and the Taiwan Securities and Futures
Commission (&#147;TSFC&#148;) ordered PEWC to restate its 1998-2000 financial statements to reflect the
losses attributable to the fraudulent activities of the Former Executives. Thereafter, the TSE
suspended the trading of the shares of
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->12<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">PEWC. In 2004, the shares of PEWC were delisted from the TSE. At the present time, the
shares of PEWC are not traded on a recognized public exchange and there is no public market for the
common stock of PEWC. To the Company&#146;s knowledge, the criminal prosecution of at least several of
the Former Executives is ongoing and PEWC is pursuing actions in several jurisdictions to recover
misappropriated assets.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A consortium of bank creditors (referred to as the &#147;PEWC Banking Group&#148;) has certain veto
rights with respect to material acquisitions or expenditures by PEWC. Unresolved issues regarding
PEWC raise a degree of uncertainty regarding its capacity in the future to continue to provide
support to the Company as it has in the past with regard to inter-company loans, and with regard to
research and development and other services under the Composite Services Agreement, in each case on
terms more favorable than those that might be available from unaffiliated providers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Limited Trading Volume on the OTC BB</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our Common Shares are traded on the over-the-counter bulletin board (the &#147;OTC BB&#148;). Trading
in our Common Shares has been limited and there may not exist from time to time an active trading
market for our Common Shares. As a consequence, shareholders may find their ability to sell their
Common Shares quickly or in substantial amounts is adversely affected by the limited public trading
market. Thinly-traded equity can be more volatile than equity securities traded in an active
trading market. The high and low price for our Common Shares during the past 24&nbsp;months has been
$7.19 and $0.50, respectively. In the future, our Common Shares may experience significant price
fluctuations which could adversely affect the value of the Common Shares.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Disclosure Controls and Procedures and Internal Control Over Financial Reporting Previously Classified as Ineffective</i></Div>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under applicable regulatory guidance, the Company&#146;s disclosure controls and procedures as of December
31, 2007 were required to be classified as ineffective. In addition, the Company engaged a consultant to assist
the Company&#146;s management, including its Chief Executive Officer (&#147;CEO&#148;) and Interim Chief Financial
Officer (&#147;CFO&#148;), in evaluating the Company&#146;s internal control over financial reporting as of December 31,
2007. As a result of that assessment, management, including our CEO and CFO, identified four material
weaknesses and certain significant deficiencies in the Company&#146;s internal control over financial reporting as of
that assessment date.  As a result of such material weaknesses, under applicable regulatory guidance, the
Company&#146;s internal control over financial reporting as of that
assessment date was also required to be
classified as ineffective. Those material weaknesses were reported by our CEO and CFO to the Company&#146;s
Board of Directors, its Audit Committee and its independent auditors, and the significant deficiencies were
reported by our CEO and CFO to the Audit Committee and the independent auditors.

</Div>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company focused on improving its disclosure controls and procedures and its internal control over
financial reporting and remediating all material weaknesses and significant deficiencies, and as a result, both
disclosure controls and procedures and internal control over financial reporting were classified as effective as
of December 31, 2008. However, the Company cannot provide any assurances that other material weaknesses
will not be identified upon further investigation, such that either disclosure controls and procedures or internal
control over financial reporting may be rendered ineffective for a period of time.
</Div>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Delinquency in Reporting Obligations; Reporting of Financial Results</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As a foreign private issuer, the Company is currently required to file its annual report on
Form 20-F with the SEC within six months following the close of its fiscal year. The Company was
not in a position to make the filing of its 2004 annual report on a timely basis. After the
expiration of an automatic grace period, on August&nbsp;29, 2005 the OTC BB delisted the Company for
failure to remain current in the filing of its periodic reports. On November&nbsp;9, 2007, the Company
filed its 2004 annual report. On March&nbsp;17, 2008, the Company filed its combined 2005 and 2006
annual report. The Company then relisted on the OTC BB in April&nbsp;2008 under the symbol &#147;AWRCF.&#148; On
June&nbsp;28, 2008, the Company filed its 2007 annual report on a timely basis.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company is currently compliant with its reporting obligations under the Securities
Exchange Act of 1934, as amended (the &#147;Exchange Act&#148;), and believes that it has addressed the
corporate governance obstacles that led to its delinquency in filing its 2004, 2005 and 2006 annual
reports. However, the Company cannot provide assurances that it will continue to be compliant in
its reporting obligations under the Exchange Act. As a foreign private issuer, the Company is not
required to provide financial results on a quarterly or semi-annual basis. In addition, neither
Bermuda law nor Taiwan law requires the Company to provide interim financial information to its
shareholders, whether on a quarterly or semi-annual basis. As such, investors may not have the
same access to financial information of the Company as they customarily receive in the case of a
domestic issuer disclosing quarterly results on a Form 10-Q.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Potential Conflict of Certain Officers and Directors</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company appointed two independent directors on September&nbsp;28, 2007. Other than those two
independent directors, all of the members of the Board of Directors are also directors or officers
or otherwise affiliated with PEWC, the majority shareholder. Certain of our officers are also
affiliated with PEWC. In each case, they may be subject to potential conflicts of interest. In
addition, certain of our officers and directors who are also officers and/or directors of PEWC may
be subject to conflicts of interest in connection with, for example, pursuing corporate
opportunities in which we and PEWC or one of its affiliates have competing interests, and the
performance by us and PEWC of our respective obligations under existing agreements, including the
Composite Services Agreement and the Indemnification Agreement (discussed below). In addition,
some of these persons will devote time to the business and affairs of PEWC and its affiliates as is
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->13<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">appropriate under the circumstances, which could reduce the amount of time available for
overseeing or managing our business and affairs. Notwithstanding any such potential conflicts,
however, such individuals, in their capacities as our directors and officers, are subject to
fiduciary duties to our shareholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Bermuda Companies Act 1981, as amended (the &#147;Companies Act&#148;), subjects our officers and
directors to certain fiduciary standards in the exercise of their executive and management duties
on our behalf. Under the Companies Act, an officer of ours (which term includes our directors) is
subject to a duty of care requiring him to act honestly, in good faith and in the best interests of
the Company in the discharge of his duties and to, among other things, give notice to the Board of
Directors at the first opportunity of any interest he has in any material contract or proposed
material contract with us or any of our subsidiaries. The Companies Act also prohibits us, subject
to certain exceptions, from making loans to any directors without first obtaining the consent of
shareholders holding in the aggregate not less than nine-tenths of the total voting rights of all
the shareholders having the right to vote at any shareholders meeting. As of May&nbsp;31, 2004, we do
not make any loans to our directors or executive officers in accordance with the provisions of The
Sarbanes-Oxley Act of 2002.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Obligations under the Amended and Restated Shareholders Agreement</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On June&nbsp;28, 2007, SOF Investments, L.P. (&#147;SOF&#148;), a Delaware limited partnership, acquired
2,766,154 Common Shares, representing 20% of the issued and outstanding Common Shares (the &#147;SOF
Shares&#148;), from Sino-JP Fund Ltd (&#147;Sino-JP&#148;). Following that sale, Sino-JP ceased to have any
ownership interest in the Company and its three designees on the Board of Directors and the Company
officers selected by it each resigned with immediate effect. On that same date, the Company
entered into the Shareholders Agreement with PEWC and SOF, pursuant to which the Company granted to
SOF certain rights and protections. Under the Shareholders Agreement, the Company agreed to
indemnify SOF and its partners and certain of its affiliates (the &#147;SOF Indemnified Persons&#148;), for
any additional taxes, interest, penalties and other costs that might be imposed upon or incurred by
the SOF Indemnified Persons in the event that the Company is determined by the Internal Revenue
Service (the &#147;IRS&#148;) to be a &#147;controlled foreign corporation&#148; (a &#147;CFC&#148;) or a &#147;passive foreign
investment company&#148; (a &#147;PFIC&#148;), as such terms are interpreted and defined under IRS rules and
regulations. The Company does not believe that it is now or is likely to become a CFC or a PFIC;
however, the Company cannot provide any assurances that it will not become a CFC or a PFIC in the
future.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, the Company granted certain registration rights to SOF with respect to the SOF
Shares (the &#147;Registrable Securities&#148;) in the Shareholders Agreement. In particular, the Company
agreed to use its reasonable best efforts to prepare and file, and cause to go effective, as soon
as practicable, a shelf registration statement covering the resale of the Registrable Securities on
a delayed or continuous basis. The Company also agreed to use its reasonable best efforts to keep
its shelf registration statement effective until all Registrable Securities have been sold or until
all Registrable Securities may be sold without restriction pursuant to Rule&nbsp;144 promulgated
pursuant to the Securities Act of 1933, as amended. In addition, the Company granted to SOF two
demand registration rights for underwritten offerings and customary piggyback registration rights
with regard to the Registrable Securities. Moreover, the Company agreed to use its reasonable best
efforts to cause the Common Shares to be listed on a national &#147;Securities Market,&#148; which means any
of the Nasdaq Stock Market, Inc. (Global Market or Global Select Market), the American Stock
Exchange LLC (now known as NYSE Amex Equities) or the New York Stock Exchange LLC, not later than
January&nbsp;31, 2009, subject to notice and a sixty (60)&nbsp;day cure period. All of the costs and
expenses of the Company in connection with the fulfillment of its obligations under the
Shareholders Agreement were to be paid by the Company, other than underwriting fees, discounts and
commissions attributable to the sale of Common Shares held by SOF.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the terms of the Shareholders Agreement, if the Company failed to fulfill its
obligations thereunder, SOF may have a claim for damages against the Company. No such claim has
been made. In addition, if the Company fulfilled its reasonable best efforts undertakings but
failed to meet one or more of the stated goals, SOF may have a put right of their Common Shares to
PEWC. In accordance with those terms, on February&nbsp;2, 2009, SOF delivered to PEWC notice of its
exercise of the put right under the Shareholders Agreement due to
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->14<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">the fact that the Common Shares were not listed on a national Securities Market as of January
31, 2009. On March&nbsp;27, 2009, SOF sold 51% of its Common Shares to PEWC pursuant to the terms of a
share purchase agreement between those parties. Upon the consummation of that share purchase
agreement, SOF held 1,355,415 registered Common Shares of the Company and PEWC held 1,410,739
registered Common Shares, respectively, representing 9.8% and 10.2% of the outstanding Common
Shares, with PEWC holding an additional 7,664,615 unregistered Common Shares, giving it an
aggregate of 65.6% of the total issued and outstanding Common Shares. In connection with such
transaction, the Company, PEWC and SOF entered into an Amended and Restated Shareholders Agreement,
which among other things, grants to the Company an extension for listing the Common Shares on a
national Securities Market until February&nbsp;2011 and maintains for SOF the right to sell its
remaining Common Shares to PEWC in the event the Company is not able to list its Common Shares on a
national Securities Market by February&nbsp;2011. The Amended and Restated Shareholders Agreement also
provides for those registration and indemnification rights set forth above in the description of
the Shareholders Agreement. While the sale of Common Shares by SOF to PEWC resulted in PEWC
holding a higher concentration of Common Shares which may impact liquidity for the other
shareholders, the Company does not believe that any definitive impact can be forecasted or
determined.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, sales of Common Shares held by SOF and registered under the shelf registration
statement declared effective on March&nbsp;11, 2009, or any registration statement that goes effective
following an exercise of demand registration rights, will increase the number of Common Shares
available for purchase in the public market and may adversely affect the value of the Common Shares
held by other shareholders. Even without substantial sales by SOF or PEWC of their respective
Registrable Securities, the possibility of such sales may create a &#147;market overhang&#148; that has the
effect of depressing the trading price of the Common Shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company has also granted to SOF preemptive rights in the event of any issuance of
additional equity securities (or securities convertible into or exchangeable for equity securities)
by the Company, such that SOF may subscribe for additional securities in order to maintain its then
percentage ownership interest in the issued and outstanding equity securities of the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Risks Relating to the Settlement Agreement</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Following the acquisition by Sino-JP in 2004 of Common Shares of the Company, a number of
disputes arose between PEWC and Sino-JP regarding the governance of the Company and other matters.
Specifically, the Board was unable to reach a consensus on the proper treatment of certain doubtful
accounts receivable. In addition, the then current Chief Financial Officer of the Company
questioned the then current auditors of the Company regarding the thoroughness of their review of
these accounts receivable during the course of their 2004 audit of the Company&#146;s financial
statements, which led to the cessation of the 2004 audit by the auditors at that time. The initial
narrow dispute between Board members designated by Sino-JP and other Board members regarding the
accounting treatment for doubtful accounts receivable grew in scope, such that it became very
difficult to achieve a consensus on a number of strategic and operational matters, due to the
effective veto right held by the Sino-JP Board designees. On June&nbsp;28, 2007, the date of the
purchase by SOF of the SOF Shares from Sino-JP and the date of the Shareholders Agreement among the
Company, PEWC and SOF, the Company and Sino-JP also entered into a comprehensive settlement and
release agreement (the &#147;Settlement Agreement&#148;), which dismissed and released all claims between the
parties and which put an end to all related litigation. Separately, PEWC also entered into a
settlement and release agreement that terminated all disputes and litigation between those parties.
Upon the closing of the purchase agreement for the SOF Shares and the Settlement Agreement, all of
the directors and officers of the Company designated by Sino-JP submitted their resignations and
Sino-JP ceased to have any interest in the Company. As part of the Settlement Agreement, the
Company agreed to indemnify all of those Sino-JP designated directors and officers (the &#147;Sino-JP
Indemnified Persons&#148;) for all acts or omissions taken in their capacity as a director or officer to
the maximum extent permitted under the memorandum of association and the Bye-laws of the Company
and the Companies Act. The Company could incur significant costs in the event any claims are
asserted or actions commenced against any of the Sino-JP Indemnified Persons for matters within the
scope of the indemnification provisions of the Settlement Agreement.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->15<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Holding Company Structure; Potential Restrictions on the Payment of Dividends</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have no direct business operations other than our ownership of the capital stock of our
subsidiaries and joint venture holdings. While we have no present intention to pay dividends,
should we decide in the future to do so, as a holding company, our ability to pay dividends and
meet our other obligations will depend upon the amount of distributions, if any, received from our
operating subsidiaries and other holdings and investments. Our operating subsidiaries and other
holdings and investments, from time to time, may be subject to restrictions on their ability to
make distributions to us, including as a result of restrictive covenants contained in loan
agreements, restrictions on the conversion of local currency earnings into U.S. dollars or other
hard currency and other regulatory restrictions. For example, PRC legal restrictions permit
payments of dividends by our business entities in the PRC only out of their retained earnings, if
any, determined in accordance with relevant PRC accounting standards and regulations. Under PRC
law, such entities are also required to set aside a portion of their net income each year to fund
certain reserve funds. These reserves are not distributable as cash dividends. The foregoing
restrictions may also affect our ability to fund operations of one subsidiary with dividends and
other payments received from another subsidiary.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Requirement to Maintain Effectiveness of the Registration Statement and to List on a National
Securities Exchange; Effect of the Put of the SOF Shares to PEWC</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the Amended and Restated Shareholders Agreement, SOF has retained the right to sell its
remaining Common Shares (the &#147;SOF Shares&#148;) to PEWC if the Company does not achieve a listing on a
national Securities Market within the time frame provided in the agreement. In addition, the
Company has agreed to maintain the effectiveness of the registration statement on Form F-1,
declared effective as of March&nbsp;11, 2009, for the benefit of SOF, and if the Company fails to do so
for any period of thirty (30)&nbsp;consecutive trading days or an aggregate of sixty (60)&nbsp;trading days
during any twelve month period, then SOF may, subject to compliance with notice and other procedural requirements, exercise a right to  sell its remaining Common Shares to PEWC. At all
times, the Company must exercise its reasonable best efforts to comply with its covenants under the
Amended and Restated Shareholders Agreement. Otherwise, the Company could be subject to a damages
claim by SOF. The Company is using its diligent efforts to bring current the financial disclosure
in the registration statement on Form F-1 covering the SOF Shares and the registered Common Shares
held by PEWC.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On February&nbsp;2, 2009, SOF delivered notice of its exercise of the put right under the
Shareholders Agreement to PEWC due to fact that the Common Shares were not listed on a national
Securities Market as of January&nbsp;31, 2009, which date was agreed to by the Company prior to the
extension granted under the Amended and Restated Shareholders Agreement. On March&nbsp;27, 2009, PEWC
and SOF completed a share purchase transaction pursuant to which PEWC acquired 1,410,739 Common
Shares from SOF. As of the closing of that transaction, PEWC held 9,075,354 Common Shares and SOF
held 1,355,415 Common Shares, representing 65.6% and 9.8% of the issued and outstanding Common
Shares, respectively. The Company does not believe that any definitive impact of the increase in
PEWC&#146;s ownership can be forecasted or determined.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Corporate Matters; Limited Recourse; Limited Enforceability</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are incorporated in and organized pursuant to the laws of Bermuda. In addition, all of our
directors and officers reside outside the United States and our material assets are located outside
the United States. As a result, it may be difficult for investors to effect service of process
within the United States upon such persons or to realize against them in courts of the United
States upon judgments predicated upon civil liabilities under the United States federal securities
laws. Even if investors are successful in realizing against such persons in courts of the United
States, the laws of Taiwan may render such investors unable to enforce the judgment against the
Company&#146;s assets or the assets of its officers and directors. Also, investors may have difficulty
in bringing an original action based upon the United States federal securities law against such
persons in the Taiwan courts. Additionally, we have been advised by our legal counsel in Bermuda,
Appleby, that there is doubt as to the enforcement in Bermuda, in original actions or in actions
for enforcement of judgments of United States courts, of liabilities predicated upon U.S. federal
securities laws, although Bermuda Courts will enforce foreign judgments for liquidated amounts in
civil matters subject to certain conditions and exceptions.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->16<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As a result, shareholders may encounter more difficulties in enforcing their rights and
protecting their interests in the face of actions taken by management, the Board of Directors or
controlling shareholders than they would if the Company were organized under the laws of the United
States or one of the states therein, or if the Company had material assets located within the
United States or some of the directors and officers were resident within the United States. See
&#147;Enforceability of Certain Civil Liabilities&#148; for additional information.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>3.4.3 Risks Relating to Our Business</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Risks Relating to Copper</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Copper is the principal raw material we use, accounting for a majority of the cost of sales.
We purchase copper at prices based on the average prevailing international spot market prices on
the London Metal Exchange (the &#147;LME&#148;) for copper for the one month prior to purchase. The price of
copper is affected by numerous factors beyond our control, including international economic and
political conditions, supply and demand, inventory levels maintained by suppliers, actions of
participants in the commodities markets and currency exchange rates. As with other costs of
production, changes in the price of copper may affect the Company&#146;s cost of sales. Whether this
has a material impact on our operating margins and financial results depends primarily on the
Company&#146;s ability to adjust selling prices to its customers, such that increases and decreases in
the price of copper are fully reflected in those selling prices. Most of our sales of manufactured
products reflect the cost of copper used to manufacture those products at the time the products are
ordered. In the ordinary course of business we maintain inventories of raw materials and finished
products reasonably necessary for the conduct of our business. These inventories typically reflect
the cost of copper prevailing in the market at the time of purchase. A long-term decrease in the
price of copper would require the Company to revalue its inventory at periodic intervals to the
then net realizable value, which could be below cost. Copper prices have been subject to
considerable volatility and it is not always possible to manage our copper purchases and inventory
so as to neutralize the impact of copper price volatility. Accordingly, significant volatility in
copper prices could have an adverse effect on our operations. No assurance can be given that such
volatility will not recur.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Risks Relating to China</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We conduct substantial business operations in China. Accordingly, our results of operations
and prospects are likely to be materially impacted by economic, legal and other developments in
China.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Economic Reform Measures in the PRC May Adversely Affect the Company&#146;s Operations or
Financial Condition</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In recent years, the PRC government has implemented economic reform measures emphasizing
decentralization, utilization of market forces in the development of the economy and a high level
of management autonomy. While such economic reform measures are generally viewed as a positive
development for foreign businesses investing or establishing operations in China, the reforms are
at an early stage and there is not sufficient administrative or judicial precedent to permit the
Company to determine with any degree of certainty how the reforms will impact our business in
China.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>PRC Civil Law System May Limit the Company&#146;s Remedies</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Chinese legal system is a civil law system based on written statutes. Prior court
decisions may be cited for reference but have limited precedential value. Since 1979, the central
government has promulgated laws and regulations dealing with economic matters such as foreign
investment, corporate organization and governance, commerce, taxation and trade. In particular,
legislation over the past decades has significantly enhanced the protections afforded to various
forms of foreign investment in China. As foreign investment laws and regulations in China are
relatively new and because of the limited volume of published decisions and their non-binding
nature, the interpretations of many laws, regulations and rules are not always uniform and
enforcement of these laws, regulations and rules involves uncertainties, which may limit the
remedies available
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->17<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">to us in the event of any claims or disputes with third parties. In addition, any litigation
in China may be protracted and could result in substantial costs and diversion of resources and
management attention.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>PRC Control over the Convertibility of Currency May Restrict the Payment of Dividends</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The PRC government imposes controls on the convertibility of the Renminbi into foreign
currencies and, in certain cases, the remittance of currency out of China. Under existing PRC
foreign exchange regulations, payments of current account items, including profit distributions,
interest payments and expenditures from trade related transactions, can be made in foreign
currencies without prior approval from the State Administration of Foreign Exchange (&#147;SAFE&#148;) by
complying with certain procedural requirements. However, approval from SAFE or its local branch is
required where Renminbi is to be converted into foreign currency and remitted out of China to pay
capital expenses such as the repayment of loans denominated in foreign currencies. The PRC
government may also at its discretion restrict access in the future to foreign currencies for
current account transactions. Shortages in the availability of foreign currency may restrict the
ability of our subsidiaries in the PRC to remit sufficient foreign currency to pay dividends or
other payments to us, or otherwise satisfy their foreign currency-denominated obligations.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>PRC Regulation of Telecommunications Industry May Adversely Affect the Company&#146;s
Operations or Financial Condition</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, the PRC government has considerable control over the structure and overall
development of the telecommunications industry in the PRC. Purchasers of our telecommunications
cable in China are subject to extensive regulation by and under the supervision of the primary
telecommunications industry regulator in China, the Ministry of Industry and Information Technology
(the &#147;MIIT&#148;), which was created by the State Council of the PRC in March&nbsp;2008 to assume, among
other things, the duties of the former Ministry of Information Industry. The MIIT is responsible
for formulating policies and regulations for the telecommunications industry, granting
telecommunications licenses, allocating frequency spectrum and numbers, formulating interconnection
and settlement arrangements between telecommunications operators, and enforcing industry
regulations. Other PRC governmental authorities also regulate tariff policies, capital investment
and foreign investment in the telecommunications industry. As a result of its accession to the
World Trade Organization (&#147;WTO&#148;) and the adoption of the Regulations on the Administration of
Foreign-Invested Telecommunications Enterprises in January&nbsp;2002, which implement its commitments to
the WTO, the Chinese government has agreed to gradually liberalize the various segments and regions
of the telecommunications market to foreign telecommunications operators. Currently, however, the
MIIT has only granted licenses to operate fixed-line telecommunications networks (which use our
telecommunications cables) to certain domestic entities. As a result, the business of our
companies in China may be more dependent on the political stability of the country than if there
were more consumers of telecommunications cable and if the government-related entities were not so
closely involved in the telecommunications industry. Future changes to the regulations and
policies governing the telecommunications industry in China, including possible future industry
restructurings, may have a material adverse effect on our business.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Political or Social Instability in the PRC May Adversely Affect the Company&#146;s Operations
or Financial Condition</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Political or social instability in China could also adversely affect our business operations
or financial condition. In particular, adverse public health epidemics or pandemics in China could
not only interfere with our ability to operate our PRC subsidiaries, but could also affect the
country&#146;s overall economic growth, which could in turn affect the sales of our products in China.
In addition, as our corporate headquarters are located in Taipei, any escalation in political
tensions between the PRC and the government of Taiwan could impact adversely our ability to manage
our Chinese operations efficiently or without third party interference.
</DIV>




<P align="center" style="font-size: 10pt"><!-- Folio -->18<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Inflation in the PRC May Adversely Affect the Company&#146;s Operations or Financial Condition</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The rapid growth of the PRC economy has historically resulted in high levels of inflation. If
the government tries to control inflation, it may have an adverse effect on the business climate
and growth of private enterprise in the PRC. An economic slowdown may increase our costs. If
inflation is significant, our costs would likely increase, and there can be no assurance that we
would be able to increase our prices to an extent that would offset the increase in our expenses.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>PRC Power Shortages and Lack of Insurance May Adversely Affect the Company&#146;s Operations or
Financial Condition</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We consume substantial amounts of electricity in our manufacturing processes at our production
facilities in China. Certain parts of China have been subject to power shortages in recent years.
We have experienced a number of power shortages at our production facilities in China to date. We
are sometimes given advance notice of power shortages and in relation to this we currently have a
backup power system at certain of our production facilities in China. However, there can be no
assurance that in the future our backup power system will be completely effective in the event of a
power shortage, particularly if that power shortage is over a sustained period of time and/or we
are not given advance notice thereof. Any power shortage, brownout or blackout for a significant
period of time may disrupt our manufacturing, and as a result, may have an adverse impact on our
business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The insurance industry in China is still at an early stage of development. In particular, PRC
insurance companies do not offer extensive business insurance products. As a result, we do not
have any business liability or disruption insurance coverage for our operations in China. Any
business disruption, litigation or natural disaster might result in our incurring substantial costs
and the diversion of resources.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>PRC Tax Treatments May Adversely Affect the Company&#146;s Operations or Financial Condition</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certain of our PRC companies enjoy preferential tax treatments, in the form of reduced tax
rates or tax holidays, provided by the PRC government or its local agencies or bureaus. On March
16, 2007, the National People&#146;s Congress of the PRC, or NPC, passed the new PRC Enterprise Income
Tax Law (the &#147;New EIT Law&#148;). Under the New EIT Law, effective January&nbsp;1, 2008, China adopted a
uniform tax rate of 25% for all enterprises (including foreign-invested enterprises) and revoked
the then current tax exemption, reduction and preferential treatments applicable to
foreign-invested enterprises. However, there is a transition period for enterprises, whether
foreign-invested or domestic, that were receiving preferential tax treatments granted by relevant
tax authorities at the time the New EIT Law became effective. Enterprises that are subject to an
enterprise income tax, or EIT, rate lower than 25% may continue to enjoy the lower rate and
gradually transition to the new tax rate within five years after the effective date of the New EIT
Law. Enterprises that are currently entitled to exemptions or reductions from the standard income
tax rate for a fixed term may continue to enjoy such treatment until the fixed term expires.
Preferential tax treatments will continue to be granted to industries and projects that are
strongly supported and encouraged by the state, and enterprises otherwise classified as such
&#147;encouraged&#148; high-tech enterprises will be entitled to a 15% EIT rate. On April&nbsp;14, 2008, the
Measures for the Recognition and Administration of New and High-tech Enterprises (the &#147;Measures&#148;),
were promulgated jointly by the Ministry of Science and Technology of the PRC, the Ministry of
Finance of the PRC and the State Administration of Taxation of the PRC and became retroactively
effective from January&nbsp;1, 2008. Under the Measures, the term &#147;high-tech enterprise&#148; is defined as
a resident enterprise that has been registered in the PRC (excluding Hong Kong, Macao or Taiwan)
for more than one year, conducts business in the new and high-tech fields encouraged by government
as listed in an appendix to the Measures, continuously undertakes research and development and
technology conversion, and relies on self-owned intellectual property rights as the basis of its
business operation. Such new and high-tech enterprises may apply for tax incentives. Pacific
Electric Wire &#038; Cable (Shenzhen) Co., Ltd. (&#147;PEWS&#148;) is the only subsidiary of the Company that
qualifies for these tax incentives provided under the Measures. The income tax rate of PEWS under
the revised tax incentive regulations was 18% in 2008 and is scheduled to be 20% in 2009, 22% in
2010, 24% in 2011 and 25% in 2012.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->19<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The New EIT Law and any other changes to our effective tax rate could have a material and
adverse effect on our business, financial condition and results of operations. We cannot assure
you that we will continue to enjoy these preferential tax treatments in the future. The
discontinuation or reduction of these preferential tax treatments or government financial
incentives could materially and adversely affect our business, financial condition and results of
operations.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>New Labor Law Legislation in the PRC May Adversely Affect the Company&#146;s Operations or
Financial Condition</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In June&nbsp;2007, the National People&#146;s Congress of the PRC enacted new labor law legislation
called the Labor Contract Law, which became effective on January&nbsp;1, 2008. It formalizes workers&#146;
rights concerning overtime hours, pensions, layoffs, employment contracts and the role of trade
unions. Considered one of the strictest labor laws in the world, among other things, this new law
requires an employer to conclude an &#147;open-ended employment contract&#148; with any employee who either
has worked for the employer for ten years or more or has had two consecutive fixed-term contracts.
An &#147;open-ended employment contract&#148; is in effect a lifetime, permanent contract, which is
terminable only in specified circumstances, such as a material breach of the employer&#146;s rules and
regulations, or for a serious dereliction of duty. Such employment contracts with qualifying
workers would not be terminable if, for example, the Company determined to downsize its workforce
in the event of an economic downturn. Under the new law, downsizing by 20% or more may occur only
under specified circumstances, such as a restructuring undertaken pursuant China&#146;s Enterprise
Bankruptcy Law, or where a company suffers serious difficulties in production and/or business
operations. Any of the Company&#146;s staff employed to work exclusively within the PRC are covered by
the new law and thus, the Company&#146;s ability to adjust the size of its operations when necessary in
periods of recession or less severe economic downturns has been curtailed. Accordingly, if the
Company faces future periods of decline in business activity generally or adverse economic periods
specific to the Company&#146;s business, this new law can be expected to exacerbate the adverse effect
of the economic environment on the Company&#146;s results of operations and financial condition.
Additionally, this new labor law has affected labor costs of our customers which may result in a
decrease in such customers&#146; production and a corresponding decrease in their purchase of our
products.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Exposure to Foreign Exchange Risks</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in exchange rates influence our results of operations. Our principal operations are
located in Thailand, Singapore and China, and a substantial portion of our revenues is denominated
in Baht, Singapore dollars or Renminbi. Nearly all of the raw materials for these operations are
imported and paid for in U.S. dollars and a substantial portion of our future capital expenditures
are expected to be in U.S. dollars. We require a significant amount of U.S. dollars for our
ongoing equipment upgrade and maintenance programs. Any devaluation of the Baht, the Singapore
dollar or Renminbi against the U.S. dollar would increase the effective cost of foreign
manufacturing equipment and the amount of foreign currency denominated expenses and liabilities and
would have an adverse impact on our operations. Forward foreign exchange contracts are used on a
selective basis to hedge foreign exchange risk, but they do not provide any assurance that we will
not incur substantial losses in the event of a devaluation of the Baht, Singapore dollar or
Renminbi against the U.S. dollar.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although our reporting currency is U.S. dollars, the functional currency of our Thai
operations, which accounted for 43.2% of our sales in 2008, is the Baht, the functional currency of
our Chinese operations, which accounted for 27.0% of our sales in 2008, is the Renminbi, and the
functional currency of our Singapore operations, which accounted for 17.3% of Company sales
(including sales of Distributed Products) in 2008, is the Singapore dollar. Accordingly, the
functional currency accounts of these operations are translated into U.S. dollars utilizing, for
the year, the balance sheet exchange rate for balance sheet accounts, and an average exchange rate
for the year for the income statement accounts. Such translation of the functional currency
accounts is recognized as a separate component of shareholders&#146; equity. Any devaluation of the
Baht, Singapore dollar or Renminbi against the U.S. dollar would adversely affect our financial
performance measured in U.S. dollars.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->20<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Substantially all of the revenues of our operations in China are denominated in Renminbi. The
value of the Renminbi against the U.S. dollar and other foreign currencies fluctuates and is
subject to changes in Chinese and international political and economic conditions. On July&nbsp;21,
2005, the PRC government introduced a managed floating exchange rate system to allow the value of
the Renminbi to fluctuate within a regulated band based on market supply and demand and by
reference to a basket of currencies. On the same day, the value of the Renminbi appreciated by
approximately 2% against the U.S. dollar. The PRC government has since made and in the future may
make further adjustments to the exchange rate system. Fluctuations in exchange rates may adversely
affect the value, translated or converted into U.S. dollars, of our net assets, earnings and any
declared dividends payable by our operating subsidiaries and joint ventures in China. We cannot
assure you that any future movements in the exchange rate of the Renminbi against the U.S. dollar
or other foreign currencies will not adversely affect our results of operations and financial
condition.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Competition</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The wire and cable industry in the Asia Pacific region is highly competitive. Our competitors
include a large number of independent domestic and foreign suppliers. Certain competitors in each
of our markets have substantially greater manufacturing, sales, research and financial resources
than we do. We and other wire and cable producers increasingly compete on the basis of product
quality and performance, reliability of supply, customer service and price. To the extent that one
or more of our competitors is more successful with respect to the primary competitive factors, our
business could be adversely affected.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Composite Services Agreement with PEWC</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We engage in transactions in the ordinary course of business with PEWC, including the purchase
of certain raw materials and the distribution of PEWC products in various countries in the Asia
Pacific region. We and PEWC have entered into a composite services agreement dated November&nbsp;7,
1996, as amended and supplemented (the &#147;Composite Services Agreement&#148;), which contains provisions
that define our relationship and the conduct of our respective businesses and confers certain
preferential benefits on us. The Composite Services Agreement is renewable at our option and is
currently in force. However, we are unable to predict whether PEWC would, at some future date,
seek to limit the business it conducts with the Company pursuant to the terms of the Composite
Services Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Risks Relating to Thailand</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A substantial portion of our Thai operations, which accounted for approximately 43.2% of our
net sales in 2008, consists of the manufacture of telecommunications and power cable and sales of
those products for use in large-scale telecommunications projects and various construction projects
in Thailand. As a result, our future performance will depend in part on the political situation in
Thailand and the general state of the Thai economy. Recent political upheaval in Thailand has
resulted, and may continue to result, in fewer and uncompleted contracts with the Thai government,
a significant customer of the Company. The Company&#146;s Thai operations are increasingly vulnerable
to uncertainties with regard to payment for current sales and the award of future contracts in view
of the ongoing political crisis in Thailand. Additionally, in recent years the Thai economy has
been highly cyclical and volatile, depending for economic growth in substantial part on a number of
government initiatives for economic expansion. However, the Baht remains volatile and subject to
significant fluctuations in relation to the U.S. dollar. Such fluctuations in the value of the
Baht may negatively impact our performance.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Alternative Transmission Technologies</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our fiber optic and copper-based telecommunications business is subject to competition from
other transmission technologies, principally wireless-based technologies. Fiber optic cable is
presently being used in telecommunications trunks and feeder cable businesses and minimally in the
access cable business. In the Asia Pacific markets where we compete, wireless telecommunications
businesses have sometimes made substantial inroads in early emerging markets where sufficient
funding may not then be available to install the
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->21<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">infrastructure necessary for market-wide fixed line telecommunications. In addition, the ease
of use of wireless telecommunications may make that medium an attractive alternative in
circumstances where access to fixed line telecommunications is limited. While these technologies
do present significant competition in the markets in which we conduct or plan to conduct business,
the Company believes that demand for its fixed wire products will remain strong. However, no
assurance can be given that the future development and use of such alternative technologies will
not adversely affect our results of operations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>International Business Risks</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are subject to risks specific to our international business operations, including: the
risk of supply disruption, production disruption or other disruption arising from the outbreak of
highly infectious or communicable diseases such as Severe Acute Respiratory Syndrome; the risk of
potential conflict and further instability in the relationship between Taiwan and the PRC; risks
related to international political instability and to the recent global economic turbulence and
adverse economic circumstances in Asia; unpredictable consequences on the economic conditions in
the U.S. and the rest of the world arising from terrorist attacks, such as the attacks of September
11, 2001 in the U.S. and other military or security operations; unexpected changes in regulatory
requirements or legal uncertainties regarding tax regimes; tariffs and other trade barriers,
including current and future import and export restrictions; difficulties in staffing and managing
international operations in countries such as Singapore, the PRC, Thailand and Taiwan; risks that
changes in foreign currency exchange rates will make our products comparatively more expensive;
limited ability to enforce agreements and other rights in foreign countries; changes in labor
conditions; longer payment cycles and greater difficulty in collecting accounts receivable; burdens
and costs of compliance with a variety of foreign laws; limitation on imports or exports and
expropriation of private enterprises; and reversal of the current policies (including favorable tax
and lending policies) encouraging foreign investment or foreign trade by our host countries.
Although we have not experienced any serious harm in connection with our international operations,
we cannot assure you that such problems will not arise in the future.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>3.5 Forward-looking Statements</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Annual Report, including any documents incorporated by reference, contains statements
that we believe constitute forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. The statements appear throughout this Annual Report and include
statements regarding the intent, belief or current expectations of the Company and its management,
including with respect to trends affecting the Company&#146;s financial condition or results of
operations and the Company&#146;s plans with respect to capital expenditures and investments. These
forward-looking statements are not guarantees of future performance and involve risks and
uncertainties. Actual results may differ materially from those described in these forward-looking
statements as a result of various factors. See the &#147;Risk Factors&#148; section for a further discussion
of some of the factors that could cause such material differences.
</DIV>

<DIV align="left">
<A name="105"></A>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Item&nbsp;4: Information on the Company</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>4.1 History and Development of the Business</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company, formed on September&nbsp;19, 1996, is a Bermuda exempted limited liability company
which, through its operating subsidiaries, is principally engaged in the manufacture and
distribution of telecommunications (copper and fiber optic) and power cable and enameled wire
products in the Asia Pacific region, primarily in Singapore, Thailand, Australia and China. The
Company manufactures and distributes its own wire and cable products and also distributes wire and
cable products (&#147;Distributed Products&#148;) manufactured by its principal shareholder, Pacific Electric
Wire &#038; Cable Company, a Taiwanese company (&#147;PEWC&#148;). Since 1997, the Company has also offered
project engineering services in the supply, delivery and installation (&#147;SDI&#148;) of power cables.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PEWC currently owns beneficially 65.6% of the issued and outstanding Common Shares of the
Company. SOF Investments, L.P., a Delaware limited partnership, beneficially owns 9.8% of the
issued and outstanding
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->22<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Common Shares of the Company. The remaining 24.6% of the issued and outstanding Common Shares
are publicly traded on the Over-the-Counter Bulletin Board (the &#147;OTC BB&#148;) in the United States
under the trading symbol &#147;AWRCF.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based on information on sales by dollar value published by the Thai Ministry of Commerce, the
Company believes that it is one of the five largest producers of telecommunications and low voltage
power cable and enameled wire in Thailand. The Company believes, based on information on sales by
dollar value provided by the Cable Association in Singapore, that it is the largest or the second
largest supplier of power cable in Singapore. In 2008, approximately 56.2% of the manufactured
products sold by the Company was sold by its subsidiaries in Singapore and Thailand, with the
remainder sold by its subsidiaries or joint ventures in China, Australia and Malaysia.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In Singapore, the Company also sells Distributed Products, which largely consist of medium and
high voltage power cable. In 2008, sales of Distributed Products accounted for 6.5% of the
Company&#146;s revenues. As the Company continues to focus its resources on manufacturing and
distributing its own products, sales of Distributed Products are expected to decline over time as a
percentage of the Company&#146;s business. The Company&#146;s SDI project engineering services accounted for
4.1% of the Company&#146;s revenue in 2008.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company sells its cable products primarily to government agencies, telecommunications
network operators and large construction companies and subcontractors bidding for government
contracts. Telecommunications cable products manufactured by the Company are largely used as
access lines to connect buildings and residences to feeder and trunk cables. Power cable
manufactured by the Company is used primarily in power transmissions for public lighting, outdoor
installations and in and to commercial and residential buildings. Enameled wire is sold primarily
to private sector manufacturers of electric motors for use in various consumer appliances. The
Company maintains local sales personnel in each country where it has manufacturing operations, and
export sales are conducted through independent suppliers as well as the Company&#146;s own sales
personnel. The Company principally competes on the basis of product quality and performance,
reliability of supply, timely delivery, customer service and price.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 2003, the Company injected $1.7&nbsp;million in Shanghai Yayang through its subsidiary, Pacific
Thai, thereby increasing the Company&#146;s interest in Shanghai Yayang from 62.39% to 63.49%. In 2004
and 2006, the Company, through its subsidiary, Charoong Thai, made additional capital contributions
of $0.5&nbsp;million and $1&nbsp;million, respectively, to Shanghai Yayang. The additional investment was in
view of improved sales and operating performance and the need for capacity expansion as part of the
Company&#146;s operational strategy. Each of the Company and its joint venture partner, Shandong
Yanggu, has injected $0.3&nbsp;million of capital into Shangdong Pacific Fiber Optics Cable Co., Ltd.
(&#147;SPFO&#148;). To date, the Company has invested a total of $2.8&nbsp;million representing a 51.0% interest
in SPFO. The Company has also contributed $0.2&nbsp;million to Shandong Huayu Pacific Fiber Optics
Communication Co., Ltd. (&#147;SHP&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total purchases of property, plant and equipment amounted to $2.6&nbsp;million in 2007 and $3.4
million in 2008. Those purchases related mainly to the capacity expansion of certain subsidiaries
in Thailand and China, particularly Charoong Thai, and to the replacement of old equipment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>4.2 Certain Information Regarding Historical Ownership and Control of the Company</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;From September&nbsp;2004 until September&nbsp;2005, Sino-JP Fund Co., Ltd., a Cayman Islands company
(&#147;Sino-JP&#148;), held 10,074,102 shares, representing approximately 72.84% of the outstanding Common
Shares (the &#147;Supramajority Shares&#148;). Sino-JP acquired its shares of the Company pursuant to an
assignment from Asset Managers Co., Ltd., a Japanese company (&#147;AMC&#148;). The Supramajority Shares
were acquired by AMC pursuant to a Share Purchase Agreement dated as of September&nbsp;10, 2004 (the
&#147;2004 Share Purchase Agreement&#148;) by and between AMC and Pacific Electric Wire &#038; Cable Co., Ltd.
(&#147;PEWC&#148;) and certain other parties. The 2004 Share Purchase Agreement and a related Option
Agreement dated September&nbsp;10, 2004 (the &#147;2004 Option Agreement&#148;) were entered into in connection
with a settlement of certain litigation commenced by PEWC against Set Top International Inc., a
British Virgin Islands company (&#147;Set Top&#148;). Such litigation
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->23<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">was settled prior to the commencement of any discovery proceedings. To the Company&#146;s
knowledge, information regarding the ownership of a privately-held British Virgin Islands company
is not publicly available in that jurisdiction, and the Company does not have any information on
the record or beneficial ownership of Set Top. During the Set Top litigation, PEWC was unable to
determine conclusively the ultimate beneficial ownership of Set Top, although one of PEWC&#146;s
allegations in that litigation was that Mr.&nbsp;Tom Tung, a former chairman of the Company and PEWC,
had an undisclosed financial or ownership interest in Set Top. One of the principal allegations of
PEWC in the Set Top litigation was that Mr.&nbsp;Tung, as the then chairman of PEWC, caused it to seek
to convey a controlling interest in APWC to Set Top for less than fair market value because of Mr.
Tung&#146;s interest in Set Top and his relationship with its other alleged owners.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In connection with the settlement of that litigation, Set Top was paid $25,000,000 by AMC in
exchange for the ownership interest in and all claims relating to the Supramajority Shares. Upon
the consummation of the 2004 Share Purchase Agreement, PEWC, which formerly held 75.4% of the
outstanding Common Shares, held indirectly approximately 2.56% of the outstanding Common Shares.
Under the terms of the 2004 Option Agreement, PEWC was granted an option to reacquire 52.84% of the
total issued and outstanding Common Shares (the &#147;Repurchase Option&#148;). In its initial discussions
with Sino-JP on its participation in a settlement of the Set Top litigation, PEWC sought a bridge
loan from Sino-JP in order to make payment to Set Top. Subsequently, Sino-JP insisted that it
obtain an equity ownership interest in the Company, rather than provide a bridge loan to PEWC.
However, Sino-JP did agree that PEWC could have an option to reacquire majority control of the
Company, which option would be exercisable on any of the first, second or third anniversary dates
of the settlement of the Set Top litigation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In accordance with the provisions of the 2004 Share Purchase Agreement, Sino-JP had caused the
Bye-laws of the Company to be amended to establish a classified Board of Directors, consisting of
up to three (3)&nbsp;Class&nbsp;A Directors and up to seven (7)&nbsp;Class&nbsp;B Directors. Sino-JP and its
affiliates were entitled to designate candidates for election as the Class&nbsp;A directors, who, under
the terms of the revised Bye-laws, had a veto power over all matters presented to the Board of
Directors of the Company for a vote.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On September&nbsp;14, 2005, PEWC exercised the Repurchase Option and reacquired 7,307,948 Common
Shares (the &#147;Repurchased Shares&#148;), representing 52.84% of the total issued and outstanding Common
Shares, for a price of $2.581 per share, or a total purchase price of $18,861,813.78, plus a
guaranteed carried interest payable by PEWC to Sino-JP, which, in effect, provided to Sino-JP a
payment of interest at fourteen percent (14%) per annum on its acquisition cost for the Company
shares it purchased. The Company was informed that Sino-JP funded the acquisition cost through
bank borrowings from a consortium of Japanese banks, but formal documentation of such borrowings
was never provided to the Company. In view of the Repurchase Option that Sino-JP granted to PEWC,
Sino-JP insisted that its investment in the Company continue to have certain features more
customarily associated with a bridge financing. Accordingly, Sino-JP was paid by PEWC interest at
a rate of 14% on the $25,000,000 provided by Sino-JP to fund the settlement with Set Top, which
PEWC and Sino-JP characterized as a carried interest. The carried interest ceased to be payable
upon the exercise of the Repurchase Option by PEWC, which was exercised on the first anniversary
date of the Set Top settlement in September&nbsp;2005. Until the exercise of the Repurchase Option, the
Company recorded Sino-JP as the owner of record of 72.84% of the total issued and outstanding
Common Shares of the Company, and following the exercise by PEWC of the Repurchase Option, Sino-JP
was recorded as the owner of 20% of the total issued and outstanding Common Shares of the Company.
The Company is not aware how the carried interest was accounted for by Sino-JP. In the case of
PEWC, it was recorded as an interest expense, to the best knowledge of the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As a result of the reacquisition by PEWC of majority control, PEWC then indirectly held
7,664,615 Common Shares, representing 55.4% of the total issued and outstanding Common Shares and
Sino-JP then held 2,766,154 Common Shares, representing 20% of the total issued and outstanding
Common Shares (the &#147;Sino-JP Shares&#148;), in each case as of the date of the exercise of the Repurchase
Option.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commencing in 2004, the banking group creditors of PEWC, consisting of a consortium of 32
banks (the &#147;PEWC Banking Group&#148;), represented by Chiao Tung Bank, exercised control over any
material expenditures
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->24<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">by PEWC. Funding the exercise of the Repurchase Option required the approval of the PEWC
Banking Group, which imposed certain conditions on the exercise of the Repurchase Option. Among
the conditions, PEWC was required to enter into a letter of undertaking (the &#147;PEWC Letter of
Undertaking&#148;) which provided that (i)&nbsp;the funds made available would be used only to buy the
Repurchased Shares, (ii)&nbsp;as indirect majority shareholder, PEWC would cause the Board of Directors
of the Company to consist of a majority of independent directors, with the PEWC Banking Group
having the right to consent to nominees for any independent directorships, (iii)&nbsp;PEWC would deposit
the Repurchased Shares in a trust to secure the obligations of PEWC to the PEWC Banking Group and
(iv)&nbsp;PEWC would make monthly installments through September&nbsp;2006 in repayment of debt owed to the
PEWC Banking Group.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In order to secure its obligations under the PEWC Letter of Undertaking, PEWC entered into a
trust agreement dated September&nbsp;12, 2005 (the &#147;PEWC Trust Agreement&#148;) by and among PEWC, Moon View
Ventures Limited BVI, a wholly-owned subsidiary of PEWC (&#147;Moon View&#148;), and Chiao Tung Bank Trust
Department Trust Assets (&#147;CTB&#148;). Under the terms of the PEWC Trust Agreement, the Repurchased
Shares were deposited and registered with the Registrar of Companies in Bermuda in the name of CTB.
In addition to the Repurchased Shares, the trust assets included all dividend and voting rights;
provided that PEWC was permitted to direct the voting of the Repurchased Shares unless and until
there was a default under the PEWC Letter of Undertaking. In the event of a default by PEWC under
the PEWC Letter of Undertaking, which included a default for three consecutive months under the
agreements with the PEWC Banking Group, CTB was permitted to dispose of all of the Repurchased
Shares and apply the proceeds to pay the PEWC Banking Group or CTB could exercise all voting rights
associated with the Repurchased Shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In May&nbsp;2006, the PEWC Banking Group determined that PEWC had fulfilled, or was in a position
to fulfill, the requirements with respect to the PEWC Letter of Undertaking. Therefore, on June&nbsp;6,
2006, CTB, on behalf of the PEWC Banking Group, delivered a letter instructing the termination of
the PEWC Trust Agreement and authorizing the registration of the Repurchased Shares on behalf of
PEWC without any pledge or encumbrance in favor of the PEWC Banking Group.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PEWC has informed the Company that it is a party to a debt restructuring agreement with the
PEWC Banking Group which provides PEWC with certain relief from the original loan terms and
contains an agreement by the PEWC Banking Group to forbear on exercising certain remedies against
collateral so long as PEWC adheres to the terms of the debt restructuring. PEWC has informed the
Company that the debt restructuring agreement has been extended through 2009. Under this
arrangement, PEWC may not make any material acquisitions or dispositions of assets, which would
include the shares of the Company it holds, without prior consent from the PEWC Banking Group. The
debt restructuring agreement contains a standstill provision pursuant to which the PEWC Banking
Group has agreed not to take any action to exercise any of its rights under credit agreements with
PEWC, as borrower, so long as PEWC remains in compliance with the debt restructuring agreement.
Moon View, a BVI holding company and a wholly-owned subsidiary of PEWC, is the record owner of the
shares of the Company owned beneficially by PEWC. PEWC has informed the Company that there are no
liens or encumbrances on the Company shares owned of record by Moon View, other than a pledge of
those shares by Moon View in favor of PEWC which secures a loan extended by PEWC to Moon View. As
of June&nbsp;25, 2009, the date on which the Company conducted its
most recent review, no liens were recorded under the Company&#146;s name on the Register of Charges at the Registrar of Companies in Bermuda over the
shares of the Company owned of record by Moon View and beneficially by PEWC.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subsequent to the 2004 Share Purchase Agreement, a number of disputes arose between Sino-JP
and PEWC regarding the governance of the Company and other matters. Specifically, the Board was
unable to reach a consensus on the proper treatment of certain doubtful accounts receivable. In
addition, the then current Chief Financial Officer of the Company questioned the then current
auditors of the Company regarding the thoroughness of their review of these accounts receivable
during the course of their 2004 audit of the Company&#146;s financial statements, which led to the
cessation of the 2004 audit by the auditors at that time. The initial narrow dispute between Board
members designated by Sino-JP and other Board members regarding the accounting treatment for
doubtful accounts receivable grew in scope, such that it became very difficult to achieve a
consensus on a number of strategic and operational matters, due to the effective veto right held by
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->25<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">the Sino-JP Board designees. Litigation was commenced in Bermuda, in which the Company was
named a party, and in Hong Kong, in which the Company was not named a party. On June&nbsp;28, 2007, the
Company entered into a comprehensive settlement and release agreement with Sino-JP (the &#147;Settlement
Agreement&#148;), which dismissed and released all claims between the parties and which put an end to
all related litigation. PEWC also entered into a settlement and release agreement with Sino-JP
that terminated all disputes and litigation between those parties. On the same date, SOF
Investments, L.P. (&#147;SOF&#148;), a Delaware limited partnership, acquired the Sino-JP Shares (the &#147;SOF
Acquisition&#148;) and entered into a shareholders agreement with the Company and PEWC. Upon the
closing of that acquisition, all of the director-designees of Sino-JP resigned from the Board, all
of the officers designated by Sino-JP submitted their resignations, and Sino-JP ceased to have any
interest in the Company. On the same date, Messrs.&nbsp;Andy Cheng, Jack Sun and David Sun were
re-appointed to the Board.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Following the closing of the SOF Acquisition and the entering into of the Settlement Agreement
with Sino-JP, the Board of Directors called for an annual general meeting of shareholders which was
held on September&nbsp;7, 2007 (the &#147;2007 AGM&#148;). At the 2007 AGM, the shareholders approved, among
other things, the reappointment of Ernst &#038; Young LLP to complete its audit of the consolidated
financial statements of the Company for the year ended December&nbsp;31, 2004 and the appointment of
Moores Rowland International &#151; Singapore (which now does business under the name Mazars LLP) to act
as the independent auditors of the Company for fiscal years 2005, 2006 and 2007.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At the 2007 AGM, shareholders of the Company voted to change from a classified to an
unclassified Board, composed of ten directors. Eight directors were elected at the 2007 AGM:
Michael C. Lee, Andy C.C. Cheng, David T. Sun, Jack T. Sun, Gai Poo Lee, Ching Rong Shue,
Fang-Hsiung Cheng and Yuan Chun Tang.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At a Board meeting held on September&nbsp;28, 2007, the Board filled the two casual vacancies on
the Board by appointing Mr.&nbsp;Anson Chan and Dr.&nbsp;Yichin Lee to be independent directors of the
Company and to constitute the Audit Committee of the Board, with Mr.&nbsp;Anson Chan to serve as its
chairman. In addition, the Board appointed Mr.&nbsp;Samuel See as interim chief financial officer.
Furthermore, the Board appointed Mr.&nbsp;Wei Gong as deputy chief operating officer, to be based in
Bangkok at the offices of Charoong Thai. Mr.&nbsp;Gong works with the current chief operating officer
of the Company, Mr.&nbsp;Carson Tien.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certain current Board members have or have had relationships with PEWC: Ching Rong Shue is
currently, and Gai Poo Lee was until April&nbsp;2008, a vice president of PEWC; Fang-Hsiung Cheng is an
Assistant Vice President of PEWC; Yuan Chun Tang, Chairman and Chief Executive Officer of the
Company, also serves as Chairman and a director of PEWC.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>4.3 Certain Recent Events</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On November&nbsp;9, 2007, the Company filed its annual report on Form 20-F for the fiscal year
ended December&nbsp;31, 2004 with the SEC, and on March&nbsp;17, 2008, the Company filed its combined annual
report for the fiscal years ended December&nbsp;31, 2005 and December&nbsp;31, 2006 with the SEC.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On April&nbsp;9, 2008, trading in the Common Shares of the Company was restored to the
Over-the-Counter Bulletin Board (the &#147;OTC BB&#148;) under the trading symbol &#147;AWRCF.&#148; The Company
intends to apply for a listing on either the Nasdaq or NYSE Amex Equities (formerly known as the
American Stock Exchange) as and when the Company meets the listing criteria for one of those
exchanges.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At a Board meeting held on June&nbsp;13, 2008, the Board approved the formation of a compensation
committee and appointed one independent director, Mr.&nbsp;Anson Chan, and three additional directors,
Mr.&nbsp;Yuan Chun Tang (acting as committee chairman), Mr.&nbsp;David T. Sun, and Mr.&nbsp;Michael C. Lee to the
committee. See Section&nbsp;6.3: &#147;Compensation Committee.&#148; At a meeting of the Board held on July&nbsp;30,
2008, Mr.&nbsp;Andy Cheng was appointed as an additional member of the committee.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->26<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On June&nbsp;28, 2008, the Company filed its annual report on Form 20-F for the fiscal year ended
December&nbsp;31, 2007.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On September&nbsp;8, 2008, the Company held its annual general meeting of shareholders. At such
meeting, each of the directors of the Company was re-elected, Mazars Moores Rowland LLP (now known
as Mazars LLP) was re-appointed as independent auditors of the Company for the 2008 fiscal year,
and the authorized share capital of the Company was increased from 20,000,000 Common Shares, $0.01
par value per share, to 50,000,000 Common Shares, $0.01 par value per share.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On February&nbsp;2, 2009, SOF delivered notice of its exercise of the put right under the
Shareholders Agreement to PEWC due to the fact that the Common Shares were not listed on a national
securities market as of January&nbsp;31, 2009.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On March&nbsp;11, 2009, the SEC declared effective the Company&#146;s shelf registration statement on
Form F-1, which registered the Common Shares of the Company held by SOF. The Company is working
diligently to render current the financial disclosure contained in the prospectus that is part of
the shelf registration statement on Form F-1 covering the Common Shares held by SOF and certain
Common Shares held by PEWC. Actions to be taken by the Company in that regard will include the filing of a
post-effective amendment containing the Company&#146;s audited financial statements for the fiscal year
ended December&nbsp;31, 2008.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On March&nbsp;27, 2009, SOF sold 51% of the Common Shares of the Company held by it to PEWC. In
connection with such transaction, the Company, PEWC and SOF entered into an Amended and Restated
Shareholders Agreement, pursuant to which, among other things, the Company was granted an extension
until February&nbsp;2011 for it to achieve a listing on a national Securities Market and SOF maintained
its right to sell its remaining Common Shares to PEWC if the Company does not achieve that listing.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>4.4 Business Overview</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company is a holding company that operates its business through operating subsidiaries and
joint ventures, principally located in Thailand, Singapore, Australia and China.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Thailand</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company&#146;s Thai operations are conducted through Charoong Thai Wire and Cable Public
Company Limited (&#147;Charoong Thai&#148;), Siam Pacific Electric Wire &#038; Cable Company Limited (&#147;Siam
Pacific&#148;) and Pacific-Thai Electric Wire &#038; Cable Co. Ltd. (&#147;Pacific Thai&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Charoong Thai is a publicly-traded Thai corporation, the shares of which are listed on the
Stock Exchange of Thailand (&#147;SET&#148;). Immediately after the acquisition of Siam Pacific by Charoong
Thai, the shareholders of Charoong Thai consisted of the Company (68.42%), Ital-Thai (16.90%) and
Bangkok Insurance (5.31%), with the rest of the shares being publicly-traded on the SET. After the
sale of some of its Charoong Thai shares on the open market, the Company held approximately 52.43%
of the issued and outstanding shares of Charoong Thai as of December&nbsp;31, 2005. As of December&nbsp;31,
2008, the Company effectively owned 50.93% of the issued and outstanding shares of Charoong Thai,
with the decrease in the Company&#146;s percentage ownership being attributable to the exercise of
warrants or conversion of convertible securities by third parties. The Company&#146;s present intention
is to maintain majority ownership of the voting securities of Charoong Thai. Charoong Thai
manufactures aluminum and copper electric wire, medium and high voltage power cable and
telecommunications cable. It has subsidiaries and affiliates in the business of optic fiber cable
manufacturing and the provision of telecommunication and network services.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Siam Pacific is a 100%-owned subsidiary of Charoong Thai. Siam Pacific manufactures
telecommunications cable, power cable and enameled wire for the domestic Thai market.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->27<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pacific Thai is a 100%-owned subsidiary of Siam Pacific. Pacific Thai manufactures enameled
wire for the export market.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Singapore</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company&#146;s Singapore operations are principally conducted through its 98.3%-owned
subsidiary, Sigma Cable Company (Private) Limited (&#147;Sigma Cable&#148;). Sigma Cable manufactures low
voltage power cable for sale and distribution in Singapore and countries in the Asia Pacific
region. Sigma Cable also distributes in Singapore a wide range of wire and cable products produced
by PEWC and provides SDI project engineering services.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company holds a 100% interest in Sigma-Epan International Pte. Ltd. (&#147;Sigma-Epan&#148;), a
group of companies with operations in Singapore and Malaysia. Sigma-Epan group has its
headquarters in Singapore. Prior to ceasing manufacturing operations in May of 2007, Sigma-Epan
manufactured specialty cables and assembled cable harnesses for the electronics, computer, building
automation, audio and communication industries. Sigma-Epan continues to trade specialty electronic
and other types of cables.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Australia</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company holds a 98.53% effective interest in Australia Pacific Electric Cables Pty Limited
(&#147;APEC&#148;), a subsidiary of Sigma Cable, located near Brisbane, Australia. APEC is one of three
major wire and cable manufacturers in Australia. The company produces a range of power cables,
supplemented by imports from overseas sister companies. APEC possesses a substantial marketing and
distribution infrastructure with a network of sales offices and warehouses in the major capital
cities of Brisbane, Sydney, Melbourne and Perth.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>China</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During 2008, the Company&#146;s China operations were conducted through six business entities. The
operating entities included Shanghai Yayang Electric Co., Ltd. (&#147;Shanghai Yayang&#148;), formerly known
as Shanghai Pacific Electric Co., Ltd., a joint venture in Shanghai incorporated in June&nbsp;1998 to
manufacture enameled wire. The Company&#146;s effective holding in Shanghai Yayang is 54.41%. Shanghai
Yayang is also partly held by Pacific Thai. Shanghai Yayang manufactures enameled wire with a
diameter between 0.05mm and 2.5mm.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shangdong Pacific Fiber Optics Cable Co., Ltd. (&#147;SPFO&#148;) is a joint venture company in Yanggu
County, Shandong Province, China. SPFO was established to manufacture fiber optic cables for the
China market. The Company owns a 51.0% interest in SPFO, with the remaining interest owned by the
joint venture partner, Shandong Yanggu Cable Company (&#147;Shandong Yanggu&#148;), an established cable
manufacturer in Shandong Province that produces a wide range of cable products and is considered
one of the leading cable producers in China.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On June&nbsp;30, 2001, the Company invested approximately $1.2&nbsp;million for a 25.0% interest in an
existing profitable company, Shandong Pacific Rubber Cable Company, Ltd. (&#147;SPRC&#148;), which
manufactures rubber cable for the China market. The remaining 75% is owned by Shandong Yanggu.
The investment was in the form of a contribution of machinery and cash.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On August&nbsp;18, 2001, a joint-venture agreement was signed with Shandong Yanggu to establish
Shandong Huayu Pacific Fiber Optics Communication Co., Ltd. (&#147;SHP&#148;) for the manufacture of optic
fibers. The Company owns 49% of SHP with the remaining 51% owned by Hebei Huayu Co. Ltd. (as the
successor in interest to Shandong Yanggu). Due to the subsequent deterioration of the fiber optic
market price, the plant has yet to be completed and a production date for commencing operations has
not been determined. The actual commencement of operations, if it occurs at all, will depend on
our ongoing assessment of market conditions.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->28<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In 2007, the Company took a $0.1&nbsp;million impairment loss on the SHP investment to reflect that
assessment and sold all major equipment owned by SHP. The carrying value of the Company&#146;s
investment in SHP was $1.8&nbsp;million as of December&nbsp;31, 2008. In the event that the commencement of
operations continues to be delayed or a decision is made to abandon the commencement of operations,
market conditions remain depressed or deteriorate further or other factors present themselves that
have a direct impact on the assessed value of SHP, the Company will recognize impairment losses in
the foreseeable future that could result in the full write-off of its investment in SHP.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On March&nbsp;22, 2002, the Company acquired two companies, namely, Crown Century Holdings Limited
(&#147;CCH&#148;) and its wholly-owned subsidiary company, Pacific Electric Wire &#038; Cable (Shenzhen) Co., Ltd.
(&#147;PEWS&#148;), from PEWC, the majority shareholder of the Company. The acquisition was in exchange for
3,097,436 new shares of the Company issued to PEWC. PEWS manufactures enameled wire for
electronic, video and audio products for the South China market and for export. CCH is the trading
arm of PEWS. The operations of PEWS and CCH were profitable from 1999 until 2008, during which
they suffered a loss.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Until 2006, the Company&#146;s China operations included Ningbo Pacific Cable Co. Ltd. (&#147;NPC&#148;), a
telecommunications cable manufacturing joint venture located in Ningbo Yin County, Zhejiang
Province in eastern China, in which the Company owns a 94.31% interest. The other owner of NPC is
China Ningbo City Yin County Yinjiang Town Industrial Corporation (&#147;CIC&#148;). NPC manufactured a
range of telecommunications cable and local area network (&#147;LAN&#148;) electronic cables for sale and
distribution in the Chinese domestic market and export market.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NPC&#146;s performance since 1997 was below the Company&#146;s expectations due primarily to
difficulties faced in marketing its products and market penetration in China. In addition, the
performance of certain managers at NPC, who were later terminated, did not comply with the
Company&#146;s standards for business practices. The Company&#146;s 2002 results included a write-off of
approximately $1.5&nbsp;million in the carrying value of the telecommunication cable machinery at NPC.
In 2006, the Company determined to cease operations at NPC, as it concluded that the prospects for
reversing the losses and achieving profitability were too remote. Thereafter, the Company
liquidated certain machinery and equipment through sales to third parties. The land, building and
some remaining machinery and equipment are still held by NPC.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Malaysia</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Elecain Industry Sdn Bhd (&#147;Elecain&#148;), an operating subsidiary of the Company located in
Malaysia, ceased operations in 2007. Elecain was not significant to the business of the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>4.4.1 Products and Services</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company manufactures and sells a wide variety of wire and cable products primarily in four
general categories: telecommunications cable, power transmission cable, enameled wire and, until
May&nbsp;2007, electronic cables, which the Company ceased to manufacture as of that date. The
Company&#146;s telecommunications and power cables are used in a range of infrastructure projects and in
commercial and residential developments. The Company&#146;s enameled wire is used in the manufacturing
of components and sub-components of household appliances and small machinery. The electronic
cables, which include cable harnesses, are used in the electronics, computer, building automation,
audio and communication industries. In addition, the Company acts as the Singapore distributor of
wire and cable products manufactured by PEWC. The Company also offers SDI project engineering
services of medium and high voltage cable for power transmission projects in Singapore.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Telecommunications Cable</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company produces a wide range of bundled telecommunications cable for telephone and data
transmissions with different capacities and insulations designed for use in various internal and
external
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->29<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">environments principally as access cable to connect buildings and residents to trunk cables.
Telecommunications cables produced by the Company include copper-based and fiber optic cables.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Copper-based cables contain twisted pairs of insulated copper wire, each pair color-coded and
corresponding to one telecommunications line. The cables are produced with different insulators
such as polyethylene (&#147;PE&#148;), polyvinyl chloride (&#147;PVC&#148;) and foam skin, suitable for different
installations and environmental conditions. The Company manufactures telecommunications cable with
capacities and sizes ranging from 25 to 3,000 pairs of 0.4 mm-diameter wire to 10 to 600 pairs of
0.9 mm-diameter wire.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Power Cable</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company produces a range of armored and unarmored low voltage power transmission cable.
Low voltage power cable, generally considered to be cable with a capacity of 1 to 3.3 kilovolts, is
typically used to transmit electricity to and within commercial and residential buildings, as well
as to outdoor installations such as street lights, traffic signals and other signs. Armored
low-voltage power cable is usually used for public lighting and power transmission running to
buildings and installed either above or below ground. Unarmored low voltage cable is mainly used
as lighting and power supply cable inside and outside of buildings. The voltage capacity of the
Company&#146;s power cables range from 300 volts to one kilovolt.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unarmored cable is composed of one or more cores of copper wire, insulated by substances such
as PVC. Armored cable is produced in the same range of configurations as unarmored cable, but with
the addition of an outer layer of galvanized steel or iron wires to protect the cable from damage.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Enameled Wire</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company also produces several varieties of enameled wire. Enameled wire is copper wire
varnished, in an enameling process, by insulating materials. The enameling process makes the wire
more resistant to oil, heat, friction and fusion, and therefore suitable for use in machinery and
components and sub-components of manufactured goods. The Company manufactures enameled wire in
sizes that range from 0.02 mm to 4.00 mm in diameter, varnished by various types of petroleum
insulation materials including polyvinal formal, polyurethanea wire and polyester, among others.
Enameled wire products are used in the assembly of a wide range of electrical products, including
oil-filled transformers, refrigerator motors, telephones, radios, televisions, fan motors, air
conditioner compressors and other electric appliances.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Electronic Cables</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Until May&nbsp;2007, the Company also produced a wide range of electronic cables and related
byproducts, including high specification telecommunication cables, data-communication cables,
security cables, cable assemblies, fiber optic cables, local area network (&#147;LAN&#148;) patch-cords
products and harness assembly. The products were used in the electronics, building automation,
telecommunications and data-communications industries. The customers included government bodies,
large construction companies, subcontractors bidding for government contracts and system
integrators. These cables were produced by the Sigma-Epan group, which ceased manufacturing
operations in May&nbsp;2007. Since Sigma-Epan ceased manufacturing operations, the Company no longer
manufactures electronic cables but continues to trade specialty electronic and other types of
cables.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Sales of Distributed Products</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company is also a distributor of wire and cable products manufactured by PEWC. The
leading PEWC products sold by the Company are medium and high voltage power cable (with capacities
ranging from 3.3 kilovolts to 69 kilovolts), with the vast majority of such sales made in
Singapore. The PEWC products sold by the Company do not compete with the Company&#146;s manufactured
products.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->30<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>SDI Project Engineering Services</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based on trends of government and private sector expansion and upgrading of residential and
commercial buildings and infrastructure projects in Singapore, the Company anticipates demand for
medium and high voltage power and for value added services in the power supply industry. To take
advantage of these opportunities, the Company has developed its SDI project engineering capability.
The SDI project engineering operations supply, deliver and install primarily medium and high
voltage cable to power transmission projects in Singapore. After entering into a contract to
supply, deliver and install cable for a power transmission project, the Company delivers medium and
high voltage cables and enters into subcontracting agreements with local companies to install the
cable as required by the project.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>4.4.2 Manufacturing</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Copper rod is the base component for most of the Company&#146;s products. The manufacturing
processes for these products require that the rod be &#147;drawn&#148; and insulated. In the &#147;drawing&#148;
process, copper rod is drawn through a series of dies to reduce the copper to a specific diameter.
For certain applications, the drawn copper conductor is then plated with tin. Copper used in cable
is covered with various insulating materials that are applied in an extrusion process. The
insulated wires are then combined, or &#147;cabled&#148; to produce the desired electrical properties and
transmission capabilities. Then, depending upon the cable, some form of protective cover is placed
over the cabled wires.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A summary of the manufacturing process used for the Company&#146;s primary wire and cable products
is set forth below.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Telecommunications Cable</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Production of telecommunications cable begins by drawing a copper rod until it has reached the
desired diameter, after which the drawn wires are subjected to a process called &#147;annealing&#148; in
which the wires are heated in order to make the wires softer and more pliable. Utilizing an
extrusion process, which involves the feeding, melting and pumping of a compound through a die to
shape it in final form as it is applied to insulate the wire, the wires are then covered by a PE or
PVC compound in one of ten standard colors. In order to reduce the cross-talk between pairs of
communication wires, the insulated wires are then &#147;twinned&#148; or twisted so that two insulated single
wires are combined to create a color-coded twisted pair. The twisted pairs of wire are then
&#147;cabled&#148; or &#147;stranded&#148; into units of 25 twisted pairs for combination with other 25 pair units to
form cable of various widths and capacities. The appropriate number of units are cabled together
after stranding to form a round cable core. Depending upon the planned environment, a petroleum
jelly compound may then be added to fill the cable core to seal out moisture and water vapor.
Aluminum or copper tape is used to &#147;shield&#148; the cable and, finally, the shielded cable core is
covered by plastic outer sheathing.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Power Cable</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Production of unarmored cable begins by drawing and annealing of copper rods. The drawn
copper wires are then stranded or &#147;bunched&#148; into round or sector-shaped conductors in sizes ranging
from 1.5 square millimeter to 1000 square millimeters. The copper conductors are then covered in
an extrusion process with a plastic insulator such as a PVC, after which 2-5 conductors are twisted
into a circular cable core in a cabling process and covered by a plastic outer cover.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Armored cable is produced in the same manner as unarmored cable, except that armored cable
requires the addition of a helical wrap of galvanized steel or iron wires prior to the application
of a final plastic outer cover.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->31<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Enameled Wire</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Production of enameled wire begins by drawing the copper rods until they have reached the
desired diameter, after which the drawn wires are annealed. The annealed wires are then varnished
by one or more types of petroleum-based insulation material. Up to 14 coats of varnish are
applied, depending upon the intended application of the enameled wire.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>4.4.3 Raw Materials</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Copper is the principal raw material used by the Company, accounting for approximately 70% of
the total cost of sales of products using copper as a conductor in 2008. The Company purchases
copper at prices based on the average prevailing international spot market prices on the London
Metal Exchange (the &#147;LME&#148;) for copper for the one month prior to purchase. The price of copper is
influenced heavily by global supply and demand as well as speculative trading. As with other costs
of production, changes in the price of copper may affect the Company&#146;s cost of sales. Whether this
has a material impact on the Company&#146;s operating margins and financial results depends primarily on
the Company&#146;s ability to adjust selling prices to its customers, such that increases and decreases
in the price of copper are fully reflected in those selling prices. Most sales of Company
manufactured products reflect copper prices prevailing at the time the products are ordered. A
long-term decrease in the price of copper would require the Company to revalue the value of its
inventory at periodic intervals to the then net realizable value, which could be below cost.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company purchases copper in the form of rods and cathodes. Copper cathodes are thin
sheets of copper purified from copper ore. Copper purchased by the Company in the form of cathodes
must be sent to subcontractors to be melted and cast into the copper rods necessary for the
manufacturing processes, for a processing fee equal to approximately 3.5% of the copper cathode
purchase price. The Company presently relies on the services of Thai Metal Processing Co., Ltd. to
process its copper cathodes into copper rods in Thailand, although the Company has a variety of
processing companies from which to obtain these services. Construction of such a processing
facility could also be an additional source of revenues and profit, to the extent that sales are
made to unaffiliated parties. Copper rods are drawn into copper wire for the production of
telecommunications cable, power cable and enameled wire.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company has historically purchased a substantial portion of its copper rods from PEWC.
Under the Composite Services Agreement between the Company and PEWC, PEWC agreed to supply to the
Company on a priority basis its copper rod requirements at prices at least as favorable as prices
charged to other purchasers in the same markets purchasing similar quantities. PEWC continues to
be the principal supplier of copper rods to the Company&#146;s operations. Under the Company&#146;s copper
rod supply arrangements, orders will be placed between eight to ten weeks before the desired
delivery date, with prices &#147;pegged&#148; to the average spot price of copper on the LME for the one
month prior to delivery plus a premium.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company purchases copper cathodes, which are subject to a 1.0% import tariff, for use at
its Thailand operations in order to avoid the higher import tariff of 5.0% on copper rods. The
Company obtains copper cathodes from three major suppliers which import cathodes into the Thai
market. These suppliers are Mitsubishi Corporation, Mitsui &#038; Co (Thailand) and Marubeni
Corporation. The Company has regularly signed one-year contracts with each of its copper cathode
suppliers pursuant to which the Company agrees to purchase a set quantity of copper cathodes each
month. Under the terms of such contracts, the price of copper cathodes is usually &#147;pegged&#148; to the
average of the spot price of copper on the LME for the delivery month plus a premium. The Company
believes its relationships with its three copper cathode suppliers will allow access to alternative
supplies in the event one or more of such suppliers was unable or unwilling to renew a supply
contract on terms satisfactory to the Company, although the Company does not anticipate any change
in relations in the near term.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company attempts to maintain approximately a three to five week supply of copper rods and
cathodes for its Thai operations and approximately a two to four week supply in Singapore. The
Company has never experienced a material supply interruption or difficulty obtaining sufficient
supply of copper rod or cathode.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->32<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other raw materials used by the Company include aluminum used as a conductor in power cable
and petroleum-based insulation materials such as PE, PVC and jelly compounds for insulating covers
on cables and varnishes on enameled wire; aluminum foils for sheathing of communication cable; and
galvanized steel wire for the production of armored wire. The Company has not had any difficulty
in maintaining adequate supplies of these raw materials and expects to continue to be able to
purchase such raw materials at prevailing market prices.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We consume substantial amounts of electricity in our manufacturing processes at our production
facilities in China. Certain parts of China have been subject to power shortages in recent years.
We have experienced a number of power shortages at our production facilities in China to date. We
are sometimes given advance notice of power shortages and we currently have a backup power system
at certain of our production facilities in China.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other than import tariffs in Thailand, the Company does not face any restriction or control on
the purchase or import of its raw materials. The Company may freely choose its suppliers and
negotiate the price and quantity of material with its suppliers. The Company formulates
consumption plans for raw materials regularly and continually monitors market conditions in respect
of the supply, price and quality of raw materials.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>4.4.4 Quality Control</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company places a significant emphasis on product quality. The Company has implemented a
range of quality control procedures with stringent quality standards under the supervision of a
dedicated quality control staff. Quality control procedures are implemented from the raw material
to the finished product stages at each of the Company&#146;s major production facilities. Raw materials
are inspected to ensure they meet the necessary level of quality before production begins. During
the manufacturing process, quality control procedures are performed at several stages of
production. Upon completion, finished goods are brought to quality control centers set up in the
factory for inspection and testing of different electrical and physical properties.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depending on the requirements of its customers, the Company has the capability to manufacture
its products to meet a variety of different quality and production standards. These include local
standards and certifications, such as the Singapore Institute of Standards and Industrial Research
Quality Mark and the Thailand Industrial Standard, as well as other standards including the
National Electrical Manufacturers Association Standard, the British Standard, the Japan Industrial
Standard and Underwriters Laboratories Inc. Standard, as applicable.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All the major companies in the group have attained International Standards Organization
(&#147;ISO&#148;) 9002 certification for quality management and assurance standards in the manufacture of
electric wire and cable and have maintained that certification for at least the last ten years.
The certifications mean that the companies have in place quality assurance systems and the
capability to consistently manufacture products of quality.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>4.4.5 Sales and Marketing</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company&#146;s telecommunications cable and power cable products are primarily sold in the
domestic markets of the countries where they are manufactured, whereas most of the enameled wire
manufactured by the Company is exported to take advantage of Pacific Thai&#146;s tax status exempting it
from paying import duties on raw materials used in the manufacture of export product. The
following table sets forth the Company&#146;s sales revenues by geographic area for the periods
indicated, together with their respective percentage share of total sales revenue for such periods:
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->33<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="28%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="23"><B>Year ended December 31,</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="23" style="border-bottom: 1px solid #000000"><B>(dollar figures ($) are in thousands of US$)</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>$</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>%</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>$</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>%</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>$</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>%</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Manufactured Products:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Thailand</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">142,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">170,585</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">149,544</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29.9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Singapore</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29,440</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31,762</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35,318</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Australia</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">49,134</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">55,789</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">61,167</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12.2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">China</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">148,502</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">157,917</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">134,999</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Export</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">69,704</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">78,752</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">66,820</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13.3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">439,280</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">93.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">494,805</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">96.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">447,848</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">89.4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Distributed Products<SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,416</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,783</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32,415</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SDI Project Engineering<SUP style="font-size: 85%; vertical-align: text-top">(2)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,421</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,253</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,535</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total net sales</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">468,117</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">510,841</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">500,798</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>Distributed Products are largely sold in Singapore.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">(2)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>All SDI Project Engineering is supplied in Singapore.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sales within Thailand and Singapore are made directly by the sales department of the Company&#146;s
local subsidiaries in accordance with terms and pricing set by the local subsidiaries. The local
subsidiaries are also responsible for sales planning, marketing strategy and customer liaison. The
Company&#146;s sales staff is knowledgeable about the Company&#146;s products and frequently must render
technical assistance, consulting services and repair and maintenance services to the Company&#146;s
customers. In order to ensure quality service and maintain sensitivity to market conditions, the
Company does not conduct sales through independent sales agents on a commission basis but uses its
own sales employees located at the operating subsidiaries.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As copper constitutes the costliest component of the Company&#146;s wire and cable products, the
price of the Company&#146;s products depends primarily upon the price of copper. In order to minimize
the risk of copper price fluctuations, the Company attempts to determine the prices of its products
based on the prevailing market price of copper. However, the Company may be affected, to a degree,
in the short term by significant fluctuations in the price of copper.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payment methods for the Company&#146;s products vary with markets and customers. The majority of
sales by the Company of its manufactured products require payment within 90&nbsp;days, but may vary
depending on the customer and payment record. Sales pursuant to a successful project tender or
sales to governmental or public utilities are conducted in accordance with the tender or other
applicable regulations. In connection with the distribution of medium and high voltage power cable
manufactured by PEWC, the Company is required to pay PEWC 90% of the cost of the products either
within 30&nbsp;days of receipt of the product or, in the case of SDI products, upon installation, with
the remaining 10% to be paid within one year. In connection with the purchase of copper rod, the
Company is required to pay PEWC the cost of the copper rod within 30&nbsp;days from obtaining the
products from PEWC. For the export market, payment is usually made by prior delivery of an
irrevocable letter of credit. Neither the Company nor its local subsidiaries offer financing for
purchases of the Company&#146;s products. The Company sells its products in the local currency of the
country of sale. Company employees engaged in sales and marketing are paid a salary and may also
receive a bonus based on performance.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Products are marketed under the respective names of each company. For instance, products
manufactured by Siam Pacific are marketed under the &#147;Siam Pacific&#148; and &#147;PTEWC&#148; brands, both
registered trademarks in Thailand; products manufactured by Sigma Cable are sold under the &#147;Sigma
Cable&#148; brand.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->34<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Thailand</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company produces and sells telecommunications cable, enameled wire and power cable in
Thailand. Sales of telecommunications cables, the Company&#146;s leading product in Thailand, are
conducted either by tender for participation in large scale telecommunications projects of the TOT
Corporation Ple. (&#147;TOT&#148;), or directly to subcontractors of TT&#038;T and True Corporation Ple., the two
private telephone line contractors which would be licensed by TOT with regard to particular
projects. Power cable (and a limited quantity of telecommunications cable) is generally sold to
construction firms or contractors for use in infrastructure, commercial and residential
construction projects. The Company generally sells enameled wire directly to manufacturers of
electric motors for use in various consumer appliances. Enameled wire purchasers tend to be
smaller businesses than those that purchase telecommunications and power cable. A small quantity
of power and telecommunications cable and enameled wire is sold to general electrical products
supply companies which then resell to end users.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Singapore</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company produces and sells low voltage power cable in Singapore. In addition, the Company
sells a wide range of wire and cable products produced by PEWC. Power cables manufactured by the
Company and PEWC are primarily sold to SP Powerassets, a quasi-public entity responsible for power
delivery in Singapore, and to a large number of private contractors and construction firms. The
Company also offers project engineering services for the SDI of medium and high voltage power cable
to power transmission projects in Singapore.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sales of Company manufactured products in 2008 accounted for 40.8% of the Company&#146;s net sales
in Singapore; sales of Distributed Products in 2008 accounted for 35.5% with the remaining 23.7%
comprised of SDI project engineering services. In 2008, sales to SP Powerassets alone accounted
for approximately 68.9% of the Company&#146;s total sales in Singapore and 11.9% of the Company&#146;s total
aggregate sales. While the Company is seeking to increase the volume of business in its SDI
business segment, in 2008 sales of SDI project engineering services to SP Powerassets accounted for
100% of the Company&#146;s SDI sales. Approximately 45.5% of the sales to SP Powerassets in 2008 were
sales of Distributed Products, which sales have a low profit margin. Such sales are not made under
a continuing contract, but pursuant to purchase orders placed from time to time with the Company by
SP Powerassets. Sales of copper wire and cable products purchased from PEWC since 2006 are as
follows (in thousands):
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11"><B>Year ended December 31,</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11" style="border-bottom: 1px solid #000000"><B>(dollar figures ($) are in thousands of US$)</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Manufactured Product:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Power Cable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,416</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,109</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,435</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Electronic Wire</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,925</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,493</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">194</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,341</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,602</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,629</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although SP Powerassets is an important customer of the Company, neither the loss of
Distributed Product sales to SP Powerassets, nor the loss of manufactured product sales to SP
Powerassets, which the Company expects would be replaced by sales to other customers, would likely
have a material adverse effect on the Company&#146;s results of operations. Although the Company does
not believe that it could easily replace its SDI sales to SP Powerassets by sales to other
customers, SDI sales accounted for only 4.1% of the Company&#146;s sales in 2008.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>China</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company produces and sells copper-based telecommunication cable, fiber optic cables and
enameled wire in China. The Company&#146;s China operations are conducted through six business
entities. Copper-based telecommunication cables and fiber optic cables are generally sold to the
national, provincial or local offices of the fixed-line and mobile telecommunications network
operators or sub-contactors of such agencies. The
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->35<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Company generally sells enameled wire directly to manufacturers of electric motors for use in
various consumer appliances.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Exports</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company&#146;s main export markets are Hong Kong, Vietnam, India, China, Malaysia and
Indonesia. Export sales are conducted by local agents or distributors of the Company in accordance
with terms and prices negotiated between the local agent and the Company at the time of sale. In
Thailand, the Company&#146;s principal export is enameled wire. In Singapore, the Company&#146;s principal
export is power cable. The Company does not actively pursue an export business in Singapore, but
benefits from Singapore&#146;s position as a trading center and makes export sales in response to buyer
inquiries and solicitations. Total export sales accounted for 13.3% of net sales in 2008.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>4.4.6 Competition</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The wire and cable industry in the Asia Pacific region is highly competitive. The Company&#146;s
competitors include a large number of independent domestic and foreign suppliers. Certain
competitors in each of the Company&#146;s markets have substantially greater manufacturing, sales,
research and financial resources than the Company. The Company and other wire and cable producers
increasingly compete on the basis of product quality and performance, reliability of supply,
customer service and price. To the extent that one or more of the Company&#146;s competitors is more
successful with respect to the primary competitive factors, the Company&#146;s business could be
adversely affected.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Thailand</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The wire and cable industry in Thailand is highly competitive. In its various product lines,
the Company competes with a total of approximately thirty local wire and cable manufacturers and,
to a lesser extent, with foreign producers for sales in Thailand of telecommunications cable, power
cable and enameled wire. Based on information published by the Thai Ministry of Commerce on sales
by dollar value, the Company believes that Siam Pacific and Charoong Thai are two of the five
largest wire and cable producers in Thailand and their principal competitors are the three other
largest producers in Thailand. These five largest producers are the only producers of
telecommunications cable approved by the Thai Industrial Standards Institute and, therefore, the
only cable producers whose products may be used in government-commissioned projects. Stringent
governmental approval processes, tariffs and other import restrictions have limited competition in
the Thailand market from foreign wire and cable producers. The Company also experiences
significant competition from a number of smaller producers with regard to sales of enameled wire
products.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Singapore</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based on information provided by the Cable Association in Singapore, the Company principally
competes with four other major wire and cable manufacturers in Singapore. Although the Company
believes it is the largest or second largest supplier of power cable in Singapore based on
information on sales by dollar value provided by the Cable Association in Singapore, it experiences
significant competition from other local producers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There are no tariff or other barriers against foreign competition in the local Singapore
market and potential competitors are free to enter the industry. However, because of high capital
costs, the Company believes it is unlikely that there will be new domestic entrants to the wire and
cable industry in Singapore in the near future.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->36<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Australia</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Currently, besides APEC, there are two major wire and cable producers in Australia: Olex
Cables (owned by Pacific Dunlop) and Pirelli Cables, with factories in the states of Victoria and
New South Wales, respectively. Both are APEC&#146;s principal competitors. In addition, General Cables
is a major participant in the market. During fiscal year 2008, APEC was the only power cable
producer in Queensland and therefore sought to take advantage of its comparative proximity to
customers in contrast to competitors that were required to transport their products into Queensland
from other states in Australia. APEC has also opened sales offices with warehousing facilities in
Sydney, Melbourne and Perth in order to attract and service the customers in those regions.
Foreign competition barriers exist with import duties and the more stringent Australian cable
specifications standards. Free Trade Agreements are in effect with Singapore and Thailand.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>China</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PEWS manufactures enameled wire in the Shenzhen Special Economic Zone in Guangdong Province
for electronic, video and audio products for the South China market and for export. CCH is the
trading arm of PEWS. Based on information provided by customers and suppliers, the Company
believes that, based on production capacity, PEWS is one of the largest enameled wire manufacturers
amongst the six manufacturers in Shenzhen. It supplies mainly to transformer, motor and coil
manufacturers in and around Shenzhen. It faces competition principally from overseas imports and
local manufacturers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shanghai Yayang is the only major enameled wire producer in Shanghai and it supplies mainly to
transformer, motor and coil manufacturers in Shanghai. It faces competition principally from
overseas imports and manufacturers from other provinces.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;According to the Optical Cables Trade Association, SPFO is one of the largest manufacturers of
fiber optic cables in Shandong Province based on sales by dollar value. It supplies mainly to
government controlled and licensed telecommunications network operators such as China Netcom, China
Telecom, China Mobile, China Railcom, China Unicom and China Powercom. It faces competition
principally from a number of the larger domestic fiber optic cable manufacturers in China.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Other Markets</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company exported approximately 14.9% of its manufactured products in 2008. These products
are principally sold through independent suppliers in competition with domestic and foreign
manufacturers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>4.4.7 Regional Considerations</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The principal Asian markets in which we do business have shown exceptional overall economic
growth in recent years compared to the United States and a number of other more developed markets,
subject to occasional episodes of economic and currency exchange volatility attributable to various
factors including the increased risks of emerging market investment, actual or potential political
instability and pandemics such as the SARS health crisis several years ago. In some countries, the
IMF exerts considerable influence over economic policy and provides support to stabilize the
domestic economy. In general, the Asian markets in which we do business have been export-driven in
recent years and have in the case of China and Singapore, for example, accumulated considerable
capital reserves, which contributes to a more stable business environment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Thailand</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;According to the April&nbsp;2009 East Asia and Pacific Update published by the World Bank, the GDP
growth projection in Thailand for 2008 was 2.6% compared to 4.9% in 2007. The World Bank currently
forecasts that Thai GDP growth will be approximately -2.7% in 2009.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A substantial portion of the Company&#146;s Thai operations, which accounted for approximately
43.2% of the Company&#146;s net sales in 2008, consists of the manufacture of telecommunications and
power cable and sales of
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->37<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">those products for use in large-scale telecommunications projects and various construction
projects in Thailand. The volume of sales of these products tends to correlate with the general
level of economic activity in Thailand. As a result, the performance of the Company&#146;s Thai
operations depends in part on the general state of the Thai economy. Infrastructure development
and related construction projects in Thailand depend significantly upon government sponsored
initiatives. In recent years, the level of government involvement in infrastructure development
has tended to track increases or contractions in Thailand&#146;s gross domestic product (&#147;GDP&#148;).
Overall, the construction industry and infrastructure projects have slowed considerably, thereby
affecting local sales, placing competitive pressure on prices and prompting the Company to
rationalize Thai operations and actively seek overseas export markets.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Telecommunications</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sales of the Company&#146;s telecommunication products in Thailand have depended to a significant
degree on the substantial investment in and development of the telecommunications sector by the
Thai government. In particular, the Company&#146;s sales of manufactured products are affected by the
dollar value of contracts awarded by the government for telecommunications and other infrastructure
projects.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Historically, control of the telecommunications sector in Thailand, including the right to
grant concessions for the installation and operation of telecommunications services, has rested
with state owned enterprises. There are currently three public agencies responsible for
communications in Thailand: TOT, which controls domestic telephone service, the CAT Telecom Plc.
(&#147;CAT&#148;), which handles postal and international telephone service, and the Thailand Post Co., Ltd.
(a state enterprise), which controls and regulates the use of frequencies for radio communication
stations and satellite communication networks. Telecommunications services in Thailand have
traditionally been developed and expanded through grants by TOT and CAT of concessions to private
operators to install and operate telecom projects on a build-transfer-operate basis, where the
government enterprise involved would maintain control over the award of the concession and receive
a profit share from the operations of the project.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Power</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In Thailand the prevailing historical trend has been that economic growth would stimulate
rapid growth in the demand for electric power, and annual rates of growth in electricity demand
would outpace annual economic growth rates. Despite the rapid growth in electricity demand,
electricity consumption in Thailand remains low by international standards. The Company believes
that, in the medium to longer term, there will be an increased demand for power supply which will
lead to increased demand for the Company&#146;s power cable products from both developers of power
production facilities and contractors installing power supply lines.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Singapore</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Singapore government reported that the economy grew by only 1.1% in 2008, as compared to
the 7.8% growth recorded in 2007. The manufacturing sector, which makes up about a quarter of
Singapore&#146;s total output, shrank by 10.7% in 2008. The services sector, which makes up about
three-fifths of the Singapore economy, declined by 1.3% in the fourth quarter of 2008, but recorded
an overall growth of 4.7% in 2008. Construction, the third and smallest sector of the Singapore
economy, increased by 20.3% in 2008. The Singapore government has projected its economy to retract
6.0% to 9.0% in 2009 due to worldwide economic conditions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Singapore government has established targets to increase the population from 4.6&nbsp;million
in 2007 to approximately 6&nbsp;million by the end of 2020. This planned growth in population is
expected to result in an increase in demand for residential property and construction.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->38<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>China</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The economy of China differs from that of most developed free-market economies in a number of
respects, including structure, degree of government involvement, level of development, growth rate,
capital reinvestment, allocation of resources, rate of inflation and balance of payments position.
In recent years, the PRC government has implemented economic reform measures which emphasize
decentralization, utilization of market forces and the development of foreign investment projects,
of which SPFO and Shanghai Yayang are examples.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;According to the April&nbsp;2009 East Asia and Pacific Update published by the World Bank, the
Chinese GDP growth projection was 9.0% in 2008 as compared to 13.0% in 2007. According to that
update, the World Bank has forecasted China GDP growth in 2009 to be approximately 6.5%.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>4.5 Inflation</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inflation would increase the cost of raw materials and operating expenses to the Company. The
Company would try to maintain its gross margins by increasing the prices of its products.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>4.6 Organizational Structure</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following chart shows the organizational structure of the Company and its principal
operating subsidiaries, including joint venture ownerships. The location of the headquarters of
each company is indicated in parentheses under the company&#146;s name (&#147;S&#148; for Singapore, &#147;T&#148; for
Thailand, &#147;A&#148; for Australia and &#147;C&#148; for China or Hong Kong).
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->39<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><IMG src="y01848y0184801.gif" alt="(FLOW CHART)">

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Thailand</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company&#146;s Thai operations are conducted by Siam Pacific, which produces telecommunications
cable, power cable and enameled wire for the domestic market, Pacific Thai, a specialized producer
of enameled wire for the export market and Charoong Thai, which manufactures power and
telecommunications cables and, through its subsidiaries, provides telecommunication and network
services. As of December&nbsp;31, 2005, the Company effectively owned 52.43% of the interests in Siam
Pacific, Pacific Thai and Charoong Thai. As of December&nbsp;31, 2008, the Company&#146;s effective
ownership interest in those three entities was 50.93%, with the decrease in the Company&#146;s
percentage ownership being attributable to the exercise of warrants or conversion of convertible
securities by third parties. The Company&#146;s present intention is to maintain majority ownership of
the voting securities of Charoong Thai.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Siam Pacific was established in 1988 as a joint venture between PEWC and Ital-Thai, which is
the largest diversified construction company in Thailand and is principally engaged in the design,
engineering, construction and project management of large-scale civil engineering and
telecommunications projects in Thailand. Capitalizing on PEWC&#146;s wire and cable manufacturing
expertise and Ital-Thai&#146;s significant presence in the local market, the Company was able to
establish its presence in this market and gain knowledge of business opportunities in Thailand.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pacific Thai was established in 1989 and is a wholly-owned subsidiary of Siam Pacific.
Pacific Thai produces enameled wire for export only and has a special tax status which exempts it
from import duties on raw materials used in export manufacturing. This special tax status must be
renewed each year.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->40<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Charoong Thai is a public company listed on the Stock Exchange of Thailand (&#147;SET&#148;). It
manufactures aluminum and copper electric wire, medium and high voltage power cable and
telecommunications cable. It has subsidiaries and affiliates in the businesses of optic fiber
cable manufacturing and telecommunication and network services. Charoong Thai was established in
Thailand in 1967 as a limited public company. The board of directors of Charoong Thai may
authorize the issuance of additional shares of common stock of Charoong Thai. The Company has
preemptive rights to purchase an amount of additional shares equal to its pro rata share of the
additional authorized shares, less amounts reserved for directors, officers and employees. In the
event the board of Charoong Thai decides to cause it to issue those additional shares, the Company
may decide not to exercise this right, in which case the Company&#146;s interest may be diluted.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based on information published by the Thai Ministry of Commerce on sales by dollar value, the
Company believes that Siam Pacific and Charoong Thai are two of the five largest telecommunications
and power cable and wire manufacturers in Thailand and are two of the five government-approved
suppliers of telecommunications cable for major public telecommunications projects.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In a restructuring exercise, the Company has merged its Thai operations, which has generated
cost savings while improving overall efficiency. The Company believes the synergistic effect of
merging these operations will continue to produce significant savings in overhead cost as it
facilitates the centralization of decision making and resource allocation for the Thai operations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Singapore</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company&#146;s Singapore operations are conducted primarily through its 98.3%-owned subsidiary,
Sigma Cable. Based on information on sales by dollar value provided by the Cable Association in
Singapore, the Company believes that Sigma Cable is the largest or second largest supplier of power
cable products in Singapore. Sigma Cable manufactures and sells a range of low voltage power cable
products, used mainly in infrastructure projects and commercial and residential developments.
Sigma Cable is also the exclusive distributor in Singapore of medium and high voltage wire and
cable manufactured by PEWC.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sigma Cable also has project engineering operations in Singapore to supply, deliver and
install (&#147;SDI&#148;) primarily medium and high voltage cable to power transmission projects. While the
Company currently obtains its supply of medium and high voltage power cable for its SDI operations
from PEWC, other suppliers are also available if necessary. The Company anticipates that there
will be increasing demand for medium and high voltage power cable and related turnkey installation
projects in Singapore and the Company is seeking to increase its business volume in its project
engineering business segment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company owns Sigma-Epan, which ceased manufacturing operations in Singapore and Malaysia
in May&nbsp;2007 due primarily to decreasing sales revenues, taxes imposed by the Malaysian government,
inadequate machinery, and high overhead costs. Sigma-Epan consisted of a primarily Singapore-based
group of companies engaged in the manufacture of specialty cables and assembled cable harnesses for
the electronics, computer, building automation, audio and communication industries. It achieved
ISO 9002 certification for its quality management system in 1990. Its customers were largely
multinational original equipment manufacturers and its export markets included Malaysia, the
Philippines, Indonesia, Thailand, Australia, New Zealand, China and the U.S. Since Sigma-Epan
ceased operations, the Company no longer manufactures specialty electronic cables.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Australia</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company has an effective 98.53% ownership interest in APEC, an Australian wire and cable
distributor, which commenced operations at its power cable manufacturing facility in Queensland
near Brisbane, Australia in 1997. The new facility produces low voltage power cable with a
targeted production capacity of 2,000 tons per year.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->41<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;APEC has historically sold its production output to Australian distributors and major
wholesalers that have been primarily dependent upon imports from other countries. In 1998, it
established a sales office with warehousing facilities in Sydney, New South Wales to attract and
service customers in this region of Australia. In 2000, it established another sales office with
warehousing facilities in Melbourne, Victoria. In 2002, a sales office in Perth was established.
APEC bids for supply contracts in state and national power development projects in Australia.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>China</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company has a 54.41% effective interest in Shanghai Yayang, a company in Shanghai, China.
Shanghai Yayang is a joint venture company manufacturing enameled wire which was formed in 1998,
and is a subsidiary of Pacific Thai. Shanghai Yayang manufactures enameled wire with a diameter of
between 0.05mm and 2.5mm.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shandong Pacific Fiber Optics Cable Co., Ltd. (&#147;SPFO&#148;) is a joint venture company in Yanggu
County, Shandong Province, China. SPFO was established to manufacture fiber optic cables for the
China market. The Company owns a 51% interest in SPFO with the remaining interest owned by the
joint-venture partner, Shandong Yanggu Cable Company (&#147;Shandong Yanggu&#148;), an established
manufacturer in Shandong Province that produces a wide range of cable products and is considered
one of the leading cable producers in China. The Company has invested a total of $2.8&nbsp;million in
SPFO.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company owns a 25% interest in Shandong Pacific Rubber Cable Company, Ltd. (&#147;SPRC&#148;), which
manufactures rubber cable for the China market. The remaining 75% is owned by Shandong Yanggu.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On August&nbsp;18, 2001, a joint-venture agreement was signed with Shandong Yanggu to establish
Shandong Huayu Pacific Fiber Optics Communication Co., Ltd. (&#147;SHP&#148;) for the manufacture of optic
fibers. The Company has invested in excess of $5.0&nbsp;million for a 49% interest in SHP, with the
remaining interest in SHP being held by Shandong Yanggu. The projected production rate was
initially set at 900,000 km of optic fibers annually. Due to weak market outlook, the actual
commencement of operations has been put on hold and management periodically reviews the market
conditions and prospects to assess whether to commence operations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On March&nbsp;22, 2002, the Company acquired two companies, namely, Crown Century Holdings Limited
(&#147;CCH&#148;) and its wholly-owned subsidiary, Pacific Electric Wire &#038; Cable (Shenzhen) Co., Ltd.
(&#147;PEWS&#148;) from PEWC, the then majority shareholder of the Company. The acquisition was in exchange
for 3,097,436 new shares of the Company issued to PEWC. PEWS manufactures enameled wire for
electronic, video and audio products for the South China market and for export. CCH is the trading
arm of PEWS. The operations of PEWS and CCH were profitable from 1999 until 2008, during which
they recorded losses of $2.6&nbsp;million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company owned a 94.31% interest in NPC. NPC manufactured a range of telecommunications
cable and LAN electronic cables in Yinjiang Town, Zhejiang Province, China. NPC began commercial
production of high quality telecommunications cable in December&nbsp;1996. Total production capacity of
the NPC operations was approximately 800,000 pkm per year.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NPC&#146;s primary customers were the government controlled and regulated telecommunications
networks operators, in particular their provincial and local offices in eastern China and major
subcontractors bidding for government contracts.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The term of the NPC joint venture was 50&nbsp;years commencing from December&nbsp;31, 1993, the date the
joint venture received its business license. The joint venture agreement permitted early
termination with the consent of all the joint venture partners or following a serious breach by one
of the joint venture partners of the terms of the joint venture contract. The joint venture
agreement provided that the partners share in the profits in proportion to their equity interests
in the joint venture. In 2006, the Company terminated the NPC joint venture due to lack of
profitability, unsatisfactory management practices, the lack of qualified executives to
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->42<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">assume management responsibility following termination of the then senior managers, and the
lack of promising prospects for the business in the short to medium term. NPC continues to hold
the leasehold right of the land and maintains three employees.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>4.7 Property, Plant and Equipment</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company&#146;s manufactured products are produced at facilities on premises owned or leased by
Siam Pacific, Pacific Thai, Charoong Thai, Sigma Cable, Sigma-Epan (until May&nbsp;2007), APEC, NPC
(until 2006), Shanghai Yayang, SPFO and PEWS.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following is a summary of the Company&#146;s facilities and operations as of December&nbsp;31, 2008:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Siam Pacific owns a 7.45 acre production facility near Bangkok, Thailand, located on a 26.79
acre site that it also owns. Telecommunications cable, power cable and enameled wire are
manufactured here. The production facility is mortgaged to Bangkok Bank as security for a $9.0
million line of credit. Pacific Thai operates a separate 92,800 square meter enameled wire
production facility located at the same site which it leases from Siam Pacific.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Charoong Thai owns a 24.7 acre production facility in Chachoengsao province, near Bangkok,
Thailand, where telecommunications cable and power cable are manufactured. The production facility
is located on a 57.9 acre site which Charoong Thai also owns. Neither the production facility nor
the land is mortgaged.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sigma Cable produces power cable on a 19,373 square meter site in Singapore leased from the
Jurong Town Corporation (&#147;JTC&#148;) for 30&nbsp;years from September&nbsp;16, 2000 to September&nbsp;16, 2030. JTC is
a government-linked corporation and is Singapore&#146;s largest industrial landlord.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sigma-Epan leased an office space from Sigma Cable in Singapore and operated two factory units
producing electronic cable in Johore Bahru and Penang, both in Malaysia. Both manufacturing
operations of Sigma-Epan were terminated as of 2007, but Sigma-Epan continues to employ eight
individuals in its trading operations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;APEC owns a 6,735 square meter power cable manufacturing facility on a 39,000 square meter
land in Brisbane, Australia, which is mortgaged to Westpac Banking Corporation of Australia as
security for a bank facility of approximately Australian $10&nbsp;million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NPC manufactured telecommunications cable on 10.9 acres of state-owned land in Ningbo,
Yinjiang, Zhejian Province, China, with a factory area of 3.3 acres. A leasehold right of
industrial land use for the land was granted for 50&nbsp;years. Manufacturing operations at NPC were
terminated in 2006. NPC continues to hold the leasehold right of the land and maintains ten
employees.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shanghai Yayang operates a factory that produces enameled wire, partially mortgaged to a
finance company, located in an area of approximately 5,000 square meters of state-owned land in an
industrial district in Fengxian, Shanghai.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SPFO manufactures fiber optic cable in a purpose-built factory building of approximately 8,100
square meters on a leasehold of 63,332 square meters of state-owned land in Yanggu, Shandong
Province, China, which land is shared equally with Shandong Huayu Pacific Fiber Optics
Communication Co., Ltd.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PEWS manufactures enameled wire on 36,000 square meters of state-owned land with a built-up
area of 20,367 square meters in Long Gang, Shenzhen, China. A leasehold right of industrial land
use for the land has been granted for 50&nbsp;years. The facility is mortgaged to Agricultural Bank of
China as security for a Rmb 14&nbsp;million bank facility granted in 2003.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->43<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All of the Company&#146;s facilities in Bangkok, Singapore, Brisbane and China use production
processes and equipment of international standard imported from Europe, the United States, Taiwan,
and Japan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The production capacity and extent of utilization of the Company&#146;s facilities varies from time
to time and it is considered to be commercially sensitive and proprietary information.
</DIV>
<DIV align="left">
<A name="106"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;5: Operating and Financial Review and Prospects</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following discussion should be read in conjunction with our audited consolidated financial
statements and the notes thereto incorporated by reference herein. Because nearly 90% of the
Company&#146;s revenues are derived from its manufactured products segment, the following discussion is
not presented on a segment basis.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>5.1 Disclosures of Critical Accounting Policies</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management&#146;s discussion and analysis of financial condition and results of operations
discusses the Company&#146;s consolidated financial statements, which have been prepared in accordance
with accounting principles generally accepted in the United States. The preparation of these
financial statements requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the
date of the financial statements and the reported amounts of revenues and expenses during the
reporting period. On an ongoing basis, management evaluates its estimates and judgments.
Management bases its estimates and judgments on historical experience and on various other factors
that are believed to be reasonable under the circumstances, the results of which form the basis for
making judgments about the carrying values of assets and liabilities that are not readily apparent
from other sources. Actual results may differ from these estimates under different assumptions or
conditions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management believes the following critical accounting policies, among others, affect its more
significant judgments and estimates used in the preparation of its consolidated financial
statements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Inventories</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories are valued at the lower of cost or market value. Cost is determined using the
first-in, first-out or weighted average method. In assessing the ultimate realization of
inventories, we are required to make judgments as to future market requirements compared with
current inventory levels. Revisions to our allowance for inventories may be required if actual
market requirements differ from our estimates.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The management at the respective subsidiaries conducts a thorough review of the inventory in
all of its product lines on a regular basis. The allowances for inventories are made to reduce
excess inventories to their estimated net realizable values, as necessary. The subsidiaries will
take into consideration their best estimates of product sales prices, copper prices and customer
demand patterns. The estimates used by the Company to determine its allowance for inventory losses
may be more or less than the actual amount or results. The subsidiaries will also evaluate
inventory on a regular basis for obsolete or slow-moving items to ascertain if the recorded
allowance is reasonable and adequate. Inventory is written down for estimated obsolescence or
unmarketable inventory equal to the difference between the cost of inventory and the estimated net
realizable value based upon assumptions about future demand and market conditions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Carrying Values</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Valuations are required under accounting principles generally accepted in the United States to
determine the carrying value of various assets. Our most significant assets that require
management to prepare or obtain valuations are goodwill, as discussed further below, and deferred
income taxes. Management must identify whether events have occurred that may impact the carrying
value of these assets and make assumptions regarding future events, such as profitability.
Differences between the assumptions used to prepare these valuations and actual results could
materially impact the carrying amount of these assets and net earnings.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->44<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Goodwill</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Goodwill represents the excess of the cost of a purchased business over the fair value of the
underlying net assets. Goodwill, including goodwill associated with equity method investments, is
not amortized, but tested for impairment at least annually or more frequently if circumstances
indicate that impairment may exist. We identify potential goodwill impairment by comparing the
fair value of a reporting unit with its carrying amount, including goodwill. FASB Statement No.
142 &#150; &#147;Goodwill and Other Intangible Assets,&#148; defines a reporting unit as an operating segment or
one level below an operating segment (referred to as a component). A component of an operating
segment is a reporting unit if the component constitutes a business for which discrete financial
information is available and segment management regularly reviews the operating results of that
component. If the fair value of a reporting unit exceeds its carrying amount, goodwill of the
reporting unit is not considered impaired. If the carrying amount of a reporting unit exceeds its
fair value, the amount of goodwill impairment loss, if any, must be measured.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company has determined that its reporting units are (i)&nbsp;Manufactured Products, comprised
of telecommunications wire and cable, power cable, enameled wire and electronic cable production,
(ii)&nbsp;SDI project engineering and (iii)&nbsp;Distributed Products. These operations constitute
businesses for which discrete financial information is available, and whose operating results are
reviewed by the chief decision maker for the purposes of assessing the operation&#146;s performance and
allocating resources to the segments.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon adoption of Statement 142 on January&nbsp;1, 2002, the Company allocated the entire amount of
its goodwill to the manufactured products segment. We determine the fair value of our reporting
unit using a discounted cash flow approach, which is based on future cash flow projections over
several years. Our 2008 goodwill impairment test used a discount rate based on a constant weighted
average cost of capital of 9.0%. Future cash flow projections used in our goodwill impairment test
are based on management&#146;s estimate of future profitability based on expected market conditions in
each region of operation and adjusted for other cash movements. The growth rates used in the
analysis for the year 2008 ranged from 1.0% to 5.0%, depending on the country of operation and the
products manufactured.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We determine the amount of goodwill impairment, if any, by comparing the implied fair value of
goodwill with the carrying amount of that goodwill. Based on our goodwill impairment test as of
each of December&nbsp;31, 2006, 2007 and 2008, we have concluded that there has been no impairment of
our goodwill.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Factors that are reasonably likely to result in material impairment charges in future periods
include a reduction in market demand and government infrastructure projects, a fall in market
selling prices of our products, an increase in costs of raw materials, especially copper, and
economic and political instability in the countries in which our operations are located.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Investments</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A judgmental aspect of accounting for investments (including investments in equity investees)
involves determining whether an other-than-temporary decline in value of the investment has been
sustained. If it has been determined that an investment has sustained an other-than-temporary
decline in its value, the investment is written down to its fair value, by a charge to earnings.
Such evaluation is dependent on the specific facts and circumstances. Factors that are considered
by the Company in determining whether an other-than-temporary decline in value has occurred
include: the market value of the security in relation to its cost basis; the financial condition
of the investee; and the intent and ability to retain the investment for a sufficient period of
time to allow for recovery in the market value of the investment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 2007, the Company recorded impairment charges of $0.1&nbsp;million in Shandong Huayu Pacific
Fiber Optics Communication Co., Ltd. (&#147;SHP&#148;) due to an oversupply of products in the market at
Shandong and the suspension of construction of the SHP production line. The Company did not record
an impairment charge in 2008.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->45<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Revenue Recognition</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sales represent the invoiced value of goods sold, net of value added tax and returns,
commission income earned on distribution activities, and service fee income on installation
activities. Revenue is recognized to the extent that it is probable that the economic benefits
will flow to the Company and the revenue can be reliably measured. The specific recognition
criteria summarized in the following paragraph must also be met before revenue is recognized.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company recognizes revenue in accordance with Staff Accounting Bulletin, SAB 104 a
revision of Topic 13 &#150; &#147;Revenue Recognition.&#148; The Company sells its products under sales
agreements, acknowledged purchase orders or other means to evidence the existence of an agreement
between the Company and its customer. Revenue is recognized upon delivery of goods or when
services are rendered. The Company&#146;s price is fixed for each sale in the governing sales
agreement; and the Company assesses the creditworthiness of its customers prior to making credit
sales. If the Company&#146;s assessment is not to extend credit to a particular customer, sales are
made on a cash basis or in special circumstances, collateral or other means of security is obtained
from the customer prior to the sale.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company is also a distributor of wire and cable products manufactured by PEWC. Revenue on
distributed products is recognized based on the gross amount billed to a customer because it has
earned revenue from the sale of the goods or services, in accordance with EITF 99-19 &#150; &#147;Reporting
Revenue Gross as a Principal versus Net as an Agent.&#148; Cost of sales of distributed products is
reported separately. Revenue earned on distributed products is reported gross, as the Company:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>is the primary obligor in the arrangement with the customer;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>takes title to the products;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>has the risks and rewards of ownership; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>does not act as an agent or broker and is compensated based on the price it establishes for
the products it sells.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Given its wide geographical operation and range of products, the Company does not have a
formal corporate return policy for its entire operation. However, each operating subsidiary does
have its own return policy. Generally, the Company honors returns on products when the products
are defective. The returns are recognized as a reduction to gross sales. Such returns of
defective products are not significant to the total sales value.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company offers sales incentives in connection with power cable sales to wholesalers and
distributors. These incentives include both rebates offered to customers for purchasing a certain
volume of product during the year and settlement discounts for early payment of sales invoices.
Both forms of incentives are recognized as a reduction to gross sales.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A portion of our revenue is generated from installation activities which are recognized using
the percentage-of-completion method. Recognized revenues and profit are subject to revisions as
the activity progresses to completion.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We allocate revenue from installation and sale of cables contained in a single arrangement, or
in related arrangements with the same customer, based on their relative fair values. The
allocation of the fair value to the delivered elements is limited to the amount that is not
contingent on future delivery of services or subject to customer-specific return or refund
privileges. The amounts of revenue recognized are impacted by our judgments as to whether an
arrangement includes multiple elements. Changes to the elements in an arrangement could affect the
timing of the revenue recognition.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->46<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Deferred Income Taxes</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company records a valuation allowance to reduce its deferred tax assets to the amount that
is more likely than not to be realized. While the Company has considered future taxable income and
ongoing prudent and feasible tax planning strategies in assessing the need for valuation allowance,
in the event the Company was to determine that it would be able to realize its deferred tax assets
in the future in excess of its recorded amount, an adjustment to the deferred tax asset would
increase income in the period such determination was made. Likewise, should the Company determine
that it would not be able to realize all or part of its net deferred tax asset in the future, an
adjustment to the deferred tax asset would be charged to income in the period such determination
was made.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Bad Debt</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company maintains allowances for doubtful accounts for estimated losses resulting from the
inability of its customers to make required payments. If the financial condition of the Company&#146;s
customers were to deteriorate, resulting in an impairment of their ability to make payments,
additional allowances may be required.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Impairment of Long-Lived Assets</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We evaluate the carrying value of our long-lived assets, consisting primarily of property,
plant and equipment, whenever certain events or changes in circumstances indicate that the carrying
amount of these assets may not be recoverable. Because no triggering event occurred, the Company
did not, was not required to, perform an impairment test as of December&nbsp;31, 2008. As such, the
Company did not record any impairment of long-lived assets in 2008.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Fair Value Measurements</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effective January&nbsp;1, 2008, the Company adopted the provisions of SFAS No.&nbsp;157 &#150; &#147;Fair Value
Measurements&#148; (&#147;SFAS No.&nbsp;157&#148;), and related FASB Staff Positions, including FSP FAS 157-3
&#150;&#147;Determining the Fair Value of a Financial Asset When the Market for That Asset Is Not Active&#148;
(&#147;FSP FAS 157-3&#148;). Under SFAS No.&nbsp;157, fair value is defined as the price that would be received
to sell an asset or paid to transfer a liability (i.e., the &#147;exit price&#148;) in an orderly transaction
between market participants at the measurement date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In determining fair value, the Company uses various valuation approaches. SFAS No.&nbsp;157
establishes a hierarchy for inputs used in measuring fair value that maximizes the use of
observable inputs and minimizes the use of unobservable inputs by requiring that the most
observable inputs be used when available. Observable inputs are inputs that market participants
would use in pricing the asset or liability developed based on market data obtained from sources
independent of the Company. Unobservable inputs are inputs that reflect the Company&#146;s assumptions
about the assumptions market participants would use in pricing the asset or liability developed
based on the best information available in the circumstances. The hierarchy is broken down into
three levels based on the observability of inputs as follows:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Level 1 &#151; Valuations based on quoted prices in active markets for identical assets that
the Company has the ability to access. Valuation adjustments and block discounts are not
applied to Level 1 instruments. Since valuations are based on quoted prices that are
readily and regularly available in an active market, valuation of these products does not
entail a significant degree of judgment.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Level 2 &#151; Valuations based on one or more quoted prices in markets that are not active
or for which all significant inputs are observable, either directly or indirectly.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->47<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Level 3 &#151; Valuations based on unobservable inputs which are supported by little or no
market activity and significant to the overall fair value measurement.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The availability of observable inputs can vary from investment to investment and is affected
by a wide variety of factors, including, for example, the type of investment, the liquidity of
markets and other characteristics particular to the transaction. To the extent that valuation is
based on models or inputs that are less observable or unobservable in the market, the determination
of fair value requires more judgment and the investments are categorized as Level 3.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The carrying amounts of financial instruments carried at cost, including cash and cash
equivalents, trade receivables, other current assets, trade payables and other liabilities
approximate their fair value due to the short-term maturities of such instruments.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Recent Pronouncements</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
September 2006, FASB issued Statement No.&nbsp;157 &#151; &#147;Fair
Value Measurements&#148; Statement No.&nbsp;157 (&#147;SFAS
159&#148;), which defines fair value, establishes a framework for
measuring fair value in generally accepted accounting principles, and
expands disclosures about fair value measurements. The provisions of
this standard apply to other accounting pronouncements that require
or permit fair value measurements, SFAS&nbsp;157 was effective for the Company on January&nbsp;1, 2008 and it
did not have a material affect on its consolidated financial
statements.</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In February&nbsp;2007, the FASB issued Statement No.&nbsp;159 &#151; &#147;The Fair Value Option for Financial
Assets and Financial Liabilities &#150; Including an Amendment of FASB Statement No.&nbsp;115&#148; (&#147;SFAS 159&#148;).
SFAS 159 permits entities to choose to measure eligible items at fair value at specified election
dates and report unrealized gains and losses on items for which the fair value option has been
elected in earnings at each subsequent reporting date. SFAS 159 is effective for fiscal years
beginning after November&nbsp;15, 2007. SFAS 159 became effective for us for the fiscal year beginning
on January&nbsp;1, 2008 and it did not have an effect on our consolidated financial statements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In June&nbsp;2007, the FASB ratified EITF Issue No.&nbsp;07-3 &#151; &#147;Accounting for Nonrefundable Advance
Payments for Goods or Services Received for Use in Future Research and Development Activities&#148;
(&#147;EITF 07-3&#148;). EITF 07-3 provides that nonrefundable advance payments for goods or services that
will be used or rendered for future research and development activities should be deferred and
capitalized. Such amounts should be recognized as an expense as the related goods are delivered or
the related services are performed. EITF 07-3 is effective for fiscal years that began after
December&nbsp;15, 2007. The adoption of EIFT 07-3 did not have an effect on our consolidated financial
statements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In December&nbsp;2007, the FASB issued SFAS No.&nbsp;141 (Revised 2007) &#151; &#147;Business Combinations&#148; (&#147;SFAS
No.&nbsp;141(R)&#148;), which establishes principles and requirements for the reporting entity in a business
combination, including recognition and measurement in the financial statements of the identifiable
assets acquired, the liabilities assumed, and any non-controlling interest in the acquiree. This
statement also establishes disclosure requirements to enable financial statement users to evaluate
the nature and financial effects of the business combination. SFAS No.&nbsp;141(R) applies
prospectively to business combinations for which the acquisition date is on or after the beginning
of the first annual reporting period beginning on or after December&nbsp;15, 2008, and interim periods
within those fiscal years. The impact of this standard is dependent upon the level of future
acquisitions by the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In December&nbsp;2007, the FASB issued SFAS No.&nbsp;160 &#151; &#147;Non-controlling Interests in Consolidated
Financial Statements, an Amendment of ARB No.&nbsp;51&#148; (&#147;SFAS 160&#148;). SFAS No.&nbsp;160 establishes
accounting and reporting standards for the non-controlling interest in a subsidiary and for the
deconsolidation of a subsidiary. It clarifies that a non-controlling interest in a subsidiary is
an ownership interest in the consolidated entity that should be reported as equity in the
consolidated financial statements. Additionally, SFAS No.&nbsp;160 requires expanded disclosures in the
consolidated financial statements. SFAS No.&nbsp;160 is
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->48<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">effective for fiscal years, and interim periods within those fiscal years, beginning on or
after December&nbsp;15, 2008. The Company is currently assessing the potential impact of SFAS No.&nbsp;160
on its financial statements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In February&nbsp;2008, the FASB issued FASB Staff Position (&#147;FSP&#148;) FAS 157-1&#151; &#147;Application of FASB
Statement No.&nbsp;157 to FASB Statement No.&nbsp;13 and Other Accounting Pronouncements That Address Fair
Value Measurement for Purpose of Lease Classification of Measurement under Statement 13,&#148; which
amends SFAS 157 to exclude accounting pronouncements that address fair value measurements for
purposes of lease classification or measurement under SFAS No.&nbsp;13 &#150; &#147;Accounting for Leases.&#148; In
February&nbsp;2008, the FASB also issued FSP FAS 157-2 &#151; &#147;Effective Date of FASB Statement No.&nbsp;157,&#148;
which delays the effective date of SFAS 157 until the first quarter of 2010 for all non-financial
assets and non-financial liabilities, except for items that are recognized or disclosed at fair
value in the financial statements on a recurring basis (at least annually). This FSP defers the
effective date of SFAS 157 to fiscal years beginning after November&nbsp;15, 2008, and the interim
periods within those fiscal years for items within the scope of this FSP. The application of SFAS
157 in future periods to those items covered by FSP 157-2 is not expected to have a material effect
on the consolidated financial statements of the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In March&nbsp;2008, the FASB issued SFAS No.&nbsp;161 &#151; &#147;Disclosures about Derivative Instruments and
Hedging Activities, an Amendment of FASB Statement No.&nbsp;133&#148; (&#147;SFAS 161&#148;) which requires additional
disclosures about the objectives of the derivative instruments and hedging activities, the method
of accounting for such instruments under SFAS No.&nbsp;133 and its related interpretations, and a
tabular disclosure of the effects of such instruments and related hedged items on our financial
position, financial performance, and cash flows. SFAS 161 will be effective for the Company in
fiscal year 2010. The Company is currently assessing the potential impact that adoption of SFAS
161 may have on its financial statements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In April&nbsp;2008, FASB issued FSP No.&nbsp;142-3 &#151; &#147;Determination of the Useful Life of Intangible
Assets.&#148; This FSP amends the factors that should be considered in developing renewal or extension
assumptions used to determine the useful life of a recognized intangible asset under FASB Statement
No.&nbsp;142 &#151; &#147;Goodwill and Other Intangible Assets.&#148; The intent of this FSP is to improve the
consistency between the useful life of a recognized intangible asset under SFAS No.&nbsp;142 and the
period of expected cash flows used to measure the fair value of the asset under SFAS No.&nbsp;141 &#150;
&#147;Business Combinations,&#148; and other U.S. GAAP. This FSP is effective for the Company for fiscal
years beginning after December&nbsp;15, 2008, and interim periods within those fiscal years. FSP 142-3
is not expected to have a material effect on the consolidated financial statements of the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In May&nbsp;2008, the FASB issued SFAS No.&nbsp;162 &#151; &#147;The Hierarchy of Generally Accepted Accounting
Principles&#148; (&#147;SFAS 162&#148;). The new standard is intended to improve financial reporting by
identifying a consistent framework, or hierarchy, for selecting accounting principles to be used in
preparing financial statements that are presented in conformity with U.S. GAAP for nongovernmental
entities. SFAS No.162 is effective 60&nbsp;days following the SEC&#146;s approval of the Public Company
Accounting Oversight Board Auditing amendments to AU Section&nbsp;411 &#150; &#147;The Meaning of Present Fairly
in Conformity With Generally Accepted Accounting Principles.&#148; The adoption of SFAS No.&nbsp;162 is not
expected to have a material effect on the consolidated financial statements of the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In May&nbsp;2008, the FASB issued SFAS No.&nbsp;163 &#151; &#147;Accounting for Financial Guarantee Insurance
Contracts,&#148; an interpretation of FASB Statement No.&nbsp;60 (&#147;SFAS 163&#148;). Diversity exists in practice
in accounting for financial guarantee insurance contracts by insurance enterprises under FASB
Statement No.&nbsp;60 &#151; &#147;Accounting and Reporting by Insurance Enterprises.&#148; That diversity results in
inconsistencies in the recognition and measurement of claim liabilities because of differing views
about when a loss has been incurred under FASB Statement No.&nbsp;5 &#151; &#147;Accounting for Contingencies.&#148;
This statement requires that an insurance enterprise recognize a claim liability prior to an event
of default (insured event) when there is evidence that credit deterioration has occurred in an
insured financial obligation. This statement also clarifies how Statement 60 applies to financial
guarantee insurance contracts, including the recognition and measurement to be used to account for
premium revenue and claim liabilities. Those clarifications will increase comparability in
financial reporting of financial guarantee insurance contracts by insurance
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->49<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">enterprises. This statement requires expanded disclosures about financial guarantee insurance
contracts. The accounting and disclosure requirements of the statement will improve the quality of
information provided to users of financial statements. This statement is effective for financial
statements issued for fiscal years beginning after December&nbsp;15, 2008, and all interim periods
within those fiscal years, except for some disclosures about the insurance enterprise&#146;s
risk-management activities. This statement requires that disclosures about the risk-management
activities of the insurance enterprise be effective for the first period (including interim
periods) beginning after issuance of this statement. Except for those disclosures, earlier
application is not permitted. The Company does not expect the adoption of SFAS 163 to have a
material impact on its consolidated financial statements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In June&nbsp;2008, FASB issued FASB Staff Position FSP EITF 03-6-1 &#151; &#147;Determining Whether
Instruments Granted in Share-Based Payment Transactions Are Participating Securities.&#148; This FASB
Staff Position (FSP)&nbsp;addresses whether instruments granted in share-based payment transactions are
participating securities prior to vesting and, therefore, need to be included in the earnings
allocation in computing earnings per share (EPS)&nbsp;under the two-class method described in paragraphs
60 and 61 of FASB Statement No.&nbsp;128 &#151; &#147;Earnings per Share.&#148; This FSP will be effective for the
Company for fiscal years beginning after December&nbsp;15, 2008, and interim periods within those fiscal
years. All prior-period EPS data presented shall be adjusted retrospectively (including interim
financial statements, summaries of earnings, and selected financial data) to conform to the
provisions of this FSP. Early application is not permitted. The Company is currently evaluating
the potential impact, if any, of the adoption of FSP EITF 03-6-1 on the Company&#146;s consolidated
financial statements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In September&nbsp;2008, the Financial Accounting Standards Board issued FASB Staff Positions (FSP)
FAS 133-1 and FIN 45-4 &#151; &#147;Disclosures about Credit Derivatives and Certain Guarantees: An Amendment
of FASB Statement No.&nbsp;133 and FASB Interpretation No.&nbsp;45; and Clarification of the Effective Date
of FASB Statement No.&nbsp;161.&#148; This FSP amends FASB Statement No.&nbsp;133 &#151; &#147;Accounting for Derivative
Instruments and Hedging Activities,&#148; to require disclosures by sellers of credit derivatives,
including credit derivatives embedded in a hybrid instrument. This FSP also amends FASB
Interpretation No.&nbsp;45 &#151; &#147;Guarantor&#146;s Accounting and Disclosure Requirements for Guarantees,
Including Indirect Guarantees of Indebtedness of Others,&#148; to require an additional disclosure about
the current status of the payment/performance risk of a guarantee. Further, this FSP clarifies the
FASB&#146;s intent about the effective date of FASB Statement No.&nbsp;161&#151;&#147;Disclosures about Derivative
Instruments and Hedging Activities.&#148; This FSP applies to credit derivatives within the scope of
Statement 133, hybrid instruments that have embedded credit derivatives, and guarantees within the
scope of Interpretation 45. This FSP&#146;s amendment to Statement 133 also pertains to hybrid
instruments that have embedded credit derivatives (for example, credit-linked notes). The
provisions of this FSP that amend Statement 133 and Interpretation 45 shall be effective for
reporting periods (annual or interim) ending after November&nbsp;15, 2008. This FSP encourages that the
amendments to Statement 133 and Interpretation 45 be applied in periods earlier than the effective
date to facilitate comparisons at initial adoption. In periods after initial adoption, this FSP
requires comparative disclosures only for periods ending subsequent to initial adoption. The
adoption of FSP 133-1 and FIN 45-4 is not expected to have a material effect on the Company&#146;s
consolidated financial statements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In October&nbsp;2008, the FASB issued the FASB Staff Position No.&nbsp;157-3 (&#147;FSP No.&nbsp;157-3&#148;) which
clarifies the application of FASB Statement No.&nbsp;157 &#151; &#147;Fair Value Measurements&#148; in a market that is
not active and provides an example to illustrate key considerations in determining the fair value
of a financial asset when the market for that asset is not active. This FSP applies to financial
assets within the scope of accounting pronouncements that require or permit fair value measurements
in accordance with Statement 157. The FSP shall be effective upon issuance, including prior
periods for which financial statements have not been issued. Revisions resulting from a change in
the valuation technique or its application shall be accounted for as a change in accounting
estimate (FASB Statement No.&nbsp;154 &#151; &#147;Accounting changes and Error Corrections,&#148; paragraph 19). The
disclosure provisions of Statement No.&nbsp;154 for a change in accounting estimate are not required for
revisions resulting from a change in valuation technique or its application. The application of
FSP 157-3 did not have a material effect on the consolidated financial statements of the Company.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->50<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In November&nbsp;2008, the FASB issued its final consensus on Issue 08-8 &#151; &#147;Accounting for an
instrument (or an embedded Feature) with a settlement amount that is based on the stock of an
entity&#146;s consolidated subsidiary.&#148; This issue applies to freestanding financial instruments (and
embedded features) for which the payoff to the counterparty is based, in whole or in part, on the
stock of a consolidated subsidiary. This issue applies to those instruments (and embedded
features) in the consolidated financial statements of the parent, whether the instrument was
entered into by the parent or the subsidiary. This issue will be effective for fiscal years
beginning on or after December&nbsp;15, 2008 and interim periods within those fiscal years. Early
adoption is not permitted. The consensus shall be applied to outstanding instruments as of the
beginning of the fiscal year in which this issue is initially applied. The adoption of Issue 08-8
is not expected to have a material effect on the consolidated financial statements of the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In November&nbsp;2008, the FASB issued the EITF Issue No.&nbsp;08-6 &#151; &#147;Equity Method Investment
Accounting Considerations&#148; (&#147;EITF 08-6&#148;) to clarify the accounting for certain transactions and
impairment considerations involving equity method investments. The FASB and the IASB concluded a
joint effort in converging the accounting for business combinations as well as the accounting and
reporting for non-controlling interests culminating in the issuance of Statement 141(R) and
Statement 160. The objective of that joint effort was not to reconsider the accounting for equity
method investments; however, the application of the equity method is affected by the accounting for
business combinations and the accounting for consolidated subsidiaries, which were affected by the
issuance of Statement 141(R) and Statement 160. EITF 08-6 is effective for fiscal years beginning
on or after December&nbsp;15, 2008, and interim periods within those fiscal years, consistent with the
effective dates of Statement 141(R) and Statement 160. EITF 08-6 shall be applied prospectively.
Earlier application by an entity that has previously adopted an alternative accounting policy is
not permitted. The adoption of EITF 08-6 is not expected to have a material effect on the
consolidated financial statements of the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In December&nbsp;2008, the FASB issued the FASB Staff Position (&#147;FSP FAS 140-4 and FIN 46(R)-8&#148;)
which amends FASB Statement No.&nbsp;140 &#151; &#147;Accounting for Transfers and Servicing of Financial Assets
and Extinguishments of Liabilities,&#148; to require public entities to provide additional disclosures
about transfers of financial assets. It also amends FASB Interpretation No.&nbsp;46 (revised December
2003) &#151; &#147;Consolidation of Variable Interest Entities,&#148; to require public enterprises, including
sponsors that have a variable interest in a variable interest entity, to provide additional
disclosures about their involvement with variable interest entities. Additionally, FSP FAS 140-4
and FIN 46(R)-8 requires certain disclosures to be provided by a public enterprise that is (a)&nbsp;a
sponsor of a qualifying special-purpose entity (&#147;SPE&#148;) that holds a variable interest in the
qualifying SPE but was not the transferor (&#147;nontransferor&#148;) of financial assets to the qualifying
SPE and (b)&nbsp;a servicer of a qualifying SPE that holds a significant variable interest in the
qualifying SPE but was not the transferor (nontransferor)&nbsp;of financial assets to the qualifying
SPE. FSP FAS 140-4 and FIN 46(R)-8 is effective for the first reporting period (interim or annual)
ending after December&nbsp;15, 2008, with earlier application encouraged. The adoption of FSP FAS 140-4
and FIN 46(R)-8 is not expected to have a material effect on the consolidated financial statements
of the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In January&nbsp;2009, the FASB issued the FASB Staff Position &#151; &#147;Amendments to the Impairment
Guidance to EITF Issue No.&nbsp;99-20&#148; (&#147;FSP EITF 99-20-1&#148;) which amends the impairment guidance in EITF
Issue No.&nbsp;99-20 &#151; &#147;Recognition of Interest Income and Impairment on Purchased Beneficial Interests
and Beneficial Interests That Continue to Be Held by a Transferor in Securitized Financial Assets,&#148;
to achieve more consistent determination of whether an other-than-temporary impairment has
occurred. FSP EITF 99-20-1 also retains and emphasizes the objective of an other-than-temporary
impairment assessment and the related disclosure requirements in FASB Statement No.&nbsp;115 &#151;
&#147;Accounting for Certain Investments in Debt and Equity Securities,&#148; and other related guidance.
FSP EITF 99-20-1 is effective for interim and annual reporting periods ending after December&nbsp;15,
2008, and shall be applied prospectively. Retrospective application to a prior interim or annual
reporting period is not permitted. The adoption of FSP EITF 99-20-1 is not expected to have a
material effect on the consolidated financial statements of the Company.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->51<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>5.2
Selected Gross Margin Data</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This discussion should be read in conjunction with the information contained in our audited
consolidated financial statements and notes thereto (the &#147;Financial Statements&#148;) presented in Item
18 of this Annual Report.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We analyze and report our results along the lines of our three principal business segments,
consisting of manufactured products, project engineering and distribution. The operating data that
senior management collects and analyzes from our operating subsidiaries include, in certain cases,
certain limited information regarding results along product lines within our manufactured products
segment. For the benefit of our shareholders, we include in the summary table below certain
results for product lines within our manufactured products segment with regard to net sales, gross
profit and gross profit margin for the periods covered. The following table sets forth selected
summary data for the periods indicated (dollar ($) amounts in thousands of US$):
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Net Sales:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Manufactured products:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Telecommunications wire and cable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">49,069</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">46,444</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">46,955</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Power cable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">147,726</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">188,818</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">179,794</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Enameled wire</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">237,097</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">258,470</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">221,099</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Electronic cable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,388</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,073</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total manufactured products</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">439,280</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">494,805</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">447,848</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SDI project engineering</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,421</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,253</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,535</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Distributed Products</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,416</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,783</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32,415</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total net sales</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">468,117</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">510,841</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">500,798</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Gross profit:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Manufactured products:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Telecommunications wire and cable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,294</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,712</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,120</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Power cable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,890</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33,916</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29,369</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Enameled wire</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,901</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,995</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,778</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Electronic cable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">403</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">48</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total manufactured products</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">58,488</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44,671</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37,267</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SDI project engineering</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(284</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(347</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(956</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Distributed Products</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,107</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">80</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,584</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Recovery (allowance)&nbsp;for inventory reserve</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,017</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,272</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(25,145</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total gross profit</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">57,294</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45,676</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,750</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Gross profit margin:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Manufactured products:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Telecommunications wire and cable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">23.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">16.6</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">10.9</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Power cable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">16.8</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">18.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">16.2</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Enameled wire</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">9.2</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.2</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">1.3</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Electronic cable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">7.5</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.5</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total manufactured products</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">13.3</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">9.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">8.3</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SDI Project engineering</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1.7</TD>
    <TD nowrap>)%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(6.6</TD>
    <TD nowrap>)%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(4.7</TD>
    <TD nowrap>)%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Distributed Products</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">8.9</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.7</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">4.9</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total gross margin</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">12.2</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">8.9</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">2.5</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Note that gross profit margin by products excludes recovery or allowance for inventory
reserve. Further note that the allowance for inventory reserve in 2006 was reclassified in our
2007 annual report as cost of sales to conform with the 2007 presentation as management believed
that this presentation better reflected the nature of the charges.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->52<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>5.3 Operating Results</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company is 65.6% owned and controlled by PEWC, a Taiwanese company. An additional 9.8% of
the Common Shares are owned and controlled by a U.S.-based private equity fund. The remaining
24.6% of the outstanding Common Shares are publicly-traded in the United States on the OTC BB.
Based upon a review of Schedule&nbsp;13D and 13G filings made with the Commission by shareholders, and a
review of the share register maintained by the Company&#146;s transfer agents in Bermuda and the U.S.,
the Company is not aware that it has any shareholders resident in the jurisdictions where the
Company has business operations. While the Company&#146;s operations and results are impacted by
economic, fiscal, monetary and political policies of the respective governments in the countries
where the Company has operations, that impact is not a function of the shareholder base of the
Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>5.3.1 Year Ended December&nbsp;31, 2008 Compared with Year Ended December&nbsp;31, 2007</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>General</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Results of operations are determined primarily by market demand and government infrastructure
projects, market selling prices of our products, our ability to manufacture high quality products
efficiently in quantities sufficient to meet demand and to control production and operating costs.
Our results are also influenced by a number of factors, including currency stability in the
countries in which our operations are located, competition and the cost of raw materials,
especially copper, which accounted for approximately 70% of the cost of sales in 2008.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In order to minimize the impact of copper price fluctuations, we attempt to &#147;peg&#148; the prices
of our products to the prevailing market price of copper and pass changes in the cost of copper
through to customers as much as possible. In certain circumstances, however, we remain affected by
fluctuations in the price of copper. For example, the price of telecommunications cable sold for
use in public projects in Thailand is determined semi-annually and is based upon the average spot
market price of copper on the LME during the six-month period commencing on January 1 and July 1
prior to the month of order. Thus, a recent rise or decline in copper prices may not be fully
reflected under this pricing scheme for several months.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Average copper prices per metric ton have decreased by 2.3% from $7,119 in 2007 to $6,956 in
2008. Gross profit margins for manufactured products in 2008 were on average at 2.3% compared to
9.0% in 2007.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Copper prices indicated in this report are quoted from the London Metal Exchange (LME)&nbsp;index.
The 2008 and 2007 copper prices are as follows:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Average LME copper price ($/Ton)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1Q</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,796</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,933</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2Q</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,443</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,642</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3Q</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,680</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,712</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4Q</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,905</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,188</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">Year</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,956</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,119</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;According to the April&nbsp;2009 East Asia and Pacific Update published by the World Bank, (i)&nbsp;the
rates of year 2008 GDP growth for Thailand, Singapore and China were 2.6%, 1.1% and 9.0%
respectively and (ii)&nbsp;the 2007 GDP growth rates for Thailand, Singapore and China were 4.9%, 7.8%
and 13.0% respectively. Our
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->53<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">performance is largely influenced by the level of growth in the telecommunication and power
infrastructure, construction and electronic goods manufacturing sectors.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Net Sales</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sales of manufactured product decreased by $47&nbsp;million, or 9.5%, from $495&nbsp;million in 2007 to
$448&nbsp;million in 2008, contributing to an overall sales decrease of $10&nbsp;million, or 1.9%. Sales in
power cable decreased by $9.0&nbsp;million, or 4.8%, due to a decrease in sales in Thailand as a result
of reduced government and private construction contracts, offset by an increase in sales in
Singapore and Australia. Sales in enameled wire decreased by $37.4&nbsp;million, or 14.4%, due to the
worldwide demand of electronic manufactured products. Sales of telecommunication cable showed a
marginal decrease of $9.0&nbsp;million, or 4.8%, due to decreased sales in Thailand, offset by higher
sales in Shandong, China. Revenue from SDI project engineering in Singapore and sales of
Distributed Products increased in 2008 by $15.3&nbsp;million, or 290.9%, and $21.6&nbsp;million, or 200.6%,
respectively, due primarily to increases in awarded tenders and purchases from SP Powerassets in
Singapore.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table shows the percentage share and dollar value (in thousands) of net sales of
the respective operations with respect to our total sales in 2008:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>

    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>

    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>

    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7"><B>Manufactured</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7"><B>All products</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000"><B>products only</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000"><B>and services</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Thailand</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">48.3</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">216,364</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">43.2</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">216,364</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Singapore</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">7.9</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35,318</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">17.3</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">86,625</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Australia</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">13.7</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">61,167</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">12.5</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">62,810</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">China</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">30.1</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">134,999</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">27.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">134,999</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">100.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">447,848</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">100.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">500,798</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-top: 3px double #000000">&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-top: 3px double #000000">&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-top: 3px double #000000">&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Gross Profit</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gross profit for 2008 was $12.8&nbsp;million, representing a decrease of $32.9&nbsp;million, or 72.0%,
compared to $45.7&nbsp;million for 2007. The decrease was primarily attributable to the allowance for
inventory reserve provided for in 2008 of $25.1&nbsp;million due to the significant fall in copper
prices towards the end of 2008. LME copper prices fell from an average of $7,680 per metric ton in
the third quarter of 2008 to $3,905 per metric ton in the fourth quarter of 2008, representing a
decrease of 50.8%. The fall in copper prices was in line with the fall in commodity prices,
including oil prices, worldwide.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gross profit contributed by sales of manufactured products was $37.3&nbsp;million in 2008 compared
to $44.7&nbsp;million in 2007, representing a decrease of 16.6%. The decrease in gross profit from sale
of manufacture products is due to the lower sales quantum and lower gross profit margins for
telecommunication wire and cables and power cables. The relative contribution to gross profit from
manufactured products for 2007 and 2008 is as follows:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Telecommunication cable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">17.3</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">13.7</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Power cable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">75.9</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">78.8</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Enameled wire</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">6.7</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">7.5</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Electronic cable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0.1</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">100.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">100.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Overall gross profit margins decreased from 8.9% in 2007 to 2.5% in 2008. Gross profit
margins for manufactured products decreased slightly from 9.0% in 2007 to 8.3% in 2008 due to
increased margins for enameled wire, offset by decreases in margins for telecommunication and power
cables. Gross profit margin of enameled wire products increased from 1.2% in 2007 to 1.3% in 2008
due to better profit margins in
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->54<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Thailand, offset by lower profit margins in Shenzhen, China. Gross
profit margins of telecommunications
cable decreased from 16.6% in 2007 to 10.9% in 2008 due to lower profit margins in Thailand,
offset by higher profit margins in Shandong, China. Gross profit margins for power cables
decreased from 18.0% in 2007 to 16.2% in 2008.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Operating Profit</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Selling, general and administrative expenses decreased by $0.4&nbsp;million, or 1.4%, in 2008, due
to lower levels of allowance for doubtful accounts in 2008, offset by higher operating expenses
incurred in Australia and Shandong, China.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition to estimating an allowance for doubtful accounts based on historical sales and
collection data, we perform a detailed review of our outstanding receivables, and make adjustments
to our estimate to reflect significant delinquent accounts receivable. We are not aware of any
significant delinquent accounts receivable that have not already been adequately reserved. In
addition, our periodic allowance for doubtful accounts will continue to not have a significant
impact on our liquidity.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net of allowance for doubtful accounts, decreased by $50&nbsp;million from
$146&nbsp;million as of December&nbsp;31, 2007 to $96&nbsp;million as of December&nbsp;31, 2008. The decrease was
attributable to lower sales recorded in the last quarter of 2008 and continued effects by the
Company to monitor and collect outstanding debts. Days sales outstanding were 104&nbsp;days for 2007
and 70&nbsp;days for 2008.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Exchange Gain/Loss</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 2008, the U.S. dollar has generally strengthened against the Asian currencies of the
countries in which we operate in when compared to 2007. The exchange differences in the income
statements arose largely as a result of these movements in the Thai Baht exchange rate and, to a
lesser extent, the movements in the other operating currencies.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The exchange rates as of December&nbsp;31, 2007 and December&nbsp;31, 2008, based on the Noon Buying
Rate, were as follows:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>December 31,</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>December 31,</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Foreign currency to US$1:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Thai Baht</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34.72</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29.50</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Singapore $</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.44</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.44</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Australian $</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.41</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.14</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Chinese Rmb</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.82</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.30</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based on the above rates, the revaluation of assets and liabilities denominated in U.S.
dollars or other foreign currencies in the Company resulted in a $1.7&nbsp;million exchange loss in
2008. The exchange loss in 2008 was largely to the exchange loss recorded in our Thai subsidiaries
arising from realized and unrealized exchanges losses from the translation of assets and
liabilities denominated in U.S. dollars or other foreign currencies during that period.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Gain/Loss from Investees</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 2008, losses from investees were largely related to Shandong Pacific Rubber Cable Co., Ltd
(&#147;SPRC&#148;).
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->55<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Impairment of Investments</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 2007, the Company recorded an impairment of $0.1&nbsp;million in SHP due to an oversupply of
products in the market at Shandong and the suspension of construction of the SHP production line.
There was no impairment of investments recorded in 2008.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Gain on Sale of Investment</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The gain on sale of investment in 2007 was primarily attributable to a $35,000 realized gain
on sale by Sigma Cable Company (Private) Limited (&#147;Sigma Cable&#148;) of 80,000 shares of Hong Fok
Corporation Ltd., a public company listed on the Singapore Exchange (SGX). The Company accounted
for this investment in accordance with SFAS 115 &#150; &#147;Accounting for Certain Investments in Debt and
Equity Securities.&#148; The investment was classified as &#147;held for sale&#148; and the Company recognized
approximately $13,000 of unrealized gain in shareholders&#146; equity and other comprehensive income
prior to the sale of the securities. There was no gain or loss on sale of investment recorded in
2008.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Other Income</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other income largely consists of gains on sales of raw materials and scraps, and tax refund
for re-investment in China, reverse of accounts payable and gains on disposal of fixed assets. The
increase in other income in 2008 is primarily due to increases in tax refund for reinvestment and
reversal of accounts payable in China, offset by lower gain of disposal of fixed assets in 2008.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Income Taxes</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our effective tax rate was at 47.9% in 2007. In 2008, the Company recorded income tax of $2.1
million despite recording a consolidated loss of $20.1&nbsp;million due primarily to income tax recorded
for profitable subsidiaries such as APEC.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company files income taxes in each jurisdiction where such a filing is required based on
its revenues. The provision for income taxes differs based on the taxes incurred by the operating
subsidiaries in their respective jurisdictions. Effective tax rates differ from the statutory rate
due to, among other things, whether certain expenses are deductible or not deductible for tax
purposes and changes in valuation allowances.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of December&nbsp;31, 2008, the Company&#146;s operating subsidiaries in China had net operating loss
carry forwards of approximately $6&nbsp;million which expire on various dates between 2008 and 2011.
Based on their history of losses, management believes it is likely that the net operating loss
carry forwards will not be fully utilized by those subsidiaries before expiration. Accordingly,
the Company has not recognized the $6&nbsp;million as deferred tax assets.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A significant portion of the deferred tax assets recognized by the Company relates to net
operating loss carry forwards of APEC and reserves not yet deductible for tax purposes. Because
the Company operates in multiple jurisdictions, it considers the need for a valuation allowance on
a country-by-country basis, taking into account the effect of local tax laws. Where a valuation
allowance was not recorded, the Company believes that there was sufficient evidence to support its
conclusion not to record it. Management believes, but cannot assure, that the Company will utilize
the APEC loss carry-forwards in the future due to APEC&#146;s profitability and continued generation of
taxable income.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reserves not yet deductible for tax purposes affect temporary differences. Tax consequences
of most events recognized in the financial statements for a year are included in determining income
taxes currently payable. However, tax laws often differ from the recognition and measurement
requirements of financial accounting standards. These differences are referred to as &#147;temporary
differences.&#148; Temporary differences ordinarily become taxable or deductible when the related asset
is recovered or the related liability is settled. The major temporary differences that gave rise
to deferred tax assets and liabilities in 2007 and 2008 were allowance for inventories, allowance for
doubtful accounts and the allowance for impairment in investment.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->56<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additional details regarding tax laws and income taxes of the Company including deferred tax
liabilities and assets in 2007 and 2008 are disclosed in Note 12 of Item&nbsp;18: &#147;Financial
Statements.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>5.3.2 Year Ended December&nbsp;31, 2007 Compared with Year Ended December&nbsp;31, 2006</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>General</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Results of operations are determined primarily by market demand and government infrastructure
projects, market selling prices of our products, our ability to manufacture high quality products
efficiently in quantities sufficient to meet demand and to control production and operating costs.
Our results are also influenced by a number of factors, including currency stability in the
countries in which our operations are located, competition and the cost of raw materials,
especially copper, which accounted for approximately 60% to 70% of the cost of sales.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In order to minimize the impact of copper price fluctuations, we attempt to &#147;peg&#148; the prices
of our products to the prevailing market price of copper and pass changes in the cost of copper
through to customers as much as possible. In certain circumstances, however, we remain affected by
fluctuations in the price of copper. For example, the price of telecommunications cable sold for
use in public projects in Thailand is determined semi-annually and is based upon the average spot
market price of copper on the LME during the six-month period commencing on January 1 and July 1
prior to the month of order. Thus, a recent rise or decline in copper prices may not be fully
reflected under this pricing scheme for several months.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Average copper prices per metric ton have increased by 6.0% from $6,722 in 2006 to $7,119 in
2007. Gross profit margins for manufactured products in 2007 were on average at 9.0% compared to
13.3% in 2006.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Copper prices indicated in this report are quoted from the London Metal Exchange (LME)&nbsp;index.
The 2007 and 2006 copper prices are as follows:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Average LME copper price ($/Ton)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1Q</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,933</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,940</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2Q</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,642</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,210</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3Q</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,712</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,670</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4Q</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,188</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,068</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">Year</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,119</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,722</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;According to the April&nbsp;2009 East Asia and Pacific Update published by the World Bank, (i)&nbsp;the
rates of year 2007 GDP growth for Thailand, Singapore and China were 7.8% and 13.0%, respectively
and (i)&nbsp;the rates of year 2006 GDP growth for Thailand, Singapore and China were 5.2%, 8.4% and
11.6%, respectively. Our performance is largely influenced by the level of growth in the
telecommunication and power infrastructure, construction and electronic goods manufacturing
sectors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Net Sales</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sales of manufactured product increased by $56&nbsp;million, or 12.7%, from $439&nbsp;million in 2006 to
$495&nbsp;million in 2007, contributing to an overall sales increase of $43&nbsp;million, or 9.2%. Sales in
power cable exhibited the strongest increase of $41&nbsp;million, or 27.8%, due to the strong demand for
transmission of electricity to and within commercial and residential buildings, especially in
Thailand. Sales of telecommunication cable showed a marginal decrease of $3&nbsp;million, or 5.3%,
while sales of enameled wire increased by $21&nbsp;million, or 9.0%, due largely to higher copper
prices. Revenue from SDI project engineering in Singapore and sales of Distributed Products
decreased in 2007 by $11&nbsp;million, or 68.0%, and $2&nbsp;million, or 13.2% respectively, due to a
decrease in offers of tenders from SP Powerassets and decreased demand.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->57<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table shows the percentage share and dollar value (in thousands) of net sales of
the respective operations with respect to our total sales in 2007.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>Manufactured</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>All products</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>products only</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>and services</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Thailand</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">50.4</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">249,337</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">48.8</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">249,337</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Singapore</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">6.4</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31,762</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">9.4</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47,798</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Australia</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">11.3</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">55,789</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">10.9</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">55,789</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">China</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">31.9</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">157,917</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">30.9</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">157,917</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">494,805</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">510,841</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Gross Profit</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gross profit for 2007 was $45.7&nbsp;million, representing a decrease of 20.2% compared to $57.3
million for 2006. The decrease was primarily attributable to increases in the prices of raw
materials in the global market while the sales price of finished products to certain customers
remained fixed or could not be increased significantly due to competitive market prices in the
industry. Gross profit contributed by sales of manufactured products was $44.7&nbsp;million in 2007
compared to $58.5&nbsp;million in 2006, representing a decrease of 23.6%. The relative contribution to
gross profit from manufactured products for 2006 and 2007 is as follows:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Telecommunication cable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">19.3</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">17.3</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Power cable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">42.6</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">75.9</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Enameled wire</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">37.4</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">6.7</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Electronic cable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0.7</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0.1</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">100.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">100.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The significant increase in power cable&#146;s contribution to gross profit is the result of the
increase in sales of this product in 2007 combined with an increase in its gross profit margin in
2007. Gross profit margins for power cables increased, particularly in Australia due to the strong
Australian economy and the Company&#146;s focus on products with higher gross margins. Gross profit
margins of power cable increased from 16.8% in 2006 to 18.0% in 2007.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Overall gross profit margins decreased from 12.2% in 2006 to 8.9% in 2007. Gross profit
margins for manufactured products decreased from 13.3% in 2006 to 9.0% in 2007. The decrease was
primarily due to decreased margins in enameled wire products resulting from weaker market
conditions and increased competition in both China and Thailand. Gross profit margins of enameled
wire products decreased from 9.2% in 2006 to 1.2% in 2007. To a lesser extent, the decrease in
gross profit margins for manufactured products was due to decreased margins in telecommunications
cable in Thailand due to weaker market conditions and the higher cost of copper. Gross profit
margins of telecommunications cable decreased from 23.0% in 2006 to 16.6% in 2007. Gross profit
margins for power cables increased from 16.8% in 2006 to 18.0% in 2007, particularly due to the
strong Australian economy and the Company&#146;s focus on products with higher gross margins.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Operating Profit</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Selling, general and administrative expenses increased by $1.8&nbsp;million, or 6.7%, in 2007,
primarily due to an increase of $2&nbsp;million in our allowance for doubtful accounts. The increase
primarily arose from the accounts receivable allowance of our Thai subsidiaries for 2007, as we
recognized an additional reserve for a major telecommunications customer encountering delays in
receiving contract payments from the Thai government. We believe this is a unique event and
continue to work with our customer to eventually collect amounts due to us, however ultimate
collection is not reasonably assured at this time. As a percentage of
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->58<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">revenue, our allowance for doubtful accounts, excluding the aforementioned specific reserve,
was 0.3% and 0.2 % in 2006 and 2007, respectively.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition to estimating an allowance for doubtful accounts based on historical sales and
collection data, we perform a detailed review of our outstanding receivables, and make adjustments
to our estimate to reflect significant delinquent accounts receivable. We are not aware of any
significant delinquent accounts receivable that have not already been adequately reserved. In
addition, our periodic allowance for doubtful accounts will continue to not have a significant
impact on our liquidity. For example, the 2007 allowance represented only 0.6% of our 2007
revenue.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net of allowance for doubtful accounts, increased by $26&nbsp;million from
$120&nbsp;million as of December&nbsp;31, 2006 to $146&nbsp;million as of December&nbsp;31, 2007. The increase was
attributable to an overall increase in sales from $468&nbsp;million in 2006 to $511&nbsp;million in 2007 and
higher sales revenue recognized towards the end of 2007. Days sales outstanding were 104&nbsp;days for
2007 and 94&nbsp;days for 2006.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Exchange Gain/Loss</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the past several years, the global weakening of the U.S. dollar against many other
currencies has resulted in a strengthening of the Baht against the U.S. dollar. The exchange
differences in the income statements arose largely as a result of these movements in the Thai Baht
exchange rate and, to a lesser extent, the movements in the other operating currencies.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The exchange rates as of December&nbsp;31, 2007 and December&nbsp;31, 2006, based on the Noon Buying
Rate, were as follows:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>December 31,</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>December 31,</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Foreign currency to US$1:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Thai Baht</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29.50</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36.10</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Singapore $</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.44</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.53</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Australian $</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.14</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.27</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Chinese Rmb</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.30</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.80</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based on the above rates, the revaluation of assets and liabilities denominated in U.S.
dollars or other foreign currencies in the Company resulted in $0.9&nbsp;million exchange gain in 2007.
The exchange gain in 2007 is less than that of 2006 due to the fluctuations in exchange rates and
higher realized exchange gains in our Thai operations in 2006 arising from the settlement of
receivables and payables denominated in U.S. dollars or other foreign currencies during that
period.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We use Thai Baht forward foreign exchange contracts to reduce our exposure to foreign currency
risks for liabilities denominated in foreign currencies. A forward foreign exchange contract
obligates us and our subsidiaries to exchange predetermined amounts of specified foreign exchange
currencies at specified exchange rates or to make an equivalent U.S. dollar payment equal to the
value of such exchange. Realized and unrealized gains and losses on forward foreign exchange
contracts are included in operations as foreign exchange gains or losses.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Gain/Loss from Investees</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 2007, gains from investees were largely related to Shandong Pacific Rubber Cable Co., Ltd
(&#147;SPRC&#148;).
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->59<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Impairment of Investments</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 2007, the Company recorded an impairment of $0.1&nbsp;million in SHP due to an oversupply of
products in the market at Shandong and the suspension of construction of the SHP production line.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Gain on Sale of Investment</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The gain on sale of investment in 2007 was primarily attributable to a $35,000 realized gain
on sale by Sigma Cable Company (Private) Limited (&#147;Sigma Cable&#148;) of 80,000 shares of Hong Fok
Corporation Ltd., a public company listed on the Singapore Exchange (SGX). The Company accounted
for this investment in accordance with SFAS 115 &#150; &#147;Accounting for Certain Investments in Debt and
Equity Securities.&#148; The investment was classified as &#147;held for sale&#148; and the Company recognized
approximately $13,000 of unrealized gain in shareholders&#146; equity and other comprehensive income
prior to the sale of the securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Other Income</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other income largely consists of gains on sales of raw materials and scraps, and gains on
disposal of fixed assets. The increase in other income in 2007 is primarily due to gains on
disposal of fixed assets of NPC, Charoong Thai, and PEWS.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Income Taxes</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our effective tax rate increased from 31.5% in 2006 to 47.9% in 2007, primarily due to
origination and reversal of temporary differences in Charoong Thai and the effect of the adoption
of Interpretation No.&nbsp;48 &#150; &#147;Accounting for Uncertainty in Income Taxes &#150; An Interpretation of FASB
Statement No.&nbsp;109.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company files income taxes in each jurisdiction where such a filing is required based on
its revenues. The provision for income taxes differs based on the taxes incurred by the operating
subsidiaries in their respective jurisdictions. Effective tax rates differ from the statutory rate
due to, among other things, whether certain expenses are deductible or not deductible for tax
purposes and changes in valuation allowances.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of December&nbsp;31, 2007, the Company&#146;s operating subsidiaries in China had net operating loss
carry forwards of approximately $6&nbsp;million which expired or will expire on various dates between
2008 and 2011. Based on their history of losses, management believes it is likely that the net
operating loss carry forwards will not be fully utilized by those subsidiaries before expiration.
Accordingly, the Company has not recognized the $6&nbsp;million as deferred tax assets.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A significant portion of the deferred tax assets recognized by the Company relates to net
operating loss carry forwards of APEC and reserves not yet deductible for tax purposes. Because
the Company operates in multiple jurisdictions, it considers the need for a valuation allowance on
a country-by-country basis, taking into account the effect of local tax laws. Where a valuation
allowance was not recorded, the Company believes that there was sufficient evidence to support its
conclusion not to record it. Management believes, but cannot assure, that the Company will utilize
the APEC loss carry-forwards in the future due to APEC&#146;s profitability and continued generation of
taxable income.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reserves not yet deductible for tax purposes affect temporary differences. Tax consequences
of most events recognized in the financial statements for a year are included in determining income
taxes currently payable. However, tax laws often differ from the recognition and measurement
requirements of financial accounting standards. These differences are referred to as &#147;temporary
differences.&#148; Temporary differences ordinarily become taxable or deductible when the related asset
is recovered or the related liability is settled. The major temporary differences that gave rise
to deferred tax assets and liabilities in 2007 were allowance for inventories, allowance for
doubtful accounts and the allowance for impairment in investment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additional details regarding tax laws and income taxes of the Company including deferred tax
liabilities and assets in 2006 and 2007 are disclosed in Note 12 of Item&nbsp;18: &#147;Financial
Statements.&#148;
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->60<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>5.4 Liquidity and Capital Resources</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of December&nbsp;31, 2008 we had $37.5&nbsp;million in cash and cash equivalents, primarily in money
market accounts, and $7.8&nbsp;million in unrestricted short-term bank deposits with a maturity period
of seven days, renewing automatically upon maturity unless the depositor instructs otherwise. Our
current sources of cash are our cash on hand, cash generated by our operations and our credit
facilities. Our primary financing need will continue to be to fund the growth in our operations,
the purchase of property, plant and equipment and future acquisitions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have no direct business operations other than our ownership of the capital stock of our
subsidiaries and joint venture holdings. Consequently, our subsidiaries have been and will
continue to be the primary source of funds generated by operations. Corporate needs are funded
primarily through distributions from our subsidiaries. Although we have no current intention to
pay dividends, we would rely upon distributions from our subsidiaries in order to do so. As noted
in our risk factors, our operating subsidiaries and other holdings and investments, from time to
time, may be subject to restrictions on their ability to make distributions to us. Such
restrictions could result from restrictive covenants contained in our loan agreements, restrictions
on the conversion of local currency earnings into U.S. dollars or other hard currency and other
regulatory restrictions. For example, PRC legal restrictions permit payments of dividends by our
business entities in the PRC only out of their retained earnings, if any, determined in accordance
with relevant PRC accounting standards and regulations. Under PRC law, such entities are also
required to set aside a portion of their net income each year to fund certain reserve funds. These
reserves are not distributable as cash dividends. The foregoing restrictions may also affect our
ability to fund operations of one subsidiary with dividends and other payments received from
another subsidiary. We are not aware of any other restrictions in other countries in which we do
business other than those discussed in the &#147;Risk Factors&#148; section. Distributions may also be
restricted as the result of objections by minority shareholders of our subsidiaries and current
cash requirements by the operating subsidiaries. Consequently, we periodically need to manage our
corporate cash needs with the timing of distributions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We maintain several working capital and overdraft credit facilities with various commercial
bank groups and financial institutions. Under our line of credit arrangements for short-term debt
with our banks, we may borrow up to approximately $249&nbsp;million on such terms as we and the banks
mutually agree upon. These arrangements do not have termination dates but are reviewed annually
for renewal. As of December&nbsp;31, 2008, the unused portion of the credit lines was approximately
$141&nbsp;million, which included unused letters of credit of $94&nbsp;million. Letters of credit are issued
on our behalf in the ordinary course of business by our banks as required by certain vendor
contracts. As of December&nbsp;31, 2008, the Company had open letters of credit totaling $58&nbsp;million.
Liabilities relating to the letters of credit are included in current liabilities. There is no
seasonality to the company&#146;s borrowing, nor is there any restriction on the use of such borrowing.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash generated from operating activities in the fiscal year ended December&nbsp;31, 2008 was
$60&nbsp;million, as compared to $1.9&nbsp;million of net cash generated from operating activities in the
fiscal year ended December&nbsp;31, 2007. Our net cash from operations continues to be impacted
significantly by our sales and raw material purchases, which have a direct impact on changes in our
accounts receivable, inventories and accounts payable. The largest increase to net cash provided
by operations in 2008 was due to a $36.2&nbsp;million decrease in our accounts receivable on account of
reduced sales towards the end of 2008 and management&#146;s efforts to recover outstanding debts. Days
sales outstanding (DSO)&nbsp;is a measure of the average collection period of accounts receivable, and
although the calculation is influenced by the period used and the timing of sales within that
period, it can provide insight into the variances in collections from period to period. Our days
sales outstanding as December&nbsp;31, 2008 were 70, as compared to 104 as of December&nbsp;31, 2007. The
improvement in DSOs as of December&nbsp;31, 2008 is due to the Company&#146;s successful collection efforts.
Also contributing to the net cash provided by operations in 2008 was
a $7.7&nbsp;million decrease in our
inventories. The decrease was a result of management&#146;s efforts to reduce inventory levels in
anticipation of lower sales as a result of weakening market conditions. Our accounts payable
increased $6.5&nbsp;million in 2008 due to management&#146;s efforts to delay payments where possible to
conserve cash. Accounts payable decreased by $4.4&nbsp;million in
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->61<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">2007 due to timing considerations, as volume of operations towards the end of 2006 was higher
than that towards the end of 2007.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We reduced our liabilities to related parties by $4.3&nbsp;million in 2008 as compared to the $1.6
million reduction of liabilities to related parties in 2007. These arose largely from fluctuations
in related party transactions relating to purchases of power cables and raw materials and
settlement thereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities was $5.1&nbsp;million in 2008, as compared to approximately
$4.0&nbsp;million in 2007. Investing activities are comprised primarily of the purchases of property,
plant and equipment, as well as changes in our restricted and unrestricted short-term deposits.
Total purchases of property, plant and equipment for new facilities, primarily in Thailand and
China, and ongoing equipment upgrades used $3.4&nbsp;million of cash in 2008 as compared to $2.7&nbsp;million
in 2007. The higher amount of purchases in 2008 was largely the result of equipment upgrades in
Thailand and China, which were deferred in 2007 due to high usage of machinery in 2007 which
prevented full machinery upgrades.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Included in investment activity are changes to our restricted short-term bank deposits.
Restricted short-term deposits represent amounts pledged by our subsidiaries to secure various
credit facilities, examples of which include performance bonds, banker&#146;s acceptances for vendor
payments, letters of credit and revolving lines of credit. In general, the balance in restricted
short-term deposits changes in the normal course of business and as the result of specific
liquidity requirements of the operating subsidiaries. The funds on deposit are maintained in money
market accounts and have earned interest in 2008 at annual rates ranging from 1% to 1.5%. The
decrease in restricted short-term deposits of $1.9&nbsp;million in 2008 was in connection with the
decreased use of various secured facilities by our subsidiaries, as surplus cash flows have been
generated from operations during the period, as described above. Restricted short-term deposits
for 2007 increased by $3.2&nbsp;million, which resulted from increased use of various secured facilities
by our subsidiaries due primarily to increased sales and operating activities. We also maintain
unrestricted short-term bank deposits in the form of fixed bank deposits where surplus cash was
deposited for the purpose of earning interest. These fixed deposits earned interest at annual
rates ranging from to 1% to 1.5% with maturities of less than a year. Unrestricted short-term
deposits increased $5.9&nbsp;million in 2008 due to surplus cash generated from operations, as compared
to a marginal decrease of $0.5&nbsp;million in 2007.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in financing activities was $44.5&nbsp;million in 2008, as compared to $4.0&nbsp;million
provided by financing activities in 2007. Our financing activities are primarily comprised of
borrowings from and repayments on our credit facilities with our banks. In 2008 we were able to
decrease our short-term debt by $44.2&nbsp;million, as compared to a net increase in our short-term bank
debt of $6.6&nbsp;million in 2007. The decrease in 2008 was due primarily to surplus cash available in
our subsidiaries from operating activities and reductions in our account receivable and inventory
levels. Our long-term debt was largely repaid in February&nbsp;2007.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We engage in transactions in the ordinary course of business with PEWC, including the purchase
of certain raw materials and the distribution of PEWC products in various countries in the Asia
Pacific region. The Composite Services Agreement contains provisions that define our relationship
and the conduct of our respective businesses and confers certain preferential benefits on us.
Under the Composite Services Agreement, the material terms of which are summarized in the &#147;Material
Contracts&#148; section, there are no obligations binding on the Company in favor of PEWC, nor are there
any pre-established purchase commitments for copper. As such, the Composite Service Agreement
should not impact cash flows or liquidity until such time as actual purchases are made in the
ordinary course of business such as for the purchase of raw materials. The Composite Service
Agreement may, however, impact operations to the extent that PEWC is not able to fulfill its
obligations, such as supplying copper, and copper is not otherwise readily available on comparable
terms from other market sources. Cash generated by operations and borrowings, when needed, from
our credit facilities have been the primary sources of funding purchases under the Composite
Service Agreement, and we believe these sources will continue to provide sufficient funds for
future purchases under this agreement.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->62<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 2003, the Company injected $1.7&nbsp;million in Shanghai Yayang through its subsidiary, Pacific
Thai, thereby increasing the Company&#146;s interest in Shanghai Yayang from 62.39% to 63.49%. In 2004
and 2006, the Company, through its subsidiary, Charoong Thai, made additional capital contributions
of $0.5&nbsp;million and $1&nbsp;million, respectively, to Shanghai Yayang. The additional investment was in
view of improved sales and operating performance and the need for capacity expansion as part of the
Company&#146;s operational strategy. Each of the Company and its joint venture partner, Shandong
Yanggu, have injected $0.3&nbsp;million of capital into Shangdong Pacific Fiber Optics Cable Co., Ltd.
(&#147;SPFO&#148;). To date, the Company has invested a total of $2.8&nbsp;million representing a 51.0% interest
in SPFO. The Company has also contributed $0.2&nbsp;million to Shandong Huayu Pacific Fiber Optics
Communication Co., Ltd. (&#147;SHP&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We believe funds generated by our operating activities, our cash on hand and amounts available
to us under our credit facilities will provide adequate cash to fund our requirements through at
least the next twelve months. We continue to have sufficient liquidity to meet our anticipated
working capital, capital expenditures, general corporate requirements, and other short-term and
long-term obligations as they come due. We may further enhance our liquidity in the future, as
needs arise, by establishing additional lines of credit, with the support of one or more of our
principal shareholders if necessary and available. We currently anticipate that we will retain all
of our earnings to fund our operations and do not anticipate paying any cash dividends in the
foreseeable future.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>5.5 Impact of the Global Economic and Financial Crisis</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As noted in our Risk Factors, commencing in early 2008, numerous cataclysmic economic and
financial events, many of which are ongoing, roiled global and national financial markets and the
international business community, including the sudden collapse of certain leading financial
institutions, widespread default on various credit instruments, the collapse of the U.S. and other
housing markets, a dramatic de-leveraging of capital investment and other business activities and a
marked reduction in the availability of credit for businesses. As these events unfolded quite
quickly and unexpectedly with numerous unforeseen consequences, the full impact of this crisis has
not yet been determined.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The deterioration of economic conditions resulting from the current global financial and
credit crisis and economic downturn has and is likely to continue to adversely affect each of the
markets in which we sell and distribute our products and provide services. In certain markets,
sales have stagnated or even decreased as there has been a reduction in infrastructure development
by governmental entities in certain instances and in capital expenditures and construction by
private companies in anticipation of expected fall in demand in the residential and commercial
buildings. Many customers have also delayed their construction projects in the current weak market
environment. The reduction in the manufacture of electronic products for export or local
consumption has also reduced our sales of enameled wire. With the fall in copper and commodity
prices in the past, customers have sometimes been withholding orders in the expectation that prices
may drop further.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Throughout the second half of 2008, the Company experienced the impact of the economic crisis,
which included lower sales and lower gross margins as compared to the first half of 2008 and the
second half of 2007. The lower second half results in 2008 were primarily due to reduced order
flow from customers and falling commodity prices. Revenue for the second half of 2008 was $226.9
million, representing a 17.1% decline from each of the first half of 2008 and the second half of
2007. Gross margin for the second half of 2008 was $18.0&nbsp;million, representing a 9.3% and 31.0%
decline from the first half of 2008 and the second half of 2007, respectively. Revenue for the
year ended December&nbsp;31, 2008 was $500.8&nbsp;million, representing a 2.0% decline from the year ended
December&nbsp;31, 2007. Gross margin for the year ended December&nbsp;31, 2008 was $37.9&nbsp;million,
representing a 14.7% decline from the year ended December&nbsp;31, 2007. The gross margin amounts for
the second half of 2008 and as of December&nbsp;31, 2008 do not include the effect of the inventory
write-down discussed below.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The recent decreases in commodity prices, including that of copper, resulted in a write-down
of the carrying cost of the Company&#146;s inventory as of December&nbsp;31, 2008. Copper prices on the
London Metal Exchange (the &#147;LME&#148;) have fallen from an average monthly high of $8,685 per metric ton
in April&nbsp;2008 to
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->63<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">only $3,072 per metric ton in December&nbsp;2008, representing a decrease of 65%. Copper prices on
the LME have since increased by 54.7% to $4,752 per metric ton from December&nbsp;31, 2008 to May&nbsp;8,
2009. The decrease in copper prices in 2008 resulted in a write-down to inventory of $25.1
million, representing approximately 5.3% of net sales for the year. This significant write-down to
inventory contributed to the net loss of $13.6&nbsp;million in 2008.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company is unable to determine the precise impact of the current global economic crisis on
its operations and cash flow since results are also affected by factors that are unrelated to the
economic crisis, such as the completion of routine purchase cycles by customers and the completion,
suspension or termination of large infrastructure projects. However, the Company has concluded
that current economic uncertainty and falling commodity prices have affected and will likely
continue to have a significant impact on the Company&#146;s operations and cash flow. Specifically, the
operating subsidiaries may encounter greater difficulty in raising new banking facilities and loans
to support their working capital requirements in the current environment where banks are less
willing to offer new facilities. Governments in certain countries, likely China, Thailand and
Singapore, have pledged to increase infrastructure and construction spending to boost or maintain
economic growth. Assuming those pledges are acted upon, those developments will likely have a
favorable impact on our sales of manufactured products. The Company believes that any efforts to
forecast likely 2009 performance with any degree of specificity would be fraught with uncertainty
due to the suddenness and severity of the financial crisis, the fact that it continues to unfold in
material and unpredictable ways and the rapidly changing nature of the measures being, and proposed
to be, undertaken by the U.S. government and the governments of other countries to address the
crisis. Accordingly, the Company cautions against placing reliance on any efforts to identify
trends for the foreseeable future.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The governments in the countries which we operate in have projected sharp decreases in
economic growth for the fiscal year 2009. For example, Singapore is projecting negative growth.
For purposes of planning and prudent management, the Company is presently anticipating that the
extremely challenging and difficult economic conditions now facing the global economy will continue
at least into the second half of 2009, and likely into 2010.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In anticipation of potentially lower financial results in 2009, the Company is taking a number
of actions in order to maintain effective operations in the markets it serves. Specifically, the
Company is increasing its efforts to collect its receivables on a timely basis. It is anticipated
that some customers will take a longer time to settle their outstanding debts with the Company as
they face tightening credit and lower sales themselves, however the Company will actively work with
all of its significant customers to reduce collection times and minimize write offs. The Company
is working to reduce its inventory levels through planned lower raw material purchases while
negotiating with suppliers to reduce costs of raw materials and supplies. The Company is also
actively reviewing its operations to determine where operating costs can be reduced. In several of
the Company&#146;s subsidiaries, headcount has been frozen or even reduced and contract staff have been
laid off as deemed necessary. The Company has hedged copper through copper futures contracts in
several instances in order to reduce the effect of the current volatility in copper prices on its
operations. The Company is also negotiating with banks and financial institutions for additional
loans and facilities where necessary.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We believe that the successful implementation of these actions will have a positive effect on
our cash resources, and we intend to continue these measures in order to preserve our liquidity
during this period of anticipated lower results. Currently, in light of falling commodity prices,
our cash requirements for purchases have been reduced, thereby improving our short term cash flow.
The Company will preserve as much of this short term benefit as possible, as we anticipate this
situation will reverse and cash flow will be reduced as a result of lower sales and lower profit
margins in the medium term. While none of the Company&#146;s material lines of credit have been
terminated, the Company&#146;s subsidiaries may encounter greater difficulty in raising new banking
facilities and loans to support their working capital in the current environment where banks are
less willing to offer new facilities. As of December&nbsp;31, 2008, the Company had available and
unused lines of credits from suppliers, banks and other lenders totaling, in the aggregate,
approximately $141.0&nbsp;million. We believe that available and unused amount of credit is sufficient
to support our current working capital needs.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->64<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The macroeconomic events and those specific to the Company may have a material adverse impact
on the Company&#146;s business operations until such time as the global financial crisis has abated and
financial and economic conditions have improved. The Company notes, however, that the foregoing is
subject to a number of unknown variables, including the impact of actions taken or that may be
taken in the future by governmental entities to address the capital needs of banks and other
financial institutions and to increase the flow of credit to businesses.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>5.6 Research and Development</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company does not currently engage in its own research and development. Under the
Composite Services Agreement with PEWC described herein, the Company benefits from research and
development conducted by PEWC at little or no cost to the Company. Accordingly, the Company has
not made material expenditures on or commitments to research and development since formation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>5.7 Trend Information</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are not aware of any trend, commitment, event or uncertainty that can reasonably be
expected to have a material effect on our current or future business other than the following, each
of which has materially impacted our financial results in the past and may do so in the future:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>The deterioration of economic conditions resulting from the current global
financial and credit crisis and economic downturn. </I>The global financial and economic
crisis has and is likely to continue to affect adversely each of the markets in which
we sell and distribute our products and provide services. There is a reasonable
likelihood that sales will stagnate or decrease if there is a reduction in
infrastructure development by governmental entities and in capital expenditures by
private companies. Please see the risk factor entitled &#147;Current Economic Risks.&#148;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Uncertainty arising from the volatility in the cost of copper, our principal raw
material. </I>Recent decreases in commodity prices, including that of copper, have caused
the Company to write-down the carrying cost of its inventory in 2008. Although copper
prices have generally increased in the first few months of 2009, there is no assurance
that we will not see volatility in the near future due to the current uncertain
economic climate.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Fluctuations in the demand for our products in the markets in which we do business</I>,
based upon variations in the level of governmental and private commitments to
communications, power and industrial projects and programs that utilize our products.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Political instability or uncertainty resulting in fewer or suspended government
contracts, such as in Thailand.</I></TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;See &#147;Quantitative and Qualitative Disclosures About Market Risk.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>5.8 Off-Balance Sheet Arrangements</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We do not consider the Company to have any material off-balance sheet arrangements that have
or are reasonably likely to have a current or future effect on the Company&#146;s financial condition,
changes in financial condition, revenues or expenses, results of operations, liquidity, capital
expenditures or capital resources.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>5.9 Contractual Obligations</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth our obligations and commitments to make future payments under
contracts and other commitments:
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->65<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="19" style="border-bottom: 1px solid #000000"><B>Payments due by period</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Contractual obligations as of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Less</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>More</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>December 31, 2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>than one</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>than 5</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(In thousands of US$)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Total</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>year</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>1-3 years</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>3-5 years</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>years</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Capital lease obligations
(principal amount only)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">386</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">196</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">161</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Future finance charges on capital
lease obligation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Operating leases</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,358</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">608</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,012</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">289</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,449</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Purchase obligations for copper
cathodes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,657</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,657</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total contractual cash obligations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,437</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,484</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,186</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">318</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,449</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For more details on financial commitments and contingencies, please refer to our audited
consolidated financial statements and the notes thereto incorporated by reference herein.
</DIV>
<DIV align="left">
<A name="107"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;6: Directors, Senior Management and Employees</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>6.1 Directors and Senior Management</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At present, there is only one class of directorships and no one or more directors possesses
any veto power over matters presented to the Board or any other special or enhanced voting rights.
Until September&nbsp;7, 2007, the Bye-laws provided for a classified Board consisting of Class&nbsp;A
Directors and Class&nbsp;B Directors, with the Board to have up to three Class&nbsp;A Directors and up to
seven Class&nbsp;B Directors. Upon the sale by Sino-JP of its 20% interest in the Company to SOF on
June&nbsp;28, 2007, the three Class&nbsp;A Directors designated by Sino-JP resigned from the Board, and the
remaining Board members filled those vacancies by appointing Messrs.&nbsp;Jack Sun, David Sun and Andy
Cheng. At an annual meeting of shareholders (&#147;AGM&#148;) held on September&nbsp;7, 2007, the shareholders
passed a resolution amending the Bye-laws to eliminate the classified Board. In addition, the
Bye-laws were amended to provide that a quorum consists of a majority of the directors then in
office. As of December&nbsp;31, 2008, there were a total of ten directors on the Board, including two
independent directors, Mr.&nbsp;Anson Chan and Dr.&nbsp;Yichin Lee, appointed by the Board to fill casual
vacancies. Each director is entitled to one vote, and approval of any matter requires a simple
majority assuming a quorum is present.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth certain information concerning the directors and certain other
officers of the Company as of December&nbsp;31, 2008. All directors are subject to annual election by
the shareholders of the Company.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->66<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="20%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="20%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="50%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Name</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Date of Birth</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Position</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-15px">Appleby Management (Bermuda) Ltd.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">N/A
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Resident Representative in Bermuda and Assistant Resident
Secretary</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Anson Chan
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">November&nbsp;3, 1963
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Independent director, Audit Committee Chairman</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Andy C.C. Cheng
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">April&nbsp;29, 1958
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Fang Hsiung Cheng
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">May&nbsp;31, 1942
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Alex Erskine
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">September&nbsp;7, 1963
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Resident Secretary in Bermuda</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Daphne Hsu
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">August&nbsp;12, 1962
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Financial Controller</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Gai Poo Lee
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">February&nbsp;28, 1957
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Michael C. Lee
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">September&nbsp;28, 1951
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Yichin Lee
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">January&nbsp;4, 1961
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Independent director, Audit Committee Member</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Samuel See
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">November&nbsp;20, 1965
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Interim Chief Financial Officer</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Ching Rong Shue
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">March&nbsp;4, 1950
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">David Sun
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">December&nbsp;22, 1953
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Jack Sun
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">August&nbsp;27, 1949
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Yuan Chun Tang
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">November&nbsp;26, 1960
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director, Chairman of the Board and Chief Executive Officer</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Ling Y. Wu
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">October&nbsp;18, 1953
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Non-Resident Secretary</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certain officers and directors of the Company are also officers and directors of PEWC and/or
PEWC affiliates, as described below. A brief professional summary for each member of the Board of
Directors and senior management is as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mr.&nbsp;Anson Chan has been an independent member of the Company&#146;s Board of Directors since 2007
and serves on the Audit Committee as its Chairman. Mr.&nbsp;Chan is also a Managing Director of the
Bonds Group of Companies and a Senior Advisor to Elliott Associates.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mr.&nbsp;Andy C.C. Cheng was a member of the Company&#146;s Board of Directors from 2004 to 2005 and was
re-elected in 2007. From 1998 to 2003, Mr.&nbsp;Cheng served as Vice President in charge of procurement
at PEWC. Mr.&nbsp;Cheng has been an Executive Vice President at PEWC since 2004 and Chairman of each of
the investment divisions of PEWC, Tai Ho Investment Co., Ltd. and You Chi Investment Co., Ltd.
since June&nbsp;2008. Mr.&nbsp;Andy C.C. Cheng is not related to Mr.&nbsp;Fang Hsiung Cheng.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mr.&nbsp;Fang Hsiung Cheng has been a member of the Company&#146;s Board of Directors since 2006. He
also serves as Assistant Vice President of PEWC. Mr.&nbsp;Fang Hsiung Cheng is not related to Mr.&nbsp;Andy
C.C. Cheng.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mr.&nbsp;Alex Erskine was appointed as resident Secretary in Bermuda in October of 2008. Mr.
Erskine is a partner in the Bermuda law firm of Appleby, where he is the local team leader of the
funds and investment services practice group, which group he joined in 1999. From March&nbsp;2007 until
October&nbsp;2008, Mr.&nbsp;Erskine was the managing partner of the British Virgin Islands office of Appleby.
Prior to joining Appleby, Mr.&nbsp;Erskine was Deputy Legal and Compliance Director of the Asset
Management Division of UBS AG.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ms.&nbsp;Daphne Hsu has been Financial Controller of the Company since March of 2005, prior to
which she served as Financial Controller for ten years in Taiwan and China at a Thomson SA joint
venture.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mr.&nbsp;Gai Poo Lee has been a member of the Company&#146;s Board of Directors since 2006. He also
served as a Vice President of PEWC until April&nbsp;2008. Mr.&nbsp;Gai Poo Lee is not related to Mr.&nbsp;Michael
C. Lee or Dr.&nbsp;Yichin Lee.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->67<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mr.&nbsp;Michael C. Lee has been a member of the Company&#146;s Board of Directors since 2004 and is
also Chief Executive Officer of PEWC and Chairman of Pacific USA Holdings, Ltd. Mr.&nbsp;Michael C. Lee
is not related to Mr.&nbsp;Gai Poo Lee or Dr.&nbsp;Yichin Lee.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dr.&nbsp;Yichin Lee has been an independent member of the Company&#146;s Board of Directors since 2007
and serves on the Audit Committee. Dr.&nbsp;Lee is also the Managing Director of Giant Management
Consulting LLC and an independent director of Giga Media Limited. Dr.&nbsp;Yichin Lee holds a doctorate
degree in resource planning and management from Stanford University. Dr.&nbsp;Yichin Lee is not related
to Mr.&nbsp;Michael C. Lee or Mr.&nbsp;Gai Poo Lee.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mr.&nbsp;Samuel See was Chief Financial Controller of the Company from February&nbsp;1997 to December
2004, and has been interim Chief Financial Officer of the Company since September&nbsp;2007. Mr.&nbsp;See
currently also acts as Chief Financial Officer for Sigma Cable Company Private Limited, Bleau
Investments Pte Limited, PEWC Holdings Private Limited and PEWC Singapore Private Limited.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mr.&nbsp;Ching Rong Shue has been a member of the Company&#146;s Board of Directors since 2006. He also
serves as Vice President of PEWC.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mr.&nbsp;David Sun has been a member of the Company&#146;s Board of Directors since 2007. He also
serves as President of PEWC and Managing Director of Charoong Thai Wire and Cable Public Company
Limited. Mr.&nbsp;David Sun is the younger brother of Mr.&nbsp;Jack Sun.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mr.&nbsp;Jack Sun has been a member of the Company&#146;s Board of Directors since 2007. Mr.&nbsp;Sun is
also Vice Chairman of PEWC. Mr.&nbsp;Sun served as Chairman of Taiwan Aerospace Corp. from 1994 to
2006, Chairman of Taiwan Mobile Co., Ltd. from 1997 to 2003, Chairman of Taiwan Fixed Network Co.,
Ltd. from 2000 to 2003 and Director of Taiwan High Speed Rail Corp. from 1998 to 2007. Mr.&nbsp;Jack
Sun is the older brother of Mr.&nbsp;David Sun.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mr.&nbsp;Yuan Chun Tang has been a member of the Company&#146;s Board of Directors since 2004 and
Chairman and Chief Executive Officer since 2005. He also serves as Chairman of PEWC. Mr.&nbsp;Yuan
also currently serves as Director of Pacific Construction Corp. Ltd. (since 2002), Director of UB
Office Systems (since 2005) and Director of Taiwan Cogeneration Corp. (since 2005). Mr.&nbsp;Yuan
previously served as director of Pacific Resources Technology Ltd. from 1994 to 2003, and Chairman
of Thomson Pacific Consumer Electronics Co., Ltd. from 1994 to 2001.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mr.&nbsp;Ling Y. Wu was appointed as Non-Resident Company Secretary effective January&nbsp;1, 2005, at
which point he was General Counsel of PEWC. In addition to his position at the Company, Mr.&nbsp;Wu
currently acts as Special Counsel to PEWC and to certain other corporate and banking institutions,
which are not affiliates of PEWC or the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding any relationship with PEWC or with any of its affiliates, the above named
individuals, in their capacities as directors and officers of the Company, are subject to fiduciary
duties to the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Actions may be taken by a quorum of directors (which consists of a majority of the directors
then in office) present at a Board meeting. The Bye-Laws of the Company provide that any one
director may call a Board meeting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As the Company is not listed on any national exchanges, the Company is not required to have a
Board of Directors that is composed of a majority of independent directors. In the event that the
Company seeks to list its Common Shares on a national exchange, the Company may choose to rely upon
the &#147;controlled company exception&#148; that is available to issuers on a number of national exchanges.
In effect, the &#147;controlled company exception&#148; provides that an issuer listing on a national
exchange that recognizes the exception is not required to have its Board of Directors consist of a
majority of independent directors if a shareholder, or two or more
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->68<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">shareholders who constitute a
group, have beneficial ownership of more than 50% of the issued and outstanding voting securities
of the issuer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No service contract exists between any director and the Company or any of its subsidiaries
providing for benefits upon termination of employment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company has no arrangements or understandings with any major shareholders, customers,
suppliers or others, pursuant to which any person referred to above was selected as a director or
member of senior management.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>6.2 Audit Committee</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Audit Committee of the Board of Directors primarily functions to assist the Board in its
oversight of: (i)&nbsp;the reliability and integrity of accounting policies and financial reporting and
disclosure practices and (ii)&nbsp;the establishment and maintenance of processes to ensure that there
is compliance with all applicable laws, regulations and company policy and an adequate system of
internal control, management of business risks and safeguard of assets.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On September&nbsp;28, 2007, the Company filled two casual vacancies on the Board by appointing Mr.
Anson Chan and Dr.&nbsp;Yichin Lee to be independent directors of the Company and to constitute the
Audit Committee of the Board. The Audit Committee is currently composed of Mr.&nbsp;Chan and Dr.&nbsp;Lee,
with Mr.&nbsp;Chan serving as the committee&#146;s chairman.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As the Common Shares are traded on the OTC BB, the Company is not required to have an audit
committee that meets the requirements of Regulation&nbsp;10A-3 of the Exchange Act. In the absence of
an audit committee, the full Board of Directors may fulfill the functions of an audit committee
pursuant to Section&nbsp;3(a)(58) of the Exchange Act. Until the appointment of Mr.&nbsp;Chan and Dr.&nbsp;Lee to
the Audit Committee on September&nbsp;28, 2007, the full Board of Directors fulfilled the functions of
an audit committee.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>6.3 Compensation Committee</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On June&nbsp;13, 2008, the Board authorized the formation of a Compensation Committee to assist the
Company in determining the compensation to be paid to the executive directors of the Company.
According to the terms of reference under which it operates, the Compensation Committee is
authorized to: (i)&nbsp;review and recommend to the Board, or determine, the annual salary, bonus,
stock options, and other benefits, direct and indirect, of the senior management of the Company and
its principal operating subsidiaries; (ii)&nbsp;review new executive compensation programs, review on a
periodic basis the operation of the Company&#146;s executive compensation programs to determine whether
they are properly coordinated, establish and periodically review policies for the administration of
executive compensation programs, and take steps to modify any executive compensation programs that
yield payments and benefits that are not reasonably related to executive performance; (iii)&nbsp;engage
outside auditors and consultants to advise on market compensation; and (iv)&nbsp;establish and
periodically review policies in the area of management perquisites.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Compensation Committee is comprised of one independent director, Mr.&nbsp;Anson Chan, and three
additional directors, Mr.&nbsp;Yuan Chun Tang (acting as committee chairman), Mr.&nbsp;David T. Sun, and Mr.
Michael C. Lee. The Board previously formed a compensation committee in 2003, the last member of
which resigned on June&nbsp;29, 2006. The Board never appointed new directors to such committee.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At a meeting of the Board on July&nbsp;30, 2008, the Board appointed Mr.&nbsp;Andy Cheng to serve as an
additional member on the Compensation Committee.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->69<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>6.4 Compensation</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The aggregate amount of compensation paid by the Company to all of the Company&#146;s directors and
executive officers, as a group, for services in all capacities during 2008 was approximately $1.4
million. As of December&nbsp;31, 2008, our directors and executive officers beneficially owned
approximately 50,000 Common Shares representing approximately 0.4% of the outstanding Common
Shares. The Company is not required to disclose the annual compensation of its executive officers
and directors on an individual basis either under Bermuda law or the laws of Taiwan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The fee payable to independent directors is $20,000 per year and the fee payable to directors
who are  executive officers of the Company or PEWC is $10,000 per year, together with, in
each case, reimbursement of reasonable travel expenses for attendance of meetings of the Board of
Directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Presently, there is no group bonus, profit-sharing or stock option plan. However, some of the
Company&#146;s subsidiaries have bonus or profit-sharing plans based on individual performance and the
profitability of the particular subsidiary for the fiscal year, which plans are generally in
accordance with the industry practice and market conditions in the respective countries.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company has several defined contribution plans covering its employees in Australia, the
PRC and Singapore. Contributions to the plan are made on an annual basis and totaled $872,000 in
2008. Additionally,
in accordance with Thailand labor law, Charoong Thai must pay a retiring employee from one to
ten times such employee&#146;s salary rate during his or her final month, depending on the length of
service. During 2008, the Company&#146;s total expenses under this labor law were $191,000. The plan
is not funded and the amount is recognized in Other Current Liabilities in the Company&#146;s balance
sheet. The Company settles it obligations as and when employees retire. The accumulated benefit
obligations under this plan amounted to $1,773,000 as at December&nbsp;31, 2008.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>6.5 Employees</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company employed a total of 1,705 employees as of December&nbsp;31, 2008, of which about 25%
were administrative and management personnel. Approximately 57% of employees were located in
Thailand, 30% in China, 9% in Singapore and 4% in Australia. Production workers are usually
organized into two 12-hour shifts or three 8-hour shifts to allow continuous factory operation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company offers a range of employee benefits, which it believes are comparable to industry
practice in its local markets. Such benefits include performance-based pay incentives, medical
benefits, vacation, pension, housing for a small number of workers in Singapore and in Thailand,
and a small housing supplement to other workers. The Company also provides training programs for
its personnel designed to improve worker productivity and occupational safety.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Approximately 60% of the employees of Sigma Cable are members of the United Workers of
Electronics &#038; Electrical Industries, an employees&#146; union in Singapore. Under the terms of a
collective agreement signed in June&nbsp;2003, the Company is required to negotiate salary and wage
increases yearly. All other worker benefits and employment terms are included in the collective
agreement. Approximately 100% and 97% of the employees of PEWS and Shanghai
Yayang, respectively, are members of their respective Company
Workers&#146; Unions. These unions generally operate in accordance
with related labor regulations  in China. Approximately 18% of the
employees of APEC are members of the Australian Workers&#146; Union. None of the employees of the other operating subsidiaries of the Company are members of
a union.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company has never experienced a strike or other disruption due to labor disputes. The
Company considers its employee relations to be good and has not experienced difficulties attracting
and retaining qualified employees. In Singapore, employee turnover is approximately 8% of total
employees annually. In Thailand, employee turnover is approximately 3% of total employees
annually.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->70<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="108"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;7: Major Shareholders and Related Party Transactions</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>7.1 Major Shareholders</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;From September&nbsp;15, 2005 until June&nbsp;28, 2007, Sino-JP Fund Ltd, a company incorporated under
the laws of the Cayman Islands, held 2,766,154 Common Shares, representing 20% of the issued and
outstanding Common Shares of the Company. On June&nbsp;28, 2007, Sino-JP sold all of its Common Shares
to SOF Investments, L.P., a Delaware limited partnership (&#147;SOF&#148;). At that time, all of the
directors and officers of the Company designated by Sino-JP tendered their resignations and Sino-JP
ceased to have any interest in the Company. In connection with that purchase, the Company, SOF and
PEWC entered into a shareholders agreement dated June&nbsp;28, 2007. See Item&nbsp;7.2: &#147;Related Party
Transactions.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;From September&nbsp;15, 2005 until March&nbsp;27, 2009, PEWC held 7,664,615 Common Shares, representing
55.4% of the issued and outstanding Common Shares of the Company. On March&nbsp;27, 2009, SOF sold
1,410,739, or 51%, of its Common Shares to PEWC. Following that sale, PEWC and SOF held 65.6% and
9.8% of the issued and outstanding Common Shares of the Company, respectively. In connection with
that sale, the Company, SOF and PEWC entered into an amended and restated shareholders agreement
dated March&nbsp;27, 2009. See Item&nbsp;7.2: &#147;Related Party Transactions.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth certain information regarding beneficial ownership of the
Company&#146;s capital stock as of June 24, 2009 by (i)&nbsp;all persons who are known to the Company to
own beneficially more than five percent of the Common Shares of the Company and (ii)&nbsp;the officers
and directors of the Company as
a group. The information set forth in the following table is derived
from public filings made by holders  and information obtained from
directors and officers. The voting rights attaching to the Common Shares below are the same as those
attaching to all other Common Shares.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Number of</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Identity of Person or Group</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Percent of Class</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Pacific Electric Wire &#038; Cable Co., Ltd.<SUP style="font-size: 85%; vertical-align: text-top"> (1)</SUP>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">9,075,354</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">65.600</TD>
    <TD nowrap valign="top">%</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">SOF Investments, L.P.<SUP style="font-size: 85%; vertical-align: text-top"> (2)</SUP>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">1,355,415</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">9.800</TD>
    <TD nowrap valign="top">%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Directors and Officers of the Company
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" valign="top">50,000</td>
    <TD>&nbsp;</TD>


    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" valign="top">0.362</td>
    <TD>%</TD>


</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>PEWC owns 1,410,739 shares directly and owns its remaining shares indirectly, as a result
of PEWC&#146;s control of its direct wholly-owned subsidiary, Moon View Ventures Limited, a British
Virgin Islands company, which beneficially owns 6,707,948 Common Shares, and as a result of PEWC&#146;s
control of its indirect wholly-owned subsidiary, Pacific Holdings Group, a Nevada corporation,
which beneficially owns 656,667 Common Shares.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>MSD Capital, L.P. (&#147;MSD Capital&#148;) is the general partner of SOF and may be deemed to have
or share voting and/or investment power over, and beneficially own, securities owned by SOF. MSD
Capital Management LLC is the general partner of MSD Capital and may be deemed to have or share
voting and/or investment power over, and beneficially own, securities owned by MSD Capital. Each
of Glenn R. Fuhrman, John C. Phelan and Marc R. Lisker is a manager of MSD Capital Management and
may be deemed to have or share voting and/or investment power over, and beneficially own,
securities owned by MSD Capital Management. Each of Messrs.&nbsp;Fuhrman, Phelan and Lisker disclaim
beneficial ownership of such securities, except to the extent of the pecuniary interest of such
person in such securities.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company has 6,166,154 Common Shares that are registered securities, of which 3,400,000
Common Shares are publicly-traded on the OTC BB, which represents 24.6% of the issued and
outstanding Common Shares. The remaining registered securities, 2,766,154 Common Shares, are held
by PEWC and SOF, and are subject to trading restrictions under Rule&nbsp;144 promulgated under the
Securities Act. Other than the approximately 50,000 Common Shares held by directors or officers
who are not resident in the United States and the 1,410,739 registered securities held indirectly
by PEWC, the Company believes that substantially all of its registered securities are held by U.S
residents. The Company has no means to definitively confirm that belief, however, which is based
upon a review of the share registers maintained by the Company&#146;s Bermuda
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->71<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">transfer agent and U.S.
transfer agent and the addresses provided by the record holders. Based upon a review of the
records of the Company&#146;s U.S. transfer agent, including a list of non-objecting beneficial holders
(NOBOs), the Company believes there are between 400 and 600 beneficial holders that are resident in
the United States, although that range constitutes only the Company&#146;s best estimate of the number
of U.S. beneficial holders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>7.2 Related Party Transactions</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On September&nbsp;2004, certain accounts payable to PEWC in the amount of $9.7&nbsp;million from Sigma
Cable Company (Private) Limited (&#147;Sigma Cable&#148;), a subsidiary in Singapore, were converted into a
loan from PEWC. As of December&nbsp;31, 2006, December&nbsp;31, 2007 and December&nbsp;31, 2008, the loan
amounted to approximately $10.5&nbsp;million, $10.9&nbsp;million and $7.9&nbsp;million, respectively. The loan is
secured by a charge on the capital stock of Sigma Cable&#146;s subsidiary, Australia Pacific Electric
Cables Pty Ltd (&#147;APEC&#148;). The loan was initially scheduled to be repaid in September&nbsp;2008, but the
parties agreed to extend repayment until September&nbsp;2009.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
of each of December&nbsp;31, 2006, December&nbsp;31, 2007 and
December&nbsp;31, 2008, the Company, including its subsidiaries, had a
 principal balance outstanding of $1.7&nbsp;million borrowed from subsidiaries of PEWC, including (&#147;Moon View&#148;) Venture Limited. This short-term indebtedness is payable on a
demand basis and does not accrue interest. The principal amount of the Company&#146;s short-term, related party indebtedness has not increased during the three-year period ended December 31, 2008.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of December&nbsp;31, 2006 and December&nbsp;31, 2007, the only long-term loan was from PEWC, in the
amount of $0.9&nbsp;million, and $0.2&nbsp;million, respectively. The loan was unsecured and interest-free.
Only partial repayment of the loan was timely made, with the balance repaid in December&nbsp;2008. As
the loan was not timely repaid in full, the debt was past due for a period of time and accrued
interest at the rate of 7.5% per annum until repayment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company used the proceeds from each of the related party loans described above for working
capital and purchases of capital equipment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On June&nbsp;28, 2007, SOF and Sino-JP entered into a stock purchase agreement, pursuant to which
Sino-JP conveyed all of its right, title and interest in the 2,766,154 Common Shares held by it to
SOF for a purchase price of $4.35 per share, of which $0.10 per share was paid as a placement agent
fee to Tejas Securities. MSD Capital, L.P., a Delaware limited partnership, acted as a guarantor
for SOF. The Company was not a party to that stock purchase agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company was a party to a shareholders agreement dated June&nbsp;28, 2007, together with PEWC
and SOF (the &#147;Shareholders Agreement&#148;), pursuant to which the Company granted to SOF certain rights
and protections. Under the Shareholders Agreement, the Company agreed to indemnify SOF, and its
partners and certain of its affiliates (the &#147;SOF Indemnified Persons&#148;), for any additional taxes,
interest, penalties and other costs that might be imposed upon or incurred by the SOF Indemnified
Persons in the event that the Company is determined by the Internal Revenue Service (the &#147;IRS&#148;) to
be a &#147;controlled foreign corporation&#148; (a &#147;CFC&#148;) or a &#147;passive foreign investment company&#148; (a
&#147;PFIC&#148;) as such terms are interpreted and defined under IRS rules or regulations. In addition,
under the Shareholders Agreement, the Company granted to SOF certain registration rights with
respect to its Common Shares, including the undertaking by the Company to prepare and file a shelf
registration statement, and the further right of SOF to exercise two demand registration rights
with regard to the Common Shares owned by it and to further exercise certain piggyback registration
rights in connection with its Common Shares. Moreover, the Company agreed to use its reasonable
best efforts to cause the Common Shares to be listed on a national &#147;Securities Market,&#148; which means
any of the Nasdaq Stock Market, Inc. (Global Market or Global Select Market), the American Stock
Exchange LLC (now known as NYSE Amex Equities) or the New York Stock Exchange LLC, not later than
January&nbsp;31, 2009, subject to notice and a sixty (60)&nbsp;day cure period. All of the costs and
expenses of the Company in connection with the
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->72<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">fulfillment of its obligations under the
Shareholders Agreement were to be paid by the Company, other than underwriting fees, discounts and
commissions attributable to the sale of Common Shares held by SOF.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On February&nbsp;2, 2009, SOF delivered notice of its exercise of the put right under the
Shareholders Agreement to PEWC due to fact that the Common Shares were not listed on a national
Securities Market as of January&nbsp;31, 2009. On March&nbsp;27, 2009, SOF sold 51% of the Common Shares
held by it to PEWC. In connection with the sale, the Company, PEWC and SOF amended and restated
the Shareholders Agreement (the &#147;Amended and Restated Shareholders Agreement&#148;), which among other
things, grants to the Company an extension for listing its Common Shares on a national exchange
until February&nbsp;2011 and maintains for SOF the right to sell its remaining Common Shares to PEWC in
the event the Company is not able to list its Common Shares on a national exchange by February
2011. The Amended and Restated Shareholders Agreement contains the same registration and
indemnification obligations set forth in the Shareholders Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other than the Amended and Restated Shareholders Agreement, the Company is not a party to any
agreements, and has not engaged in any other transactions, with SOF, or to the Company&#146;s knowledge,
its owners. For a more detailed description of the Company&#146;s obligations under the Amended and
Restated Shareholders Agreement, see the risk factor entitled &#147;Obligations under Shareholders
Agreement.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the terms of the Composite Services Agreement, APWC pays a management fee to PEWC in
connection with the secondment, or temporary assignment and relocation, of certain PEWC managers to
APWC facilities in Shenzhen and Thailand. The assigned managers assist APWC in implementing the
results of certain research and development conducted by PEWC and made available by PEWC to the
Company under the terms of the Composite Services Agreement. The assigned managers also assist
APWC in the procurement
of raw materials, primarily copper, which is also provided for under the Composite Services
Agreement. The amount of such annual management fee was $152,000, $98,000, and $189,000 as of
December&nbsp;31, 2006, December&nbsp;31, 2007 and December&nbsp;31, 2008, respectively.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additional details regarding related party balances as of December&nbsp;31, 2008 and related party
transactions, including copper purchases from PEWC, are disclosed in Note 17 of our audited
consolidated financial statements.
</DIV>
<DIV align="left">
<A name="109"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;8: Financial Information</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>8.1 Legal Proceedings</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There are currently no material proceedings in which any director, senior manager, or
affiliate is adverse to the Company or has an adverse material interest.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>8.1.1 Sino-JP/PEWC/APWC Litigation (Settled)</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Following the acquisition of Common Shares by Sino-JP, a number of disputes arose between
Sino-JP and PEWC regarding the governance of the Company and other matters. Specifically, the
Board was unable to reach a consensus on the proper treatment of certain doubtful accounts
receivable. In addition, the then current Chief Financial Officer of the Company questioned the
then current auditors of the Company regarding the thoroughness of their review of these accounts
receivable during the course of their 2004 audit of the Company&#146;s financial statements, which led
to the cessation of the 2004 audit by the auditors at that time. The initial narrow dispute
between Board members designated by Sino-JP and other Board members regarding the accounting
treatment for doubtful accounts receivable grew in scope, such that it became very difficult to
achieve a consensus on a number of strategic and operational matters, due to the effective veto
right held by the Sino-JP Board designees. Litigation was commenced in Bermuda, in which the
Company was named a party, and in Hong Kong, in which the Company was not named a party. On June
28, 2007, the Company entered into a comprehensive settlement and release agreement with Sino-JP
(the &#147;Settlement Agreement&#148;), which dismissed and released all claims between the parties and which
put an end to all related litigation. PEWC also entered into a settlement and release agreement
with Sino-JP that terminated all disputes and
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->73<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">litigation between those parties. On the same date,
SOF Investments, L.P., a Delaware limited partnership, acquired all of the Common Shares then held
by Sino-JP and entered into a shareholders agreement with the Company and PEWC. Upon the closing
of that acquisition, all of the directors and officers designated by Sino-JP submitted their
resignations and Sino-JP ceased to have any interest in the Company. As part of the Settlement
Agreement, the Company agreed to indemnify all of those Sino-JP designated directors and officers
for all acts or omissions taken in their capacity as a director or officer to the maximum extent
permitted under the memorandum of association and the Bye-laws of the Company and the Bermuda
Companies Act.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>8.1.2 Sigma Cable/Highness Electrical Litigation (decided; merits of appeal being
determined)</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company&#146;s Singapore operations are principally conducted through its 98.3%-owned
subsidiary, Sigma Cable Company (Private) Limited (&#147;Sigma Cable&#148;). Sigma Cable manufactures low
voltage power cable for sale and distribution in Singapore and countries in the Asia Pacific
region.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In June&nbsp;2005, Highness Electrical Engineering Pte Ltd (&#147;Highness Electrical&#148;) commenced an
action in the High Court of Singapore (the &#147;High Court&#148;) against Sigma Cable claiming damages
arising from an alleged breach of a contract. The parties entered into a contract on December&nbsp;17,
2003 for the supply by Sigma Cable to Highness Electrical of various types of electrical cables
from December&nbsp;2003 to December&nbsp;31, 2005. By early February&nbsp;2005, Sigma had not delivered goods
that had been on order for several months. As a result, on February&nbsp;3, 2005, Highness Electrical
claimed Sigma Cable repudiated the contract. On March&nbsp;30, 2005, Sigma Cable agreed to supply
electrical cables at the prices originally agreed to. However, in June&nbsp;2005, Highness Electrical
instituted an action to recover damages for the loss it claimed that it had suffered as
a result of having to pay higher prices for the electrical cable. In June&nbsp;2006, the High
Court ruled that Sigma Cable had repudiated the contract and ordered that the assessment of damages
be done by the Registrar.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sigma Cable appealed the High Court&#146;s verdict, but the determination that Sigma Cable was
liable for damages has been upheld on appeal. In February&nbsp;2008, the Supreme Court assessed damages
of approximately $886,000. This amount was paid to Highness Electrical in 2008. Sigma Cable is
currently considering the merits of appealing this determination of damages.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>8.2 Dividend Policy</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To date, the Company, a Bermuda company formed in 1996, has not paid any dividends. While the
Company has no present intention to pay dividends, should it decide in the future to do so, as a
holding company the Company&#146;s ability to pay dividends, as well as to meet its other obligations,
will depend upon the amount of distributions, if any, received from the Company&#146;s operating
subsidiaries and other holdings and investments. The Company&#146;s operating subsidiaries and other
holdings and investments, from time to time, may be subject to restrictions on their ability to
make distributions to the Company, including as a result of restrictive covenants contained in loan
agreements, restrictions on the conversion of local currency earnings into U.S. dollars or other
hard currency and other regulatory restrictions. The foregoing restrictions may also affect the
Company&#146;s ability to fund operations of one subsidiary with dividends and other payments received
from another subsidiary.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>8.3 Significant Changes</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There have been no material or significant changes in the Company&#146;s affairs since the end of
the fiscal year ended December&nbsp;31, 2008 that have not been described herein.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->74<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="110"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;9: The Offer and Listing</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>9.1 Historical Trading Information</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;From March&nbsp;26, 1997 through December&nbsp;31, 2001, the Company&#146;s Common Shares were listed and
traded on the New York Stock Exchange (the &#147;NYSE&#148;) under the symbol &#147;AWC.&#148; Prior to such listing,
there was no public market for the Company&#146;s equity securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company&#146;s Common Shares were subsequently delisted from the NYSE in the first quarter of
2002 and were traded on the Over-the-Counter Bulletin Board (the &#147;OTC BB&#148;), which is an electronic
quotation service for trading of shares of over-the-counter securities among market makers who are
members of FINRA (the Financial Industry Regulatory Authority). The Company was not in a position
to make the filing of its 2004 annual report on a timely basis. After the expiration of an
automatic grace period, on August&nbsp;29, 2005 the OTC BB delisted the Company for failure to remain
current in the filing of its periodic reports. The Company relisted on the OTC BB in April&nbsp;2008
under the symbol &#147;AWRCF.&#148; Until that relisting on the OTC BB, the Common Shares were traded on the
Pink Sheets. See the risk factor entitled &#147;Potential Illiquidity of Common Shares.&#148; The Common
Shares are not listed on any other exchanges or otherwise publicly traded within or outside the
United States. The Company intends to apply for a listing on either the Nasdaq or NYSE Amex
Equities (formerly known as the American Stock Exchange), as and when the Company meets the listing
criteria for one of those exchanges.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The high and low sales price for Common Shares on the OTC BB (from 2004 until August&nbsp;2005), on
the Pink Sheets (from August&nbsp;2005 until April&nbsp;2008), and again on the OTC BB (since April&nbsp;2008) for
each period specified are as follows:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7"><B>Price per Share</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000"><B>($)</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>High</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Low</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Five most recent full financial years:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">2004</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.50</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.10</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">2005</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.75</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.20</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">2006</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.05</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.80</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">2007</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.19</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.50</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">2008</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.45</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.80</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Two most recent full financial years:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>2007</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">First Quarter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.20</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.50</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Second Quarter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.03</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Third Quarter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.19</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.95</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Fourth Quarter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.95</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.50</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>2008</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">First Quarter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.55</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Second Quarter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.45</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.50</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Third Quarter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.50</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.65</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Fourth Quarter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.80</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>2009</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">First Quarter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.50</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.50</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Most recent six months:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>2008</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">December</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.65</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.76</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>2009</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">January</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.15</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.90</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->75<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7"><B>Price per Share</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000"><B>($)</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>High</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Low</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">February</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.19</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.56</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">March</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.50</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.50</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">April</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.50</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.90</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">May</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.95</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.90</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>9.2 Nature of the Trading Market</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of the date of the filing of this Annual Report, our Common Shares are quoted and traded on
the OTC BB under the symbol &#147;AWRCF.&#148;
</DIV>
<DIV align="left">
<A name="111"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;10: Additional Information</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>10.1 Share Capital</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On September&nbsp;8, 2008, our shareholders approved an increase to our authorized share capital
from 20,000,000 Common Shares, par value $0.01 per share, to 50,000,000 Common Shares, par value
$0.01 per share. As of December&nbsp;31, 2008 and as of the date of the filing of this Annual Report,
there were and are 13,830,769 Common Shares issued and outstanding. No capital of the Company is
under option or agreed conditionally or unconditionally to be put under option. The stock option
plan established by the Company in 1996 prior to its initial public offering was terminated by the
Board of Directors in 2006. No options were ever exercised and no Common Shares were ever issued
under that terminated stock option plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>10.2 Memorandum of Association and Bye-laws</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>10.2.1 General</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For a detailed description of the Company&#146;s principal activities, see Section&nbsp;4.1: &#147;History
and Development of the Business.&#148; On September&nbsp;7, 2007, the Company&#146;s Bye-Laws were amended to
delete
provisions providing for a classified Board of Directors and to provide that the Board shall
consist of up to ten (10)&nbsp;directors of a single class, each with one vote on all matters put to the
Board, and that a quorum shall consist of a majority of the members of the Board of Directors then
in office. The Company&#146;s Bye-laws, as so amended, were filed with the annual report of the Company
on Form 20-F for the fiscal year ended December&nbsp;31, 2004. The Company&#146;s Bye-Laws were further
amended on September&nbsp;8, 2008 to increase the authorized share capital. The Company&#146;s Bye-laws, as
so further amended, were filed on February&nbsp;18, 2009 as Exhibit&nbsp;3.2 to Amendment No.&nbsp;4 to the
Company&#146;s registration statement on Form F-1 filed on February&nbsp;18, 2009.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>10.2.2 Description of Shareholder Rights Attaching to Our Common Shares</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company was incorporated in Bermuda on September&nbsp;19, 1996 under the Companies Act. The
rights of our shareholders are governed by Bermuda law and our memorandum of association and
Bye-laws.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following discussion of our Common Shares and the laws governing the rights of our
shareholders is based upon the advice of Appleby, our Bermuda counsel.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our authorized share capital as of December&nbsp;31, 2008 was $500,000 consisting of 50,000,000
Common Shares, par value $0.01 per share, of which, as of December&nbsp;31, 2008 and as of the date of
the filing of this Annual Report, there were and are 13,830,769 Common Shares issued and
outstanding.
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Holders of the Common Shares have no preemptive, redemption, conversion or sinking
fund rights.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Holders of the Common Shares are entitled to one vote per share on all matters
submitted to a poll vote of holders of Common Shares and do not have any cumulative voting
rights.</TD>
</TR>


</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->76<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In the event of our liquidation, dissolution or winding-up and subject to any
alternative resolution that may be pursued by our shareholders, the holders of Common
Shares are entitled to share ratably in our assets, if any, remaining after the payment of
all our debts and liabilities.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Our outstanding Common Shares are fully paid and nonassessable.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Additional authorized but unissued Common Shares may be issued by the Board without
the approval of the shareholders.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The holders of Common Shares will receive such dividends, if any, as may be declared by the
Board of Directors out of funds legally available for such purposes. We may not declare or pay a
dividend, or make a distribution out of contributed surplus, if there are reasonable grounds for
believing that:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>we are, or after the payment would be, unable to pay our liabilities as they become
due; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the realizable value of our assets after such payment or distribution would be less
than the aggregate amount of our liabilities and our issued share capital and share
premium accounts.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following is a summary of provisions of Bermuda law and our organizational documents,
including our memorandum of association and Bye-laws. We refer you to our memorandum of
association and Bye-laws, copies of which have been filed with the SEC. You are urged to read
these documents in their entirety for a complete understanding of the terms thereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>10.2.3 Share Capital</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our authorized capital consists of one class of Common Shares. Under our Bye-laws, our Board
of Directors has the power to issue any authorized and unissued shares on such terms and conditions
as it may determine. Any shares or class of shares may be issued with such preferred, deferred,
qualified or other special
rights or any restrictions with regard to such matters, whether in regard to dividend, voting,
return of capital or otherwise, as we may from time to time by resolution of the shareholders
prescribe, or in the absence of such shareholder direction, as the Board of Directors may
determine. This provision in the Bye-laws could be used to prevent a takeover attempt, or to make
a takeover attempt prohibitively expensive, and thereby preclude shareholders from realizing a
potential premium over the market value of their shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>10.2.4 Voting Rights</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Generally, under Bermuda law and our Bye-laws, questions brought before a general meeting are
decided by a simple majority vote of shareholders present or represented by proxy, with no
provision for cumulative voting. Matters will be decided by way of votes cast by way of show of
hands unless a poll is demanded.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If a poll is demanded, each shareholder who is entitled to vote and who is present in person
or by proxy has one vote for each Common Share entitled to vote on such question. A poll may only
be demanded under the Bye-laws by:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the chairman of the meeting;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>at least three shareholders present in person or by proxy;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any shareholder or shareholders present in person or by proxy and holding between
them not less than one-tenth of the total voting rights of all shareholders having voting
rights; or</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->77<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a shareholder or shareholders present in person or represented by proxy holding
Common Shares conferring the right to vote on which an aggregate sum has been paid up
equal to not less than one-tenth of the total sum paid up on all Common Shares.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless the Board of Directors otherwise determines, no shareholder shall be entitled to vote
at any general meeting unless all calls or other sums presently payable by that shareholder in
respect of all shares held by such shareholder have been paid.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>10.2.5 Dividend Rights</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under Bermuda law, a company may declare and pay dividends unless there are reasonable grounds
for believing that the company is, or would, after the payment, be unable to pay its liabilities as
they become due or that the realizable value of the company&#146;s assets would thereby be less than the
aggregate of its liabilities and issued share capital and share premium accounts.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under our Bye-laws, the Board may from time to time declare dividends out of contributed
surplus to be paid to the shareholders according to their rights and interests. With the sanction
of a shareholders resolution, the Board of Directors may determine that any dividend may be paid in
cash or by distribution of specific assets, including paid-up shares or debentures of any other
company. The Board of Directors may also pay any fixed cash dividend which is payable on any of
our Common Shares half-yearly or on other dates, whenever our position, in the opinion of the Board
of Directors, justifies such payment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends, if any, on our Common Shares will be at the discretion of our Board of Directors,
and will depend on our future operations and earnings, capital requirements, surplus and general
financial condition as our Board of Directors may deem relevant.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>10.2.6 Purchases by the Company of its own Common Shares</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under Bermuda law and as authorized by the Company&#146;s memorandum of association, we may
purchase our own Common Shares out of the capital paid up on the Common Shares in question or out
of funds that
would otherwise be available for dividend or distribution or out of the proceeds of a fresh
issue of Common Shares made for the purposes of the purchase. We may not purchase our shares if,
on the date on which the purchase is to be effected, there are reasonable grounds for believing
that the Company is, or after the purchase would be, unable to pay its liabilities as they become
due.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;However, to the extent that any premium is payable on the purchase, the premium must be
provided out of the funds of the Company that would otherwise be available for dividend or
distribution or out of the Company&#146;s share premium account. Any Common Shares purchased by the Company are treated as cancelled and the
amount of the Company&#146;s issued capital is diminished by the nominal value of the shares accordingly
but shall not be taken as reducing the amount of the Company&#146;s authorized share capital.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>10.2.7 Preemptive Rights</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our Bye-laws generally do not provide the holders of our Common Shares preemptive rights in
relation to any issues of Common Shares by us or any transfer of our shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;However, the Company has in the Amended and Restated Shareholders Agreement granted to SOF
preemptive rights in the event of any issuance of additional equity securities (or securities
convertible into or exchangeable for equity securities) by the Company, such that SOF may subscribe
for additional securities in order to maintain its then percentage ownership interest in the issued
and outstanding equity securities of the Company. See the risk factor entitled &#147;Obligations under
Shareholders Agreement.&#148;
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->78<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>10.2.8 Variation of Rights</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We may issue more than one class of shares and more than one series of shares in each class.
The rights attached to any class of shares may be altered or abrogated either:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>with the consent in writing of the holders of more than fifty percent of the issued
shares of that class; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>pursuant to a resolution of the holders of such shares.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Bye-laws provide that the necessary quorum shall be two or more persons present in person
or by proxy holding shares of the relevant class. The Bye-laws specify that the creation or
issuance of shares ranking pari passu with existing shares will not, subject to any statement to
the contrary in the terms of issuance of those shares or rights attached to those shares, vary the
special rights attached to existing shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>10.2.9 Transfer of Common Shares</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject to the &#147;Transfer Restrictions&#148; section below, a shareholder may transfer title to all
or any of his shares by completing an instrument of transfer in the usual common form or in such
other form as the Board of Directors may approve. The form of transfer is required to be signed by
or on behalf of the transferor and also the transferee where any share is not fully paid. The
transferor shall be deemed to remain the holder of the shares until the name of the transferee is
entered in the Register of Members.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>10.2.10 Transfer Restrictions</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board of Directors may, in its absolute discretion and without assigning any reason
therefor, decline to register any transfer of any share which is not a fully paid share. The Board
of Directors may also refuse to register an instrument of transfer of a share unless the instrument
of transfer:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>is duly stamped, if required by law, and lodged with us;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>is accompanied by the relevant share certificate and such other evidence of the
transferor&#146;s right to make the transfer as the Board of Directors shall reasonably
require;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>is in respect of one class of shares; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>has obtained, where applicable, permission of the Bermuda Monetary Authority.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our Common Shares are no longer listed on an &#147;appointed stock exchange&#148; and, therefore, do not
qualify for a &#147;blanket&#148; authorization for free transferability from the Bermuda Monetary Authority
for all transfers of our Common Shares between persons who are not resident in Bermuda for exchange
control purposes. The Bermuda Monetary Authority has informed us that it has no objection to the
continued free transferability of our Common Shares on the same basis as when the Company was
listed on the NYSE, except that the Bermuda Monetary Authority has requested it be informed of any
shareholders holding five percent or more of the Common Shares in issue or any proposals to
transfer five percent or more of the issued and outstanding Common Shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company, together with PEWC and SOF Investments, L.P., entered into a shareholders
agreement dated as of June&nbsp;28, 2007 (the &#147;Shareholders Agreement&#148;) which provides, among other
things, for certain transfer restrictions, notice requirements and tag-along rights in the event
PEWC wishes to transfer any of its Common Shares in certain types of transactions. The
Shareholders Agreement was amended and restated on March&nbsp;27, 2009 (the &#147;Amended and Restated
Shareholders Agreement&#148;) in connection with the sale by SOF to PEWC of 51% of the Common Shares
held by SOF. The Amended and Restated Shareholders Agreement is
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->79<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">binding only upon the three
parties to that agreement. Under the Amended and Restated Shareholders Agreement, the Company has
been granted an extension until February&nbsp;2011 to achieve a listing of the Common Shares on a
national Securities Market and SOF has maintained its right to sell its remaining Common Shares to
PEWC in the event the Company is not able to achieve that national listing. See Section&nbsp;4.3:
&#147;Certain Recent Events.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>10.2.11 Transmission of Shares</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the event of the death of a shareholder, the survivor or survivors, where the deceased
shareholder was a joint holder, and the estate representative, where the deceased shareholder was
sole holder, shall be the only persons recognized by us as having any title to the shares of the
deceased. &#147;Estate representative&#148; means the person to whom probate or letters of administration
has or have been granted in Bermuda, or failing any such person, such other person as the Board of
Directors may in its absolute discretion determine to be the person recognized by us for this
purpose.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>10.2.12 Disclosure of Interests</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the Companies Act, a director who has an interest in a material contract or a material
proposed contract, or a 10% or more interest (directly or indirectly) in an entity that is
interested in a contract or proposed contract or arrangement with us, is obligated to declare the
nature of such interest at the first opportunity at a meeting of the Board of Directors, or by
writing to the Board of Directors. If the director has complied with the relevant sections of the
Companies Act and the Bye-laws with respect to the disclosure of his interest, the director may
vote at a meeting of the Board of Directors or a committee thereof on a contract, transaction or
arrangement in which that director is interested, in which case his vote shall be counted and he
shall be taken into account in ascertaining whether a quorum is present.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>10.2.13 Rights in Liquidation</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under Bermuda law, in the event of liquidation, dissolution or winding-up of a company, after
satisfaction in full of all claims of creditors and subject to the preferential rights accorded to
any series of preferred stock,
the proceeds of such liquidation, dissolution or winding-up are distributed among the holders
of shares in accordance with a company&#146;s bye-laws.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under our Bye-laws, if we are wound up, the liquidator may, pursuant to a resolution of the
shareholders and any approval required by the Companies Act, divide among the shareholders in cash
or other assets the whole or part of our assets, whether such assets shall consist of property of
the same kind or not and may for such purposes set such values as such liquidator deems fair upon
any property to be divided and may determine how such division shall be carried out as between the
shareholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>10.2.14 Meetings of Shareholders</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under Bermuda law, a company is required to convene at least one general meeting per calendar
year. The directors of a company, notwithstanding anything in such company&#146;s bye-laws, shall, on
the requisition of the shareholders holding at the date of the deposit of the requisition not less
than one-tenth of the paid-up capital of the company carrying the right of vote, duly convene a
special general meeting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Bye-laws provide that the Board of Directors may, whenever it thinks fit, convene a
special general meeting. Bermuda law requires that shareholders be given at least five days&#146;
notice of a meeting of the Company. Our Bye-laws extend this period to provide that not less than
20&nbsp;days&#146; written notice of a general meeting must be given to those shareholders entitled to
receive such notice. The accidental omission to give notice to or nonreceipt of a notice of a
meeting by any person does not invalidate the proceedings of a meeting.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->80<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our Bye-laws state that no business can be transacted at a general meeting unless a quorum of
at least two shareholders representing a majority of the issued shares of the Company are present
in person or by proxy and entitled to vote.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under our Bye-laws, notice to any shareholders may be delivered either personally or by
sending it through the post, by airmail where applicable, in a pre-paid letter addressed to the
shareholder at his address as appearing in the share register or by delivering it to, or leaving it
at, such registered address. Any notice sent by post shall be deemed to have been served seven (7)
days after dispatch. A notice of a general meeting is deemed to be duly given to the shareholder
if it is sent to him by cable, telex or telecopier or other mode of representing or reducing words
in a legible and non-transitory form and such notice shall be deemed to have been served
twenty-four (24)&nbsp;hours after its dispatch.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>10.2.15 Access to Books and Records and Dissemination of Information</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under Bermuda law, members of the general public have the right to inspect the public
documents of a company available at the office of the Bermuda Registrar of Companies. These
documents include the memorandum of association and any amendment to the memorandum of association.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under Bermuda law, the minutes of shareholder meetings will be open for inspection by any
shareholder or director without charge for not less than two hours during business hours each day,
subject to any reasonable restrictions that we may impose. The shareholders shall be entitled to
receive a copy of every balance sheet and statement of income and expenditure before a general
meeting as required under the Bye-laws.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The register of shareholders of a company is required to be open for inspection between 10:00
a.m. and 12:00 noon each working day without charge to members of the general public. A company is
required to maintain its share register in Bermuda but may, subject to the provisions of the
Companies Act, establish a branch register outside of Bermuda. We have established a branch
register with our transfer agent, Computershare Limited, which is based in Jersey City, New Jersey.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under Bermuda law, a company is required to keep at its registered office a register of its
directors and officers that is open for inspection for not less than two hours in each day by
members of the public without charge. Under our Bye-laws, the register of directors and officers
is available for inspection by the public between 10:00&nbsp;a.m. and 12:00 noon every working day.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bermuda law does not provide a general right for shareholders to inspect or obtain copies of
any other corporate records.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>10.2.16 Election or Removal of Directors</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Bye-laws provide that the number of directors will be such number, not less than two, as
our shareholders by resolution may from time to time determine. A director will serve until his
successor is appointed or his prior removal in the manner provided by the Companies Act or the
Bye-laws. There is no requirement under Bermuda law, the Company&#146;s memorandum of association or
its Bye-laws that a majority of the Company&#146;s directors be independent.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At the annual general meeting held on September&nbsp;7, 2007, the Company amended its Bye-laws to
delete the provisions establishing a classified Board. The amendment to the Bye-laws established
that the Board of Directors shall consist of ten (10)&nbsp;directors, with each director having one vote
on all matters submitted to the Board. At that meeting, eight members of the Board of Directors
were elected, with two seats then reserved as casual vacancies. At the annual general meeting held
on September&nbsp;8, 2008, the ten directors were reelected.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->81<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The shareholders may by resolution determine that one or more vacancies in the Board of
Directors shall be deemed casual vacancies for the purposes of the Bye-laws. The Board, so long as
a quorum of directors remains in office, shall have the power at any time and from time to time to
appoint any individual to be a director so as to fill a casual vacancy. The shareholders may
approve the appointment of alternate directors or may authorize the Board to appoint them.
Directors may also appoint and remove their own alternates.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We may, in a special general meeting called for this purpose, remove a director, provided
notice of such meeting is served upon the director concerned not less than fourteen days before the
meeting and he shall be entitled to be heard at that meeting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The office of a director will be vacated in the event of any of the following:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if he resigns his office by notice in writing to be delivered to our registered
office or tendered at a meeting of the Board of Directors;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if he becomes of unsound mind or a patient for any purpose under any statute or
applicable law relating to mental health and the Board of Directors resolves that his
office is vacated;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if he becomes bankrupt or enters into a general settlement with his creditors;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if he is prohibited by law from being a director; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if he ceases to be a director by virtue of the Companies Act or is removed from
office pursuant to the Bye-laws.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>10.2.17 Amendment of Memorandum of Association and Bye-Laws</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bermuda law provides that the memorandum of association of a company may be amended by
resolution passed at a general meeting of which due notice has been given. An amendment to a
memorandum of
association does not require the consent of the Minister of Finance save for specific
circumstances, for example, the adopting of any authority to carry on restricted business
activities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under Bermuda law, the holders of:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>an aggregate of not less than twenty percent in par value of a company&#146;s issued share
capital or any class thereof; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>not less in the aggregate than twenty percent of the
company&#146;s debentures entitled to object to alterations to the
Company&#146;s memorandum of association,</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">are entitled to object to amendments to its memorandum of association, and have the right to apply
to the Supreme Court of Bermuda for an annulment of any amendment of the memorandum of association.
Where such an application is made, the amendment becomes effective only to the extent that it is
confirmed by the Bermuda Supreme Court. An application for an annulment of an amendment of the
memorandum of association must be made within twenty-one days after the date on which the
resolution amending the memorandum of association is passed and may be made on behalf of the
persons entitled to make the application by one or more of their number as they may appoint in
writing for the purpose.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our Bye-laws may be amended in the manner provided for in the Companies Act, which provides
that the directors may amend the Bye-laws, provided that any such amendment shall be effective only
to the extent approved by the shareholders.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->82<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>10.2.18 Merger or Consolidation (Amalgamation)</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Companies Act provides that,
subject to the terms of a company&#146;s bye-laws, the merger or
consolidation of a Bermuda company with another company (referred to as an &#147;amalgamation&#148; under Bermuda law)
requires a merger or consolidation
agreement which must be approved by the board of directors and at a meeting of the shareholders by
seventy-five percent of the shareholders present and entitled to vote at such meeting in respect of
which the quorum shall be two persons holding or representing by proxy more than one-third of the
issued shares of the company. These provisions do not apply where a holding company is merging
with one or more of its wholly-owned subsidiaries or where two or more wholly-owned companies of
the same holding company are merging.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under Bermuda law, in the event of a merger or consolidation of a Bermuda company, a
shareholder who did not vote in favor of the transaction and who is not satisfied that fair value
has been offered for the shares, may apply to a Bermuda court within one month of notice of the
meeting of shareholders to appraise the fair value of those shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>10.2.19 Class&nbsp;Actions and Derivative Actions</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Class actions, as they are commonly understood in the United States, are not available to
shareholders under Bermuda law. Derivative actions are generally only available to shareholders
under Bermuda law in very limited circumstances. A shareholder may commence an action in the name
of a company to remedy a wrong done to the company where the wrongdoers are in control of the
company and the act complained of is of a fraudulent character, oppressive, beyond the corporate
power of the company, illegal or would have required the approval of a greater percentage of the
company&#146;s shareholders than those that actually approved it. A shareholder may not commence such
an action where the wrong complained of is capable of ratification by the company in a general
meeting by ordinary resolution.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;When one or more shareholders believes the affairs of a company are being conducted in a
manner which is prejudicial to the interest of some of the shareholders, a Bermuda court, upon
petition, may make such order as it sees fit, including an order regulating the conduct of the
company&#146;s affairs in the future or ordering the purchase of the shares of any shareholders by other
shareholders or by the company, and in the case of a purchase of the shares by the company, for the
reduction accordingly of the company&#146;s capital or otherwise.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>10.2.20 Registrar or Transfer Agent</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our branch transfer agent and registrar is Computershare Limited, located at 525 Washington
Boulevard, Jersey City, New Jersey 07310. In addition to a register held by our branch transfer
agent, a register of holders of the shares is maintained by the principal registrar and transfer
agent, Appleby Management (Bermuda) Ltd. in Bermuda located at Argyle House, 41A Cedar Avenue,
Hamilton HM 12, Bermuda.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>10.2.21 Personal Liability of Directors and Indemnity</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Companies Act requires every officer, including directors, of a company in exercising
powers and discharging duties, to act honestly in good faith with a view to the best interests of
the company, and to exercise the care, diligence and skill that a reasonably prudent person would
exercise in comparable circumstances. The Companies Act further provides that any provision,
whether in the bye-laws of a company or in any contract between the company and any officer or any
person employed by the company as auditor, exempting such officer or person from liability, or
indemnifying him against any liability which by virtue of any rule of law would otherwise attach to
him, in respect of any fraud or dishonesty of which he may be guilty in relation to the company,
shall be void.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Every director, officer and committee member shall be indemnified out of our funds against all
civil liabilities, loss, damage or expense including liabilities under contract, tort and statute
or any applicable foreign law or regulation and all reasonable legal and other costs and expenses
properly payable, incurred or
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->83<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">suffered by him as director, officer or committee member; provided
that the indemnity contained in the Bye-laws will not extend to any matter which would render it
void under the Companies Act as discussed above.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>10.2.22 Exchange Controls</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have been designated by the Bermuda Monetary Authority as a non-resident under the Exchange
Control Act of 1972 (the &#147;Exchange Control Act&#148;). This designation allows us to engage in
transactions in currencies other than the Bermuda dollar.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The transfer of Common Shares between persons regarded as resident outside Bermuda for
exchange control purposes and the issue of Common Shares to such persons may be effected without
specific consent under the Exchange Control Act and regulations thereunder, provided that the
Bermuda Monetary Authority is promptly notified of all instances in which the Company becomes aware
that a new shareholder has obtained five percent or more of the Company&#146;s shares. Any issues of
shares, and any transfers of Common Shares to any person regarded as resident in Bermuda for
exchange control purposes, require specific prior approval from the Bermuda Monetary Authority
under the Exchange Control Act.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding the recording of any special capacity, we are not bound to investigate or
incur any responsibility in respect of the proper administration of any such estate or trust.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We will take no notice of any trust applicable to any of our Common Shares whether or not we
had notice of such trust.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As an &#147;exempted company,&#148; we are exempt from Bermuda laws which restrict the percentage of
share capital that may be held by non-Bermudians. However, as an exempted company we may not
participate in certain designated business transactions, which we do not consider relevant to our
present or planned business activities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>10.3 Material Contracts</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Composite Services Agreement</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company engages in transactions in the ordinary course of business with PEWC, including
the purchase of certain raw materials and the distribution of PEWC products in various countries in
the Asia Pacific region. The Company and PEWC are parties to a composite services agreement dated
November&nbsp;7, 1996 (the &#147;Composite Services Agreement&#148;), which the Company has renewed annually, at
its option. The Composite Services Agreement contains provisions that define the relationship and
the conduct of the respective businesses of the Company and PEWC and confers certain preferential
benefits on the Company. Pursuant to the Composite Services Agreement:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>PEWC agrees to (a)&nbsp;sell copper rod to the Company, upon the Company&#146;s request, (i)&nbsp;at
a price consisting of the spot price of copper on the LME plus an agreed upon premium and
(ii)&nbsp;at prices and on terms at least as favorable as PEWC provides copper rod to other
purchasers of similar amounts of copper rod in the same markets, and (b)&nbsp;give priority in
the supply of copper rod to the Company over other purchasers of copper rod from PEWC.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company has the right to distribute any wire or cable product manufactured by
PEWC in all markets in which the Company presently distributes or develops the capability
to distribute in the future such products on such terms as have historically been in
effect or on terms at least as favorable as PEWC grants to third parties that distribute
such products in such markets. However, PEWC is not required to grant to the Company the
right to distribute products manufactured by PEWC in the future in markets where the
Company does not currently have the capability to distribute unless and</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->84<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>until PEWC has no
pre-existing contractual rights which would conflict with the grant of such right to the
Company.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Each of PEWC and the Company will notify the other party prior to entering into any
negotiations with a third party concerning the establishment of any facility or similar
venture to manufacture or distribute any wire or cable product outside of the markets
where the Company currently manufactures or distributes, or intends to develop the
capability to manufacture or distribute, any wire or cable product. Unless the Company
and PEWC mutually agree otherwise, the Company has the right of first refusal to enter
into any definitive agreement with such third party. If, however, such third party would
not agree to the substitution of the Company for PEWC or such substitution would prevent
the successful completion of the facility or venture, PEWC has agreed to arrange for the
Company to participate to the extent possible.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>PEWC agrees to make available to the Company, upon the Company&#146;s request and on terms
to be mutually agreed between PEWC and the Company from time to time, certain services
with respect to the design and manufacture of wire and cable products, computerization,
inventory control, purchasing, internal auditing, quality control, emergency back-up
services, and recruitment and training of personnel; such services may include the
training of the Company&#146;s employees and managers at PEWC facilities and the secondment of
PEWC employees and managers to the Company.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Without the consent of the Company, PEWC will not compete with respect to the
manufacture or distribution of wire and cable products in any market in which the Company
is manufacturing or has taken significant steps to commence manufacturing.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>For purposes of the Composite Services Agreement, each province in China is
considered the equivalent of a country.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To the extent that transactions occur in the future between the Company and PEWC or affiliates
of PEWC other than under the Composite Services Agreement, such transactions will be entered into
on an arm&#146;s length basis on terms no less favorable than those available from unaffiliated third
parties.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Indemnification Agreement</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company and PEWC are parties to an indemnification agreement dated November&nbsp;6, 1996 (the
&#147;Indemnification Agreement&#148;), pursuant to which PEWC agreed to indemnify the Company (including the
Company&#146;s directors, officers, employees and agents) against any cost, expense, loss, liability or
damage arising out of any claim asserted or threatened to be asserted by any third party as a
result of certain actions taken or failed to be taken by PEWC or its subsidiaries (other than the
Company) prior to March&nbsp;1997 with respect to Sigma Cable, Sino-Sin Trading Co. Ltd., APEC, Siam
Pacific, Siam Pacific Holding Company, Pacific Thai, Charoong Thai and NPC, following the exercise
by the Company of its option to purchase, directly or indirectly, each of them (collectively, the
&#147;Transferred Businesses&#148;). PEWC has a duty to indemnify the Company if such cost, expense, loss,
liability or damage arises out of claims resulting from the actions or inactions of PEWC or its
subsidiaries, with respect to the Transferred Businesses, to the extent such action or failure to
act was not in compliance with applicable laws and regulations or obligations to third parties and,
with respect to Charoong Thai, is limited to situations of which PEWC had knowledge.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Amended and Restated Shareholders Agreement</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In connection with the acquisition by SOF of all of the Common Shares previously held by
Sino-JP, the Company, PEWC and SOF entered into a shareholders agreement dated as of June&nbsp;28, 2007
(the &#147;Shareholders Agreement&#148;), pursuant to which the Company granted to SOF certain rights and
protections. Under the Shareholders Agreement, the Company has agreed to indemnify SOF, and its
partners and certain of its affiliates (the &#147;SOF Indemnified Persons&#148;), for any additional taxes,
interest, penalties and other costs that
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->85<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">might be imposed upon or incurred by the SOF Indemnified
Persons in the event that the Company is determined by the Internal Revenue Service (the &#147;IRS&#148;) to
be a &#147;controlled foreign corporation&#148; (a &#147;CFC&#148;) or a &#147;passive foreign investment company&#148; (a
&#147;PFIC&#148;) as such terms are interpreted and defined under IRS rules or regulations. In addition,
under the Shareholders Agreement, the Company granted to SOF certain registration rights with
respect to the Common Shares owned by it, including the undertaking by the Company to prepare and
file a shelf registration statement, and the further right of SOF to exercise two demand
registration rights with regard to its Common Shares and to further exercise certain piggyback
registration rights in connection with its Common Shares. The Shareholders Agreement was amended
and restated on March&nbsp;27, 2009 (the &#147;Amended and Restated Shareholders Agreement&#148;) in connection
with the sale by SOF to PEWC of 51% of the Common Shares held by SOF. See Item&nbsp;7: &#147;Major
Shareholders and Related Party Transactions.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>10.4 Environmental Matters</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company believes that all of its operations are in compliance with, and in certain
circumstances exceed, all applicable environmental laws and regulations in Thailand, Singapore,
Australia and China. The Company has not been subject to any legal, regulatory or other action
alleging violations or breaches of environmental standards. While the Company does not believe
that the nature of its operations creates environmental hazards, no assurance can be given that new
environmental laws or regulations in Thailand, Singapore, Australia, China or elsewhere, will not,
in the future, require changes in the Company&#146;s production processes or otherwise adversely affect
the Company&#146;s operations and financial condition.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>10.5 Insurance</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company maintains insurance policies covering certain buildings, machinery and equipment
against specified amounts of damage or loss caused by fire, flooding, other natural disasters and
burglary and theft. The Company does not carry insurance for consequential loss arising from
business interruptions or political disturbances and does not carry product liability insurance.
The Company believes that it maintains insurance coverage commensurate with the nature of and risks
associated with its business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>10.6 Credit Support</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PEWC has provided credit support to the Company and its subsidiaries through the provision of
direct loans, credit terms in inter-company trade balances between PEWC and the operating
subsidiaries and
corporate guarantees for trade and credit facilities from banks and financial institutions for
the purposes of financing working capital, capital expenditures, acquisitions and expansion
programs. There can be no assurance that PEWC will provide support in the future.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>10.7 Taxation</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following is a summary of the material tax consequences of the acquisition, ownership and
disposition of Common Shares based on the tax laws of the United States and Bermuda, subject to the
assumptions, qualifications and limitations in our discussion below. Such summary is subject to
changes in United States and Bermuda law, including changes that could have retroactive effect.
The following summary does not take into account the individual circumstances of an investor, nor
does it purport to be a complete technical analysis or examination of all potential tax effects
relevant to a decision to purchase Common Shares, including without limitation, the tax laws of the
various states within the United States.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>10.7.1 United States Taxation</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following is a summary of the material United States federal income tax consequences of
the acquisition, ownership and disposition of Common Shares by a U.S. Holder (as defined below) and
a Non-U.S. Holder (as defined below) in each case, subject to the assumptions, qualifications and
limitations in our
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->86<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">discussion below. Such summary is subject to changes in United States law,
including changes that could have retroactive effect. The summary does not purport to be a
comprehensive description of all possible tax considerations that may be relevant to a decision to
purchase Common Shares. This summary is based upon the Internal Revenue Code of 1986, as amended
(the &#147;Code&#148;), regulations promulgated under the Code by the U.S. Treasury Department (the
&#147;Treasury&#148;) (including proposed and temporary regulations), rulings, current administrative
interpretations and official pronouncements of the IRS, and judicial decisions, all as currently in
effect and all of which are subject to differing interpretations or to change, possibly with
retroactive effect. Such change could materially and adversely affect the tax consequences
described below. No assurance can be given that the IRS would not assert, or that a court would
not sustain, a position contrary to any of the tax consequences described below. Further, this
summary does not discuss any foreign, state or local tax consequences.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In particular, this summary deals only with Common Shares held as capital assets and does not
address the United States tax treatment of U.S. Holders and Non-U.S. Holders that are subject to
special treatment under the Code, such as dealers in stocks, securities, or currencies, traders in
securities that elect to use a mark-to-market method of accounting for their securities holdings,
financial institutions, insurance companies, tax-exempt entities, real estate investment trusts,
regulated investment companies, qualified retirement plans, individual retirement accounts, and
other tax deferred accounts, expatriates of the United States, persons subject to the alternative
minimum tax, persons holding shares as part of a hedging or conversion transaction or a straddle,
or other integrated transaction, persons who acquired Common Shares pursuant to the exercise of any
employee stock option or otherwise as compensation for services, or persons whose functional
currency is not the United States dollar or who own (directly, indirectly or by attribution) 10% or
more of the stock of the Company. Consequently, prospective purchasers who are U.S. Holders or
Non-U.S. Holders are advised to satisfy themselves as to the overall United States federal, state,
local and foreign tax consequences of their acquisition, ownership and disposition of Common Shares
by consulting their own tax advisors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As used herein, the term &#147;U.S. Holder&#148; means a beneficial owner of Common Shares that is (i)&nbsp;a
citizen or resident of the United States, (ii)&nbsp;a corporation (including any entity treated as a
corporation for U.S. federal income tax purposes) created or organized in the United States or
under the laws of the United States or any state (or the District of Columbia), (iii)&nbsp;an estate,
the income of which is subject to United States federal income tax regardless of its source, or
(iv)&nbsp;a trust, if a court within the United States is able to exercise primary supervision over the
administration of the trust and one or more &#147;United States persons&#148; (as defined in Section
7701(a)(30) of the Code) has the authority to control all substantial decisions of the trust.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The term &#147;Non-U.S. Holder&#148; means a beneficial owner of Common Shares that is not a U.S.
Holder. As described in &#147;Taxation of Non-U.S. Holders&#148; below, the consequences to a Non-U.S.
Holder may differ substantially from the tax consequences to a U.S. Holder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If a partnership (including for this purpose any entity treated as a partnership for U.S.
federal income tax purposes) is a beneficial owner of Common Shares, the U.S. federal income tax
consequences to a partner in the partnership will generally depend on the status of the partner and
the activities of the partnership. A holder of Common Shares that is a partnership and the
partners in such partnership should consult their own tax advisors regarding the U.S. federal
income tax consequences of the ownership and disposition of Common Shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Taxation of U.S. Holders</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The discussion in &#147;Taxation of Dividends&#148; and &#147;Taxation of Capital Gains&#148; below assumes that
the Company will not be treated as a PFIC for U.S. federal income tax purposes. For a discussion
of the rules that apply if the Company is treated as a PFIC, see the discussion in &#147;Passive Foreign
Investment Company&#148; below.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->87<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Taxation of Dividends</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have never declared or paid any cash dividends and do not presently anticipate paying
dividends in the near future. A U.S. Holder receiving a distribution with respect to Common Shares
generally will be required to include such distribution in gross income (as ordinary income subject
to regular, and not reduced, tax rates) on the day received as foreign-source dividend income to
the extent such distribution is paid from the Company&#146;s current or accumulated earnings and profits
(as determined under United States federal income tax principles). Such dividends will not be
eligible for the dividends received deduction (generally allowed to certain United States
corporations in respect of dividends received from United States corporations). U.S. Holders that
are corporations and directly own 10% or more of the voting stock of the Company may be entitled to
claim a foreign tax credit for United States federal income tax purposes in respect of foreign
taxes paid by the Company and certain subsidiaries.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under U.S. federal income tax laws, a dividend paid to an individual U.S. shareholder from
either a domestic corporation or a &#147;qualified foreign corporation&#148; is subject to tax at the reduced
rates applicable to certain capital gains. A qualified foreign corporation includes certain
foreign corporations that are eligible for benefits of a comprehensive income tax treaty with the
United States which the Secretary of the Treasury determines is satisfactory for purposes of this
provision and which includes an exchange of information program. In addition, a foreign
corporation not otherwise treated as a qualified foreign corporation is so treated with respect to
any dividend it pays if the stock with respect to which it pays such dividend is readily tradable
on an established securities market in the United States.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the absence of a comprehensive income tax treaty between the United States and Bermuda, the
Company will not be treated as a &#147;qualified foreign corporation&#148; under the treaty test. So long as
the Company is not a PFIC (as discussed below), dividends paid by the Company to individual
shareholders would qualify for these reduced rates if its stock was treated as readily tradable on
an established securities market in the United States.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In Notice 2003-71, 2003-2 C.B. 922, the IRS determined that common or ordinary stock, or an
American depositary receipt in respect of such stock, is considered readily tradable on an
established securities market in the United States if it is listed on a national securities
exchange that is registered under Section&nbsp;6 of the Securities Exchange Act of 1934 (15 U.S.C. 78f)
or on the Nasdaq Stock Market. As stated in the SEC&#146;s Annual Report for 2002, registered national
exchanges as of September&nbsp;30, 2002 include the American Stock Exchange (now known as NYSE Amex
Equities), the Boston Stock Exchange, the Cincinnati Stock Exchange, the Chicago Stock Exchange,
the NYSE, the Philadelphia Stock Exchange, and the Pacific Exchange, Inc.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The notice further provided, however, that the Treasury and the IRS were continuing to
consider, for subsequent years, the treatment of dividends with respect to stock listed only in a
manner that did not meet this definition, such as on the Over-the-Counter Bulletin Board (the &#147;OTC
BB&#148;) or on the electronic Pink Sheets. In particular, the notice indicated that the Treasury and
the IRS were considering whether or to what extent treatment of stock that was listed only in such
manner as &#147;readily tradable on an established securities market in the United States&#148; should be
conditioned on the satisfaction of parameters regarding minimum trading volume, minimum number of
market makers, maintenance and publication of historical trade or quotation data, issuer reporting
requirements under SEC or exchange rules, or issuer disclosure or determinations regarding PFIC
status. The IRS has not yet provided further guidance on whether or in what circumstances, a
company like the Company, which is traded on the OTC BB, will be treated as a qualified foreign
corporation. Should the Company be relisted on a registered national exchange, any dividends paid
by the Company should qualify for the reduced rates referred to above.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To the extent any distribution exceeds the current and accumulated earnings and profits of the
Company for a taxable year, the distribution will be treated as a non-taxable return of capital to
the extent of the U.S. Holder&#146;s adjusted tax basis in the Common Shares with respect to which the
distribution is made, causing a reduction in the adjusted basis of the Common Shares (thereby
increasing the amount of gain, or decreasing the amount of loss, to be recognized by the U.S.
Holder on a subsequent disposition of the Common Shares). To the extent such distribution exceeds
the U.S. Holder&#146;s adjusted tax basis in the Common Shares, such excess will be treated as capital
gain.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->88<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Taxation of Capital Gains</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A U.S. Holder will recognize taxable gain or loss on any sale, exchange or other disposition
of Common Shares (including a liquidation, dissolution or as a result of a non-pro rata redemption
of Common Shares that qualified for treatment as a sale or exchange for United States federal
income tax purposes) in an amount equal to the difference between the amount realized for the
Common Shares and the U.S. Holder&#146;s adjusted tax basis in the Common Shares. Such gain or loss
generally will be treated as capital gain or loss and will be long-term capital gain or loss if the
Common Shares have been held for more than one year on the date of the sale, exchange or other
disposition thereof, and will be short-term capital gain or loss if the Common Shares have been
held for one year or less on the date of the sale or exchange thereof. Any gain recognized by a
U.S. Holder generally will be treated as United States source income. In general, an individual&#146;s
short-term capital gains are taxable as ordinary income and an individual&#146;s long-term capital gains
are subject to U.S. federal income tax at preferential rates.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Long-term capital gains of corporations generally are subject to the U.S. federal income tax
at a current maximum marginal rate of 35%. Short-term capital gain generally is taxable at
ordinary income rates. Although capital gains of corporations currently are taxed at the same
rates as ordinary income, the distinction between capital gain and ordinary income or loss is
relevant for purposes of, among other things, limitations on the deductibility of capital losses.
Corporations may deduct capital losses only to the extent of capital gains and generally may carry
back capital losses to each of the preceding three years and carry forward capital losses to each
of the succeeding five years. Individuals may deduct capital losses to the extent of capital gains
plus up to $3,000 ($1,500 for married individuals filing separate returns) and may carry forward
capital losses indefinitely.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Backup Withholding</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In general, information reporting requirements may be applicable to dividend payments (or
other taxable distributions) made in respect of Common Shares to non-corporate U.S. Holders, and
&#147;backup withholding&#148; at the rate of 28% (which rate is scheduled to increase to 31% after 2010)
will apply to such payments (i)&nbsp;if the holder or beneficial owner fails to provide a taxpayer
identification number in the manner required by U.S. law and applicable regulations, (ii)&nbsp;if the
IRS notifies the payor that the taxpayer identification number furnished by the holder or
beneficial owner is incorrect, (iii)&nbsp;if there has been notification from the IRS of a failure by
the holder or beneficial owner to report all interest or dividends required to be shown on its
United States federal
income tax returns or (iv)&nbsp;in certain circumstances, if the holder or beneficial owner fails
to comply with applicable certification requirements. In general, payment of the proceeds from a
sale of Common Shares to or through a United States office of a broker is subject to both United
States backup withholding and information reporting unless the holder or beneficial owner
establishes an exemption. U.S. Holders who are required to establish their exempt status generally
must provide such certification on IRS Form W-9. Amounts withheld under the backup withholding
rules may be credited against a holder&#146;s tax liability, and a holder may obtain a refund of any
excess amounts withheld under the backup withholding rules by timely filing the appropriate claim
for refund with the IRS. Payment of the proceeds from the sale of Common Shares effected outside
the United States by a foreign office of certain United States connected brokers will not be
subject to backup withholding tax but will be subject to information reporting requirements unless
the broker has documentary evidence in its records that the beneficial owner is a non-U.S. Holder
and has no actual knowledge to the contrary, or the beneficial owner otherwise establishes an
exemption.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Passive Foreign Investment Company</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In general, the Company will be treated as a PFIC for United States federal income tax
purposes for any taxable year if either (i)&nbsp;at least 75% of the gross income of the Company is
passive income or (ii)&nbsp;at least 50% of the value (determined on the basis of a quarterly average)
of the Company&#146;s assets is attributable to assets that produce or are held for the production of
passive income. The Company believes, based on its current operations and assets, that it is not a
PFIC and does not expect to become a PFIC in the future. This
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->89<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">conclusion is a factual
determination based on, among other things, a valuation of the Company&#146;s assets, which will likely
change from time to time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the Company were a PFIC for any taxable year during which a U.S. Holder held Common Shares,
the U.S. Holder would be subject to special tax rules with respect to (i)&nbsp;any &#147;excess distribution&#148;
by the Company to the U.S. Holder (generally any distribution received by the U.S. Holder in a
taxable year that is greater than 125% of the average annual distribution received by the U.S.
Holder in the three preceding taxable years, or the U.S. Holder&#146;s holding period for the Common
Shares, if shorter) and (ii)&nbsp;any gain realized on the sale or other disposition (including a
pledge) of Common Shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under these special tax rules, (i)&nbsp;the excess distribution or gain would be allocated ratably
over the U.S. Holder&#146;s holding period for the Common Shares, (ii)&nbsp;the amount allocated to the U.S.
Holder&#146;s current taxable year and to any period prior to the first taxable year in which the
Company was a PFIC would be includible as ordinary income in the U.S. Holder&#146;s current taxable year
and (iii)&nbsp;the amount allocated to a prior year during which the Company was a PFIC would be subject
to tax at the highest tax rate in effect for that year, and an interest charge would also be
imposed with respect to the resulting tax attributable to each such prior year. The interest
charge is computed using the applicable rates imposed on underpayments of United States federal
income tax for the relevant periods.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The above rules will not apply if a &#147;mark-to-market&#148; election is available and a U.S. Holder
validly makes such an election by filing a properly completed IRS Form&nbsp;8621. If such election were
made, a U.S. Holder generally would be required to take into account the difference, if any,
between the fair market value and its adjusted tax basis in the Common Shares at the end of each
taxable year as ordinary income or ordinary loss (to the extent of any net mark-to-market gains
previously included in income). A U.S. Holder&#146;s tax basis in the Common Shares would be adjusted
to reflect any such income or loss amount. In addition, any gain from a sale, exchange or other
disposition of the Common Shares would be treated as ordinary income, and any loss would be treated
as ordinary loss (to the extent of any net mark-to-market gains previously included in income). A
mark-to-market election is available to a U.S. Holder only if the Common Shares are considered
&#147;marketable stock&#148; for these purposes. Generally, shares of a PFIC will be considered marketable
stock if they are &#147;regularly traded&#148; on a &#147;qualified exchange&#148; within the meaning of applicable
U.S. Treasury regulations. A class of shares is regularly traded during any calendar year during
which such class of shares is traded, other than in de minimis quantities, on at least 15&nbsp;days
during each calendar quarter. A &#147;qualified exchange&#148; is defined to include a national securities
exchange registered with the SEC or certain foreign exchanges. The
Common Shares are not currently traded on a national securities exchange or a qualifying
foreign exchange. Accordingly, the mark-to-market election under these rules will not currently be
available.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The special tax rules described above will also not apply to a U.S. Holder if the U.S. Holder
elects to have the Company treated as a &#147;qualified electing fund&#148; (a &#147;QEF election&#148;) and the
Company provides certain information to U.S. Holders. If the Company is treated as a PFIC, it will
notify the U.S. Holders and provide such holders with the information necessary to make an
effective QEF election, including information as to the procedures for making such an election.
The QEF election is made on a shareholder-by-shareholder basis and can ordinarily be revoked only
with the consent of the IRS.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A U.S. Holder that makes a valid QEF election will be currently taxable on its pro rata share
of the Company&#146;s ordinary earnings and net capital gain (at ordinary income and capital gains
rates, respectively) for each taxable year that the Company is classified as a PFIC, regardless of
whether distributions are received. Thus, the U.S. Holder may recognize taxable income without
receiving any cash to pay its tax liability with respect to such income. The U.S. Holder&#146;s basis
in the Common Shares will be increased to reflect taxed but undistributed income. Distributions of
income that have been previously taxed will result in a corresponding reduction of basis in the
Common Shares and will not be taxed again as a distribution to the U.S. Holder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A U.S. Holder owning Common Shares during any year that the Company is a PFIC must file IRS
Form&nbsp;8621. U.S. Holders should consult their tax advisors concerning the United States federal
income tax
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->90<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">consequences of holding Common Shares and of making a mark-to-market or QEF election if
the Company is treated as a PFIC in the future.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Controlled Foreign Corporation</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A non-U.S. corporation generally will be a CFC for U.S. tax purposes if United States
shareholders collectively own more than 50&nbsp;percent of the total combined voting power or total
value of the corporation&#146;s stock on any day during any taxable year. For this purpose, United
States shareholders are limited to those U.S. persons who own, directly, indirectly or
constructively, 10&nbsp;percent or more of the total combined voting power of all classes of stock of
the non-U.S. corporation. In general, if a corporation is a CFC, then, for each tax year, its
United States shareholders will be required to recognize on a current basis their respective shares
of the CFC&#146;s &#147;subpart F income&#148; and income from investments in certain types of U.S. property
(limited, however, to their respective shares of the CFC&#146;s earnings and profits, as computed for
U.S. tax purposes, for such tax year) even if the income has not been distributed to the
shareholders in the form of dividends or otherwise. Subpart F income consists of certain specified
categories of income including, among others, dividends, interest, rents, royalties, net gains from
the sale of property giving rise to such income and income from certain types of transactions
involving &#147;related persons&#148; as defined for U.S. federal income tax purposes. Income from
investments in certain types of U.S. property to be included by United States shareholders on a
current basis includes, among others, income from tangible property physically located in the U.S.,
income from stock of U.S. domestic corporations, and income from any right to use a patent or
copyright in the U.S.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Taxation of Non-U.S. Holders</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Taxation of Dividends</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject to the discussion in &#147;Backup Withholding&#148; below, Non-U.S. Holders generally will not
be subject to U.S. federal income tax, including withholding tax, on distributions received on
Common Shares, unless the distributions are effectively connected with a trade or business
conducted in the United States (and, if an applicable income tax treaty so requires, attributable
to a permanent establishment maintained in the United States).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If distributions are effectively connected with a U.S. trade or business (and, if applicable,
attributable to a U.S. permanent establishment), Non-U.S. Holders generally will be subject to tax
on such distributions in the same manner as U.S. Holders, as described in &#147;Taxation of U.S. Holders
&#151; Taxation of Dividends&#148; above. In
addition, any such distributions received by a corporate Non-U.S. Holder may also, under
certain circumstances, be subject to an additional &#147;branch profits tax&#148; at a 30% rate or such lower
rate as may be specified by an applicable income tax treaty.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Taxation of Capital Gains</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject to the discussion in &#147;Backup Withholding&#148; below, Non-U.S. Holders generally will not
be subject to U.S. federal income tax, including withholding tax, on any gain recognized on a sale
or other taxable disposition of Common Shares, unless (i)&nbsp;the gain is effectively connected with a
trade or business conducted in the United States (and, if an applicable income tax treaty so
requires, attributable to a permanent establishment maintained in the United States), or (ii)&nbsp;a
Non-U.S. Holder is an individual and is present in the United States for at least 183&nbsp;days in the
taxable year of the disposition, and certain other conditions are present.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If a Non-U.S. Holder meets the test in clause (i)&nbsp;above, such Non-U.S. Holder generally will
be subject to tax on any gain that is effectively connected with his conduct of a trade or business
in the United States in the same manner as a U.S. Holder, as described in &#147;Taxation of U.S. Holders
&#151; Taxation of Capital Gains&#148; above. Effectively connected gain realized by a corporate Non-U.S.
Holder may also, under certain circumstances, be subject to an additional &#147;branch profits tax&#148; at a
30% rate or such lower rate as may be specified by an applicable income tax treaty.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->91<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If a Non-U.S. Holder meets the test in clause (ii)&nbsp;above, such Non-U.S. Holder generally will
be subject to tax at a 30% rate on the amount by which his U.S. source capital gain exceeds his
U.S. source capital loss.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Backup Withholding</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payments to Non-U.S. Holders of distributions on, or proceeds from the disposition of, Common
Shares are generally exempt from information reporting and backup withholding. However, a Non-U.S.
Holder may be required to establish that exemption by providing certification of non-U.S. status on
an appropriate IRS Form W-8.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Backup withholding is not an additional tax. Amounts withheld as backup withholding from a
payment to a Non-U.S. Holder may be credited against his U.S. federal income tax liability and a
Non-U.S. Holder may obtain a refund of any excess amounts withheld by filing the appropriate claim
for refund with the IRS and furnishing any required information in a timely manner.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>10.7.2 Bermuda Taxation</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the opinion of Appleby, the following discussion correctly describes the material tax
consequences of the ownership of Common Shares under Bermuda law, subject to the assumptions,
qualifications and limitations in the discussion below. Such summary is subject to changes in
Bermuda law, including changes that could have retroactive effect.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under current Bermuda law, there are no taxes on profits, income or dividends nor is there any
capital gains tax. Furthermore, the Company has received from the Minister of Finance of Bermuda
under the Exempted Undertakings Tax Protection Act of 1966, as amended, an undertaking that, in the
event that Bermuda enacts any legislation imposing tax computed on profits or income, or computed
on any capital asset, gain or appreciation, or any tax in the nature of estate duty or inheritance
tax, then the imposition of any such tax shall not be applicable to the Company or to any of its
operations, or the shares, debentures or other obligations of the Company, until March&nbsp;28, 2016.
This undertaking does not, however, prevent the imposition of any such tax or duty on such persons
as are ordinarily resident in Bermuda and holding such shares, debentures or obligations of the
Company or of property taxes on Company-owned real property or leasehold interests in Bermuda.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As an exempted company, the Company must pay to the Bermuda government an annual registration
fee calculated on a sliding-scale basis by reference to its assessable capital, that is, its
authorized share capital plus any share premium.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There is no stamp duty or other transfer tax payable upon the transfer of shares in the
Company by shareholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The United States does not have a comprehensive income tax treaty with Bermuda.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>10.8 Documents on Display</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are required to comply with the reporting requirements of the Securities Exchange Act of
1934, as amended (the &#147;Exchange Act&#148;), applicable to a foreign private issuer. We are currently
required to file annually a Form 20-F no later than six months after the close of our fiscal year,
which is December&nbsp;31st. Any time the Company is delinquent in filing timely any periodic reports,
including an Annual Report on Form 20-F, with the SEC, that delinquency may adversely affect the
Company&#146;s status on any exchange or quotation service on which its shares are listed or quoted and
the Company may not be entitled to use certain abbreviated registration statements with the SEC in
connection with the registration of any of its securities. We have previously been delinquent in
filing our annual reports. As a result, the Company was delisted from the OTC
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->92<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">BB and traded on the
Pink Sheets. On April&nbsp;9, 2008, trading in the Common Shares of the Company was restored to the OTC
BB under the trading symbol &#147;AWRCF.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As a foreign private issuer, we are exempt from the rules under the Exchange Act prescribing
the furnishing and content of proxy statements, and our officers, directors and principal
shareholders are exempt from the reporting and short-swing profit recovery provisions contained in
Section&nbsp;16 of the Exchange Act.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our reports and other information, when so filed, may be inspected and copied (at prescribed
rates) at the public reference facilities maintained by the Securities and Exchange Commission (the
&#147;SEC&#148;) at Judiciary Plaza, 100 F Street, N.E., Washington D.C. 20549. Please call the SEC at
1-800-SEC-0330 for further information. In addition, the SEC maintains a web site that contains
information filed electronically with the SEC, which can be accessed over the Internet at
http://www.sec.gov.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have filed all our reports electronically since November&nbsp;4, 2002. Such reports can be
accessed over the Internet at http://www.sec.gov.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, we post certain information regarding the Company and its operations on our
website located at: www.apwcc.com. Summary information regarding the Company posted on our website
should not be considered to be a substitute for, or a restatement of, the more complete information
regarding the Company, its results of operations and financial condition set forth in this Annual
Report or other documents or information which we may file with the SEC.
</DIV>
<DIV align="left">
<A name="112"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;11: Quantitative and Qualitative Disclosures About Market Risk</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our exposure to financial market risks derives primarily from the changes in foreign exchange
rates, interest rates, and the commodity prices of our primary raw material, copper.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>11.1 Foreign Currency Exposure</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in currency exchange rates influence the Company&#146;s results of operations. The
Company&#146;s principal operations and sales are located in Thailand, Singapore and China and a
substantial portion of our revenues are denominated in Baht, Singapore dollars or Chinese Renminbi.
Nearly all of the raw materials for these operations are imported and paid for in U.S. dollars and
a substantial portion of the Company&#146;s future capital expenditures are expected to be in U.S.
dollars. The Company requires a significant amount of U.S.
dollars for its ongoing equipment upgrade and maintenance programs. Although the Company&#146;s
reporting currency is U.S. dollars, the functional currency of its Singapore operations, which
accounted for approximately 17.3% of Company sales (including sales of Distributed Products) in
2008, is the Singapore dollar, the functional currency of its Thai operations, which accounted for
approximately 43.2% of Company sales in 2008, is the Baht, and the functional currency of its
Chinese operations, which accounted for approximately 27.0% of Company sales in 2008, is the
Renminbi. Accordingly, any devaluation of the Baht, or the Singapore dollar or the Chinese
Renminbi against the U.S. dollar increases the effective cost of foreign manufacturing equipment
and the amount of foreign currency denominated expenses and liabilities and has an adverse impact
on the operations of the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following illustrates the effects of foreign currency exposure on the Company. The Thai
Baht depreciated from December&nbsp;31, 2007 to December&nbsp;31, 2008 by 17.6%. Such depreciation resulted
in foreign exchange losses of approximately $2.0&nbsp;million as of December&nbsp;31, 2008.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have entered into derivative financial instruments on a selective basis throughout the year
to mitigate foreign currency fluctuation risks arising from operating activities. The application
of these instruments is primarily for currency hedging purposes and not for trading purposes. The
Company uses Thai Baht forward foreign exchange contracts to reduce its exposure to foreign
currency risk for liabilities denominated in foreign currency. A forward foreign exchange contract
obligates the Company to exchange predetermined amounts of
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->93<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>


<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">specified foreign currencies at
specified exchange rates on specified dates or to make an equivalent U.S. dollar payment equal to
the value of such exchange. Realized and unrealized gains and losses on foreign exchange contracts
are included in income as foreign exchange gains or losses.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company entered into forward exchange contracts with a notional value of approximately $12
million that matured in January, February, March, May and June&nbsp;2008 and $19&nbsp;million that matured in
January, February, March and May&nbsp;2009.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>11.2 Interest Rate Risk</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company&#146;s exposure to market rate risk for changes in interest rates relates primarily to
the Company&#146;s bank loans and overdrafts, long-term debt and interest-bearing long-term loans from
PEWC. The Company maintains a mixture of both fixed and floating debt instruments. Interest paid
totaled $6.0&nbsp;million in 2008.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table provides information about the Company&#146;s debt instruments as of December
31, 2008 that were sensitive to changes in interest rates.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Principal Amount (In thousands of US$)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Bank loans and overdrafts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">57,962</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have cash flow and earnings exposure due to market interest rate changes for our floating
debt obligations. We manage the exposure to financial market risk by performing ongoing
evaluations of our debt portfolios and restructuring our financial instruments accordingly to
provide the optimum interest structure. At our current level of indebtedness, a half percentage
point change in interest rates would affect our interest payments by approximately $0.3&nbsp;million
annually.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>11.3 Risks Relating to Copper</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Copper is the principal raw material we use, accounting for approximately 70% of the cost of
sales in 2008. We purchase copper at prices based on the average prevailing international spot
market prices on the London Metal Exchange (the &#147;LME&#148;) for copper for the one month prior to
purchase. The price of copper
is influenced heavily by global supply and demand as well as speculative trading. As with other
costs of production, changes in the price of copper may affect our cost of sales. Whether this has
a material impact on our operating margins and financial results
depends primarily on our ability to adjust our selling prices to our customers, such that
increases and decreases in the price of copper are fully reflected in those selling prices. The
purchase price of our products is based in part on the cost of copper used to manufacture those
products. In addition, in the ordinary course of business we maintain inventories of raw materials
and finished products reasonably necessary for the conduct of our business. These inventories
typically reflect the cost of copper prevailing in the market at the time we purchase. Most of our
sales of manufactured products reflect copper prices prevailing at the time the products are
ordered. A long-term decrease in the price of copper would require the Company to revalue the
value of its inventory at periodic intervals to the then net realizable value, which could be below
cost. Copper prices have been subject to considerable volatility and it is not always possible to
manage our copper purchases and inventory so as to neutralize the impact of copper price
volatility. Accordingly, significant volatility in copper prices could have an adverse effect on
our operations. No assurance can be given that such volatility will not recur.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;By way of example, if the average prevailing international spot market prices on the LME for copper
increased from $7,000 per metric ton to $8,000 per metric ton and the Company was not able to
adjust charges to its customers, gross profits would decrease by $1,000 per metric ton. As the
Company&#146;s average sales tonnage is approximately 4,100 metric tons per month, gross profit would
decrease by $4.1&nbsp;million per month in this example.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->94<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="113"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;12: Description of Securities Other Than Equity Securities</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Not applicable)
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->95<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left">
<A name="114"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Part II</B>
</DIV>

<DIV align="left">
<A name="115"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;13: Defaults, Dividend Arrearages and Delinquencies</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Not applicable)
</DIV>
<DIV align="left">
<A name="116"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;14: Material Modifications to the Rights of Security Holders and Use of Proceeds</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Not applicable)
</DIV>
<DIV align="left">
<A name="117"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;15: Controls and Procedures</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Disclosure Controls and Procedures</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;An evaluation was carried out under the supervision and with the participation of our
principal executive and principal financial officers of the effectiveness of our disclosure
controls and procedures in accordance with the provisions of Rule&nbsp;13a-15 promulgated under the
Securities Exchange Act of 1934, as amended (the &#147;Exchange Act&#148;). Based upon that evaluation, the
Chief Executive Officer (&#147;CEO&#148;) and the interim Chief Financial Officer (&#147;CFO&#148;) concluded that
these disclosure controls and procedures were effective as of December&nbsp;31, 2008.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Internal Controls over Financial Reporting</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company is committed to improving the efficacy and reliability of its system of internal
controls. We have developed new procedures to enhance internal controls over financial reporting,
and we have established an internal audit department at the Company headquarters which would
establish the rules for internal control procedures and would supervise operating and financial
audits. Other measures taken include engaging external consultants to advise on risk control and
internal audit functions and to assist in achieving compliance with applicable regulatory
requirements, sending staff for training on U.S. GAAP accounting, employing more staff as required
to strengthen the accounting, finance and internal audit departments, implementing credit control
policies at certain subsidiaries, and documenting and disseminating internally policies and
procedures governing the Company&#146;s accounting policies, internal control and code of conduct.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company&#146;s management is responsible for establishing and maintaining adequate internal
control over financial reporting. Our management, including our CEO and CFO, does not expect that
our internal controls will prevent all errors and all fraud. A control system, no matter how well
conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of
the control system are met. Further, the design of a control system must reflect the fact that
there are resource constraints, and the benefits of controls must be considered relative to their
costs. The design of any system of controls also is based in part upon certain assumptions about
the likelihood of future events, and there can be no assurance that any design will succeed in
achieving its stated goals under all potential future conditions; over time, a control may become
inadequate because of changes in conditions, or the degree of compliance with the policies or
procedures may deteriorate. Because of the inherent limitations in a cost-effective control
system, misstatements due to error or fraud may occur and not be detected.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company&#146;s management, including its CEO and CFO, assessed the effectiveness of our
internal control over financial reporting as of December&nbsp;31, 2008 (the &#147;Assessment Date&#148;). In
making its assessment, management used the criteria set forth by the Committee of Sponsoring
Organizations (&#147;COSO&#148;) of the Treadway Commission in Internal Control &#150; Integrated Framework.
These criteria include the control environment, risk assessment, control activities, information
and communication and monitoring of each of the above criteria.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company&#146;s management has identified no material weakness in our internal controls over
financial reporting as of the Assessment Date. As a result, the Company&#146;s management, including
its CEO and CFO,
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->96<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">has concluded that, as of the Assessment Date, in accordance with the provisions of applicable
regulatory guidance, the Company&#146;s internal controls over financial reporting must be classified as
effective.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management did identify, and the CEO and the CFO have reported to the Audit Committee and the
independent auditors, certain significant deficiencies in our internal controls over financial
reporting as of the Assessment Date. The Company&#146;s management has identified processes to be
implemented in order to prevent re-occurrence of the significant deficiencies in reporting periods
subsequent to the Assessment Date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Annual Report does not contain an audit or attestation report of the Company&#146;s registered
public accounting firm regarding our internal control over financial reporting due to the
application of a transition period during which the SEC permits us to provide only management&#146;s
report on internal controls in this Annual Report.
</DIV>
<DIV align="left">
<A name="118"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;16A. Audit Committee Financial Expert</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For certain times prior to January&nbsp;1, 2007 and until September&nbsp;28, 2007, the Company did not
have an audit committee. As the Common Shares are traded on the OTC BB, the Company is not
required to have an audit committee that meets the requirements of, nor is it required to have an
audit committee financial expert as contemplated by, Regulation&nbsp;10A-3 under the Exchange Act.
During those periods of time when the Company did not have any independent directors, our full
Board of Directors fulfilled the functions of an audit committee pursuant to Section&nbsp;3(a)(58) of
the Exchange Act. On September&nbsp;28, 2007, our Board appointed Mr.&nbsp;Anson Chan and Dr.&nbsp;Yichin Lee as
independent directors to fill the two casual vacancies on the Board, and to constitute the members
of the Audit Committee, with Mr.&nbsp;Chan serving as the Audit Committee&#146;s chairman.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On April&nbsp;26, 2005, the Company adopted an Audit Committee Charter, which sets forth the powers
and responsibilities of the Audit Committee of the Company. A copy of the Charter is on file with
the SEC.
</DIV>
<DIV align="left">
<A name="119"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;16B. Code of Ethics</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On April&nbsp;26, 2005, the Company adopted a code of ethics applicable to its Chief Executive
Officer and senior financial officers. A copy of the Company&#146;s code of ethics for senior
executives is on file with the SEC.
</DIV>
<DIV align="left">
<A name="120"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;16C. Principal Accountant Fees and Services</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Audit Fees</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The aggregate fees billed for fiscal years 2008 and 2007 for professional services rendered by
the principal accountant for the audit of the Company&#146;s annual financial statements totaled $0.5
million and $0.7&nbsp;million, respectively.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Audit-Related Fees</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There were no fees for fiscal year 2008 or 2007 for assurance and audit-related services by
the principal accountant that are not included in the figure provided in the preceding paragraph.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Tax Fees</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The aggregate fees billed for fiscal years 2008 and 2007 for professional services rendered by
the principal accountant for tax compliance, tax advice and tax planning totaled approximately
$16,000 and $8,000, respectively. These fees were for services including tax planning, compliance
and general advice.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->97<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>All Other Fees</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There were no other fees for fiscal year 2008 or 2007 for products and services provided by
the principal accountant, other than those services described in the preceding paragraphs of this
Item&nbsp;16C.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Audit Committee Approval</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The engagement of the accountant to render audit or non-audit services is entered into
pursuant to pre-approval policies and procedures established in the Charter of the Audit Committee
of the Company. All services described in this Item&nbsp;16C were approved by the Audit Committee
holding office at the time of the engagement, which was the full Board of Directors. The services
described in this Item&nbsp;16C were approved also by the current Audit Committee after its appointment
by the Board on September&nbsp;28, 2007.
</DIV>
<DIV align="left">
<A name="121"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;16D. Exemptions from the Listing Standards for the Audit Committees</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company is not a listed issuer.
</DIV>
<DIV align="left">
<A name="122"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;16E. Purchases of Equity Securities by the Issuer and Affiliated Purchasers</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During 2008, there were no purchases by the issuer or any &#147;affiliated purchaser&#148; for the
purposes of this Item.
</DIV>
<DIV align="left">
<A name="123"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;16F. Change in Registrant&#146;s Certifying Accountant</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company&#146;s independent accountant has not resigned (or indicated it has declined to stand
for re-election after the completion of the current audit) or been dismissed during the Company&#146;s
two most recent fiscal years and any subsequent interim period.
</DIV>
<DIV align="left">
<A name="124"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;16G. Corporate Governance</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Common Shares currently are not listed on a national securities exchange.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->98<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>



<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="125"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Part III</B>
</DIV>

<DIV align="left">
<A name="126"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;17: Financial Statements</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company has elected to provide the financial statements and related information specified
in Item&nbsp;18 in lieu of Item&nbsp;17.
</DIV>
<DIV align="left">
<A name="127"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;18: Financial Statements</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;See page F-1.
</DIV>
<DIV align="left">
<A name="128"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;19: Exhibits</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>19.1</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Index to Audited Financial Statements</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Report of independent auditors</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Consolidated balance sheets as of December&nbsp;31, 2007 and 2008</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Consolidated statements of income for the years ended December&nbsp;31, 2006, 2007 and 2008</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Consolidated statements of shareholders&#146; equity for the years ended December&nbsp;31, 2006,
2007 and 2008</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Consolidated statements of cash flows for the years ended December&nbsp;31, 2006, 2007 and 2008</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Notes to consolidated financial statements</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>19.2</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Index to Exhibits</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.1 </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Memorandum of Association of Asia Pacific Wire &#038; Cable Corporation Limited (incorporated
by reference to Exhibit&nbsp;1.1 of the Company&#146;s annual report on Form 20-F filed with the
Securities and Exchange Commission on June&nbsp;21, 2001).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Second Amended and Restated Bye-Laws of Asia Pacific Wire &#038; Cable Corporation Limited
(incorporated by reference to Exhibit&nbsp;3.2 of the Company&#146;s Amendment No.&nbsp;4 to Form F-1
filed with the Securities and Exchange Commission on February&nbsp;18, 2009).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Amended and Restated Shareholders&#146; Agreement dated
March&nbsp;27, 2009 (incorporated by
reference to Exhibit&nbsp;3.4 of the Company&#146;s Post-Effective Amendment No.&nbsp;1 to Form F-1
filed with the Securities and Exchange Commission on April&nbsp;2, 2009).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">10.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Composite Services Agreement (incorporated by reference to Exhibit&nbsp;10.1 of the Company&#146;s
Form F-1 filed with the Securities and Exchange Commission on November&nbsp;13, 1996).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">10.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Indemnification Agreement dated November&nbsp;6, 1996 (incorporated by reference to Exhibit
10.2 of the Company&#146;s Form F-1 filed with the Securities and Exchange Commission on
November&nbsp;13, 1996).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">10.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Agreement for the Sale and Purchase of (i)&nbsp;Shares in Crown Century Holdings Limited and
(ii)&nbsp;Shareholder&#146;s Loan (incorporated by reference to Exhibit&nbsp;5.1 of the Company&#146;s annual
report on Form 20-F filed with the Securities and Exchange Commission on July&nbsp;1, 2002).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">10.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Settlement Agreement between Set Top International Inc. (Party A) and Pacific Electric
Wire and Cable Co., Ltd. and Asia Pacific Wire and Cable Corporation Ltd. (Party B)
(Translation) (incorporated by reference to Exhibit&nbsp;4.4 of the Company&#146;s annual report on
Form 20-F filed with the Securities and Exchange Commission on July&nbsp;7, 2004).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">10.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Settlement Agreement between Asia Pacific Wire &#038; Cable Corporation, Ltd. and Sino-JP Fund
Co., Ltd. (incorporated by reference to Exhibit&nbsp;4.5 of the Company&#146;s annual report on
Form 20-F filed with the Securities and Exchange Commission on November&nbsp;9, 2007).</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->99<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">10.6</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Termination Agreement between Pacific Electric Wire &#038; Cable Co., Ltd. and Chiao Tung Bank
(incorporated by reference to Exhibit&nbsp;4.6 of the Company&#146;s annual report on Form 20-F
filed with the Securities and Exchange Commission on November&nbsp;9, 2007).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">10.7</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Summaries of Joint Venture Agreements (incorporated by reference to Exhibit&nbsp;10.7 of the
Company&#146;s Amendment No.&nbsp;1 to Form F-1 filed with the Securities and Exchange Commission
on November&nbsp;26, 2008).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">11</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Code of Ethics (incorporated by reference to Exhibit&nbsp;11 of the Company&#146;s annual report on
Form 20-F filed with the Securities and Exchange Commission on November&nbsp;9, 2007).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">12.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Certification of Chief Executive Officer of the Company, pursuant to Section&nbsp;302 of the
Sarbanes-Oxley Act.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">12.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Certification of Interim Chief Financial Officer of the Company, pursuant to Section&nbsp;302
of the Sarbanes-Oxley Act.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">13.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Certification by Chief Executive Officer of periodic financial report pursuant to 18
U.S.C. Section&nbsp;1350, as mandated by Section&nbsp;906 of the Sarbanes-Oxley Act.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">13.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Certification by Interim Chief Financial Officer of periodic financial report pursuant to 18
U.S.C. Section&nbsp;1350, as mandated by Section&nbsp;906 of the Sarbanes-Oxley Act.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">15(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Audit Committee Charter (incorporated by reference to Exhibit 15(a) of the Company&#146;s
annual report on Form 20-F filed with the Securities and Exchange Commission on November
9, 2007).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">21</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>List of significant subsidiaries (see Note 1 to the consolidated financial statements).</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->100<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>
<DIV align="left">
<A name="129"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SIGNATURE</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of Section&nbsp;12 of the Securities Exchange Act of 1934, the
registrant certifies that it meets all of the requirements for filing on Form 20-F and has duly
caused this Annual Report to be signed on its behalf by the undersigned, thereunto duly authorized.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
<TD>&nbsp;</TD>

<TD colspan="3" align="left"><B>ASIA
PACIFIC WIRE &#038; CABLE CORPORATION LIMITED</B><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">Date: June&nbsp;26, 2009&nbsp;</TD>
    <TD colspan="3" style="border-bottom: 1px solid #000000" align="left">/s/ Yuan Chun Tang
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Yuan Chun Tang&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Chief Executive Officer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<P align="center" style="font-size: 10pt"><!-- Folio -->101<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Audited Financial Statements
</DIV>

<DIV align="left" style="font-size: 12pt; margin-top: 6pt"><FONT style="font-variant: SMALL-CAPS">Asia Pacific Wire &#038; Cable Corporation Limited</FONT></FONT>
</DIV>

<DIV align="left" style="font-size: 12pt; margin-top: 6pt">As of December&nbsp;31, 2007 and 2008
</DIV>

<DIV align="left" style="font-size: 12pt; margin-top: 6pt">Years ended December&nbsp;31, 2006, 2007 and 2008
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left">
<!-- TOC -->
</DIV>
<DIV align="left">
<A name="tocpage"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">INDEX TO FINANCIAL STATEMENTS
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">CONTENTS

</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="95%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Page</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A href="#300">Report of independent registered public accounting firm
</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">F-2</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A href="#301">Consolidated balance sheets as of December&nbsp;31, 2007 and 2008
</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">F-3</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A href="#302">Consolidated statements of operations for the years ended
December&nbsp;31, 2006, 2007 and 2008
</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">F-5</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A href="#303">Consolidated statements of shareholders&#146; equity for the years ended
December&nbsp;31, 2006, 2007 and 2008
</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">F-6</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A href="#304">Consolidated statements of cash flows for the years ended
December&nbsp;31, 2006, 2007 and 2008
</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">F-7</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><A href="#305">Notes to consolidated financial statements
</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">F-8</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left">
<!-- /TOC -->
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->F-1<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><IMG SRC="y01848y0184802.gif">
</DIV>

<DIV align="left">
<A name="300"></A>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 24pt">REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have audited the accompanying consolidated balance sheets of Asia Pacific Wire &#038; Cable
Corporation Limited and subsidiaries (the &#147;Company&#148;) as of December&nbsp;31, 2007 and 2008, and the
related consolidated statements of operations, shareholders&#146; equity, and cash flows for each of
the three years in the period ended December&nbsp;31, 2008. These financial statements are the
responsibility of the Company&#146;s management. Our responsibility is to express an opinion on these
financial statements based on our audits.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We conducted our audits in accordance with the standards of the Public Company Accounting
Oversight Board (United States). Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of material
misstatement. The Company is not required to have, nor were we engaged to perform, an audit of the
Company&#146;s internal control over financial reporting. Our audits included consideration of internal
control over financial reporting as a basis for designing audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
Company&#146;s internal control over financial reporting. Accordingly, we express no such opinion. An
audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements, assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement presentation. We believe that
our audits provide a reasonable basis for our opinion.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In our opinion, the consolidated financial statements referred to above present fairly, in
all material respects, the financial position of Asia Pacific Wire &#038; Cable Corporation Limited and
subsidiaries as of December&nbsp;31, 2007 and 2008, and the results of their operations and their cash
flows for each of the three years in the period ended December&nbsp;31, 2008, in conformity with
accounting principles generally accepted in the United States of America.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-left: 75%; margin-top: 6pt"><IMG SRC="y01848y0184803.gif"><BR>

Mazars LLP<BR>
Certified Public Accountants<BR>
<I>(On January&nbsp;3, 2009, Mazars<BR>
Moores Rowland LLP changed<BR>
its name to Mazars LLP.)</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Singapore June&nbsp;19,
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">2009
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 24pt"><IMG SRC="y01848y0184804.gif">
</DIV>




<P align="center" style="font-size: 10pt"><!-- Folio -->F-2<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left">
<A name="301"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">ASIA PACIFIC WIRE &#038; CABLE CORPORATION LIMITED AND SUBSIDIARIES
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">CONSOLIDATED BALANCE SHEETS
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(In thousands of US Dollars, except share data)
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 0px solid #000000"><B>December 31,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">ASSETS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Current assets:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Cash and cash equivalents</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">29,127</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">37,510</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Unrestricted short-term bank deposits (note 5)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,861</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,756</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Restricted short-term bank deposits (note 5)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,714</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,033</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Accounts receivable, net of allowance for doubtful
accounts of $11,485 and $9,644 at December&nbsp;31, 2007 and
2008, respectively (note 10)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">145,902</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">95,901</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Amounts due from related parties (note 16)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,638</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,922</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Inventories, net of allowance for inventories of $5,022
and $26,715 at December&nbsp;31, 2007 and 2008, respectively
(note 10)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Distributed products</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,897</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,227</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Finished products</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47,350</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,060</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Products in process</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26,702</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,563</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Raw materials and supplies</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27,482</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,712</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">105,431</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">72,562</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Investments (note 7)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,555</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">68</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Deferred tax assets (note 11)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,481</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,064</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Prepaid expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,601</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,942</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other current assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,262</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,515</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total current assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">322,572</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">246,273</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Property, plant and equipment:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Land</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,600</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,841</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Land use rights</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,827</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,115</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Buildings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45,374</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40,243</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Machinery and equipment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">116,278</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">103,025</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Motor vehicles</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,657</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,260</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Office equipment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,537</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,049</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Land not being used for operation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">630</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">540</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Assets held for use</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,824</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,501</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">190,727</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">166,574</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Accumulated depreciation and amortization</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(133,209</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(118,568</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">57,518</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">48,006</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other assets:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Long term investments (note 7)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">650</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">544</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Investment in equity investees (note 20)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,246</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,103</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Goodwill (note 6)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,801</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,801</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">297</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">889</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Deferred tax assets (note 11)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,032</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,182</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,026</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,519</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">396,116</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">309,798</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The accompanying notes are an integral part of these consolidated financial statements.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->F-3<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 12pt">ASIA PACIFIC WIRE &#038; CABLE CORPORATION LIMITED AND SUBSIDIARIES
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">CONSOLIDATED BALANCE SHEETS
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(In thousands of US Dollars, except share data)
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 0px solid #000000"><B>December 31,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">LIABILITIES AND SHAREHOLDERS&#146; EQUITY</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Current liabilities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Bank loans and overdrafts (note 8)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">102,174</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">57,962</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Accounts payable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32,325</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">46,367</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Accrued expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,896</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,550</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Amounts due to related parties (note 16)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31,801</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,811</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Short-term loans from related parties (note 16)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,972</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,732</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Income tax liabilities (note 11)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,782</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,710</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Deferred tax liabilities (note 11)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">561</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">65</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other current liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,652</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,648</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total current liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">190,163</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">145,845</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">578</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">464</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Deferred tax liabilities (note 11)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">698</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">782</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">191,439</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">147,091</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Minority interest</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">67,894</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">48,578</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Commitments and contingencies (notes 13 and 15)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Shareholders&#146; equity (note 9):</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Common stock, $0.01 par value:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Authorized shares - 20,000,000 shares
Issued and outstanding shares &#151; 13,830,769
in 2007 and 2008</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">138</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">138</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Additional paid-in capital</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">111,541</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">111,541</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Retained earnings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29,468</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,819</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Accumulated other comprehensive loss (note 12)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(4,364</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(13,369</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total shareholders&#146; equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">136,783</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">114,129</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total liabilities and shareholders&#146; equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">396,116</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">309,798</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The accompanying notes are an integral part of these consolidated financial statements.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->F-4<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left">
<A name="302"></A>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">ASIA PACIFIC WIRE &#038; CABLE CORPORATION LIMITED AND SUBSIDIARIES
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">CONSOLIDATED STATEMENTS OF OPERATIONS
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(In thousands of US Dollars, except share data)
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 0px solid #000000"><B>Year ended December 31,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2006</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net sales</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Manufactured products</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">439,280</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">494,805</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">447,848</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Distributed products</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,416</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,783</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32,415</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Sales, delivery and installation of wires and
cables</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,421</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,253</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,535</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">468,117</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">510,841</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">500,798</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Costs of sales (purchases from related parties
amounted to $75,338 in 2006, $69,240 in 2007 and
$57,401 in 2008)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Manufactured products</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(380,792</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(450,134</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(410,581</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Distributed products</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(11,309</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(10,703</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(30,831</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Sales, delivery and installation of wires and
cables</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(16,705</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(5,600</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(21,491</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">(Allowance) recovery for inventory reserve</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,017</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,272</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(25,145</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(410,823</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(465,165</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(488,048</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Gross profit</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">57,294</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45,676</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,750</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Selling, general and administrative expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(26,195</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(26,156</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(29,032</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Allowance for doubtful accounts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,221</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3,295</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(12</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Impairment of long-lived assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(196</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Income (loss)&nbsp;from operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29,682</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,225</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(16,294</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Exchange gain (loss)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,464</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">864</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,712</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">705</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,517</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">990</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(5,886</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(7,580</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(5,769</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Share of net gain (loss)&nbsp;of equity investees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">73</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">124</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(142</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Impairment of investments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(86</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(95</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">(Loss) gain on sale of investments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(729</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Gain on liquidation of subsidiary</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,801</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,536</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,070</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,859</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Income (loss)&nbsp;before income taxes and minority
interests</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32,560</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,160</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(20,068</TD>
    <TD nowrap>)</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Income taxes (note 11)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(10,257</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(6,298</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,132</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Minority interests</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(9,330</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,029</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,551</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net income (loss)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">12,973</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4,833</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(13,649</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px DOUBLE #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px DOUBLE #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px DOUBLE #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Basic and diluted income (loss)&nbsp;per share</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.94</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.35</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(0.99</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px DOUBLE #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px DOUBLE #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px DOUBLE #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Basic and diluted weighted average common shares
outstanding</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,830,769</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,830,769</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,830,769</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The accompanying notes are an integral part of these consolidated financial statements.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->F-5<!-- /Folio -->

</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left">
<A name="303"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">ASIA PACIFIC WIRE &#038; CABLE CORPORATION LIMITED AND SUBSIDIARIES
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">CONSOLIDATED STATEMENTS OF SHAREHOLDERS&#146; EQUITY
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(In thousands of US Dollars, except share data)
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Accumulated other</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Common</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Additional</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Retained</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">comprehensive</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Stock</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">paid-in capital</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">earnings</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">income (loss)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Total</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Balance at January&nbsp;1, 2006</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">138</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">111,541</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">13,551</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(27,608</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">97,622</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net income for 2006</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,973</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,973</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Currency translation adjustment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,822</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,822</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Less: reclassification adjustment for
realized translation gain for
liquidation of subsidiary included in
net income, net of income tax of
$556</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,245</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,245</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Gain realized on sale of
available-for-sale
securities &#151; net of income tax of $258</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(343</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(343</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Unrealized loss on available-for-sales
securities &#151; net of income tax of $92</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(64</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(64</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Comprehensive income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,143</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Balance at December&nbsp;31, 2006</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;138</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">111,541</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26,524</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(19,438</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">118,765</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net income for 2007</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,833</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,833</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Currency translation adjustment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,179</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,179</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Pension benefits recognized under SFAS
158 (note 17)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(71</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(71</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Adoption of FIN 48 effective January&nbsp;1,
2007 (note 11)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,889</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,889</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Gain realized on sale of
available-for-sale
securities &#151; net of income tax of $6</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(28</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(28</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Unrealized loss on available-for-sale
securities &#151; net of income tax of $6</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(6</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(6</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Comprehensive income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,018</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Balance at December&nbsp;31, 2007</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;138</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">111,541</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29,468</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(4,364</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">136,783</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net loss for 2008</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(13,649</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(13,649</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Currency translation adjustment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(8,994</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(8,994</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Pension benefits recognized under SFAS
158 (note 17)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Unrealized loss on sale of
available-for-sale securities &#151; net of
income tax of $27</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(18</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(18</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Comprehensive (loss)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(22,654</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Balance at December&nbsp;31, 2008</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">138</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">111,541</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">15,819</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(13,369</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">114,129</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The accompanying notes are an integral part of these consolidated financial statements.<BR>
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->F-6<!-- /Folio -->

</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left">
<A name="304"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">ASIA PACIFIC WIRE &#038; CABLE CORPORATION LIMITED AND SUBSIDIARIES
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">CONSOLIDATED STATEMENTS OF CASH FLOWS
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(In thousands of US Dollars, except share data)
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 0px solid #000000">Year ended December 31,</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2006</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2008</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Operating activities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net income (loss)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">12,973</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4,833</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(13,649</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Adjustments to reconcile net income (loss)&nbsp;to net
cash (used in) provided by operating activities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Gain on disposal of property, plant and equipment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(136</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(802</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(4</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Depreciation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,989</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,079</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,646</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Deferred income taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(423</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,969</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(145</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Allowance (recovery)&nbsp;for doubtful accounts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,221</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,295</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Allowance (recovery)&nbsp;for inventory reserve</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,017</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,272</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,145</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Share of net gain of equity investees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(73</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(124</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">142</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Impairment of long lived assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">196</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Impairment of investments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">86</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">95</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Loss (gain)&nbsp;on sale of investments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">729</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(35</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Gain on liquidation of subsidiary</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,801</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Pension benefits recognized under SFAS 158</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(71</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Adoption of FIN 48 as of January&nbsp;1, 2007</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,889</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Minority interests</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,330</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,029</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(8,551</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Foreign currency translation adjustment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,192</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(7,662</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,889</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Changes in operating assets and liabilities
net of acquisitions of business:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Accounts receivable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(35,809</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(13,613</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36,193</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Inventories</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(52,017</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,854</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,724</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Other current assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(6,739</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,372</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">406</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Amounts due to related parties</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,827</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,609</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(4,274</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Accounts payable, accrued expenses and other liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,892</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,395</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,506</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net cash (used in) provided by operating activities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(42,930</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,906</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">60,047</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Investing activities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">(Increase) decrease in restricted short-term bank deposits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,056</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3,156</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,941</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Increase (decrease)&nbsp;in unrestricted short-term bank deposits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,619</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">518</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(5,906</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Purchases of property, plant and equipment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(5,202</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,650</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3,383</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Proceeds from disposal of property, plant and equipment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">574</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,414</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">416</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Acquisition of additional investment in subsidiary</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(477</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Proceeds from disposal of investments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">626</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">65</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Disposal of other assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">190</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,368</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Purchases of other assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(239</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(592</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net cash provided by (used in) investing activities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,274</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(4,048</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(5,156</TD>
    <TD nowrap>)</TD>
</TR>

<tr>
    <TD>&nbsp;</TD>
</tr>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Financing activities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Repayments of long-term debt</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(5,026</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,237</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(240</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Repayments of bank loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(19,048</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(21,671</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(54,643</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Proceeds from bank loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">65,516</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28,275</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,431</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Net increase (decrease)&nbsp;in overdrafts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">354</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(416</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net cash provided by (used in) financing activities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41,796</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,951</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(44,452</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Effect of exchange rate changes on cash and cash equivalents</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,776</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,654</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,056</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net increase in cash and cash equivalents</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,916</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,463</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,383</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash and cash equivalents at beginning of year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,748</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,664</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29,127</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash and cash equivalents at end of year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">24,664</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">29,127</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">37,510</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The accompanying notes are an integral part of these consolidated financial statements.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->F-7<!-- /Folio -->

</DIV>



<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left">
<A name="305"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">ASIA PACIFIC WIRE &#038; CABLE CORPORATION LIMITED AND SUBSIDIARIES
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(In thousands of US Dollars, except share data)

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>1.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>ORGANIZATION AND PRINCIPAL ACTIVITIES</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Asia Pacific Wire &#038; Cable Corporation Limited (&#147;APWC&#148; or the &#147;Company&#148;), which is a
subsidiary of Pacific Electric Wire &#038; Cable Co., Ltd. (&#147;PEWC&#148;), a Taiwanese company, was
incorporated as an exempted company in Bermuda on September&nbsp;19, 1996 under the Companies Act
1981 of Bermuda (as amended) for the purpose of acting as a holding company. The Company is
principally engaged in owning operating companies engaged in the power cable,
telecommunication cable, enameled wire and electronic cable industry.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company&#146;s operating subsidiaries (the &#147;Operating Subsidiaries&#148;) are engaged in the
manufacturing and distribution of telecommunications, power cable and enameled wire products
in Singapore, Thailand, Australia, the People&#146;s Republic of China (&#147;PRC&#148;) and other markets in
the Asia Pacific region. Major customers of the Operating Subsidiaries include government
organizations, electric contracting firms, electrical dealers, and wire and cable factories.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Background on the Pledge Agreement to Swiss Re</I></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>As previously disclosed in the Company&#146;s 2006 Financial Statements, PEWC and Swiss Re
entered into an Amended and Restated Letter of Credit and Reimbursement Agreement (the &#147;LC
Agreement&#148;), pursuant to which Swiss Re issued a letter of credit to satisfy certain credit
and loan obligations of PEWC&#146;s subsidiary, Pacific USA Holdings Corp. (&#147;PUSA&#148;), to PUSA&#146;s
lenders. Under the LC Agreement, Swiss Re issued a Standby Letter of Credit in favor of
Standard Chartered Bank, Hong Kong Branch (&#147;Standard&#148;), in the total amount of $124&nbsp;million
(the &#147;Letter of Credit&#148;), conditioned upon the closing of a $120&nbsp;million transaction
between PUSA and Standard. As a condition to obtaining the letter of credit, in February
2002, PUSA, PEWC and Swiss Re finalized a Pledge Agreement (&#147;Pledge Agreement&#148;), pursuant
to which PUSA pledged to Swiss Re shares representing approximately 53% of the equity of
the Company (the &#147;Pledged Shares&#148;), together with certain shares of other related entities.
At that time PEWC was the ultimate beneficial owner of approximately 75.4% of the equity
interest in the Company through its subsidiaries, Kinbong Holdings Limited (&#147;Kinbong&#148;) and
PUSA.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>PUSA Bankruptcy</I></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>As also previously disclosed in the 2006 financial statements, in December&nbsp;2002, PUSA filed
a voluntary petition for bankruptcy protection under Chapter&nbsp;11 of the United States
Bankruptcy Code. Because of the bankruptcy filing, in December&nbsp;2002, Swiss Re paid to
Standard $90.6&nbsp;million under the terms of the Letter of Credit as a result of which Swiss
Re became entitled, under the terms of the Pledge Agreement, to foreclose on the Pledged
Shares of the Company.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Litigation</I></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Following an internal investigation, it was discovered by the Boards of both PEWC and the
Company that an ex-director of PEWC (&#147;ex-director&#148;), without the authorization of either
Board, had separately negotiated a transaction whereby the Pledged Shares of the Company
held by PUSA and the shares of the Company held by Kinbong would be transferred to Set Top
International Inc. (&#147;Set Top&#148;), a British Virgins Islands company. The terms of the
transaction were initially withheld from and, subsequently, misrepresented to the Boards of
PEWC and the Company by the ex-director, together with certain of his associates.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Boards of both PEWC and the Company concluded that the ex-director had an undisclosed
interest in, or control position over, Set Top, and that the terms he agreed to with Set
Top were significantly less favorable to the companies than those that would have been
available in a bona fide transaction with an unaffiliated party.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>On December&nbsp;4, 2003, PEWC and the Company commenced an action in the United States District
Court for the Southern District of New York (the &#147;Southern District&#148;) against the following
parties: Set Top, Kinbong, Tom Ching-Yun Tung, Frank Wei-Feng Lin, Tai-Sheng Lien, Fu-Chuan
Tsai, Fu-Nu Tsai, Yuan-Chun Hsu, Jack Takacs and Robert Everett Wolin (collectively
&#147;Defendants&#148;). The Complaint alleged various causes of action, including fraud and
conspiracy to commit fraud;</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->F-8<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">ASIA PACIFIC WIRE &#038; CABLE CORPORATION LIMITED AND SUBSIDIARIES
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(In thousands of US Dollars, except share data)

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>1.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>ORGANIZATION AND PRINCIPAL ACTIVITIES </B>(continued)</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>violation of section 13(d) of the Securities Exchange Act; RICO violations under 18 USC &#167;
1962; and breach of fiduciary duty.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Southern District action did not progress to the discovery phase as the parties sought
to agree to the terms of a settlement agreement. On July&nbsp;2, 2004, the Company, PEWC and Set
Top entered into a Settlement Agreement (the &#147;Settlement Agreement&#148;) pursuant to which PEWC
agreed to pay Set Top $25&nbsp;million (the &#147;Settlement Amount&#148;).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Pursuant to the Settlement Agreement, the Company, PEWC and Set Top agreed to withdraw all
claims in all litigation proceedings against each other, including the actions in New York,
Singapore and Bermuda, and Set Top agreed to withdraw all of its claims in the PUSA
bankruptcy proceedings. The parties have filed stipulations of discontinuance and/or
dismissal for each of those actions.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In order to implement the terms of the Settlement Agreement, PEWC, Set Top and Asset
Managers Co., Ltd. (&#147;AMC&#148;) entered into a Share Purchase Agreement and a related Option
Agreement dated September&nbsp;15, 2004, pursuant to which AMC agreed to pay to Set Top $25
million in exchange for all right, title and interest of Set Top in 10,074,102 shares of
APWC. Following the closing of the 2004 Share Purchase Agreement, AMC designated Sino-JP
Fund Co., Ltd. (&#147;Sino-JP&#148;) as an assignee of the Subject Shares and Sino-JP was registered
as the record owner of the Subject Shares with the Company&#146;s register.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>As of December&nbsp;31, 2004, Sino-JP held 10,074,102 shares, representing approximately 72.84%
of the outstanding shares of Common Stock of the Company.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>On September&nbsp;14, 2005, PEWC exercised the repurchase option under the Option Agreement and
reacquired 7,307,948 shares of the Common Stock, representing 52.84% of the total issued and
outstanding Common Stock. As a result of the reacquisition by PEWC of majority control, PEWC
indirectly held as of that date 7,664,615 shares of Common Stock, representing 55.4% of the
total issued and outstanding shares of Common Stock and Sino-JP now held 2,766,154 shares of
the Common Stock, representing 20% of the total issued and outstanding shares of Common
Stock (the &#147;Sino-JP Shares&#148;).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Subsequent to the 2004 Share Purchase Agreement, a number of disputes arose between Sino-JP
and PEWC regarding the governance of the Company and other matters. Litigation was commenced
in Bermuda, in which the Company was also a party, and in Hong Kong, in which the Company
was not a party.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>On June&nbsp;28, 2007, the Company entered into a comprehensive settlement and release agreement
with Sino-JP, which dismissed and released all claims between the parties and which put an
end to all related litigation. The 55% majority shareholder of the Company, PEWC, also
entered into a settlement and release agreement with Sino-JP that terminated all disputes
and litigation between those parties.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>On June&nbsp;28, 2007, SOF Investments, L.P. (&#147;SOF&#148;), a Delaware limited partnership controlled
by MSD Capital, L.P. acquired the Sino-JP Shares and entered into a shareholders&#146; agreement
with the Company and PEWC. The shares acquired constituted 20% of the issued and
outstanding shares of the Company.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>On March&nbsp;27, 2009, SOF sold 10.2% of the issued and outstanding shares of the Company to
PEWC. The sale results in PEWC holding 65.6% of the equity of the Company and SOF holding
9.8%.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->F-9<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">ASIA PACIFIC WIRE &#038; CABLE CORPORATION LIMITED AND SUBSIDIARIES
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(In thousands of US Dollars, except share data)

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>1.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>ORGANIZATION AND PRINCIPAL ACTIVITIES </B>(continued)</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The subsidiaries of the Company are set out below:</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7">Percentage of</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Place of incorporation and operations</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000">Equity interest</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">2007</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">2008</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>The British Virgin Islands</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Asia Pacific Wire &#038; Cable General Holdings Ltd</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">100</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">100</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">PRC (APWC)&nbsp;Holding Ltd.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">100</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">100</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Samray Inc.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">100</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">100</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Siam (APWC)&nbsp;Holdings Ltd.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">100</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">100</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Moon View Ltd.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">100</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">100</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Trigent Investment Holdings Limited</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">100</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">100</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Crown Century Holdings Ltd.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">100</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">100</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Singapore</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Sigma Cable Company (Private) Limited (&#147;Sigma Cable&#148;)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">98.3</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">98.3</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Sino-Sin Trading Pte. Ltd. (&#147;Sino-Sin&#148;)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">100</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">100</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Sigma-Epan International Pte Ltd. (&#147;Sigma-Epan&#148;)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">100</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">100</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Singvale Pte Ltd (&#147;Singvale&#148;)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">100</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">100</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>The People&#146;s Republic of China</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Ningbo Pacific Cable Co., Ltd. (&#147;Ningbo Pacific&#148;)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">94.31</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">94.31</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Shanghai Yayang Electric Co., Ltd. (&#147;Shanghai Yayang&#148;)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">54.41</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">54.41</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Shandong Pacific Fiber Optics Co.Ltd (&#147;SPFO&#148;)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">51</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">51</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Pacific Electric Wire &#038; Cable (Shenzhen) Co., Ltd (&#147;PEWS&#148;)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">100</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">100</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Hong Kong</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Crown Century Holdings Limited (&#147;CCH&#148;)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">100</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">100</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Australia</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Australia Pacific Electric Cable Pty Limited (&#147;APEC&#148;)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">98.53</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">98.53</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->F-10<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">ASIA PACIFIC WIRE &#038; CABLE CORPORATION LIMITED AND SUBSIDIARIES
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(In thousands of US Dollars, except share data)

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>1.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>ORGANIZATION AND PRINCIPAL ACTIVITIES </B>(continued)</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6">Percentage of</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Place of incorporation and operations</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000">Equity interest</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2008</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Thailand</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Charoong Thai Wire and Cable Public Company Limited
(&#147;Charoong Thai&#148;)**</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">50.93</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">50.93</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Siam Pacific Electric Wire &#038; Cable Company Limited
(&#147;Siam-Pacific&#148;)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">50.93</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">50.93</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Pacific-Thai Electric Wire &#038; Cable Company Limited
(&#147;Pacific-Thai&#148;)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">50.93</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">50.93</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Hard Lek Limited (&#147;Hard Lek&#148;)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">73.98</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">73.98</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">APWC (Thailand) Co., Ltd</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">99.48</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">99.48</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">PEWC (Thailand) Co., Ltd</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">99.48</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">99.48</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Myanmar</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Myanmar Sigma Cable Co., Ltd. (Not active)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">78.59</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">78.59</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">ii) The equity investees of the Company are set out below:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6">Percentage of</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000">Equity interest</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Place of incorporation and operations</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2008</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>The People&#146;s Republic of China</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Shandong Huayu Pacific Fibre Optics
Communications Co., Ltd. (&#147;Shandong Huayu&#148;)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">48.73</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">48.73</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Shandong Pacific Rubber Cable Co., Ltd. (&#147;SPRC&#148;)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">25.00</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">25.00</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Thailand</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Siam Pacific Holding Company Limited (&#147;SPHC&#148;)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">49.00</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">49.00</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Loxley Pacific Co., Ltd. (&#147;Lox Pac&#148;)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">21.39</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">21.39</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Thai Professional Telecom Network Co., Ltd
(&#147;Thai Professional&#148;)*</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">15.84</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">15.84</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">*</TD>
    <TD>&nbsp;</TD>
    <TD>Accounted for as an equity investee despite the Company holding less than 20%
equity interest because the Company has the ability to exercise significant
influence over the operating and financial policies of Thai Professional.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">**</TD>
    <TD>&nbsp;</TD>
    <TD>Charoong Thai is listed on the Stock Exchange of Thailand and is engaged in the
manufacturing of wire and cable products for the power and telecommunications
industries in Thailand.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->F-11<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">






<DIV align="left" style="font-size: 10pt; margin-top: 12pt">ASIA PACIFIC WIRE &#038; CABLE CORPORATION LIMITED AND SUBSIDIARIES
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(In thousands of US Dollars, except share data)

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>1.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>ORGANIZATION AND PRINCIPAL ACTIVITIES </B>(continued)</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Acquisitions accounted for as purchases and disposals undertaken by the Company during the
years ended December&nbsp;31, 2006, 2007 and 2008 include the following:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Disposal in 2006 of 2.04% interest in Charoong Thai, thereby decreasing the
Company&#146;s interest in Charoong Thai from 52.43% to 50.39% due to the exercise of
warrants. The Company recognized a loss of $1,955 on the disposal of these Charoong
Thai shares.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>During 2006, Charoong Thai&#146;s subsidiary, Pacific-Thai contributed additional
capital in Shanghai Yayang in the form of a cash injection of $1,000, the excess of its
consideration paid over the fair value of the assets acquired resulted in goodwill of
$477. The Company&#146;s interest in Charoong Thai decreased from 52.43% to 50.39% due to
the exercise of warrants in 2006, which also resulted in the Company&#146;s interest in
Shanghai Yayang to decrease by 2.46% to 53.90% in 2006.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In August&nbsp;2000, the Board of Directors of Charoong Thai resolved to dissolve
CTW (Hong Kong) Limited which was an overseas subsidiary company as CTW (Hong Kong)
Limited was inactive. The dissolution was completed on August&nbsp;16, 2006, and a gain of
$1,801 was recognized in the consolidated statement of operations in 2006.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company was listed on the New York Stock Exchange in March&nbsp;1997. On December&nbsp;24, 2001, the
staff of the New York Stock Exchange (&#147;NYSE&#148;) announced that it had determined that the
trading of the common stock of APWC should be suspended prior to December&nbsp;31, 2001. The
decision was reached in view of the fact that the Company had fallen below NYSE&#146;s continued
listing standards regarding: average global market capitalization over a consecutive 30
trading-day period of not less than $15; and average closing price of a security of not less
than $0.001 over a consecutive 30 trading-day period. Following the delisting of the Company&#146;s
common stock on the NYSE, the Company&#146;s common stock was traded under the ticker AWRCF, on the
Over-the-Counter Bulletin Board (&#147;OTC BB&#148;), operated by NASD, Inc. After the Company failed to
timely file its annual report on Form 20-F for the 2004 fiscal year, the Company was delisted
from the OTC BB in August&nbsp;2005 and since that time its shares of common stock have been quoted
on the &#147;pink sheets&#148; market by Pink Sheets LLC, a privately owned company that provides
pricing and financial information for over-the-counter securities. On April&nbsp;9, 2008, the
Company has listed and begun trading its common shares on the OTC BB after completing all
reporting requirements and filing all outstanding financial reports with the SEC. The Company
is subject to the reporting requirements under the Securities Exchange Act of 1934.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>2.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>BASIS OF PRESENTATION</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The consolidated financial statements are prepared in accordance with accounting principles
generally accepted in the United States of America (&#147;US GAAP&#148;). The basis of accounting
differs from that used in the statutory financial statements of the Company&#146;s subsidiaries
and equity investee companies, which are prepared in accordance with the accounting
principles generally accepted in their respective countries of incorporation. In the
opinion of management, the consolidated financial statements have reflected all costs
incurred by the Company and its subsidiaries in operating the business.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>All dollar amounts in the financial statements and in the notes herein are U.S. dollars
(&#147;US$&#148;) unless otherwise designated.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>3.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>CHANGES IN PRESENTATION OF COMPARATIVE FINANCIAL STATEMENTS</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Certain comparative amounts in prior financial statements have been reclassified to conform
with the current year&#146;s presentation. The reclassifications had no effect on financial
condition, gross profit, income (loss)&nbsp;from operations or net income (loss).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>4.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Principles of Consolidation</U></TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->F-12<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">ASIA PACIFIC WIRE &#038; CABLE CORPORATION LIMITED AND SUBSIDIARIES
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(In thousands of US Dollars, except share data)

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The consolidated
financial
statements include
the accounts of the
Company and its
subsidiaries.
Significant
intercompany
accounts and
transactions have
been eliminated on
consolidation. The
Company&#146;s
investments for
which its ownership
exceeds 20%, but
which are not
majority-owned or
controlled, are
accounted for using
the equity method
if the Company has
the ability to
exercise
significant
influence over the
companies&#146;
operating and
financial policies.
When the Company&#146;s carrying value in an equity method
investee company is reduced to zero, no further
losses are recorded in the Company&#146;s consolidated
financial statements unless the Company guaranteed
obligations of the investee company or has committed
additional funding. When the Investee company
subsequently reports income, the Company will not
record its share of such income until it equals the
amount of its share of losses not previously
recognized.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Use of Estimates</U></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The preparation of the consolidated financial statements in conformity with generally
accepted accounting principles accepted in the United States requires management to make
estimates and assumptions that affect the amounts reported in the consolidated financial
statements and accompanying notes. Actual results could differ from those estimates.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Cash and Cash Equivalents</U></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company considers all highly liquid investments with an original maturity of three
months or less when purchased to be cash equivalents.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Inventories</U></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Inventories are valued at the lower of cost or market value. Cost is determined using the
first-in, first-out or weighted average method.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If the expected sales price less completion costs and costs to execute sales (net
realizable value) is lower than the carrying amount, a write-down is charged to
expenses in cost of sales for the amount by which the carrying amount exceeds its net
realizable value. When the finished goods that were previously written down to net
realizable value are subsequently sold at above net realizable value, a recovery is
credited to cost of sales. See note 10.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Income Taxes</U></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In 2007, the Company adopted the provisions of Financial Accounting Standards Board (FASB)
Interpretation No.&nbsp;48 (FIN 48), &#147;Accounting for Uncertainty in Income Taxes-an interpretation
of FASB Statement No.&nbsp;109.&#148; FIN 48 clarifies the accounting for uncertainty in income taxes
recognized in an enterprise&#146;s financial statements in accordance with SFAS No.&nbsp;109,
&#147;Accounting for Income Taxes&#148; (SFAS 109). FIN 48 prescribes a recognition threshold and
measurement attribute for the financial statements recognition and measurement of a tax
position taken or expected to be taken in a
tax return, and provides guidance on derecognition, classification, interest and penalties,
accounting in interim periods, disclosure, and transition. For those benefits to be
recognized, a tax position must be more-likely-than-not to be sustained upon examination by
taxing authorities. The amount recognized is measured as the largest amount of benefit that is
greater than fifty percent likely of being realized upon ultimate settlement. Our policy is to
recognize interest expense and penalties related to income tax matters as a component of
income tax expense.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Current income tax expense is the amount of income taxes expected to be payable for the
current year. A deferred income tax asset or liability is established for the expected future
tax consequences resulting from differences in the financial reporting and tax bases of assets
and liabilities and for the expected future tax benefit to be derived from tax credit and loss
carryforwards. Deferred tax assets are reduced by a valuation allowance when, in the opinion
of management, it is more likely than not that some portion or all of the deferred tax assets
will not be realized. Deferred income tax expense (benefit)&nbsp;is the net change during the year
in the deferred income tax asset or liability.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->F-13<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">ASIA PACIFIC WIRE &#038; CABLE CORPORATION LIMITED AND SUBSIDIARIES
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(In thousands of US Dollars, except share data)

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>4.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES </B>(continued)</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Property, Plant and Equipment</U></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Property, plant and equipment are stated at cost less depreciation and any impairment
losses. Asset leases qualifying as capital leases are also included in property, plant and
equipment. Major renewals and improvements are capitalized and minor replacements,
maintenance, and repairs are charged to current operations as incurred. Depreciation is
computed using the straight-line method over the estimated useful lives of the assets or the
respective lease term, whichever is shorter. No depreciation is charged for construction in
progress and machinery and equipment under installation. Depreciation is provided as follows:</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="92%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="45%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="45%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Land
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Nil</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Land use rights
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">15 &#151; 50&nbsp;years</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Buildings
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">5 &#151; 30&nbsp;years</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Machinery and equipment
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">5 &#151; 10&nbsp;years</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Motor vehicles
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3 &#151; 10&nbsp;years</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Office equipment
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3 &#151; 10&nbsp;years</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Depreciation for 2006, 2007 and 2008 amounted to $8,989, $9,079 and $7,646, respectively.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>When property and equipment are retired, sold or otherwise disposed of, the asset&#146;s
carrying amount and related accumulated depreciation are removed from the accounts and
any gain or loss is included in operations. The useful lives and residual values if not
insignificant are reassessed annually.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A factory at CTW is not being used for operation as at December&nbsp;31, 2008 and has
been presented separately from property, plant and equipment currently used in the
business, classified as &#147;Land not being used for operation&#148;.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In 2006, the Company terminated the NPC joint venture due to lack of profitability,
unsatisfactory management practices, and the lack of qualified executives to assume management
responsibility following termination of the then senior managers, and the lack of promising
prospects for the business in the short to medium term. The Company liquidated its major
equipment at the NPC facility. The remaining property and equipment have been temporarily
classified as &#147;Assets held for use&#148; in its Balance Sheet before the Company determines its
further plan.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Goodwill</U></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Goodwill represents the excess of the cost of purchased business over the fair value of the
underlying net assets.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Goodwill, including goodwill associated with equity method investments, is not amortized,
but tested for impairment at least annually or more frequently if circumstances indicate
that impairment may exist. The Company identifies potential goodwill impairment by
comparing the fair value of a reporting unit with its carrying amount, including goodwill.
The Company determines fair value using a discounted cash flow approach. If the fair value
of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is not
considered impaired. If the carrying amount of a reporting unit exceeds its fair value, the
amount of goodwill impairment loss, if any, must be measured. The Company measures the
amount of goodwill impairment loss by comparing the implied fair value of goodwill with the
carrying amount of that goodwill. If the carrying amount of the reporting unit goodwill
exceeds the implied fair value of goodwill, an impairment loss is recognized as an operating
expense.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>FASB Statement No.&nbsp;142, &#147;Goodwill and Other Intangible Assets&#148;, defines a reporting unit as
an operating segment or one level below an operating segment (referred to as a component). A
component of an operating segment is a reporting unit if the component constitutes a
business for which discrete financial information is available and segment management
regularly reviews the operating results of that component. Upon adoption of Statement 142 on
January&nbsp;1, 2002, the Company allocated the whole amount of goodwill to the manufactured
products segment.</TD>
</TR>


</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->F-14<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">ASIA PACIFIC WIRE &#038; CABLE CORPORATION LIMITED AND SUBSIDIARIES
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(In thousands of US Dollars, except share data)

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES </B>(continued)
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Goodwill (cont&#146;d)</U></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The impairment assessment was made as of December&nbsp;31, 2006, 2007 and 2008, and no
impairment was indicated. Total goodwill was $8,801, $8,801 and $8,801 as of December
31, 2006, 2007 and 2008, respectively.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Investments</U></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Management determines the appropriate classification of its investment at the time of
purchase and re-evaluates such designation as of each balance sheet date.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Equity securities are classified as available-for-sale, as the Company does not trade in
these securities, but rather are held as longer term investments due to business
relationships with the entities. Available-for-sale securities are carried at fair value,
with the unrealized gains and losses, net of tax, reported in a separate component of
shareholders&#146; equity. The amortized cost of held-to-maturity debt securities in this
category is adjusted for amortization of premiums and accretion of discounts to maturity.
Such amortization is included in investment income. Realized gains and losses and declines
in values judged to be other-than-temporary on available-for-sale securities are included in
investment income. The cost of securities sold is based on the specific identification
method. Interest and dividends on securities classified as available-for-sale are included
in investment income.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Investments in which the Company does not have a controlling interest or an ownership voting
interest to exert significant influence, and which are not publicly traded are accounted for
at cost.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A judgmental aspect of accounting for investments (including investments in equity
investees) involves determining whether an other-than-temporary decline in value of the
investment has been sustained. If it has been determined that an investment has sustained
an other-than-temporary decline in its value, the investment is written down to its fair
value, by a charge to earnings. Such evaluation is dependent on the specific facts and
circumstances. Factors that are considered by the Company in determining whether an
other-than-temporary decline in value has occurred include: the market value of the security
in relation to its cost basis; the financial condition of the investee; and the intent and
ability to retain the investment for a sufficient period of time to allow for recovery in
the market value of the investment.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In 2006, 2007 and 2008, the Company recorded an impairment charge of $nil, $117 and $nil,
respectively, related to investment in certain equity investees.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Impairment of Long-Lived Assets </U></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Long-lived assets are reviewed for impairment whenever events or changes in circumstances
indicate that their carrying amount may not be recoverable. Recoverability of an asset is
measured by comparison of the carrying amount of the asset to the net undiscounted future
cash flow expected to be generated from the assets. If the future undiscounted cash flows
are not sufficient to recover the carrying value of the asset, the asset&#146;s carrying value is
adjusted to fair value. The Company estimates fair value based on discounted future cash
flow.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In 2006, the Company recorded an impairment charge of $196 related to the
impairment of certain property, plant and equipment of Ningbo Pacific, a subsidiary
included in the manufactured products segment.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>These impairment charges were recorded to reduce the carrying value of the
identified assets to fair values. Fair values were derived using a variety of
methodologies, including cash flow analysis, estimates of sales proceeds and
independent appraisals. Where cash flow analyses were used to estimate fair values, key
assumptions employed, included estimates of future growth, estimates of gross margins
and estimates of the impact of inflation. The charges were primarily the result of
management&#146;s revised outlook due to the prolonged unfavourable market conditions.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->F-15<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">ASIA PACIFIC WIRE &#038; CABLE CORPORATION LIMITED AND SUBSIDIARIES
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(In thousands of US Dollars, except share data)

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>4.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES </B>(continued)</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Allowance for Doubtful Accounts</U></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Trade accounts receivable are stated at the amount the Company expects to collect. The Company
maintains allowances for doubtful accounts for estimated losses resulting from the inability
of its customers to make required payments. Management considers the following factors when
determining the collectibility of specific customer accounts: customer credit-worthiness, past
transaction history with the customer, current economic industry trends, and changes in
customer payment terms. If the financial condition of the Company&#146;s customers were to
deteriorate, adversely affecting their ability to make payments, additional allowances would be required. Based on
management&#146;s assessment, the Company provides for estimated uncollectible amounts through a
charge to earnings and a credit to a valuation allowance. Balances that remain outstanding
after the Company has used reasonable collection efforts are written off through a charge to
the valuation allowance and a credit to accounts receivable.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Revenue Recognition</U></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Sales represents the invoiced value of goods sold, net of value added tax and returns,
commission income earned on distribution activities, and service fee income on installation
activities. Revenue is recognized to the extent that it is probable that the economic
benefits will flow to the Company and the revenue can be reliably measured. The following
specific recognition criteria must also be met before revenue is recognized.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Sales of goods and distribution activities</I></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company recognizes revenue from the sale of goods and distribution activities upon
passage of title to the customer which coincides with their delivery and acceptance. This
method of revenue recognition is in accordance with Staff Accounting Bulletin, SAB 104 &#151;
&#147;Revenue Recognition in Financial Statements.&#148;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Installation activities</I></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company recognizes revenue from installation activities using the
percentage-of-completion method, based on the customer certification of the distance of
cable laid with respect to the estimated total contract revenue, and in accordance with
Statement of Position (SOP)&nbsp;81-1, &#147;Accounting for the Performance of Construction-Type and
Certain Production-Type Contracts&#148; issued by the American Institute of Certified Public
Accountants.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>When elements such as installation and sale of cables are contained in a single arrangement,
or in related arrangements with the same customer, the Company allocates revenue to each
element based on its relative fair value. The allocation of the fair value to the delivered
elements is limited to the amount that is not contingent on future delivery of services or
subject to customer-specified return or refund privileges.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company adopted EITF No.&nbsp;00-21, &#147;Accounting for Revenue Arrangements with Multiple
Deliverables&#148; (&#147;EITF 00-21&#148;) in 2003. The impact of adopting EITF 00-21 was not material to
the financial statements in 2006, 2007 and 2008.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Shipping and Handling Costs</U></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company classifies such costs as cost of sales.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Product Warranties</U></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company provides for the estimated cost of product warranties based on the warranty
policy and historical experience, and accrues for specific items at the time their existence
is known and the amounts are determinable. Historical warranty liability and related costs
have not been significant to the Company&#146;s operations.</TD>
</TR>


</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->F-16<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">ASIA PACIFIC WIRE &#038; CABLE CORPORATION LIMITED AND SUBSIDIARIES
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(In thousands of US Dollars, except share data)

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>4.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES </B>(continued)</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Foreign Currency Translation</U></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company&#146;s functional currency is generally the United States dollar and the consolidated
financial statements have been presented in United States dollars.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The financial statements of the Company&#146;s subsidiaries where the local currency is the
functional currency have been translated into United States dollars in accordance with
FASB Statement No.&nbsp;52, &#147;Foreign Currency Translation.&#148; All balance sheet accounts have
been translated using the exchange rates in effect at the balance sheet dates. Statement
of operations amounts have been translated using the exchange rates in effect during the
year. The gains and losses resulting from the changes in exchange rates from year to
year have been reported separately as a component of shareholders&#146; equity.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Foreign currency transactions are recorded at the applicable rates of exchange in effect at
the transaction dates. Monetary assets and liabilities denominated in foreign
currencies at the balance sheet date are translated at the applicable rates of exchange
in effect at that date. Exchange differences are dealt with in the consolidated
statements of operations.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Foreign Currency Forward Contracts</U></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company&#146;s subsidiaries use forward foreign exchange contracts to reduce their exposure
to foreign currency risk for liabilities denominated in foreign currency. A forward foreign
exchange contract obligates the Company to exchange predetermined amounts of specified
foreign currencies at specified exchange rates on specified dates or to make an equivalent
US dollar payment equal to the value of such exchange. Realized and unrealized gains and
losses on foreign exchange contracts are included in income as foreign exchange gains or
losses.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company recognizes all derivative financial instruments in the consolidated financial
statements at fair value regardless of the purposes or intent for holding the instrument.
Changes in the fair value of derivative financial instruments are either recognized
periodically in income or in shareholders&#146; equity as a component of comprehensive income
depending on whether the derivative financial instruments qualify for hedge accounting, and
if so, whether they qualify as a fair value or cash flow hedge.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Generally, changes in fair values of derivatives accounted for as fair value hedges are
recorded in income along with the portions of the changes in the fair value of the
hedged items that relate to the hedged risks. Changes in fair value of derivatives
accounted for as cash flow hedges, to the extent they are effective as hedges, are
recorded in other comprehensive income net of deferred taxes. Changes in fair value of
derivatives used as hedges of the net investment in foreign operations are reported in
other comprehensive income as part of the cumulative translation adjustment. Changes in
fair values of derivatives not qualifying as hedges are reported in income.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>As of December&nbsp;31, 2006, 2007 and 2008, the Company has entered into forward exchange sale
contracts with notional values of $1,842, $12,674 and $3,500, respectively. As of December
31, 2008, the Company has entered into forward exchange purchase contracts of $15,458. The
forward exchange contracts matured in January, February, March, May&nbsp;2009. The fair values of
the forward exchange contracts as at December&nbsp;31, 2006, 2007, and 2008 were recorded as $81,
$nil, and $6 in other assets, $113 in other liability, respectively. These forward exchange
contracts are qualified for hedge accounting in accordance with FASB Statement No.&nbsp;133
&#147;Accounting for Certain Derivative Instruments and Certain Hedging Activities&#148;.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->F-17<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">ASIA PACIFIC WIRE &#038; CABLE CORPORATION LIMITED AND SUBSIDIARIES
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(In thousands of US Dollars, except share data)

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>4.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES </B>(continued)</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Gain on Issuance of Shares by Subsidiaries</U></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>At the time a subsidiary sells its stock to unrelated parties at a price in excess
of its book value, the Company&#146;s net investment in that subsidiary increases. If at
that time, the subsidiary is not a newly-formed, non-operating entity, nor a research
and development, start-up or development stage company, nor is there question as to the
subsidiary&#146;s ability to continue in existence, the Company records the increase as a
non-operating gain in the Consolidated Statements of Operations. Otherwise, the
increase is reflected in &#147;effect of subsidiaries&#146; equity transactions&#148; in the Company&#146;s
Consolidated Statements of Shareholders&#146; Equity.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>(Loss) Earnings Per Share</U></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Basic and diluted (loss)&nbsp;earnings per share is calculated in accordance with FASB Statement
No.&nbsp;128, &#147;Earnings Per Share.&#148; There are no dilutive equity instrument.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Fair Value Measurements</U></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Effective January&nbsp;1, 2008, the Company adopted the provisions of SFAS No.&nbsp;157, &#147;Fair Value
Measurements&#148; (&#147;SFAS No.&nbsp;157&#148;) for financial assets and liabilities, and related FSP&#146;s,
including FSP FAS 157-3, &#147;Determining the Fair Value of a Financial Asset When the
Market for That Asset Is Not Active&#148; (&#147;FSP FAS 157-3&#148;). Under SFAS No.&nbsp;157, fair value
is defined as the price that would be received to sell an asset or paid to transfer a
liability (i.e., the &#147;exit price&#148;) in an orderly transaction between market
participants at the measurement date.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In determining fair value, the Company uses various valuation approaches. SFAS No.
157 establishes a hierarchy for inputs used in measuring fair value that maximizes the
use of observable inputs and minimizes the use of unobservable inputs by requiring that
the most observable inputs be used when available. Observable inputs are inputs that
market participants would use in pricing the asset or liability developed based on
market data obtained from sources independent of the Company. Unobservable inputs are
inputs that reflect the Company&#146;s assumptions about the assumptions market participants
would use in pricing the asset or liability developed based on the best information
available in the circumstances. The hierarchy is broken down into three levels based on
the observability of inputs as follows:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Level 1 &#151; Valuations based on quoted prices in active markets for identical
assets that the Company has the ability to access. Valuation adjustments and block
discounts are not applied to Level 1 instruments. Since valuations are based on quoted
prices that are readily and regularly available in an active market, valuation of these
products does not entail a significant degree of judgment.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Level 2 &#151; Valuations based on one or more quoted prices in markets that are not
active or for which all significant inputs are observable, either directly or indirectly.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Level 3 &#151; Valuations based on unobservable inputs which are supported by little
or no market activity and significant to the overall fair value measurement.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The availability of observable inputs can vary from investment to investment and is
affected by a wide variety of factors, including, for example, the type of investment,
the liquidity of markets and other characteristics particular to the transaction. To
the extent that valuation is based on models or inputs that are less observable or
unobservable in the market, the determination of fair value requires more judgment and
the investments are categorizes as Level 3.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The carrying amounts of financial instruments carried at cost, including cash and
cash equivalents, bank deposits, trade receivables, other current assets, trade
payables, related party balances and other liabilities approximate their fair value due
to the short-term maturities of such instruments.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->F-18<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">ASIA PACIFIC WIRE &#038; CABLE CORPORATION LIMITED AND SUBSIDIARIES
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(In thousands of US Dollars, except share data)

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>4.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES </B>(continued)</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Recent Pronouncements</U></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In September&nbsp;2006, FASB issued Statement No.&nbsp;157 &#151; &#147;<I>Fair Value Measurements&#148; </I>Statement No.
157 (&#147;SFAS 157&#148;) defines fair value, which establishes a framework for measuring fair value in
generally accepted accounting principles, and expands disclosures about fair value
measurements. The provisions of this standard apply to other accounting pronouncements that
require or permit fair value measurements. SFAS 157 was effective for the Company on January
1, 2008 and it did not have a material affect on its consolidated financial statements, see
note 14 (b).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In February&nbsp;2007, the FASB issued Statement No.&nbsp;159 &#151; <I>The Fair Value Option for Financial
Assets and Financial Liabilities &#151; Including an amendment of FASB Statement No.&nbsp;115</I>. SFAS
No.&nbsp;159 permits entities to choose to measure eligible items at fair value at specified
election dates and report unrealized gains and losses on items for which the fair value
option has been elected in earnings at each subsequent reporting date. Statement No.&nbsp;159 is
effective for fiscal years beginning after November&nbsp;15, 2007. SFAS 159 was effective for the
Company for the fiscal year beginning on January&nbsp;1, 2008 and it did not have an effect on the Company&#146;s consolidated financial
statements.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In June&nbsp;2007, the FASB ratified EITF Issue No.&nbsp;07-3 (&#147;EITF 07-3&#148;), &#147;Accounting for
Nonrefundable Advance Payments for Goods or Services Received for Use in Future Research and
Development Activities.&#148; This issue provides that nonrefundable advance payments for goods
or services that will be used or rendered for future research and development activities
should be deferred and capitalized. Such amounts should be recognized as an expense as the
related goods are delivered or the related services are performed. EITF 07-3 is effective
for fiscal years beginning after December&nbsp;15, 2007. The adoption of EIFT 07-3 did not have
an effect on the Company&#146;s consolidated financial statements.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In December&nbsp;2007, the FASB issued SFAS No.&nbsp;141 (Revised 2007), Business Combinations (&#147;SFAS
No.&nbsp;141(R)&#148;), which establishes principles and requirements for the reporting entity in a
business combination, including recognition and measurement in the financial statements of
the identifiable assets acquired, the liabilities assumed, and any non-controlling interest
in the acquiree. This statement also establishes disclosure requirements to enable financial
statement users to evaluate the nature and financial effects of the business combination.
SFAS No.&nbsp;141(R) applies prospectively to business combinations for which the acquisition
date is on or after the beginning of the first annual reporting period beginning on or after
December&nbsp;15, 2008, and interim periods within those fiscal years. Early adoption is
prohibited. The impact of this standard is dependant upon the level of future acquisitions.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In December&nbsp;2007, the FASB issued SFAS No.&nbsp;160, &#147;Non-controlling Interests in Consolidated
Financial Statements&#151;an amendment of ARB No.&nbsp;51.&#148; SFAS No.&nbsp;160 establishes accounting and
reporting standards for the non-controlling interest in a subsidiary and for the
deconsolidation of a subsidiary. It clarifies that a non-controlling interest in a subsidiary
is an ownership interest in the consolidated entity that should be reported as equity in the
consolidated financial statements. Additionally, SFAS No.&nbsp;160 requires expanded disclosures in
the consolidated financial statements. SFAS No.&nbsp;160 is effective for fiscal years, and interim
periods within those fiscal years, beginning on or after December&nbsp;15, 2008. The Company is
currently assessing the potential impact of SFAS No.&nbsp;160 on its financial statements.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In February&nbsp;2008, the FASB issued FASB Staff Position (&#147;FSP&#148;) FAS 157-1, &#147;Application of FASB
Statement No.&nbsp;157 to FASB Statement No.&nbsp;13 and Other Accounting Pronouncements That Address
Fair Value Measurement for Purpose of Lease Classification of Measurement under Statement 13,&#148;
which amends SFAS 157 to exclude accounting pronouncements that address fair value
measurements for purpose of lease classification or measurement under SFAS No.&nbsp;13, &#147;Accounting
for Leases.&#148; In February&nbsp;2008, the FASB also issued FSP FAS 157-2, &#147;Effective Date of FASB
Statement No.&nbsp;157&#148;, which delays the effective date of SFAS 157 until the first quarter of
fiscal 2010 for all non-financial assets and non-financial liabilities, except for items that
are recognized or disclosed at fair value in the financial statements on a recurring basis (at
least annually). This FSP defers the effective date of SFAS 157 to fiscal years beginning
after November&nbsp;15, 2008, and the interim periods within those fiscal years for items within
the scope of this FSP. The application of</TD>
</TR>


</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->F-19<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">ASIA PACIFIC WIRE &#038; CABLE CORPORATION LIMITED AND SUBSIDIARIES
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(In thousands of US Dollars, except share data)

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>4.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES </B>(continued)</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Recent Pronouncements (cont&#146;d)</U></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>SFAS 157 in future periods to those items covered by FSP 157-2 is not expected to have a
material effect on the consolidated financial statements of the Company.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In March&nbsp;2008, the FASB issued SFAS No.&nbsp;161 (&#147;SFAS 161&#148;), &#147;Disclosures about Derivative
Instruments and Hedging Activities, an Amendment of FASB Statement No.&nbsp;133,&#148; which requires
additional disclosures about the objectives of the derivative instruments and hedging
activities, the method of accounting for such instruments under SFAS No.&nbsp;133 and its related
interpretations, and a tabular disclosure of the effects of such instruments and related
hedged items on our financial position, financial performance, and cash flows. SFAS 161 will
be effective for the Company in fiscal year 2010. The Company is currently assessing the
potential impact that adoption of SFAS 161 may have on its financial statements.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In April&nbsp;2008, FASB issued FSP No.&nbsp;142-3 &#147;Determination of the useful life of intangible
assets.&#148; This FSP amends the factors that should be considered in developing renewal or
extension assumptions used to determine the useful life of a recognized intangible asset
under FASB Statement No.&nbsp;142, &#147;Goodwill and Other Intangible Assets.&#148; The intent of this FSP
is to improve the consistency between the useful life of a recognized intangible asset under
SFAS No.&nbsp;142 and the period of expected cash flows used to measure the fair value of the
asset under SFAS No.&nbsp;141, &#147;Business Combinations,&#148; and other U.S. GAAP. This FSP will be
effective for the Company for fiscal years beginning after December&nbsp;15, 2008, and interim
periods within those fiscal years. Early adoption is prohibited. The adoption of FSP 142-3
is not expected to have a material effect on the consolidated financial statements of the
Company.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In May&nbsp;2008, the Financial Accounting Standards Board issued SFAS No.&nbsp;162, &#147;The
Hierarchy of Generally Accepted Accounting Principles.&#148; The new standard is intended to
improve financial reporting by identifying a consistent framework, or hierarchy, for
selecting accounting principles to be used in preparing financial statements that are
presented in conformity with U.S. GAAP for nongovernmental entities. SFAS No.&nbsp;162 is
effective 60&nbsp;days following the SEC&#146;s approval of the Public Company Accounting
Oversight Board Auditing amendments to AU Section&nbsp;411, The Meaning of Present Fairly in
Conformity with Generally Accepted Accounting Principles. The adoption of SFAS No.&nbsp;162
is not expected to have a material effect on the consolidated financial statements of
the Company.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In June&nbsp;2008, FASB issued FASB Staff Position FSP EITF 03-6-1 &#147;Determining whether
instruments granted in share-based payment transactions are participating securities&#148;.
This FASB Staff Position (FSP)&nbsp;addresses whether instruments granted in share-based
payment transactions are participating securities prior to vesting and, therefore, need
to be included in the earnings allocation in computing earnings per share (EPS)&nbsp;under the
two-class method described in paragraphs 60 and 61 of FASB Statement No.&nbsp;128, &#147;Earnings
per Share&#148;. This FSP will be effective for the Company for fiscal years
beginning after December&nbsp;15, 2008, and interim periods within those fiscal years. All
prior-period EPS data presented shall be adjusted retrospectively (including interim financial
statements, summaries of earnings, and selected financial data) to conform with the provisions
of this FSP. Early application is not permitted. The Company is currently evaluating the
potential impact, if any, of the adoption of FSP EITF 03-6-1 on the Company&#146;s consolidated
financial statements.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In September&nbsp;2008, Financial Accounting Standards Board issued FASB Staff
Positions (FSP)&nbsp;FAS 133-1 and FIN 45-4 &#147;Disclosures about Credit Derivatives and
Certain Guarantees: An Amendment of FASB Statement No.&nbsp;133 and FASB Interpretation No.
45; and Clarification of the Effective Date of FASB Statement No.&nbsp;161&#148;. This FSP amends
FASB Statement No.&nbsp;133, Accounting for Derivative Instruments and Hedging Activities,
to require disclosures by sellers of credit derivatives, including credit derivatives
embedded in a hybrid instrument. This FSP also amends FASB Interpretation No.&nbsp;45,
Guarantor&#146;s Accounting and Disclosure Requirements for Guarantees, Including Indirect
Guarantees of Indebtedness of Others, to require an additional disclosure about the
current status of the payment/performance risk of a guarantee. Further, this FSP
clarifies the Board&#146;s intent about the effective date of FASB Statement No.&nbsp;161,
Disclosures about Derivative</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->F-20<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">ASIA PACIFIC WIRE &#038; CABLE CORPORATION LIMITED AND SUBSIDIARIES
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(In thousands of US Dollars, except share data)

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD colspan="3"><B>SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES </B>(continued)</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Recent Pronouncements (cont&#146;d)</U></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Instruments and Hedging Activities. This FSP applies to credit derivatives within the scope
of Statement 133, hybrid instruments that have embedded credit derivatives, and
guarantees within the scope of Interpretation 45. This FSP&#146;s amendment to Statement 133
also pertains to hybrid instruments that have embedded credit derivatives (for example,
credit-linked notes). The provisions of this FSP that amend Statement 133 and
Interpretation 45 shall be effective for reporting periods (annual or interim) ending
after November&nbsp;15, 2008. This FSP encourages that the amendments to Statement 133 and
Interpretation 45 be applied in periods earlier than the effective date to facilitate
comparisons at initial adoption. In periods after initial adoption, this FSP requires
comparative disclosures only for periods ending subsequent to initial adoption. The
adoption of FSP 133-1 and FIN 45-4 is not expected to have a material effect on the
Company&#146;s consolidated financial statements.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In October&nbsp;2008, the FASB issued the FASB Staff Position (&#147;FSP No.&nbsp;157-3&#148;) which
clarifies the application of FASB Statement No.&nbsp;157, &#147;Fair Value Measurements&#148; in a
market that is not active and provides an example to illustrate key considerations in
determining the fair value of a financial asset when the market for that asset is not
active. This FSP applies to financial assets within the scope of accounting
pronouncements that require or permit fair value measurements in accordance with
Statement 157. The FSP shall be effective upon issuance, including prior periods for
which financial statements have not been issued. Revisions resulting from a change in
the valuation technique or its application shall be accounted for as a change in
accounting estimate (FASB Statement No.&nbsp;154 &#147;Accounting changes and Error Corrections&#148;,
paragraph 19). The disclosure provisions of Statement No.&nbsp;154 for a change in
accounting estimate are not required for revisions resulting from a change in valuation
technique or its application. The application of FSP 157-3 did not have a material
effect on the consolidated financial statements of the Company.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In November&nbsp;2008, the FASB issued its final consensus on &#147;Issue 08-8 &#151; Accounting
for an instrument (or an embedded Feature) with a settlement amount that is based on
the stock of an entity&#146;s consolidated subsidiary&#148; This issue applies to freestanding
financial instruments (and embedded features) for which the payoff to the counterparty
is based, in whole or in part, on the stock of a consolidated subsidiary. This issue
applies to those instruments (and embedded features) in the consolidated financial
statements of the parent, whether the instrument was entered into by the parent or the
subsidiary. This issue will be effective for fiscal years beginning on or after
December&nbsp;15, 2008 and interim periods within those fiscal years. Early adoption is not
permitted. The consensus shall be applied to outstanding instruments as of the
beginning of the fiscal year in which this issue is initially applied. The adoption of
Issue 08-8 is not expected to have a material effect on the consolidated financial
statements of the Company.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In November&nbsp;2008, the FASB issued the EITF Issue No.&nbsp;08-6 &#147;Equity Method Investment Accounting
Considerations&#148; (&#147;EITF 08-6&#148;) to clarify the accounting for certain transactions and
impairment considerations involving equity method investments. The FASB and the IASB concluded
a joint effort in converging the accounting for business combinations as well as the
accounting and reporting for non-controlling interests culminating in the issuance of
Statement 141(R) and Statement 160. The objective of that joint effort was not to reconsider
the accounting for equity method investments; however, the application of the equity method is
affected by the accounting for business combinations and the accounting for consolidated
subsidiaries, which were affected by the issuance of Statement 141(R) and Statement 160. EITF
08-6 is effective for fiscal years beginning on or after December&nbsp;15, 2008, and interim
periods within those fiscal years, consistent with the effective dates of Statement 141(R) and
Statement 160. EITF 08-6 shall be applied prospectively. Earlier application by an entity that
has previously adopted an alternative accounting policy is not permitted. The adoption of EITF
08-6 is not expected to have a material effect on the consolidated financial statements of the
Company.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->F-21<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">ASIA PACIFIC WIRE &#038; CABLE CORPORATION LIMITED AND SUBSIDIARIES
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(In thousands of US Dollars, except share data)

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>4.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>SHORT-TERM BANK DEPOSITS</B></TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 0px solid #000000">December 31,</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2008</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Unrestricted short-term bank deposits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,861</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">7,756</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Restricted short-term bank deposits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,714</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,033</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">20,575</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">22,789</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Restricted short-term bank deposits represent the amounts of cash pledged by three
subsidiaries to secure credit facilities granted by financial institutions.
Unrestricted short-term bank deposits represents bank deposits which do not qualify as
cash equivalents.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The bank deposits bear interest ranging from 1% to 5.1% and 0.325% to 4.6% per
annum for the year 2007 and 2008, respectively.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>5.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>GOODWILL</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Goodwill of $8,801 (2007: $8,801; 2006: $8,801) relates to the manufactured products segment
and there are no changes in the carrying value of goodwill for the years ended December&nbsp;31,
2006, 2007 and 2008.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>6.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>INVESTMENTS</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>On December&nbsp;31, 2007 and 2008, the Company held available-for-sale securities issued by a
minority shareholder of two of the Operating Subsidiaries.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The following is a summary of these available-for-sale securities:</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="14" style="border-bottom: 1px solid #000000">Available-for-sale Securities</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Gross</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Gross</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Estimated</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Unrealized</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Unrealized</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Fair</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Cost</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Gains</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Losses</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Value</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">December&nbsp;31, 2007
Quoted equity securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">473</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">(272)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">201</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">December&nbsp;31, 2008
Quoted equity securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">392</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">(324)</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">68</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The above investment in TT&#038;T Public Company Limited (TT&#038;T) has been in a continuous
unrealized loss position for more than 12&nbsp;months. TT&#038;T is listed on the Stock Exchange of
Thailand. Its principal activity is the operation of provincial telephone network
throughout Thailand and services include, fixed line telephone, pay phone, data
communication and distribution of telephone equipment.</TD>
</TR>

</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->F-22<!-- /Folio -->
</DIV>




<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">ASIA PACIFIC WIRE &#038; CABLE CORPORATION LIMITED AND SUBSIDIARIES

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(In thousands of US Dollars, except share data)

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>7.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>INVESTMENTS </B>(continued)</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A summary of the carrying values and balance sheet classification of all
investments in debt, equity securities and available-for-sale securities disclosed
above was as follows:</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 0px solid #000000">December 31,</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2008</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Available-for-sale equity securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">201</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">68</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Held-to-maturity debt securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,354</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Short-term investments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,555</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">68</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Equity securities in privately-held companies and other
investments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">650</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">544</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Long-term investments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">650</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">544</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total investments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3,205</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">612</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>There were realized gains of $343, $28 and $nil on disposal of available-for-sale
securities in 2006, 2007 and 2008, respectively. The disposal of available-for-sale
securities was for a consideration of $626, $65 and $14 in 2006, 2007 and 2008,
respectively. The net adjustment to unrealized holding losses on available-for-sale
securities included as a separate component of shareholders&#146; equity, net at income
taxes, totaled, $(64), $(6) and $(46) in 2006, 2007 and 2008, respectively.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The held-to-maturity investment as of December&nbsp;31, 2007 bears interest at 3.0% per
annum and matured in June&nbsp;2008.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The long-term investments in non-marketable securities are valuated at cost net of allowance
for impairment (if any). The long-term investment consists of the investment in a privately
owned company in Thailand which is engaged in the fabrication of copper rods. There is no
impairment recognized in 2007 and 2008 because there are no any events or changes in
circumstances that may have had a significant adverse effect on the fair value of the
investment.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>8.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>BANK LOANS AND OVERDRAFTS</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Under line of credit arrangements for short-term debt with the Company&#146;s bankers, the
Company may borrow up to approximately $248,749 (2007: $252,099) on such terms as the
Company and the banks may mutually agree upon. These arrangements do not have termination
dates but are reviewed annually for renewal. As of December&nbsp;31, 2008, the unused portion of
the credit lines was approximately $140,756 (2007: $134,811), which included unused letters
of credit amounting to $93,499 (2007: $98,089). Letters of credit are issued by the Company
during the ordinary course of business through major financial institutions as required by
certain vendor contracts. As of December&nbsp;31, 2008, the Company had open letters of credit
totaling $57,976 (2007: $80,693). Liabilities relating to the letters of credit are included
in current liabilities.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The credit lines of the Company were collateralized by:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Mortgage of the Company&#146;s land, buildings, machinery and equipment with a total
carrying amount of $40,246 at December&nbsp;31, 2008 (2007: $37,541);</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->F-23<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">ASIA PACIFIC WIRE &#038; CABLE CORPORATION LIMITED AND SUBSIDIARIES

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(In thousands of US Dollars, except share data)

</DIV>


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>8.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>BANK LOANS AND OVERDRAFTS </B>(continued)</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Mortgage of the assets with total carrying amount of $nil at December&nbsp;31, 2008
of a subsidiary of the Company (2007: $nil);</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The subsidiary has ceased its business operation since May&nbsp;2007 and
all the bank facilities were cancelled as of November&nbsp;30, 2007.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Pledge of short-term deposits of $15,033 at December&nbsp;31, 2008 (2007: $18,714);</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(iv)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Joint and several personal guarantees from certain directors of a subsidiary of
the Company; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(v)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Corporate guarantees issued by the Company, a subsidiary of the Company and the
holding company.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The weighted average interest rates on bank loans and overdrafts as of December&nbsp;31, 2006,
2007 and 2008 were 5.9%, 6.1% and 5.3% per annum, respectively.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>9.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>DISTRIBUTION OF EARNINGS</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company&#146;s ability to pay dividends is primarily dependent on the Company receiving
distributions from the Operating Subsidiaries and the investee companies.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>As described in Note 2, the earnings reflected in the financial statements prepared in
accordance with US GAAP differ from those reflected in the statutory financial statements of
the Company&#146;s subsidiaries and investee companies. In accordance with the relevant laws and
regulations applicable to the Company&#146;s subsidiaries and investee companies, the earnings
available for distribution are based on their respective statutory financial statements. At
December&nbsp;31, 2007, the amount of the Company&#146;s retained earnings available for distribution
was approximately $27,126 and the consolidated retained earnings included $(3,084),
$(1,003), $(729), $695 and $(145) of the
accumulated (losses)&nbsp;profits of Lox Pac, Thai Professional, SPHC, SPRC and Shandong Huayu,
respectively. At December&nbsp;31, 2008, the amount of the Company&#146;s retained earnings
available for distribution was approximately $14,709 and the consolidated retained
earnings included $(3,084), $(1,003), $(734), $586 and $(175) of the accumulated
(losses)&nbsp;profits of Lox Pac, Thai Professional, SPHC, SPRC and Shandong Huayu,
respectively.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->F-24<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">ASIA PACIFIC WIRE &#038; CABLE CORPORATION LIMITED AND SUBSIDIARIES

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(In thousands of US Dollars, except share data)

</DIV>


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>10.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>VALUATION AND QUALIFYING ACCOUNTS</B></TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Net charged</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Currency</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Balance</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Balance at</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">(credited) to costs</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">translation</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">at end of</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Description</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">beginning of year</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">and expenses</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Deduction</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">adjustment</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">year</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Year ended December&nbsp;31, 2006:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Deducted from asset accounts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Allowance for doubtful accounts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">8,383</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,221</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(946</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">632</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">9,290</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Allowance for inventories</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">&#151; Net realizable value</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,387</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,121</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,508</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">&#151; Obsolescence</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,941</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">896</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(509</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">156</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,484</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Allowance for deferred
tax assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,027</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,088</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">402</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,341</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:45px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">18,708</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,150</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(1,455</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,190</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">19,623</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:45px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Year ended December&nbsp;31, 2007:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Deducted from asset accounts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Allowance for doubtful accounts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">9,290</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3,295</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(2,172</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,072</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">11,485</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Allowance for inventories</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">&#151; Net realizable value</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,508</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(363</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">102</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,247</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">&#151; Obsolescence</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,484</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(909</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">200</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,775</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Allowance for deferred tax assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,341</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3,158</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">302</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,485</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">19,623</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(1,135</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(2,172</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,676</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">17,992</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:45px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Year ended December&nbsp;31, 2008:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Deducted from asset accounts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Allowance for doubtful accounts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">11,485</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(1,031</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(822</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">9,644</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Allowance for inventories</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">&#151; Net realizable value</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,247</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,144</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(142</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,967</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26,282</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:60px; text-indent:-15px">&#151; Obsolescence</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,775</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,164</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(179</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">433</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Allowance for deferred tax assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,485</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,227</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(29</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,683</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">17,992</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">30,384</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(2,337</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(2,997</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">43,042</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:45px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Due to changing market conditions in the wire &#038; cable industry, the Company evaluates the
inventory in all of its product lines on a periodic basis. As a result, a reserve for
inventory obsolescence of $896 and $1 were recognized for the years ended December&nbsp;31, 2006
and 2008, respectively. A recovery for obsolescence of $909 was recognized, as a credit to
cost of sales, for the years ended December&nbsp;31, 2007. In addition, inventory write-down to
net realizable value of $1,121 were charged to cost of sales in 2006 and a decrease of $363
in the net realizable value allowance was recognized as credit to cost of sales, for
finished goods written down to net previous years, which were sold at above net realizable
value in 2007.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>During 2008, the decreases in commodity prices, including that of copper, resulted in a
write-down of the carrying cost of the Company&#146;s inventory as of December&nbsp;31, 2008. Copper
prices on the London Metal Exchange (the &#147;LME&#148;) have fallen from an average monthly high of
$8,685 per metric ton in April&nbsp;2008 to only $3,072 per metric ton in December&nbsp;2008. In
addition, sales towards the end of 2008 have decreased due to the worldwide economic
slowdown thereby increasing our inventory levels at year end. As a result of the fall in
commodity prices and our high inventory levels, a reserve of $25,144 for inventory
write-down to net realizable value was charged to cost of sales in 2008. The allowance for
inventory losses is based on the Company&#146;s best estimates of product sales prices and
customer demand patterns, and its plans to transition its products. As a result of the
commodity market&#146;s dynamic nature, it is at least reasonably possible that the estimate used
by the Company to determine its allowance for inventory losses may be more or less than the
actual amount or results in the near term.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->F-25<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">ASIA PACIFIC WIRE &#038; CABLE CORPORATION LIMITED AND SUBSIDIARIES

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(In thousands of US Dollars, except share data)

</DIV>


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>11.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>INCOME TAXES</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Under current Bermuda law, the Company is not subject to tax on income or capital gains, and
no Bermuda withholding tax is imposed upon payments of dividends by the Company to its
shareholders.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company&#146;s investments in the Operating Subsidiaries are held through subsidiaries
incorporated in the British Virgin Islands (&#147;BVI&#148;). Under current BVI law, dividends from
the BVI subsidiaries&#146; investments are not subject to income taxes and no withholding tax is
imposed on payments of dividends by the BVI subsidiaries to the Company.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Operating Subsidiaries and equity investees are governed by the income tax laws of
Singapore, Thailand, Australia, the People&#146;s Republic of China and Myanmar. The corporate
income tax rate in Singapore was 20%, 18% and 18% for 2006, 2007 and 2008, respectively, and
there is no withholding tax on dividends applicable to the Company. For Thailand, the
corporate income tax rate was 30% for each of the three years ended December&nbsp;31, 2008 and a
withholding tax of 10% is levied on dividends received by the Company. In Australia, the
corporate income tax rate was 30% for 2006/2007, 2007/2008 and 2008/2009 tax years. The
applicable corporate income tax rate for the subsidiaries in the People&#146;s Republic of China
was 33% for 2006 and 2007 and 25% for 2008. The corporate income tax rate for Myanmar was
30% for 2006/2007, 2007/2008 and 2008/2009 tax years.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Pursuant to the Corporate Income Tax Law (the CIT Law) of the PRC came into effect on
January&nbsp;1, 2008, all the enterprises generally are subject to corporate income tax at an
effective rate of 25% on income as reported in their statutory accounts (2007: 33%). The
enterprise is located in specially-designated regions or cities enjoyed the preferential
policy in the form of a reduced tax rate shall have five years from the time when the CIT
Law takes effect to transition progressively to the legally prescribed tax rate. During this
period, an enterprise that enjoyed the 15% corporate income tax rate shall be subject to the
18% tax rate for the year 2008, 20% for the year 2009, 22% for the year 2010, 24% for the
year 2011, and 25% for the year 2012.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>PEWS is located in Shenzhen, which is a region where preferential tax rates apply and
currently qualifies for a reduced rate of taxation of 15% (50% of the full rate of 30% State
income taxes and no local income taxes). Pursuant to the Notice on the Implementation of the
Transitional Preferential CIT Policies Guofa, as of January&nbsp;1, 2008, the enterprise that
enjoyed the 15% income tax rate shall be subject to the 18% for the year 2008. PEWS
qualifies for a further reduced rate of 10% if export revenues exceed 70% of its total
revenues. PEWS is exempt from income tax for the two years starting from its first
profitable year of operations (2001). PEWS is entitled to a 50% tax exemption from the State
income taxes for a further three-year period (2003 to 2005) under the Income Tax Law. With
the preferential tax rate, current income tax liabilities of PEWS were reduced by
approximately $116 for the year ended December&nbsp;31, 2008. The preferential tax rate also
increased the net income per share by $0.008 for the year ended December&nbsp;31, 2008.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->F-26<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">ASIA PACIFIC WIRE &#038; CABLE CORPORATION LIMITED AND SUBSIDIARIES

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(In thousands of US Dollars, except share data)

</DIV>


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>11.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>INCOME TAXES </B>(continued)</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Pre-tax income (loss)&nbsp;from continuing operations was taxed in the following jurisdictions:</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 0px solid #000000">Year ended December 31,</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2006</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2008</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Thailand</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25,524</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">9,116</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(14,453</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Singapore</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,652</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,169</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(712</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Australia</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,811</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,255</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,731</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">The People&#146;s Republic of China</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,323</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,318</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(5,293</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">British Virgin Islands</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,290</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3,143</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">152</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Bermuda</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,229</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3,679</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,351</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32,487</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,036</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(19,926</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Equity investees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">The People&#146;s Republic of China</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(123</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(142</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">British Virgin Islands</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">73</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">247</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">73</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">124</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(142</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">32,560</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">13,160</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(20,068</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Significant components of the provision (benefit)&nbsp;for income taxes are as follows:</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 0px solid #000000">Year ended December 31,</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2006</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2008</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Allocated to net income (loss)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Current:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Thailand</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">7,578</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">5,701</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,514</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Singapore</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(168</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">194</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">132</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">The People&#146;s Republic of China</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,888</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">662</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(679</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Australia</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,382</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,710</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,310</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total current</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,680</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,267</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,277</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Deferred:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Thailand</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(71</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,128</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(865</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Singapore</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">334</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">The People&#146;s Republic of China</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(110</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(56</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,135</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Australia</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(576</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">218</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(415</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total deferred</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(423</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,969</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(145</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">10,257</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">6,298</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,132</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Allocated to other comprehensive loss</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(92</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(6</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(27</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->F-27<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>11.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>INCOME TAXES </B>(continued)</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">ASIA PACIFIC WIRE &#038; CABLE CORPORATION LIMITED AND SUBSIDIARIES

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(In thousands of US Dollars, except share data)

</DIV>


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>At December&nbsp;31, 2006, 2007 and 2008, the Operating Subsidiaries had net
operating loss carry forwards of approximately $19,460, $5,970 and $16,643,
respectively. The remaining net operating losses can be carried forward indefinitely,
subject to any condition to be met under the relevant tax laws of the respective
jurisdictions. The utilization of these net operating loss carry forwards is subject
to agreement by the income tax authorities in the respective jurisdictions.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The parent company&#146;s tax is filed in Bermuda, which does not have a statutory tax
rate. Therefore the provision for income taxes differs based on the taxes incurred by
the Operating Subsidiaries, in their respective jurisdiction. The principal reasons for
the differences are listed in the following table:</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 0px solid #000000">Year ended December 31,</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2006</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2008</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Higher statutory tax rate in:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Thailand</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">5,869</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,966</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(3,887</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Singapore</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(530</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">634</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(128</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Australia</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">843</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,899</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">830</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">People&#146;s Republic of China</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,411</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">305</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(763</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,593</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,804</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3,948</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Expenses not deductible for tax purposes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,541</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,163</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">894</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Changes in valuation allowance</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,686</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,856</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,198</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Others</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(191</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">187</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(12</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total charge for the year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">10,257</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">6,298</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,132</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Deferred tax liabilities and assets comprised the following:</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2008</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Deferred tax liabilities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Tax over book depreciation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(275</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(275</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Book over tax basis in subsidiaries</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,511</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,022</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total deferred tax liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,786</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,297</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Deferred tax assets:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Unused tax losses and unused tax credits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,687</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">837</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Allowance for doubtful accounts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,374</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,540</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Allowance for inventories</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">772</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,365</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Allowance for impairment in investment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">610</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">540</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Others</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">82</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">97</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total deferred tax assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,525</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,379</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Valuation allowance for deferred tax assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,485</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(6,683</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total deferred tax assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,040</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,696</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net deferred tax assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3,254</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3,399</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->F-28<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">ASIA PACIFIC WIRE &#038; CABLE CORPORATION LIMITED AND SUBSIDIARIES

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(In thousands of US Dollars, except share data)

</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>11.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>INCOME TAXES </B>(continued)</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The amount of deferred tax liabilities and assets at December&nbsp;31, 2007 and 2008 were as
follows:</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 0px solid #000000">December 31,</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2008</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Gross current deferred tax liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(561</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(72</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Gross current deferred tax assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,312</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,091</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Valuation allowance for deferred tax assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,254</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(7,028</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,058</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,063</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net current deferred tax assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,497</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,991</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Gross long-term deferred tax liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,225</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,225</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Gross long-term deferred tax assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,213</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,633</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Valuation allowance for deferred tax assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(231</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,982</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,633</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net long-term deferred tax assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">757</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">408</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net deferred tax assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3,254</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3,399</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The deferred tax liabilities and assets are presented in the accompanying consolidated
balance sheets as follows:</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 0px solid #000000">December 31,</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2008</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Current</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Deferred tax assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,481</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3,064</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Deferred tax liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(561</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(65</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total current</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,920</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,999</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Long-term</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Deferred tax assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,032</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,182</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Deferred tax liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(698</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(782</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total long-term</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,334</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">400</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net deferred tax assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3,254</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3,399</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Undistributed earnings of the Company&#146;s foreign subsidiaries included in the Company&#146;s
retained earnings amounted to approximately $30,000, $32,697 and $19,165 as of December&nbsp;31,
2006, 2007 and 2008, respectively. Upon distribution of those earnings in the form of
dividends or otherwise, the Company would be subject to withholding taxes payable to the
respective foreign countries. Except for earnings relating to a subsidiary in Thailand, the
Company has no intention of distributing the earnings that are subject to withholding taxes.
Withholding taxes of approximately $128 would be payable upon remittance of all previously
unremitted earnings of that subsidiary, to the extent allowed by the subsidiary&#146;s articles
of association, as of December&nbsp;31, 2008.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->F-29<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">ASIA PACIFIC WIRE &#038; CABLE CORPORATION LIMITED AND SUBSIDIARIES

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(In thousands of US Dollars, except share data)

</DIV>


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>11.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>INCOME TAXES </B>(continued)</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The management estimated and accrued a tax provision in the amount of $156 and $nil during
2007 and 2008 as the Company determined that it is more-likely-than-not that income derived
from certain activities may be subject to taxes in offshore locations that have a higher tax
rate. The accrued tax provisions were recorded in income tax liabilities.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Deferred income taxes reflect the net tax effects of temporary differences between the
carrying amounts of assets and liabilities for financial reporting purposes and the amounts
used for income tax purposes. The Company had deferred tax assets totaling approximately
$6,525 and $11,379 at December&nbsp;31, 2007 and 2008, respectively. However, realization of all
of these deferred assets is not reasonably assured; therefore, they were reserved by a
valuation allowance of $1,485 and $6,683 at December&nbsp;31, 2007 and 2008, respectively.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The net change in valuation allowance for the years ended December&nbsp;31, 2006, 2007 and 2008
was an increase (decrease)&nbsp;of approximately $(1,686), $(2,856) and $5,198 respectively,
resulting primarily from net operating (gains)&nbsp;losses generated during the respective years.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>On July&nbsp;13, 2006, the FASB issued Interpretation No.&nbsp;48, &#147;Accounting for Uncertainty in
Income Taxes &#151; An Interpretation of FASB Statement No.&nbsp;109&#148; (&#147;FIN 48&#148;). FIN 48 clarifies
the accounting for uncertainty in income taxes recognized in an entity&#146;s financial
statements in accordance with FASB Statement No.&nbsp;109, &#147;Accounting for Income Taxes&#148; and
prescribes a recognition threshold and measurement attributes for financial statement
disclosure of tax positions taken or expected to be taken on a tax return. Under FIN 48, the
impact of an uncertain income tax position on the income tax return must be recognized at
the largest amount that is more-likely-than-not to be sustained upon audit by the relevant
taxing authority. An uncertain income tax position will not be recognized if it has less
than a 50% likelihood of being sustained. Additionally, FIN 48 provides guidance on
derecognition, classification, interest and penalties, accounting in interim periods,
disclosure and transition.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company adopted the provisions of FIN 48 on January&nbsp;1, 2007. The total amount of
unrecognized tax benefits as of the date of adoption was $220. The Company&#146;s practice is to
recognize interest and/or penalties related to income tax matters as a component of income
tax expenses. Upon adoption of FIN 48 on January&nbsp;1, 2007, the Company recognized $1,774 of
interest and penalties. As a result of the implementation of FIN 48 on January&nbsp;1, 2007, the
Company recognized a reduction to retained earnings of $1,889. As a result of the
implementation of FIN 48, the Company recognized a $105 decrease in deferred tax assets and
a corresponding decrease in the valuation allowance. As of January&nbsp;1, 2007, the amount of
unrecognized tax benefits included in the balance sheet that would, if recognized, affect
the effective tax rate is $115.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>As of December&nbsp;31, 2007 and 2008, the Company is subject to taxation in The People&#146;s
Republic of China, Hong Kong, Australia, Thailand, and Singapore. The Company&#146;s tax years
for 1999 and forward are subject to examination by the tax authorities in the jurisdictions
where the Company is subject to taxation.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>As of December&nbsp;31, 2007 and 2008, the amount of unrecognized tax benefits included in the
balance sheet that would, if recognized, affect the effective tax rate is $130 and $76,
respectively. The Company recognized $440 and $391 in interest and penalties during 2007 and
2008. As of December&nbsp;31, 2007 and 2008, the Company recognized $2,214 and $2,540,
respectively of interest and penalties.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD colspan="3"><B>Change in Uncertain Tax Positions</B></td>
</tr>
</TABLE>
</DIV>






<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 0px solid #000000">December 31,</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 0px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2008</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Balance at January 1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">475</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Adoption of FIN 48 effective January&nbsp;1, 2007</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">220</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Additions based on tax positions related to the current year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">213</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Additions for tax positions of prior years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">42</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Settlements</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(58</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Balance at December 31</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">475</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">422</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->F-30<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">ASIA PACIFIC WIRE &#038; CABLE CORPORATION LIMITED AND SUBSIDIARIES

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(In thousands of US Dollars, except share data)

</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>12.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The components of other comprehensive income (loss)&nbsp;are as follows:</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Unrealized</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>gains</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>(losses) on</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Currency</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>available-</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>translation</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>for- sale</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>adjustments</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>securities</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Others</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Total</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Balance at January&nbsp;1, 2006</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">$</TD>
    <TD align="right">(28,140</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">532</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">$</TD>
    <TD align="right">(27,608</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Currency translation adjustment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,822</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,822</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Realized gain on liquidation of subsidiary</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(1,801</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(1,801</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Deferred taxes relating to realized gain
on
liquidation of subsidiary</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">556</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">556</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Gain realized on sale of
available-for-sale securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(601</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(601</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Deferred taxes relating to realized gain
on
sales of available-for-sale securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">258</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">258</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Unrealized losses on available-for-sale
securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(156</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(156</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Deferred taxes relating to unrealized
losses
on available-for-sale securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">92</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">92</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Balance at December&nbsp;31, 2006</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(19,563</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">125</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(19,438</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Currency translation adjustment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,179</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,179</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Gain realized on sale of
available-for-sale securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(34</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(34</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Deferred taxes relating to realized gain
on
sales of available-for-sale securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Unrealized losses on available-for-sale
securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(12</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(12</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Deferred taxes relating to unrealized
losses
on available-for-sale securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Pension benefits recognized under SFAS 158</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(71</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(71</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" nowrap align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Balance at December&nbsp;31, 2007</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(4,384</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">91</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(71</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(4,364</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Currency translation adjustment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(8,994</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(8,994</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Unrealized losses on available-for-sale
securities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(45</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(45</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Deferred taxes relating to unrealized losses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">
Pension benefits recognized under SFAS 158</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Balance at December&nbsp;31, 2008</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">$</TD>
    <TD align="right">(13,378</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">73</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">$</TD>
    <TD align="right">(64</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">$</TD>
    <TD align="right">(13,369</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" nowrap align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>

</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->F-31<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">ASIA PACIFIC WIRE &#038; CABLE CORPORATION LIMITED AND SUBSIDIARIES

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(In thousands of US Dollars, except share data)

</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>13.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>COMMITMENTS AND CONTINGENCIES</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Leases</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company leases certain machinery and equipment under capital leases for 2007 and
2008.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company leases a piece of land in Singapore and certain buildings under
non-cancellable operating lease arrangements for terms from 5 to 30&nbsp;years.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Future minimum payments under capital leases and non-cancellable operating leases
with initial terms of one year or more consisted of the following as of December&nbsp;31,
2008:</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Capital Leases</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Operating Leases</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">219</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">608</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">116</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">372</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2011</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">356</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2012</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">284</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2013</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">289</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Thereafter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,449</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total minimum lease payments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">422</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4,358</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Amounts representing interest</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(36</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Present value of net minimum lease payments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">386</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Rental expense consisted of the following:</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2006</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2008</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Rentals under operating lease</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">738</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">766</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">658</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The current and non-current portion of the capital lease liabilities of $196 and $190
as of December&nbsp;31, 2008 are included in other current liabilities and other
liabilities, respectively. The capital lease liabilities are secured by a charge
over the leased machinery and equipment at cost of $537 and $407 as of December&nbsp;31,
2007 and 2008, respectively. The accumulated depreciation of these leased assets as
of December&nbsp;31, 2007 and 2008 amounted to $214 and $219, respectively.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The average discount interest rate implicit in the lease is 7.8% and
9.25% for 2007 and 2008, respectively.</TD>
</TR>

</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->F-32<!-- /Folio -->
</DIV>



<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">ASIA PACIFIC WIRE &#038; CABLE CORPORATION LIMITED AND SUBSIDIARIES

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(In thousands of US Dollars, except share data)

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>13.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>COMMITMENTS AND CONTINGENCIES </B>(continued)</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>As of December&nbsp;31, 2008, there were outstanding bank guarantees of $20,962
(2007: $50,221) issued by the banks on behalf of Charoong Thai and its subsidiaries in
respect of certain performance bonds as required in the normal course of business of
the companies. These guarantees generally expire within 1&nbsp;year.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>As of December&nbsp;31, 2008, Charoong Thai and its subsidiaries had given
continuing corporate guarantee of $79,891 (2007: $79,743) in respect of banking
facilities extended to two Operating Subsidiaries.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>As of December&nbsp;31, 2008, Charoong Thai has contract commitments to purchase
totaling $2,051 to $4,657 (2007: $47,431 to $71,147), of raw materials from third
parties at the prices stipulated in the contracts.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>As of December&nbsp;31, 2008, Sigma Cable has committed to sell/deliver copper
cables at a predetermined price totaling $10.9&nbsp;million throughout 2008. As of December
31, 2008 the estimated fair value gain not recognized in the financial statements
relating to this commitment is approximately $4.88&nbsp;million.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(f)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Sigma Cable has agreed to provide continuing financial support to APEC to
enable APEC to meet its liabilities as and when they fall due. The letter of awareness
from Sigma Cable with an ownership covenant requires Sigma Cable to maintain a minimum
of 85% of interest in APEC.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(g)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Approximately $2,159 of property, plant and equipment of a subsidiary in the
People&#146;s Republic of China is located on a piece of leasehold land held by an equity
investee. The equity investee has obtained the land use right certificate in respect of
the said land on August&nbsp;20, 2008.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(h)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company provided a corporate guarantee not exceeding the sum of $2,761 (AUD
4&nbsp;million) to a third party for the procurement of copper by a subsidiary company. The
guarantee period is for one year. The latest renewal was made on January&nbsp;16, 2008 and
the guarantee will expire on February&nbsp;28, 2009.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company provided a corporate guarantee not exceeding the sum of $7&nbsp;million
for bank credit line of one Thailand subsidiary; and a corporate guarantee not
exceeding the sum of $3,466 (SGD 5&nbsp;million) for the bond facility of Sigma Cable. Any
settlement, discharge or release for these guarantees will be conditional upon on
securities or payment to the Beneficiaries.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(j)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In February&nbsp;2008, Supreme Court in Singapore rendered a decision against Sigma
Cable in which Sigma Cable is found liable to one of its customers for damage
approximately in an amount of $886. Sigma Cable appealed the decision. However, the
management believed that it was more likely than not that the Company&#146;s appeal would
not be successful. Therefore, this amount has been accrued as of December&nbsp;31, 2005. The
appeal was dismissed on October&nbsp;21, 2008.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(k)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A customer of Sigma Cable has claimed for damages relating to the termination
of Sigma Cable&#146;s purchase agreement with the customer. As at the date of this report,
neither of the parties has started legal action, hence, the outcome of any potential
litigation is still uncertain and the amount of damages is yet to be assessed.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(l)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>As disclosed in Note 1, on June&nbsp;28, 2007 SOF acquired the Sino-JP shares
pursuant to a share purchase agreement (the &#147;Purchase Agreement&#148;), and entered into a
shareholders&#146; agreement with the Company and PEWC (the &#147;Shareholders/ Agreement&#148;). On
March&nbsp;27,
2009, SOF sold 10.2% of the issued and outstanding shares of the Company to PEWC and
entered into an Amended and Restated Shareholders&#146; Agreement with the Company and
PEWC (the &#147;Amended Shareholders&#146; Agreement&#148;). Among other things, the Amended</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->F-33<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">ASIA PACIFIC WIRE &#038; CABLE CORPORATION LIMITED AND SUBSIDIARIES

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(In thousands of US Dollars, except share data)

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>13.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>COMMITMENTS AND CONTINGENCIES </B>(continued)</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Shareholders&#146; Agreement grant to the Company an extension for listing its common
shares on a national exchange until February&nbsp;2011 and provides for the following:</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Indemnification</U></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company must certify to SOF whether or not it is considered a Controlled Foreign
Corporation or a Passive Foreign Investment Company as of each fiscal year end.
Should this certification be challenged by the taxing authorities and found to be
incorrect, the Company must indemnify SOF and its shareholders against interest and
penalties that may be imposed and reasonable attorney&#146;s fees incurred.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>It is management&#146;s opinion that this indemnification will not result in any adverse
material financial consequence to the Company.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Registration Rights </U></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company has prepared and filed with the SEC a registration statement on From F-1
covering the resale of the &#147;Registrable Securities&#148; for an offering to be made on a
continuous basis pursuant to Rule&nbsp;415 of the Securities Act of 1933, which
registration statement was declared effective under the Securities Act by the SEC on
March&nbsp;11, 2009. &#147;Registrable Securities&#148; includes the shares beneficially owned by
SOF.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Subject to the Amended Shareholders&#146; Agreement, the Company must use its reasonable
best efforts to keep such registration statement continuously effective until (i)&nbsp;all
Registrable Securities either have been sold or may be sold without volume
restrictions pursuant to Rule&nbsp;144 of the Securities Act of 1933 and (ii)&nbsp;SOF receives
freely transferable shares from the Issuer&#146;s transfer agent.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If any such registration statement ceases to remain continuously effective for any
reason after the effectiveness date and during any time when the registration
statement is required to be effective, or SOF is otherwise not permitted to utilize
the prospectus therein to resell such Registrable Securities, in either case, for
more than thirty (30)&nbsp;consecutive trading days or more than an aggregate of sixty
(60)&nbsp;trading days during any twelve month period (an &#147; Event &#147;), then the &#147;Put Right&#148;
(defined below) will become immediately exercisable and will continue until such
event has been cured.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Put Right and Option </U></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Under the terms of the Amended Shareholders&#146; Agreement, SOF has the right and option
(but not the obligation) to sell to PEWC upon the occurrence of a Put Event (defined
below), and PEWC agreed to purchase from SOF upon the occurrence of a Put Event, all
Registrable Securities then owned by SOF (the &#147; Put Shares &#147;), for an amount equal to
the Put Price (defined below) together with interest (calculated on the basis of a
360&nbsp;day year) on the Put Price, computed (x)&nbsp;from June&nbsp;28, 2007 through May&nbsp;31, 2010
at a rate per annum that shall be equal to the Libor Rate plus fifty (50)&nbsp;basis
points (compounded annually), and (y)&nbsp;from June&nbsp;1, 2010 until the Put Closing
(defined below) at a rate per annum that shall be equal to the Libor Rate plus one
hundred and fifty (150)&nbsp;basis points (compounded annually) (the &#147; Put Right &#147;). If
the Put Event terminates prior to the closing of such Put Right, the exercise of the
Put Right is deemed rescinded and the transaction relating to the Put Right is deemed
cancelled, but this will not terminate the existence of a future Put Right upon the
triggering of a future Put Event.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A &#147;Put Event&#148; means any date (i)&nbsp;after March&nbsp;11, 2009 whereby an Event has occurred
and continues to occur, or (ii)&nbsp;after February&nbsp;1, 2011 whereby the shares are not
listed on a US
Securities Market, which means any of the Nasdaq Stock Market, Inc. (Global Market or
Global Select Market), the NYSE Alternext U.S. (f/k/a the American Stock Exchange
LLC), the New York Stock Exchange LLC or one or more of the principal or secondary
exchanges for the public trading of equity securities in any of Hong Kong, Tokyo or
Singapore. The</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->F-34<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">ASIA PACIFIC WIRE &#038; CABLE CORPORATION LIMITED AND SUBSIDIARIES

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(In thousands of US Dollars, except share data)

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>13.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>COMMITMENTS AND CONTINGENCIES </B>(continued)</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;Put Price&#148; means for (i)&nbsp;shares purchased pursuant to the Purchase Agreement, an
aggregate amount equal to the product of (a)&nbsp;the number of shares being sold and (b)
US$4.35 and (ii)&nbsp;Shares purchased under preemptive right provisions of the Amended
Shareholders&#146; Agreement, and aggregate amount equal to the purchase price thereof.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Shareholders&#146; Agreement does not contain any provisions that impose any purchase,
reimbursement or financing obligations on the Company in the event that SOF exercises
the Put Right. The Put Right is an obligation solely of PEWC and not of the Company.
However, for the avoidance of doubt and as a re-affirmation that the financial and
other obligation to SOF in the event of an exercise of the Put Right rest exclusively
with PEWC, the Company has, on March&nbsp;27, 2008, entered into a Non-Recourse
Confirmation Agreement with PEWC whereby PEWC (i)&nbsp;covenants that it has no put right
against the Company relating to the Put Shares and that PEWC&#146;s obligations to SOF are
without recourse to the Company, (ii)&nbsp;waives any such right should it arise in the
future, and (iii)&nbsp;agrees that it shall not cause the Company, directly or indirectly,
to incur any costs associated with the exercise of the Put Right.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Shareholders&#146; Agreement provides, and the Non-recourse Confirmation Agreement
confirms, that the Put Rights is solely the obligation of PEWC. The Company has no
purchase, reimbursement or financing obligations in the event that SOF exercises the
Put Right. As such, the Company has classified the Put Shares as equity in the
accompanying financial statements.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>14.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>FINANCIAL INSTRUMENTS</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Concentrations of credit risk</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Financial instruments that potentially subject the Company to
significant concentrations of credit risk consist principally of cash
and cash equivalents, bank deposits, investments, investment
securities and trade accounts receivable.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company maintains cash and cash equivalents with various financial institutions.
These financial institutions are located in Singapore, Thailand, Australia, Hong Kong
and the People&#146;s Republic of China. The Company&#146;s policy is designed to limit its
exposure to any one institution. The Company performs periodic evaluations of the
relative credit standing of those financial institutions that are considered in the
Company&#146;s investment strategy.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Concentrations of credit risk with respect to trade accounts receivable are limited
due to the large number of entities comprising the Company&#146;s customer base. The
Company carefully assesses the financial strength of its customers and generally does
not require any collateral. At December&nbsp;31, 2008, one Thailand subsidiary&#146;s customer
accounted for 12% of the Company&#146;s accounts receivable.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company is exposed to credit loss in the event of non-performance
by counter parties on foreign exchange contracts, but the Company does not
anticipate non-performance by any counter parties.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->F-35<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">ASIA PACIFIC WIRE &#038; CABLE CORPORATION LIMITED AND SUBSIDIARIES

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(In thousands of US Dollars, except share data)

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>14.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>FINANCIAL INSTRUMENTS (continued)</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Fair Value Disclosures</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The following methods and assumptions were used by the Company in estimating its
fair value disclosures for financial instruments:</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Cash and cash equivalents</U>: The carrying amount reported in the balance sheet
for cash and cash equivalents approximates its fair value because of the short-term
maturity of these instruments.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Bank deposits</U>: The carrying amount reported in the balance sheet for bank
deposits approximates its fair value because of the short-term maturity of these
instruments.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Accounts receivable and accounts payable</U>: The carrying amounts reported in
the balance sheet for accounts receivable and accounts payable approximate their fair
values because of the short-term maturity of these instruments.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Related party balances</U>: The carrying amounts reported in the balance sheet
for related party balances approximate their fair values because of the short-term
maturity of these instruments.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Long-term and short-term debt</U>: The carrying amounts of the Company&#146;s borrowings under its
short-term revolving credit arrangements approximate their fair values. The fair values of the
Company&#146;s long-term debt are estimated using discounted cash flow analyses, based on the
Company&#146;s current incremental borrowing rates for similar types of borrowing arrangements. As
of December&nbsp;31, 2008, the Company had no non-interest bearing long-term debt outstanding with
a related party. The fair value of the non-interest bearing short-term debt from related
parties is not determinable because of the related party nature of the debt and the fact that
they have no stated due dates.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Investment securities</U>: The fair values of marketable equity securities are
based on quoted market prices, details of which are set out in Note 7. In
accordance with SFAS No.&nbsp;157, the marketable securities are classified within
Level 1 of fair value hierarchy. The fair values for debt securities and equity
securities in privately-held companies are based on discounted cash flow
analysis using current interest rates for instruments with similar maturities.
It is not practicable to estimate the fair values of the equity investments that
do not have a quoted market price, without incurring excessive costs. In
accordance with SFAS No.&nbsp;157, the such instruments are classified in the Level 3
of fair value hierarchy.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Forward exchange contracts</U>: The fair values of forward exchange contracts are
estimated by reference to market quotations for forward contracts with similar terms,
adjusted where necessary for maturity differences. The foreign currency forward
contracts are classified within Level 2 as the valuation inputs are based on quoted
prices and market observable data of similar instruments.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>There are no significant differences between the carrying amounts and fair values of
the Company&#146;s financial instruments as of December&nbsp;31, 2007 and 2008.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The following table presents the Company&#146;s assets and liabilities
measured at fair value on a recurring basis at December&nbsp;31, 2008, using quoted
prices in active markets for identical assets (Level 1); significant other
observable inputs (Level 2); and significant unobservable inputs (Level 3).</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->F-36<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">ASIA PACIFIC WIRE &#038; CABLE CORPORATION LIMITED AND SUBSIDIARIES

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(In thousands of US Dollars, except share data)

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>14.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>FINANCIAL INSTRUMENTS (continued)</B></TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="14" style="border-bottom: 1px solid #000000"><B>Fair value measurements using input type</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Level 1</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Level 2</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Level 3</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Total</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Marketable securities:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Listed securities traded on SET</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">68</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">68</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Investment in equity investees:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,103</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,103</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Long-term investment:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Equity securities in privately-held companies &#151; Thai Metal Processing</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">544</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">544</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Foreign currency forward contracts net payable</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(107</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(107</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">68</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(107</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4,647</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4,608</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The following table presents the changes in Level 3 instruments measured on a
recurring basis for the year ended December&nbsp;31, 2008. The Company&#146;s Level 3
instrument consists of equity securities in privately-held companies.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Equity securities in</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">privately-held</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Investment in equity</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 0px solid #000000">company</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 0px solid #000000">investees</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Balance, beginning of period</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Transfer to Level 3</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">544</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,245</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total realized (loss)&nbsp;included in earnings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(142</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Balance, end of period</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">544</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4,103</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The realized (loss)&nbsp;included in earnings for the year ended December&nbsp;31, 2008, are reported in
share of net gain of equity investees.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>15.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>CURRENT VULNERABILITY DUE TO CERTAIN CONCENTRATIONS</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Copper is the principal raw material used by the Company. The Company purchases copper at
prices closely related to the prevailing international spot market prices on the London
Metal Exchange for copper. The price of copper is influenced heavily by global supply and
demand as well as speculative trading. Consequently, a change in the price of copper will
have a direct effect on the Company&#146;s cost of sales.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Changes in exchange rates influence the Company&#146;s results of operations. The Company&#146;s
principal operations are located in Thailand, the People&#146;s Republic of China (&#147;PRC&#148;) and
Singapore and a substantial portion of its revenues are denominated in Thai Baht, PRC
Renminbi (&#147;RMB&#148;) or Singapore dollars, whereas a substantial portion of the Company&#146;s cost
of sales are denominated in US dollars. Any devaluation of the Thai Baht, RMB or Singapore
dollar against the US dollar would have an adverse impact on the operations of the Company.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company conducts substantial business operations in the PRC. The results of
operations and prospects are likely to be materially impacted by economic, legal and
other developments in the PRC.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The PRC government imposes controls on the convertibility of the Renminbi into
foreign currencies and, in certain cases, the remittance of currency out of China.
Under existing PRC foreign exchange regulations, payments of current account items,
including profit distributions, interest payments and</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->F-37<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">ASIA PACIFIC WIRE &#038; CABLE CORPORATION LIMITED AND SUBSIDIARIES

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(In thousands of US Dollars, except share data)

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>15.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>CURRENT VULNERABILITY DUE TO CERTAIN CONCENTRATIONS (continued)</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>expenditures from trade related transactions, can be made in foreign currencies without
prior approval from the State Administration of Foreign Exchange (&#147;SAFE&#148;) by complying
with certain procedural requirements. However, approval from SAFE or its local branch
is required where Renminbi is to be converted into foreign currency and remitted out of
China to pay capital expenses such as the repayment of loans denominated in foreign
currencies. The PRC government may also at its discretion restrict access in the future
to foreign currencies for current account transactions. Shortages in the availability
of foreign currency may restrict the ability of the Company&#146;s subsidiaries in the PRC
to remit sufficient foreign currency to pay dividends or other payments to the Company,
or otherwise satisfy their foreign currency-denominated obligations.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>16.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>RELATED PARTY BALANCES AND TRANSACTIONS</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The related parties are defined as affiliates of the Company; entities for which
investments are accounted for by the equity method by the Company; the principal owners of
the Company; its management; members of the immediate families of the principal owners of
the Company and its management.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 0px solid #000000">December 31,</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2008</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Due from:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">PEWC</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,076</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">639</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">PEWC, Singapore Branch</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">955</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Italian-Thai Development Public Company Limited (&#147;Ital-Thai&#148;) and its affiliates</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,566</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,176</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SPHC</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,544</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,390</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">A director of Siam Pacific</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Shandong Yanggu Wire &#038; Cable Corp Ltd (&#147;Shandong Yanggu&#148;)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">431</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">699</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Others</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">53</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">8,638</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">6,922</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Due to:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">PEWC</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">24,577</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">19,140</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">PEWC, Singapore Branch</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">892</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">890</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">PEWC Singapore Co. (Pte) Ltd.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,183</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,230</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Shandong Yanggu</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">719</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">383</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Fujikura Limited</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">220</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">292</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Thai Metal Processing Co., Ltd.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">147</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SPHC</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,855</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,642</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Shandong Huayu</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,208</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,170</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Shandong Rubber Cable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Others</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">31,801</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25,811</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Short-term loans from:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Moon View Venture Limited (&#147;Moon View&#148;)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,537</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,732</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Pacific Overseas Investment Management Ltd</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">195</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,732</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,732</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The above balances with related parties are interest-free and are repayable upon
demand. All balances with related parties are unsecured.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->F-38<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">ASIA PACIFIC WIRE &#038; CABLE CORPORATION LIMITED AND SUBSIDIARIES

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(In thousands of US Dollars, except share data)

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>16.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>RELATED PARTY BALANCES AND TRANSACTIONS </B>(continued)</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Moon View, PEWC, Singapore Branch and PEWC Singapore Co. (Pte) Ltd are controlled by
PEWC. Ital-Thai is the minority shareholder of one of the Company&#146;s Operating
Subsidiaries in Thailand. Shandong Yanggu is the shareholder of one of the Company&#146;s
Operating Subsidiaries in China. SPHC is one of the Company&#146;s equity investees.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 0px solid #000000">December 31,</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2008</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Loans from PEWC Singapore Co. (Pte) Ltd</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">240</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Less: short term portion</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(240</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Long term portion</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The long term loans from PEWC Singapore Co. (Pte) Ltd have a term of three years and were
due in March&nbsp;2007 and are uncollateralized. Partial repayment was made in 2007 and the
remaining balance of $240 was repaid in 2008.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The transactions undertaken with related parties can be summarized as follows:</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 0px solid #000000">Year ended December 31,</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2006</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2008</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Purchases of copper from PEWC</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">54,403</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">55,360</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">46,882</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Purchases of power cables from PEWC</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,587</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,442</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,631</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Sales to Ital-Thai and its affiliates</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,615</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,538</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,427</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Sales to Shandong Yanggu</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">141</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">572</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">428</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Purchases of raw materials from Thai Metal Processing Co. Ltd</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,196</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,222</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,456</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Purchases of goods from Fujikura Limited</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,109</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">766</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,133</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest expense paid to PEWC</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">491</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">472</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">275</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest expense paid to PEWC Singapore Co. (Pte) Ltd.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">52</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">64</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest income from Italian Thai Development Public Co Ltd</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">75</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Management fee paid to PEWC</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">152</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">98</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">189</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Management fee paid to Ital-Thai</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Management fee received from PEWC, Singapore Branch</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Purchases of goods from PEWC</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">713</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Purchases of goods from Shandong Yanggu</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">450</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">586</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Dividend income from Thai Metal Processing Co. Ltd.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">117</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">104</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">130</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->F-39<!-- /Folio -->
</DIV>



<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">ASIA PACIFIC WIRE &#038; CABLE CORPORATION LIMITED AND SUBSIDIARIES

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(In thousands of US Dollars, except share data)

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>16.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>RELATED PARTY BALANCES AND TRANSACTIONS </B>(continued)</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Copper is the major raw material of the Company&#146;s wire and cable products. The Company
purchases copper in the form of copper rods and copper cathode. Copper cathode is purchased
by Siam Pacific to avoid the high import tariff levied on copper rods. Copper cathode needs
to be processed into copper rods prior to the manufacturing of wire and cable products.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Substantially all of the Company&#146;s copper rods are supplied by PEWC while copper cathodes
are supplied by unrelated third parties. The price of copper rods purchased from PEWC is
determined by reference to the quoted copper prices on the London Metal Exchange (the &#147;LME&#148;)
plus a certain premium.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In addition to copper rods, the Company purchases high voltage power cable from PEWC for
distribution purposes. The purchase price of power cable from PEWC is determined by
reference to the quoted copper prices on the LME. No sales commission was received from PEWC
during the years 2006, 2007 and 2008.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Pursuant to the composite services agreement:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>PEWC will sell copper rod to the Company, upon the Company&#146;s request, (i)&nbsp;at a
price consisting of the average spot price of copper on the LME for the one month prior
to purchase plus an agreed upon premium, (ii)&nbsp;at prices and on terms at least as
favorable as it provides copper rod to other purchasers of similar amounts of copper
rod in the same markets as PEWC and (iii)&nbsp;will give priority in the supply of copper
rod to the Company over other purchasers of copper rod from PEWC.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>PEWC grants to the Company the right to distribute any wire or cable product
manufactured by PEWC in all markets in which the Company presently distributes or
develops the capability to distribute in the future, such products on such terms as
have historically been in effect or on terms at least as favorable as PEWC grants to
third parties that distribute such products in such markets. However, PEWC shall not
be required to grant to the Company the right to distribute products manufactured by
PEWC in the future in markets where the Company does not currently have the capability
to distribute unless and until PEWC has no pre-existing contractual rights which would
conflict with the grant of such right to the Company.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>PEWC will make available to the Company, upon the Company&#146;s request and on
terms to be mutually agreed between PEWC and the Company from time to time, access to
certain of PEWC&#146;s technology (and PEWC personnel necessary to use such technology) with
respect to the design and manufacture of wire and cable products, including, without
limitation, certain fiber optic technology.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>PEWC will make available to the Company, upon the Company&#146;s request and on
terms to be mutually agreed between PEWC and the Company from time to time, certain
services with respect to the design and manufacture of wire and cable products,
computerization, inventory control, purchasing, internal auditing, quality control,
emergency back-up services, and recruitment and training of personnel; such services
may include the training of the Company&#146;s employees and managers at PEWC facilities and
the secondment of PEWC employees and managers to the Company.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Each of PEWC and the Company will offer the other party the right to
participate in any negotiations with a third party concerning the establishment of any
facility or similar venture to manufacture or distribute any wire or cable product
outside of the markets where the Company currently manufactures or distributes, or
intends to develop the capability to manufacture or distribute, any wire or cable
product. Unless the Company and PEWC mutually agree otherwise, the Company shall have
the right of first refusal to enter into any
definitive agreement with such third party. If, however, such third party would not
agree to the substitution of the Company for PEWC or such substitution would prevent
the</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->F- 40<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">ASIA PACIFIC WIRE &#038; CABLE CORPORATION LIMITED AND SUBSIDIARIES

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(In thousands of US Dollars, except share data)

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>16.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>RELATED PARTY BALANCES AND TRANSACTIONS </B>(continued)</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>successful completion of the facility or venture, PEWC will arrange for the Company
to participate to the extent possible.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(f)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Without the consent of the Company, PEWC will not compete with respect to the
manufacture of wire and cable products in any market in which the Company is
manufacturing or has taken significant steps to commence manufacturing.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(g)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>For purposes of the composite services agreement, each province in China is
considered the equivalent of a market.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(h)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The composite services agreement dated November&nbsp;7, 1996 has a three-year term.
The Agreement originally expired on November&nbsp;7, 1999. The Company gave a notice to
extend the Agreement by successive one-year periods commencing on April&nbsp;20, 2001. The
notice is treated as a standing notice for successive one-year period renewals until
further written notice from the Company.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To the extent that transactions occur in the future between the Company and PEWC or
affiliates of PEWC other than under the Composite Service Agreement, such transactions will
be entered into on an arm&#146;s length basis on terms no less favorable than those available
from unaffiliated third parties.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>17.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>DEFINED CONTRIBUTION AND BENEFIT PLANS</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company adopted the recognition and disclosure provisions of SFAS 158, effective
December&nbsp;31, 2006, which changed the manner in which the funded status of the Company&#146;s
defined benefit plans is reported in the consolidated balance sheet. Under SFAS 158,
actuarial gains and losses and prior service costs continue to be deferred and recognized in
expense ratably over appropriate future periods, but the overfunded or underfunded status of
the defined benefit plans is now measured as the difference between the fair value of plan
assets and the projected benefit obligation (&#147;PBO&#148;). This difference is recorded as an asset
(if overfunded) or a liability (if underfunded), with a corresponding adjustment to
accumulated other comprehensive loss, net of tax. To reflect the funded status of its plans
in the consolidated balance sheet upon adopting SFAS 158, the Company recorded an adjustment
to increase its liability for pension and other postretirement benefits by $71. Following
adoption, as the net unrecognized actuarial loss and unrecognized prior service costs are
recognized in net periodic benefit cost in the consolidated statements of operations, those
amounts are reclassified from accumulated other comprehensive loss.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>SFAS 158 will also require companies to measure the funded status of their defined benefit
plans as of the balance sheet date, beginning in fiscal years ending after December&nbsp;15,
2008. The Company currently measures the funded status of its plan as of the balance sheet
date.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company has several defined contribution plans covering its employees in Australia, the
People&#146;s Republic of China (&#147;PRC&#148;) and Singapore. Contributions to the plan are made
annually. Total charges for the years ended December&nbsp;31, 2006, 2007 and 2008 were $815,
$785, and $872 respectively.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In accordance with the Thailand labor law, Charoong Thai is obliged to make payment to
retiring employees, at rates of 1 to 10 times of their final month&#146;s salary rate, depending
on the length of service. During the financial year 2008, the Company&#146;s total expense
included $191 (2007: $193; 2006: $140). The plan is not funded and the amount is recognized
in Other Current Liabilities in the balance sheet. The Company pays to settle the
obligations as and when employees retire.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->F- 41<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">ASIA PACIFIC WIRE &#038; CABLE CORPORATION LIMITED AND SUBSIDIARIES

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(In thousands of US Dollars, except share data)

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>17.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>DEFINED CONTRIBUTION AND BENEFIT PLANS </B>(continued)</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In conformity with SFAS 132, &#147;Employers&#146; Disclosures about Pensions and Other
Postretirement Benefits,&#148; and SFAS 158, &#147;Employers&#146; Accounting for Defined Benefits Pension
and Other Postretirement Plans&#148;, the following table sets forth the Plan&#146;s funded status and
pension amounts recognized as at December&nbsp;31, 2007 and 2008 based on the latest actuarial
valuation:</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">2007</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">2008</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Change in benefit obligation:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Benefit obligation at beginning of year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">1,265</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">1,868</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Foreign currency translation adjustments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">424</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(279</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Service cost</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">102</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">107</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Interest cost</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">91</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">88</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Benefits paid</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(85</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(11</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Actuarial loss (gain)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">193</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Plan amendments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(122</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Benefit obligation at end of year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">1,868</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">1,773</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Change in plan assets:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Fair value of plan assets at beginning of year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Employer&#146;s contribution</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Fair value of plan assets at end of year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Funded status</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">$</TD>
    <TD align="right">(1,868</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">$</TD>
    <TD align="right">(1,773</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Unrealized net transition obligation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Unrecognized net actuarial loss (gain)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Accrued benefit cost</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">$</TD>
    <TD align="right">(1,868</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">$</TD>
    <TD align="right">(1,773</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Components of net periodic benefit cost:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Service cost</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">102</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">107</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Interest cost</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">91</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">88</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Amortizations of:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Unrecognized net transition obligation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(6</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Unrecognized actuarial loss</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net periodic benefit cost</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">193</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">191</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Amounts recognized in accumulated other comprehensive loss
consist of the following: (recognized under SAFS 158)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Actuarial loss</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">193</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">163</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Prior service cost (credit)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(122</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(99</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total recognized in other comprehensive loss</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">71</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">64</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The accumulated benefit obligations amounted to $1,868 and $1,773 as at December&nbsp;31, 2007
and 2008, respectively.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The estimated net loss and prior service cost (credit)&nbsp;for the defined benefit plans that
will be amortized from accumulated other comprehensive income (loss) into net periodic benefit cost
over the next fiscal year are $2 and $(6), respectively.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->F- 42<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">ASIA PACIFIC WIRE &#038; CABLE CORPORATION LIMITED AND SUBSIDIARIES

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(In thousands of US Dollars, except share data)

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>17.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>DEFINED CONTRIBUTION AND BENEFIT PLANS </B>(continued)</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The significant assumptions used in determining the actuarial present value of the projected
benefit obligations as at December&nbsp;31, 2008, 2007 and 2006 are as follows:</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">2006 &#038; 2007</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">2008</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Discount Rate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">6.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">5.5</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Rate of Increase in Compensation Levels</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD nowrap align="right">5.0%-6.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">5.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Employee turnover rates:-</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Prior to age 35</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD nowrap align="right">2.0%-10.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD nowrap align="right">2.0% - 10.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Age 35 to 50</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD nowrap align="right">2.0%-5.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD nowrap align="right">2.0% - 5.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Age 51 to 60</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The following pension benefit payments, which reflect expected future service, as
appropriate, are expected to be paid:</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">Year ended December 31</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">66</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">76</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">2011</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">95</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">2012</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">2013</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;234</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2014 - 2018</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">811</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,320</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>18.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>SUPPLEMENTAL CASH FLOW INFORMATION</B></TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 0px solid #000000">Year ended December 31,</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2006</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2008</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest paid</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">5,551</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">7,187</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">6,037</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Income taxes paid</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">5,625</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">10,772</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">5,177</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>19.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>SEGMENT FINANCIAL INFORMATION</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Description of Products by Segment</I></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company has three reportable segments &#151; manufacturing of wire and cable products
(&#147;Manufactured products&#148;), distribution of copper and cable products manufactured by PEWC
(&#147;Distributed products&#148;) and sales, delivery and installation of wires and cables.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Measurement of Segment Profit or Loss and Segment Assets</I></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company evaluates performance and allocates resources based on profit or loss from
operations before interest, gains and losses on the Company&#146;s investment portfolio, and
income taxes. The accounting policies of the reportable segments, including transactions
entered between reportable segments, are the same as those described in the summary of
significant accounting polices.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->F- 43<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">ASIA PACIFIC WIRE &#038; CABLE CORPORATION LIMITED AND SUBSIDIARIES

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(In thousands of US Dollars, except share data)

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>19.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>SEGMENT FINANCIAL INFORMATION </B>(continued)</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 0px solid #000000">Year ended December 31,</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2006</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2008</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><I>Revenues</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Revenues from external customers:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Manufactured products</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">439,280</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">494,805</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">447,848</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Distributed products</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,416</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,783</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32,415</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Sales, delivery and installation
of wires and cables</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,421</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,253</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,535</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total revenues from external customers</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">468,117</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">510,841</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">500,798</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Intersegment revenues:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Manufactured products</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">934</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,648</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">348</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total intersegment revenues</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">934</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,648</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">348</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total revenue</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">469,051</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">513,489</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">501,146</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><I>Reconciling items</I>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD nowrap>&nbsp;</TD>
</TR>


<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Intersegment revenues</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(934</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,648</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(348</TD>
    <TD nowrap>)</TD>
</TR>




<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total revenues</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">468,117</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">510,841</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">500,798</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->F- 44<!-- /Folio -->
</DIV>




<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">ASIA PACIFIC WIRE &#038; CABLE CORPORATION LIMITED AND SUBSIDIARIES
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(In thousands of US Dollars, except share data)

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>19.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>SEGMENT FINANCIAL INFORMATION </B>(continued)</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" >Year ended December 31,</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2006</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2008</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><I>Segment profit (loss)</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Manufactured products</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">58,488</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">44,671</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">37,267</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Distributed products</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,107</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">80</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,584</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Sales, delivery and installation of wires and cables</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(284</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(347</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(956</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">(Allowance) recovery for inventory reserve</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,017</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,272</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(25,145</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total segment profit</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">57,294</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">45,676</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">12,750</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><I>Reconciling items</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Corporate and other expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(28,427</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(29,511</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(29,044</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Exchange gain&nbsp;(loss)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,464</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">864</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,712</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Interest income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">705</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,517</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">990</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Interest expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(5,886</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(7,580</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(5,769</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Share of net gain (loss)&nbsp;of equity investees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">73</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">124</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(142</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Gain on liquidation of subsidiary</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,801</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,536</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,070</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,859</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total income (loss)&nbsp;before income taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">32,560</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">13,160</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(20,068</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><I>Segment assets</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Manufactured products</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">349,082</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">373,057</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">283,528</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Distributed products</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">293</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,117</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,499</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Sales, delivery and installation of wires and cables</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">187</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,649</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">416</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total segment assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">349,562</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">379,823</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">294,443</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><I>Reconciling items</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Corporate and other assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,765</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,047</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,252</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Investment in equity investees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,238</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,246</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,103</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">364,565</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">396,116</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">309,798</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><I>Expenditures for additions to long-lived assets</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Manufactured products</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">5,202</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,650</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3,383</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Corporate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total expenditure for additions to long-lived assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">5,202</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,650</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3,383</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->F-45<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">ASIA PACIFIC WIRE &#038; CABLE CORPORATION LIMITED AND SUBSIDIARIES
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(In thousands of US Dollars, except share data)

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>19.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>SEGMENT FINANCIAL INFORMATION </B>(continued)</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" >Year ended December 31,</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2006</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2008</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><I>Depreciation expenses</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Manufactured products</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(8,964</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(9,050</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(7,645</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Corporate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(25</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(29</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total depreciation
expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(8,989</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(9,079</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(7,646</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><I>Impairment loss</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Corporate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(86</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(95</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total impairment expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(86</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(95</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><I>Interest income</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Manufactured products</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">536</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,406</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">803</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Distributed products</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">69</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">66</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">107</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Sales, delivery and installation of wires and cables</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">93</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">75</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Corporate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total interest income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">705</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,517</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">990</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><I>Interest expense</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Manufactured products</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(5,476</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(7,184</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(5,368</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Distributed products</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(129</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(250</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(273</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Sales, delivery and installation of wires and cables</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(173</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(62</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(128</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Corporate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(108</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(84</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total interest expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(5,886</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(7,580</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(5,769</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><I>Share of net gain (loss)&nbsp;of equity investees</I>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD nowrap>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Corporate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">73</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">124</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(142</TD>
    <TD nowrap>)</TD>
</TR>



<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total share of net
gain (loss)&nbsp;of equity investees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">73</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">124</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(142</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->F-46<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">ASIA PACIFIC WIRE &#038; CABLE CORPORATION LIMITED AND SUBSIDIARIES
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(In thousands of US Dollars, except share data)

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>19.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>SEGMENT FINANCIAL INFORMATION </B>(continued)</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Significant sales of approximately 10% of the total revenue for any of the financial
year are to a customer, SP Powerassets, which include sales of manufactured products,
distributed products, and sales, delivery and installation of wires and cables, which
can be summarized as follows:</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" >Year ended December 31,</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2006</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2008</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Manufactured products</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3,217</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">7,114</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">11,973</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Distributed products</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,668</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,710</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27,162</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Sales, delivery and installation of
wires and cables</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,679</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,064</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,535</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">31,564</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">18,888</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">59,670</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Geographic Area Data</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Revenue from external customers is attributed to individual countries based on the
customer&#146;s country of domicile and is summarized as follows:</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" >Year ended December 31,</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2006</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2008</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Revenues from external customers</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Thailand</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">212,204</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">249,337</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">216,364</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Singapore</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">49,134</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47,798</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">62,810</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Australia</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">58,277</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">55,789</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">86,625</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">The People&#146;s Republic of China</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">148,502</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">157,917</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">134,999</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:45px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total revenues from external customers</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">468,117</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">510,841</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">500,798</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:45px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Long-lived assets by area:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Thailand</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">36,221</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">37,037</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">29,027</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Singapore</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,733</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,485</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,841</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Australia</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,033</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,965</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,090</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">The People&#146;s Republic of China</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,148</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,800</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,819</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Other</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:45px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total long-lived assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">66,145</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">66,319</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">56,807</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:45px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->F-47<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">ASIA PACIFIC WIRE &#038; CABLE CORPORATION LIMITED AND SUBSIDIARIES
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(In thousands of US Dollars, except share data)

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>20.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>SUMMARIZED FINANCIAL INFORMATION OF EQUITY INVESTEES</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The following tables present summarized financial information of the Company&#146;s
principal equity investees, Lox Pac, Thai Professional, SPHC, Shandong Huayu and SPRC.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" >December 31,</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2008</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Unaudited</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Unaudited</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Current assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">26,338</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">31,760</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-current assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,261</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,804</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Current liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(18,847</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(21,271</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-current liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,006</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,731</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total shareholders&#146; equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">30,746</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">27,562</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11" >Year ended December 31,</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">2006</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">2007</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">2008</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Unaudited</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Unaudited</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Unaudited</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net sales</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">19,016</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">24,332</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">34,771</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Sales less cost of sales</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,279</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,469</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,470</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net income/ (loss)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(516</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">127</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(1,271</TD>
    <TD nowrap>)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>At December&nbsp;31, 2008 the Company&#146;s share of the underlying net assets of certain equity
investees was higher than its value of the investment in these equity investees,
therefore no impairment charge was recorded in 2008. At December&nbsp;31, 2007 the Company&#146;s
share of the underlying net assets of certain equity investees was lower than its value
of the investment in these equity investees. Accordingly, the Company recorded an
impairment charge in value of its investment in these equity investees amounting to
$117.</TD>
</TR>

</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->F-48<!-- /Folio -->
</DIV>



</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-12.1
<SEQUENCE>2
<FILENAME>y01848exv12w1.htm
<DESCRIPTION>EX-12.1
<TEXT>
<HTML>
<HEAD>
<TITLE>EX-12.1</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Exhibit&nbsp;12.1
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Certification of Chief Executive Officer</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>Pursuant to Section&nbsp;302 of the Sarbanes-Oxley Act of 2002</B>

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">I, Yuan Chun Tang, certify that:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>I have reviewed this annual report on Form 20-F of Asia Pacific Wire &#038; Cable Corporation
Limited;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Based on my knowledge, this report does not contain any untrue statement of a material fact
or omit to state a material fact necessary to make the statements made, in light of the
circumstances under which such statements were made, not misleading with respect to the period
covered by this report;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Based on my knowledge, the financial statements, and other financial information included in
this report, fairly present in all material respects the financial condition, results of
operations and cash flows of the registrant as of, and for, the periods presented in this
report;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The registrant&#146;s other certifying officers and I are responsible for establishing and
maintaining disclosure controls and procedures (as defined in Exchange Act Rules&nbsp;13a-15(e) and
15d-15(e)) for the registrant and have:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Designed such disclosure controls and procedures, or caused such disclosure
controls and procedures to be designed under our supervision, to ensure that material
information relating to the registrant, including its consolidated subsidiaries, is
made known to us by others within those entities, particularly during the period in
which this report is being prepared;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Designed such internal control over financial reporting, or caused such
internal control over financial reporting to be designed under our supervision, to
provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with generally
accepted accounting principles;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Evaluated the effectiveness of the registrant&#146;s disclosure controls and
procedures and presented in this report our conclusions about the effectiveness of the
disclosure controls and procedures, as of the end of the period covered by this report
based on such evaluation; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Disclosed in this report any change in the registrant&#146;s internal control over
financial reporting that occurred during the registrant&#146;s most recent fiscal quarter
(the registrant&#146;s fourth fiscal quarter in the case of an annual report) that has
materially affected, or is reasonably likely to materially affect, the registrant&#146;s
internal control over financial reporting; and</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">5.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The registrant&#146;s other certifying officer(s) and I have disclosed, based on our most recent
evaluation of internal control over financial reporting, to the registrant&#146;s auditors and the
audit committee of the registrant&#146;s board of directors (or persons performing the equivalent
functions):</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>All significant deficiencies and material weaknesses in the design or operation
of internal control over financial reporting which are reasonably likely to adversely
affect the registrant&#146;s ability to record, process, summarize and report financial
information; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any fraud, whether or not material, that involves management or other employees
who have a significant role in the registrant&#146;s internal control over financial
reporting.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Date:
June 26, 2009
</DIV>


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="0%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="63%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" style="border-bottom: 1px solid #000000" align="left">/s/ Yuan Chun Tang
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Yuan Chun Tang&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Chief Executive Officer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-12.2
<SEQUENCE>3
<FILENAME>y01848exv12w2.htm
<DESCRIPTION>EX-12.2
<TEXT>
<HTML>
<HEAD>
<TITLE>EX-12.2</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Exhibit&nbsp;12.2
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Certification of Interim Chief Financial Officer</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>Pursuant to Section&nbsp;302 of the Sarbanes-Oxley Act of 2002</B>

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">I, Samuel See, certify that:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">

    <TD width="3%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>I have reviewed this annual report on Form 20-F of Asia Pacific Wire &#038; Cable Corporation
Limited;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">

    <TD width="3%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Based on my knowledge, this report does not contain any untrue statement of a material fact
or omit to state a material fact necessary to make the statements made, in light of the
circumstances under which such statements were made, not misleading with respect to the period
covered by this report;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">

    <TD width="3%" nowrap align="left">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Based on my knowledge, the financial statements, and other financial information included in
this report, fairly present in all material respects the financial condition, results of
operations and cash flows of the registrant as of, and for, the periods presented in this
report;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">

    <TD width="3%" nowrap align="left">4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The registrant&#146;s other certifying officers and I are responsible for establishing and
maintaining disclosure controls and procedures (as defined in Exchange Act Rules&nbsp;13a-15(e) and
15d-15(e)) for the registrant and have:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Designed such disclosure controls and procedures, or caused such disclosure
controls and procedures to be designed under our supervision, to ensure that material
information relating to the registrant, including its consolidated subsidiaries, is
made known to us by others within those entities, particularly during the period in
which this report is being prepared;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Designed such internal control over financial reporting, or caused such
internal control over financial reporting to be designed under our supervision, to
provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with generally
accepted accounting principles;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Evaluated the effectiveness of the registrant&#146;s disclosure controls and
procedures and presented in this report our conclusions about the effectiveness of the
disclosure controls and procedures, as of the end of the period covered by this report
based on such evaluation; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Disclosed in this report any change in the registrant&#146;s internal control over
financial reporting that occurred during the registrant&#146;s most recent fiscal quarter
(the registrant&#146;s fourth fiscal quarter in the case of an annual report) that has
materially affected, or is reasonably likely to materially affect, the registrant&#146;s
internal control over financial reporting; and</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">5.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The registrant&#146;s other certifying officer(s) and I have disclosed, based on our most recent
evaluation of internal control over financial reporting, to the registrant&#146;s auditors and the
audit committee of the registrant&#146;s board of directors (or persons performing the equivalent
functions):</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>All significant deficiencies and material weaknesses in the design or operation
of internal control over financial reporting which are reasonably likely to adversely
affect the registrant&#146;s ability to record, process, summarize and report financial
information; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any fraud, whether or not material, that involves management or other employees
who have a significant role in the registrant&#146;s internal control over financial
reporting.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Date:
June&nbsp;26, 2009
</DIV>


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="0%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="63%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" style="border-bottom: 1px solid #000000" align="left">/s/ Samuel See
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Samuel See&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Interim Chief Financial Officer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-13.1
<SEQUENCE>4
<FILENAME>y01848exv13w1.htm
<DESCRIPTION>EX-13.1
<TEXT>
<HTML>
<HEAD>
<TITLE>EX-13.1</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Exhibit&nbsp;13.1
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Certification Pursuant to 18 U.S.C. Section&nbsp;1350 as Adopted</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>Pursuant to Section&nbsp;906 of the Sarbanes-Oxley Act of 2002</B>

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In connection with the periodic report of Asia Pacific Wire &#038; Cable Corporation Limited (the
&#147;Company&#148;) on Form 20-F for the period ended December&nbsp;31, 2008 as filed with the Securities and
Exchange Commission (the &#147;Report&#148;), I, Yuan Chun Tang, Chief Executive Officer of the Company,
hereby certify as of the date hereof, solely for purposes of Title 18, Chapter&nbsp;63, Section&nbsp;1350 of
the United States Code, that to the best of my knowledge:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of
the Securities Exchange Act of 1934; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The information contained in the Report fairly presents, in all material respects, the
financial condition and results of operations of the Company at the dates and for the periods
indicated.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This Certification has not been, and shall not be deemed, &#147;filed&#148; with the Securities and Exchange
Commission.
</DIV>


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">Date: June&nbsp;26, 2009&nbsp;</TD>
    <TD colspan="3" style="border-bottom: 1px solid #000000" align="left">/s/ Yuan Chun Tang
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Yuan Chun Tang&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Chief Executive Officer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-13.2
<SEQUENCE>5
<FILENAME>y01848exv13w2.htm
<DESCRIPTION>EX-13.2
<TEXT>
<HTML>
<HEAD>
<TITLE>EX-13.2</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Exhibit&nbsp;13.2
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Certification Pursuant to 18 U.S.C. Section&nbsp;1350 as Adopted</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>Pursuant to Section&nbsp;906 of the Sarbanes-Oxley Act of 2002</B>

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In connection with the periodic report of Asia Pacific Wire &#038; Cable Corporation Limited (the
&#147;Company&#148;) on Form 20-F for the period ended December&nbsp;31, 2008 as filed with the Securities and
Exchange Commission (the &#147;Report&#148;), I, Samuel See, Interim Chief Financial Officer of the Company,
hereby certify as of the date hereof, solely for purposes of Title 18, Chapter&nbsp;63, Section&nbsp;1350 of
the United States Code, that to the best of my knowledge:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of
the Securities Exchange Act of 1934; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The information contained in the Report fairly presents, in all material respects, the
financial condition and results of operations of the Company at the dates and for the periods
indicated.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This Certification has not been, and shall not be deemed, &#147;filed&#148; with the Securities and Exchange
Commission.
</DIV>


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">Date: June&nbsp;26, 2009&nbsp;</TD>
    <TD colspan="3" style="border-bottom: 1px solid #000000" align="left">/s/ Samuel See
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Samuel See&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Interim Chief Financial Officer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>



</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>6
<FILENAME>y01848y0184801.gif
<DESCRIPTION>GRAPHIC
<TEXT>
begin 644 y01848y0184801.gif
M1TE&.#EA;`+8`=4@`$!`0#\_/[^_OX"`@']_?\#`P._O[\_/SY^?G]_?WR\O
M+U]?7V]O;X^/CZ^OKT]/3Q\?'P\/#S`P,/#P\-#0T*"@H.#@X"`@()"0D&!@
M8'!P<%!04!`0$+"PL````/_______P``````````````````````````````
M````````````````````````````````````````````````````````````
M`````````````````````````````````"'Y!`$``"``+`````!L`M@!``;_
M0)!P2"P:C\BD<LEL.I_0J-1I&0`XGJQVR^UZO^"P>$PNF\_HM'HMY@`PEJE\
M3J_;[_B\?L_O^_T3&1X0#`@"AXB)BHN,C8Z/D)&2DY25EI>8F9`-"Q`>&1-_
MHJ.DI::GJ*FJ2Q0<$`@?L;*SM+6VM[BYNKN\O;Z_P,'"P\`($1<4J\K+S,W.
MS]!,K0$&Q-;7V-G:V]S=LP8*',G1Y.7FY^CI0Q,7"M[O\/'R\_0?X!+J^?K[
M_/U3`Q&JU1M(L*#!>@DB#/#'L*'#A]$X$#A(L:+%B[X(7(#(L:/'CW<Z>!"(
ML:3)DP03>!@'LJ7+ERT'N$-)LZ9-;1`6PMS)LZ>^_PT/;@H=2E17`)T^DRI=
MN@K`Q*)0HPH]RK2JU:M[G/(B0""!+@*P="'@RM7!KP0$!,0:VT!`UUQHU7XX
M0,#LA[AQ@Z%-BPO!@P`+#N0"2ROOK@0,`@1HX,TP+9*Q'!M%BK6RY<M*M(K-
MPD"7AP"[`G!9X$N`AXD(!@4@X$$NKL^Q&'B8R?K0:6"F(7@*2TO!;-&M7X.>
M9?II+@<>(@3P-'Q;<5H'%+B.]9P75<S8LU_6G.M!!._0!7BM9>"0+=&1?0O^
M<`CR`0&08]4F+V#]+`418BGP5.W!2/JQE&??+*R9!1LMK#$VUR"RM"?+9^6-
M5YV`Y$4`@4#^\59?+0>,=__7=+54)\M\U+UWFW64::?BBCUQ=XL!'BR0FEW@
M:$':![`)$$$6$7@8"WKRM6:`)UG8!5P$9A7'6A9<!>?`C@?*LH`'":A4X`>Z
ML7=;``KXAL`!4-XXBTH*9%@+?K,<4,V06M@U")2P/`=F%F+&@IR"]JQG3!80
M"&;:E!#\R>>`Q)U(G18$U#B;H9.QZ.BC+KEHRXPPWL@:+`PL4`UL#CQ@`'+&
M_=B:`'L:<,`#:L+6@`<-#!E4<0E,V0!:P5EH0`,13+>J`ZDE`(&F'KRZY6Q=
MZ7:K![P%Z)L'=M$299JHPCA<%FI"D-]SQJZ:+(ECSF9J!.Z8YD$AN9D:["TB
MVB/_:P*K,N9?J+E<!^F\]#(D:2T!Y/>!=]6D]MFLL1R(0">,?@`<CV$)P(!O
MH`'9X&WSU99NFJ<MX`X#@=[VG&A>_6E;4+*`\UV,#C#@X[/$+7S@@;+9EE:,
M'Q,8'"V[QN:!B3=6YQNZ!<\')*B]R%OOT$2?<V^WRBV'[%K+!@?;E`O(!J]H
MB`B4VF*P.7SH1!&/6O`LGQ'R`7(M:SD1D+DI%D!GLFAK<'+_R6+M+(5\</6J
MTPXG\6EI*\;V6JPV:#*)>S]5G=:%PNNS!UL'G6+1D$>NS-%M_Z;8N7098`!K
M$\'&:<&(OVW/TU1^P$D"SW4M7HSV!)"LP3NJ!2-_9HM^_Q?K[/IXZ>T0RJS@
MU:)+&W!`'TR)^FDJD9;[-[;:XYL`0+]=WHFF#9>E+1//-Z5@J\*+B]"2AR\^
M*93K%[?TR*U&-8Z@>8(QZ(S3,N5?L(&I``'@UJYZ\>/ZUZS-\7O;3#860/^H
MS$<)^<R.=M0<Y\W&-Q$0S/Q$,ZW/R$98$S&@;WQDM^3DBW4?\`T#WE4[+<7(
M/XQ!7-\48[I@->``Q-K1V0)XBP!<```XS*$.=\C#'OKPAT`,HA"'2,0B&O&(
M2'S<^)A2/@.L;18("(!:.@48N3SQ5`%PP`+J]('$D&<!JVD`->;R%P94XP"N
MLUL`!!/%]1`@``_XGYV>N);5Q/\"C9AJSN;@"**[@/$!"-@<H=2XMO$8`(P$
M$&,U%I.81,TEC7M\0!_]"$?>W`J.=L'CH1B0F+!X,4UJ4YNZ["B`!\0QC9_\
M'@`&P,I6NO*5L(RE+&=)RUK:\I:XS*4N=[E+'"ZQ,N63BC!O,K&"@.^7SK""
M'I#(S&8Z\YG0C*8T>^B*-`[SFD,I)D&.B4QF*#,/%^"E.,=)SG*:\YSHA.4%
M5L-!;+K3)!&R"#>[J8QOX@$`]%1',-_)SWX.8Y[Y3(4][X#/@!K->_Y,J$)]
M`5"#FF*@=BBH0\FQSX7BHCQS640[[2&>;&#4HL)HZ$1'`=$Z2'2DSZ@H2&MA
MRK=Q`:'_VA1&!/"T4L>A=!4EI<-);\H,E=8T,DM[CVFDTU'Z;%08G?@I0Y7(
M4U'D=`X[;6I3$*K46LCF9,U)`'`\]<BQZ`UD(V2/)R+`ML4`RBXSJFIHF"K5
M/CQ5#E%M*RI\^M-\.:LYN')`@LR6&K7L2#"L>X!T_`-85B$'`G?\FEII(5*Y
MXN&M4XBK8TM!UYJB[%D)\(O&3@,C`L`0`FUAUAT;\#P<S<1A*%LL8]DZV<=*
M%JZM545E5WI9O*IFLQE<C`)&B+]8^*=+3AL.:ANHVM7&]@^0E<)KC]N'V8*T
MMK+(WW.><S4&I(\T,.S,?`XTW.+6D+7,G4-RH[#<\"Z3JL7=_\]=HXLDT4SD
M.3!RFFAAJ``'>$(MW(V?E;Q['O":5PKCA4)Y_TM0]*I6-I")TIXP!IKJ@&=?
M^NIB<CC'/E'92;3\-2Z!7;O,#8O"N1:%H1P+PH`(9U@6C?5P$P+\A`&K&*X&
M5BU@+`*!&"\VQ2]6`HN=X.(<D]?&:CT`30NRN?B<&,<^/L*.F]#C)#MA`UP\
ML91K@F0G$V')3&BRE9<P`.).^<LF48!_MUP$+"]!RV1&0@7.!^8V6P1&!4CS
M$\R<&3G380)+<[.>*4(`#MC9"71.`IK_3(0,7&C/B!Z(`11":"8$&@F#;C0(
M+,"!*"?ZTMQX``="(>DD//H(D9:T2/\LC>E2$V-*<>ZTIT,-:55+8<T!.*JI
M9[V+Z'"@`JY>=8=S#04*2"!8AA@DK8=]1P&(T0,`8`FOR\QJ4"\["A78`!;8
M0.UJ6_O:V,ZVMK'-@0UTX-E(^+01FLUK"Q3@W.A.M[K7S>YVN_O=\(ZWO.=]
M;@QD@=[XSK>^]\WO=,<!W#HF=Q$$#O!'%2`+!>^FN`>><(<>W`,-_^7"B4#P
MB&OGX18?W\2'4/&,8P;C'I?<QH70\9!7!N0F+]K(05#RE%L%Y2ZOU\I;'O.E
MP+SFD)HYSB5W\YVS2.<^+UK/@ZX=H!.]7D,_.F:,KG1();WIE6$ZU%GT]*E;
M1>I6OSC"L[[_])+3G.L<J3K8DX+UL5M&[&;G2=G3?A6TL_TE:W\[4]PN=Y#$
MO>Y)H3O>.W+WO?-$[WY_2-\#_Q+`$YXA@S\\2`RO>'XDOO$=83SD\_'XR3]$
M\I9'1^4SSQ#,<[X<F_\\/SPO>FB$OO3Y(#WJFW'ZU:-#]:ZOI]=C[Q'8TUZ@
ML[\]1&RO^X?FOO<-X3WP2?K[X?=#^,;W0^OY4`$A;B"=T(>E!E9YS@[T^_K8
MW[>R7[_UY&N^^,NX0BTS,,WR\Q`+-X3FMM?/_O:[/PT2,+_\S?_\Z-L_^M9_
M=P=6N9/EZP'Y3>$!8^8/!^=G>V!NV8=O'<`!'*"``*`!V)=.`.`!_Q)P?]!'
M?LR4!?$W?QPX@61@@'`'?JL`@+(E@(77?;N'@OXP`,@&$_?6$B3X#/Z7!S$X
M5R;H$C6("CE(4BWX$B^X>"IH=R*H"CM(63<(@T$8?$FX#RSX=<WP@Q]1A+*W
M:\P@A:,P@0-X?$M(@%M(>3WH$E!8>UT($3.(!U;X84<(A!`7>6.8#DWH@AZ0
M:E'8A@Y1AG=PAG^`A2>XAF%'A^?PACX8ATC(ARYAAW:`AWZ@ASCHA^J`B'H`
MB&`HB&K8?T.8"H[(!XHXB&)(B"OXA2T1AFS(B4)(A<MPB5F1AG,HBDJHBDSH
MB2`!BGW(BGQ7B3K(B.B0B9,8BH+GBA\!B_\I*(L<88AU8(K+A(J;>(QUR(L>
MX8N79XO]((QT0(QY@(NIB(Q%$!6LX64)E063]`%&$!7BT@N(1XNGH'=",8%`
M1@NI9XM"$8[NE(V6-3.U\(U0X8Z[,(ZDJ`SF>!/N%0SK"(ST:!/V>$WP2%OR
MJ([76(]9((XK"'X'`0+[:!/]"`S_"`7MN)#OF%K;>)"S$)!$,9"Y@(_3F)`%
M`9&,.!6*I0OG,`'H9F]QB&Y,<)$T-$P%^5P<*0L>F4T8>8\-F8\/&9$F$46*
ML2,0H#:O@PLK"0;XL`0R^4XUZ4^AE`4*($H=29(?N9,JV9,C200_>9(H@1Q?
M(&RV@`X;\`48$)/_Q(25-*F1[M0T7#`3.&F5-8%&BK$L:O,W8ZF5]R27\J!5
M`0``OX9L.<24-`$E7(!8#$F8]4`$:^8%_Z8$-.%$=9D%H0050JDT26--[[0J
M7C!D.1F98("7\ZB7!,67\N"66[`!BGD24](%HAF2:+F8Z^`%2[F:8?8%($,4
M,/0%(S9,*N$%'/29-.$?7B"6L2"2>\F5!,&978!KD$D38,D%QCF:MBD/15"6
M7'"6L7D2S,D%1WD31,(%)O9.J#D;U#D$1.$OAYF5S^B0*?$%G)8$-F&8?/(+
M34`01="86_"8SXD2O]D%1G83LM$%I#9,W9D%0^:-IHD2\<4%KXF0[>F3_P51
MGJI9G271FEKPH$BYG?-0!'BV!;5IH1A1GKE9%+O)!;UY3?^I!>TDG,/9!=.I
MH!&ZE>A9$`?J`<[9GU\IG?;)H=@#&.4!I(C!&([$DT2`G5F@G3Y:$C?ZG=QP
M*JAB,"S4`";#+KT0GCQB$$()"YL3&YWA`-VH"VX)EU6IG-D@2ITD"U'T7D`J
M``N@%AK:05N`F+`YH\E9H[K0(?:02'O*&+<R10':+5P0G_*Y#9L3%@W0*@&2
MJ/T""P<P2`W*(#TJHK.@*7IEJ5PA`+%6H!`Z!/KI`?RIH]N0274Q%Z6*%E[Q
MG2N:!8&Z#5UQ*FZ!8FZQ`+)&"P-J(P:156#$'O^9JHV\T)T)*J-X>@VQ.C9G
M<T9!T0!:]"EO9#`(X*2CLP5Q&I=V6IIFB@L"$"C[HE<-$$>)I*S44**X$)A9
M4*&4&E(.D*@-4!=@I:RHPDFG$J#$.2X4N:2U8`QL%$%C\0!O6JO4.IL:^`3>
M@"OZ44K18;`/D`"21%5N*:[Q<``,($8S%D9OV@LG6B0&`0&"I28&<Q?\FD@Q
M>@LKNE$N&@P2NP!\P1>G8CJH$4$RDA@<>POS>C-&ZGCNF0MNH1;")5S@RA>[
MX))9D*.B>@WNX$0'$#6\$2LOQ$GK>@OJ&;*=6JBU!C(K^ZAPE+`U.P38J:3V
M:@V:RJOL04H$D+"F%*C_W0FM3SI&L0$?1^LZG#H+X3F>!.%$/Q(9?DD8P;`L
M9%JFPYH-B:$6/OM&#/`4*TLJZM,76D"G=6JS$OH5.OLCPO6G5]NJL6`!6T"H
M4IL-!*``B.2N(>,`[H``G<*O?11?BIN80UL+FG*TJWLC,I*I62L$C1FJJ8L-
M#<:F[]45=0$8EK:BE*L-$&LGL("UL=(PO7"K;_L.K5NW:Q%%Q0H,G*FA)0L,
MO+(O33M&B%$\1VLJ-[(:7_LB&<H+R&FM?7L+?`$:Q>M'\D$687J<@6FNYVJR
M<Y$8U3`3@=2QO"I%"&5`_MBULN``0`K`FK*G701D1X!G(>J_Q("^I#$6#1P6
M_P_``-][)EG@L._P1FMS2%D4"[/BIE"[(!AK$`(L$'_3&53ZNR)++;<PO;^@
MP6:1IMJU&&,#I.SA`(B!ML0)M>,;40N*(&J!`%UR`$"L`()A`)["K[\+`BXI
MM+4[#)L;:]&A`%\BNE,)P8<4&)-"L_4:O]R`!!O`M0K\3[$`1M1`QM60LU%S
M"YR)MD,Q5C6E7BO<PS21&J>[H=7*P]<Z$).6!9B;N9%9Q^+KOW012H1<R(9,
MR#YT`1M(1(>\-NT[#[^)P@(*0B!%I79<OC<!(]/*MTQXL_@)`A(`OUQL$1\<
MM4B`"XGA`)*,$9]2MA51)N\D8EK:)8U<R[9\R[A<R/^_XJ\#$:6!?,<F)<?P
M(`08P,1-_$[W:0N9@DU^41$-P,9$L;?S``Y%"HY2K`NE-)6YO,W<G,L0L`';
MQWJ>C"[:W,WF?,Z$7"9B:0`+@\[NC,X28`N^\@M8],(?[*O6($FV<"KE_,[^
MC,OU]2)/_,\$;<LU%J`+$*Q%`0ZR!L2EC!$"H`#&O`Q2)Q8*P,LG$1U'"0X*
MG<G5;#<=;0L/P*X&`Z:1`1_LD0#KT2'QTU&FHJ<I_=!Z=:_2(15:Y3T<+4RD
M%1\)(,UPP1P?P!5!\\C!@``:&AVK?!(&(`&T.X4T*@1PH0!)#4\730N`=$T-
MH`%71M0$$@%8K!A(O%OY$2/_4KRY4Q)""P.F9-4C<,1"OD"WWR#5UR1%\@/-
M-3$PM/"\6Y&L:#&X:N$6L""Z;X$`8@0?C)I9SWP7=6'7(>.K%7M-"*#5,CC.
M\I.BZ1DJ6N5.(3H`7$T<"\#6AT`-`\,XC,,5=-T:#29%#6,:80L,Q)78*EJB
MX.!.L48<Z1@9UF)&F_LD792MFHJR@%1?N;(8A8TD?0):N_H+OHK/1>&$`$;9
ML\#<0P'7U'';-,$`<LC9OP!:V8I&H=VM*H$C04T`"0U#OG(K;[K:?2)&KLU8
M4XT29*K7PN2SU4W/G[(80LTX(S3<H2W44A0_J&TPK#W!05-#[^3<45#1W_-.
M#23?_U)!`-G=V7?T%XS!`(]JX?RJ*:#QK`KK12,<O!:NJ:E4X-'-X+;]CM/A
MX(-Q/V7=.;X=*%*DJ1']))J:J*HMX&8EW?ABX"_2457B#8G`'O)\5`@.!0K.
MX[J`%JV267I!%HP=&B<N%GR!`!@=(G@K"TR^%E4>U!%>$IPTTNU=XK0=Y;T`
MV'?!V.;!#?0-MK\P%DD"N"#M`$)<)8']S`EP*TL>V*@#%CK.6$A."_:5+WIE
MW4&C&Z`QD]31C44^9]"-8KQ`"$C\T-118U=^#0T>8T",/RK]WD'-XJ$RP73=
M"Q`^!-I=$AL2YHX^Y@URVPFQN8;0Y^/=#6NNX@9!6@&MW/]_#K>"\1YC*\-B
MI"DC!*X#_$83P4E2=$C\:A]"C2,C5"5_P2M.NNB`1HX#]^@+D"0-TR6F790L
M]!<0("%$A3I%>2&D!0$`O!PAG>KUG0L(`%I>(47VY1\X\MF??0C[81S$HSD1
M76/9NAQ:12I3&:.C+@2EKNKJ/M=D?AADY2?C?BO[H5==$A1<<C]1W!G!$BB^
MLAP2/NN$3A/+?0LT-+8P8C=#HJE43NXR$A2`M!@`W*TE/R)/<3.#^ZABM.RU
M(.TK1NT4QPNQ\ATR?C%<(<'NP#@'8%^D`A9)8PA`CSKJ`Z9]?NF[`,3\G44C
M/Q)9Q!7ED1AHD1H!HN]_"_12%`'_Y&W!!-+EJ+SKF_P]BH%>%HY&G,10?F[P
M;%[F*!31`L[T08\C=C^X<11",+0Y>5_3HI[B'8\2'V\+VDJE^>U$G2#C7ZNI
M0FW:_7TVKK'LI9U(@+$:5(7SCJ;S''<8G@(CFAH=!=RK..(K0'ST4=0@%],`
MR/U&H6T="6\+A#&X4A1'52_@7+%%8K3U,KQ%O"]%K1_V8"KP9E]#?QUK'<-1
MR__2FF,?K6%?:E)4':4F6Z32'/6[Q`7K$DD$!7#;)3/#7RM%KY_?I,_W9D'$
MEV_)@K\5<@B1-B8N*0GB`5\+2Z+?WFT-D@4`MP`$CD@@<B`0/IY#A``1!`0?
M!4/A2$":_PGH,Q%A1**?SU'L&1,>CT6`+':+`2#YG%ZWW_'Y^B"N]]O[_D``
MW@K?&#R8GCX>`A2."!8]KAZJQ`0\,J$@'`T<'QBV`@Q)`T$*D$C=#B`\%+0$
M!"`6S,R@(&<55A4\`@R:%A1D`R`\!1`4(!!4W0@*Y@;"5`,6"-;(;`F*%`X:
M0F-'RP0<(`[8MJG,GP(0`JX(%`R8/TP'5<E[Y>>9S3W*^1WLFT8'E4`WGOPY
M6`3E$P-LC!0\.A"109(S!B`\<&)0C#."J>8M2N#!0`,""3X(B)0`P94%+3\@
M.-D19,L`)E&J1$F@P0&!]>804F5`@+P$.3\D.'#T@#X!*#\0E?_7U,#2EMS<
M'+V4-"=1K:4$A16+A\_8/T#S".5X2,"#96LOA8-KR%3!N0X0D)N[=YY'.='F
M4;/&!HD9!U\$-&CP0-VB,@'8?3C,1.ZM2(0-UE/[!J-/!@<0-'!0LH$!!SZ7
M.1`=R4UD!,M"$W7`&C*"*$A"-U@6BU2`CWR!JTH0"0)4@W[EV`V))5AB`E"$
M+7#@2T&#6](KCN%4D>&"!DZ@&_"`0-\\M/:"S[V6_LUYL^_OE(6/QST@X"K?
MSF7)GM[ON25GX@\XY`!C!HJ4V/A,B>*$,2"9#P)032XSQ&`E`040*,8*RYY`
MX(&8R@.+CLW<<$R,`!C00C%VI(L`HV#_A'"#PHX8F`Z>&!=8P"&+4.P"0I\,
M\6T.Y00$3B9ICGMF2)"8D>4(HAK!#$$(GZCR#6L$\(FA*#QH`K(#9MSG/!*+
M+-.\^=#,0[XT1Q2+3#/A+*0N)N.LLR,E02A0E<\^."!%4'Q9`)0H;D*0@>P@
M/$A0!L:AQH#/7O-S##;$K.--5L1HP$H*25*@FN<>$B."G*Q3`+*'("F,R@]>
M@F"@)>V,]4[_0JKL".@$D&Z4+:TYC*;6GO`.U]+"//..-Z_L"*77D#3$B(#>
MP*\0WL2`B:/ZV#1KS6P'<5,@.J/:BZAFA<N/F3GW.E+6;_'4,[@,C5NW/4NG
M`674`V^RCE5?_R*02=6.'HE@-NG\M<@:-!JP)0I6P#V1UD(@(=>-EGYYC11(
MS.VH1(G[PO.4A@O93XSA$DMI)=A86C9`:F-B:;:<"%@&9+KHVV<+)I+X2A6!
M_P$8'B;;6/5:;KG=-EML1Q2HV`\BF.N!I^)M4JYS'S8H@`>TX5C>,=K5>JVE
MMJ8Y:5(,D&E9E$B;*@KR>&-RMC".;#LJ`KJ9K>4RHFZM:AD)^"+O"G]9X``@
M"^D2GHQG#)HCY#X.N\XQ]V'`F^<FPD5P4_-;(QXW7(R*J&2.B&C78TPE7!6D
MB?[#:#91EP/9-VPA1C</&$`F`'.J@PR"TD1?XA&Z*4I"HUA`-Y%J6/^_UB6I
MF"*RC1,%'G`1'N@9(48+V1%8X(/BX"+0:\>!TPS\N3PU<.\RHA*FD>*HX&:3
MW7V!S!=QVK(.'.$AF$WT#ZAXP)/J+N8Q(HV//Y";AP."<87)':$B:M!&A2`P
MA0;(2`P&L*``0M$W*52)"8*J5.K2M+HTM0X]\["%0D9AA@XV(B`16L0Q%':$
M!P2$&R1Y$@89\I/S26UD3+,@&'1!DEM41!@'(,<34(B1"\W%>P+!1":.4;!]
MX.-VA2A)HH(C/@(*2$C)`5DF/*`](^Y.%RCAT$TJ8IQ>A-$8DC!-@J3PG>=8
M!UJ&8-P`MYC%FLW#0;J@@K_(@#5J/0D"KCK_T01SE"/K:-!]`A!8ECX(POF(
M$$TD?!T%16&11ZJ#2AV*4`S10$,PG4&1.8QDX]9B@"(X"`$N4J4DJ,1(<B"C
M2HM0)!.[YD2YQ*)OK"%93$03%3!,:@RJ^843D#"<W<1L:&/+8WJZB$I#S.@*
MR&A`&6-Y&6\L#WU+,,9TDF`:K!$Q0[&`A2KN.+-"4-%T4>D)HMY`Q1`%;6F9
MV>,\(%`1!TPB57V*B/:2(KH#^3,?P'A$1#X$!60HXY22U!8)!6%)I75R%%-8
M:#L(!0YR:.11OYO(%`QVA%P8[W0[9$:&:,<\#,'R%O^D1!4RN<\0)0D:WTO)
M$$8!B2ILPP%/Z]&4_]#G@0;H"!DCP<AAEH#`F9;4F:1PS$#C`BP^<<1$1@26
M0**)1_2-+"-5:)\ZCO`$3T!&'Q1"&"=2.+SI?8@*Y8`JQ`2HSH,,\SDLT8UV
M+*;,"O[C,P`:CD.XY,Z,&<L^STP/1!U*!TK.1Z*&U2/RZJ0XLJ%A+TW<AP"$
M<1M(0$@;M1DHII+2-#-4*84F^H+_[-E40SRU*(HARBA"H]`$C(,U*E&(7Z-Z
M(G?$UJ99E:MCF9%.@YC(`XYT0!60T8ZC\LEXSF'#3D<"(2GJ\%C`!8X$"I!=
M[6Z7N]WU[G8G\%`0-M:Z<T&7G5@F'`(LE5TUU64S0D>.*ZCFG+IM0F&&&O^)
M5Y`D?XQ:@"S:R=2@A`2G8,@70Y`AA"K=:%0">\1B[@I45GEGI[TU:7G1&5>#
M@+8+BPCKEJ8&6DVUY51(@$(M(`-/PM(+PU\#XXMA'&,9SW@`XDT=>5N<6B_F
M>'&YW(?(4A*+MR6%)V6+E[J2H)I,J83(RZQC0R^)6>)A0AR8X55A/`P\ADJX
MGV]]U8YYW%[(VHP-6#!N9C'DB_X"Z6I^(\QSR2$>".G&IG"XIWZ*_&-SE<=:
M?$%L6`!0X[$L%CXXALMPCH`VIR*I/+\]I58-XJ^WL)=)Y4EO97V\M7H>EL6J
M8.V!JU1ARX0S?X\(#653@H5(]*K"?>Z-29&\L6;_>)J9EV7TK(.K88ZHZPG!
M_(!NEJ'7"IJ-R(FA[6W<&2#J%G8NCD3#U)PJ%Y-<-7R)#;2-B6;HM3AI`:YJ
MFAU!\C0*<GK,<!&,,J8]S57(1;*X=&^8=>RZ>8B,8J[=3VA:TA*YA<8A`-('
MHB/Q"[OF^V]Z*W=KL#9,^(X;8@>5:]#$O=4,7YB'CC6@TZ"%DJ^N5BZ%)`<Q
MZBS@\0I:+(1^C[:I.HJ1((!VM@-2&WRWT4VOY;Q[.5`U"KD.1,UH`?URQ"/2
M8UEX0UE6C7A%G'Q+BHGT\)KYFUX*^0<]?73.@F.='\12$?.,S)QK%!]Z?ZIK
M\S`H11<]Y3A\&1ER$4GR_]J#_K,>4#Y<,"Y#A=;XT!F`%2$YDQO,-L]$/(ZP
MR)[-*-3\<W2NWUU!6O2K3!:[!V@&NVQY?]U\!P<J2F9+&")B@F&%LHCGMBDY
M<.=]-%P7+N6/Q^SN?2A#2S?[M-C-D\T_ENTD#XO)S1+W]U)PD[\Z45M*SYZ:
MSP6J@7]:423^A*7O*#A"'X,8*Z*2M<W&"#XA@&I4,JXQ%+,TO)%^3%8R"]X0
M^_JEP>V\5(MZ@_>=,ZO$T.X^140PL<*<AYQPZ">(=6#-<.\3MSQ'Y&D?9N2*
M?,_/[BR5'L`?/",BC&"S4@*,KL\).`$\U`[]:@_;N$7W+FMJ+"H9WH(`P`B#
MA/]AZS[/`/\/JZ3AB"!C<Y)`$ZJI$G[G\.PHTX0F)81!&%"D$2AK//+I`4Q"
M583*!\,J.A*@1CKE!WNE&()0,7PP8[2H3#Q!,EK!%Q@%3I*.%%"*.Z#'(1#*
M(MH*2"8B'ZS.&`8*!*&("F0A`4L0KKQN*/BJ*5R+%!+'"52"^4Q0]<H$--;E
M[<["]@0!]\9"`[]N^-1O5OX"2=PB*C[E#,Z(1U1BLVKA#/HI*00%E/"%RHY@
M(K;,#9ZP2$RB,_CG`-K""ML03AJ@X-;B]/;">`Y,#B=&&!Q,!L4&#XN$O>"$
M#_V@[4H.%X_%6PI13DHQQYS/V:9`RG#P$5GJ$2$L$E/_1<IT9(9L`0FE0PG/
MX-3NCA,[K4B.#]J^K4RN$'QLL7MT;2]$C,K6D.%("^^J+>Q^$1L=2A=OCQ<!
MP1?;T<Y.\.N<KT]J[?OT[2EDIF5BH23L!@EBP?L"#MBJ(A+69B8(LK76"QC3
MCSV@H!S/D3^^L1U5T>;L146L(V7RPW!L@QM*318ADA;Y8S12Q33B1![IPP]5
MAR7;!-#B1)^NQC-6,A@!,$M8Z-=0<4!HL!X[44#$K<U&A6E(\1[Y8KU^P5%^
M`4XR\C^(+6U2!J`D<1E&[/HJL"2S44`<9%(HA07+!"8!P27]`!#=A!Z+!`$J
M0F"FK79N$2<-HABPQNP0R"E__[(=@Y(_IJUL9F(4S>0B^6.)<B17D.#HRN0I
MH?#)'N<`3Q*@VD`ZWO(=R5(/S!+0T%)`(),8&$`>ZM),")$]ED@;!"<J#.DP
M[_(7\Y(]HK`0JO`OX7(?U/(<W=(T7Q/#+JY(VB`W25+R;FPRU40L7><R+1)N
M-$+"BN0ST\,Q<J4HN2XI3_,X(B"E:N4@\J\&[W#RZA%":C.X"L,H-,M,$),_
M@&2VIF(QV1$W4T$W(_,"W6Z\A%,BGT)@8H2D"F@[/6T4=@?`*I(]\I&JXL$`
M%L``A`WVFL$)>(OOL+,>`9,_D6`P@:[=@FX<BR0!/L1+1B7"/),QV:,S'U,Q
MZU,R,?_P:-XSZ"9H.F;HUW;ST5)T'IKF`!IA@LS!+A.O>T#BJ*KA[*KEH!0,
M04M(0>W3J3[D42B%$;)R'\*31*^`,Y4"V@3D-KE2>=X`+(_3VGR3+("S6V32
M3"C4$!Z@)Z\3TH)C--\`0W'S.?=AJ,2@=D:!/DWD"<C`R\QK*W]Q0=D#2J-4
M1I%2[$BJ.:\S(C<T1%1R/4<N1%EG1-,CP`+L0]F/*Z,F4?G33/G("RK!1A52
M9)Q$(3&DU;PT]1*T'>DT/1)@I@043Q=U.+M`'DZ43_?"25&32@EUA`R5\I`3
M]?J3(Q(@#O7*G``*X*)`4_`M9=9QP+)3"G[TF8XT3`."`2+_Z#]+,RSI(QR'
M+@$VP%7;\\;<9%-Y[``R@""HLAT?P`)F-#'EI1XRP%&_S@`D@`XHH%M_<0$$
M2,7X(S:3(@PZLTRD%0\P8$4-BP`J@%IWT3W#H@+T]9D6H%_I0`*@-<P2(%W#
M%2_KH`"N\1<;P`\1MA[1U0XJUDS@]13AA`$,U@XF`$Z_#@$8%D2K-=O&0@(B
M;^@0`"@Z0$HIST$\QEV*!`S#P%QY%`0V8&7A[0G"BPY>-F%;S$$ZP`Z"MAY)
M5@\F0`+^JR"=]FFA-FJE=FJI=FH7``!^UF3_U5K%8@(`0#JJ-FS%=FRI=CHV
M(&OIH`(D8,3(MFW=MFH)X`**5K&*_Q0V)^CG=(%,I[0.)F`#V.%M`3=P"Q*!
ML/8.*N`"%%)P%;=M&T`"/K8.U)9M%W=RPY9PT18/.F``-'=S.7=S-2#0.C=T
M13<#,D%T3?=T!\!CM#8>`78L*`!U8==T2=<#8K=V.Y<"E+8";'=W!V!V;1<`
M/.`"1#<3,F``*N!R\Z1N`P,T[HX\8E10U95WI9=WB1=U<3</)D!WIW=[N7=S
MCS=WNS=\N?=ZB68#/``#WJ,`,B&QV'-K499]Q4)]/0!^Z=<.Y/?V/``M,D%U
MZ19.S$"R5#5.ZS=-]G>`#?B`$3B!@;=*\>!^$[C0&-@.*C.B'O@.'+B")>F"
MRS)_[Z"`R?]">9G!#-HA?5`B@.'B2AW*@S%XA5FXA>&.=M-W?5VX#U^UDF98
M@V<837!833C8#E18@D%8%8I!"I)!>S`"3NXUA_'@AY6XB9T8?A<XAN?WB<>R
MAAGKAF68BLUBA\FBA^N`B8$67MD#,OL$2.HU+=%7B^4`C-6XC=TXHF!XB[.X
MC>'Q#Z\4A>&#B]_8@N>8,KV8#MAX#C)V0JO3#3@6"B$`7-LXD/>XD1LYBN5X
MBMVXCE^R=5E8CQUY2/J8A_77`_@7:`VS$!WD<;68D3/YE*D8DL<"DYN8DLOR
MCK%8DE'Y83>YBSOYDPGB`K`F57BYEWWYEX$YF(79&B1@;MW8E&?_.9E=6)7C
MMY:?V)4I$Y9=F)4SF9JAX8_G`)GEP`*^JYN]>;N*]YO%N;O(]XVU69G1^8&9
M.2RL>8:A^3<M>87;>8_G>0"P>8T]F869-FRH^)S3^9\'>)T%89Y;^)VM-)XQ
MF*#=N)[O&03\V:$L(!'X^8D?&J`M^AWC>)6=V8D-.CZDN845NHT9^I97&`,R
MP4/KI)_S^:)96H$SNIEE68T[6H(_^I(W^I1'NH-7NH(E(!/8U4Y4&I=;>JC9
M[J79^::5>*;WH*;E&:D=.:=]>*<3.*+!"%K!YM=*8SB6A2."FJB]&HJ->J"=
MVITC>*D1NH)#6HVA^HNE&H%->NZ:9".\_V.HNO1I#J^KOSJOQRNL_R"M*UBI
M%8NI$WJLZ9FP[9FD>?K%(G9::",VZAJU#`*O]7JR68>O_<"OU;FL`_NL'QBS
MGWBM`;FM#9BJ7RP<68,M%V`XIB-'(INB19NR8=M-+%L//!N!`1L:!!NM"?N-
M03N;7[M^W_K%>)8U@C0<!H5)24&RE;@#9JRYG?NYH3NZI7NZJ;NZHUNS"6*W
M6?BV_R*W.UN[1=JP&[JBB::G86RQKV1M',$GI$]'6MN)R3N@K7N^Z;N^[?N^
MISN--3JFM9B[\\2[$[BVF[BW\5FHV9>T84QHTT.Y<QAX,V"<(3S")7S"*;S"
M+7R[\AB\,=B_)__X+&+9H@G<H7\;?H,;QGA60!C<G6<[M@N;OU,9N[N;LP-<
MP[4XQ..;3<P[QM#;3%)\F5><Q1>:QC/;B@OMPP':QD<\L1`\QF2EQPOZQX%<
MK85<@6'\OV4<@05<B9'<P.E7?B<:OI-\PZ$\RJDXRP.ZRCL\%XW\G[>\J4V8
M/9Q\N\><S)W8S.N7PP$<RZ>\SL4;L77;Q6'[QNE7H.D\R`&=H]$\SP_8SJ>Y
MSW6:R^&7T5%9T,&ZR@L=I/?\@/'\RA<]T[7<T:,:TME7TD^9TMF7T"^]QCW]
MS(G\Y-8\G=M\L`]]LDW=VN8\=3B``P!@UWF]UWW]UX$]V(5]V(F]V(W__=B!
MW;P5F8X3G=,-F-3=''_]_+MG7:]K':,MG4VJ5WRYO=N]/79G=X\WG6LQO=J?
M&M396M03"]H=^=J+.ML).,Q3W7Y7_<Z;G=QMVMP;.=;_O(6WR+?5W;9OG6C<
M/;;9O7U9%]^C_<C1/;0#/H/K?3[^O<"?>>"YI>!A^^`']60S\-7%@L>>:''&
M6]Y'/>+A8^)%_.$-&-7A%^,I6^-[L]5SS^/#`N0S0>2G?<;U'7Y1WN4ST.*S
MQ>?U&N:S[=[?M]Q//L="_CA&OGB_G7?#G85[GN1=&M[11.CSFN@ST.@[_@[`
MYXF2OL66_EM&'K_QV]\)".`KWNKG`^N_6NN/_X;K1=3KUV5<$F-_M>OCK<ON
M$Z:X"K(O&IH/D'WP!U\#T!Y\#D"[,@$#\K[!@5[;J7[>D\/D3UWN"Y7NUR4Z
M9:QD_Z"\1F+&[-2.&EKR"2@`9NP"DOKQXUWE4QWN6<?R817S98469$R_.[^\
M$E#&"EGT\=BB"0@19,SP'=\EUP6*"@&@9071#.'%93X0\6!K]DG&EOWVK8OE
M9*PG0;#WD7]\P$3&ROG)B5]6C/\-MG]\F)_CY]X.PD;S7XSSJ1^XQ"/&0I_W
M)5_V^6$9#*`1FD+_^0<(&!^'X&,\(H\7#[-Y`4&CTBFU:KU2`9X!->G]@L/,
M(A)K/J/3YS"[[?ZHX__R+#<^`,RQ^.J[WUXT-=6E^14:(CT$,C6T$7CLY45*
M3N:Y"000?#`(&`1L=@H0$%SV:2AZ:%"J2FD-1AT:CB6MTDK"WI;5T@*XHMWI
M0D[A&CJ<4L0-)W\AG"8T/NI&2R.W&81^!!@%9&,G/"P0-!R\41A/1[9V*7N)
MBC*!BQK`G=.KKQ?6H_>>_=8&2]U[$R'0$VK)#HS[8$V>D84-&9))V%"1`C>.
M_N7+6.O--6[;M'U(D&`;`01N0"QQHE%-.F$!CR@XQ02"D97U7OJQR7*?F7Z[
MK.!D`ZA)*H.X'#Q@P,"``@(0Y#%U:H!ID04(%B18D"11$T;/9((-JZBHSG/_
M'#-]\L2)&P($`:ZU`6&*:%DS+0$&;0!6R+RZNH*^\6N7)Q:?JS!">;.@ZC8#
M"!0H.-!@00,##]@4:W+,Z"T'!!PP:"O@`%1GHQILPH8-:Q)F39RUT2MV-EC$
M@BF].6#2<@#2#WH;$8*:(1L0Y33?KG+W5=`$8!,FIP7X9'0Z<@RKLFWQ@8"L
M']IFRYH-$YDP`ST4Y`S+P0(&HC`]/7+@\H=1'P0L<.#)ZT0F%3D6$*"``Q)8
M8($90%/=*M/%A1(3Z2D(PG*)`1:3(C35%*$M#(:A812\7&<;.D!9),`UH7@T
M60,!-%#>%T.1I88R*19AWP<'+,"0C1\LL!@W1W#%_Q]UJPR0H(>1<-BA7$S$
MJ."$($PG6R!\]76D>DEFZ"&(=HB8AW8EGDB`1T80\(!^F#&QV96&()`45I@$
MX)@!$(AB&AE9(5!F:TS`%A@M179I)198?@'%<1T<^:0?!]C'J`/W56;`HT<X
MIXA$@LK1QZ0-$""/9^.T=:-$Q25*V!784?)E(T4H(,`#\WG&B&4-G,E&!!#*
MJ,P!9#A$FHF<A,10`O*0EH0!'OS71RV`8CH'H5Y$<0$'5BKZ1@*M*G"MJP<$
MX`"G+GY@X4RY-(N&&P8PD`VG2,TG0&1*S4<<J5J::@6JDZC*1G<W?J90.$8@
M9(`X?S1)R+.%/"#DD*HP6_]NK@=GJ4$&U&YA3VS?AMFMGDE(Z0&553I\A1LB
MC:>-?>$HQ:FRI88(#(D'"Z#FFA!_X4"??A)I9,AFM('B-C\#';300V\#@-$2
M7&"TTDLSW;333S.]`086V%6Q2Q8MID">]YU6)F5(5,K$J#OS_$;)V)PL``)(
M?0-NH2QSZ3(?-".Y7IE$XYVWWGI#_?0&`\@L1<-D#PJ&96;*2S-.NDE0@1Y6
MX^7&VII<]=UNOZF&A(48'D&XR&;SZ$P`H;*&(ESS:KBE&O=*DJ^Q;>X=>]!]
M]YVW55XPM5CBBL-R@'X%@S"XYW-_\8!)O"?)%*)65'ON;UHMT%A]`DQV_!&R
M?0S_\O`4NI'-`9`AT$D`6GWP@`$]C@H&M?56P?J(Q"?Q/0'I(]_&`0PH(*_6
M]0>T0,'";R]R27!5'Q+0CILE(1.,0H#;#"@*!"3`>E\@CHD.D0`)7*%Y@*E4
M^@)X-8BMKV7^>!D2F$(__EDB65M#X3T@0#7!Z<R#W$L"`R9E"3HM@'->*`*+
M#H#`^]"I)*0`@\J,(!)8+"!P'X(<<QBD`!UF28:\"V'<1@B_ZRF,A6\HB1$>
M\$,MPJ(!CH-AH`@'!@#L#@RD<`Y3%)`-_$7&`P>(0%/F!QF^N,M$";B$^(0`
MQP-```(/@``\OJ>`[+&!``5@'A-G"!C40$N&CGP6%5=7_\8XN$X;:01C&+P!
M$DXF0P"]`*`DE>,'`33!)&J38T6<X0%LA*),CX*-`"*P#0:R"#Z/"4E]1"$$
M49B)EWU0)"/W\07QR$YOD)D=[9K)M`%,H"Y(<%4RJRDT9S83`\!@'Q7<YR42
M'N%'H`1=YL9Y"U%.@92EG`(`3ODCMQ3C>[Q\Y5N`.4LC#/$^+.*.B5K92U'T
M,IA?!`,QE=-(*+6F5>:<(`(NH,1\'"%=)S2G`0@@@6@>AIOIO"1+P/G)A;9A
M3,,X@`>R6$*3?H">]T`G&=>I!W<>P0&"?,H?Z1E+0^*Q"6^)TS;R]T>9/B`3
MHL"I'PJ:A8/&+W\@!<,!+JH3(_\@9:E@0`!'SZ"Z-'AS#IDLYS`"T`2W34>D
MN.@132+X'9&$HZ(0"(4X\E2$5V;"@)7!!4NCH$Z70J&=4E6&4=F)5"0L9J]?
M(,`85V*$;`G6"P%XJ%8U*KBJHF&KXL3%6XZP-@(XPZWU\=8F#:%7O>(B`@F`
MP*[&XRH",$`WV?(`!&OXRM=^@%9!I>LH8XC7#R5V&'UEQ5^/`,7<'F`#3^5J
M;K^CS>PXUJZ0M2I+UA$`-XZ',CXM1DH;D+!U[`&TZ_%``""P"=,B``*1(<4K
MLY*(E**W372B;3IM>UL)%?<6NUVB,9$PV>(N%S?$S6U=\95<*&15#E75+F5;
MQ,.WFA?_M@!51G:'`0X!R!20#HB``&J8,'<YISYF@NUKD9*)<]8VOYXCL+5,
M8D`R01`S\VO-CO!9G@_C8KYY[>U'X_L!$6_HOE_8%<`Z.TT3=;98HYFH&O^;
M02,'&)/-G1$\1D(93&P8O0M.1H-Q,=?8.J8!$)2K$5J4"8&UI:+UX1J$V=O2
M][(3%G"E\"6*Q50(3-B^0:4P$J;\2MTNTJ#U#:>-CX#CNNDX@>+-1HK=P%T%
M1&"3$%Q1J$YI9.8A^<_*67(R\E0G%G4*S.'+1`49G-<^AZ&_P7/O;4G\ALC4
M$37U).1C@*,0-Y+O1O]Q1@.>Z)EEHA=_YCN$C"5TT"D$6K"2_XY$L('$@#UJ
MHK2O0D"ZR@3C.[]E13F:SZM2&TAF#V%\/K[/HY43:;E%-BB535*50;W#$*,Y
MS8=@0`,@<*W\U%,($2#``NCSF`@T>HC.V",F4!LN5`)23"A-9)Z/RKYBQ^\W
MCTKM&]+EB?O=#[MU0?B-O'J9MSC`,J+(SU/NG-+GYB]\:R5M:6-YB=%*:J!'
M$+4^1/B3-)@ZL>4V]S31G6[<'L(!APQ7MNJ9B0@0(2%O(2GY#!`!TF@-`I/Q
M9;A("D@]\KK@?CVX'X(:52&/0R2<\&$X6T2:TG+]1OOF<1^&G0>*=TI;;ZEW
MOT>1#8][`,B=R"$JPVGRG?:!Y5[ZMO\5P^V'(^*.R,82O!]F#@:=AB$;,AW=
M%P*13R_XSK(2[)G-;PY?"WI@X33Q^7>>>#R=$U*IWX&`Q["A@*00`#*7>27^
M2!OU8IJ!XD<@0`06,(ZW*$4!G#I]!!C`N?&-XA*U9`"%&5!OST!@\FPP^QPH
M[OL`)/HMO6\[>8_@\3DZI<(/2)C/27'(R%`^HRX_#*6W".-I!ML[1E0^+`S?
M^%>KS3X&-$DF;EF$4)3'XVN4/Q>W0;W/W%^+?8&HW15>Q1S-L8/4\1;5G=("
MB-;0.44[5)\V/)CP98,[/%>_%0+SR8'LD1UI+(0/#<LXE(>+)(`(BLJ-&(!(
M&$!"[$OX(=?_^&5'^5G$_-2;5NA']$1<:EV"%SF@6R2,$.A')DB;9WU:&W@`
M:I&6:\T):)`4C[3'*+1*CA@!=ZE%G"@`4LB4$_;(A)G<%/H8`9*:`2+@%BD@
M?<6>'RB=`)"6]%68!+Z=W>'36SR%\9#6L$S9&W!@',B>.>E=8\E@JM!@(XS"
M4[3*T:T(*>Q42?!;2O';:"$%,SA`^&S@$;)!$LY/@N437+5#'J:4B92<+8W/
MCX@"*70B1U3>S1U@&<[>&<X8`^;&;S!":HE).+1%Q/T(P]U(:MW@C2A<HY7=
MQ(':'PH8W[V<WPV3V\'2*UD@+.$(G%6?\`41A`V2RGV!^WF!Q\F2_P<T86IQ
M8BF"817"81.*`YS1(KSU4AY18:BE8KJMXL@P@IA,&R*%`3`:SOF]GIZE(:CM
MH1H@G#6`(N"Y@9M-$SX12]@5`C%BDC&2'\P50BF:%ML%0`+T'H4E118^'3-F
MPR%Q1U.X6R5>7B(=@::M(!=QVJ^0V>P=D(FEU?SYB]K<1P""5<VU5S]2BX,Y
MP-/54)O!!M?Y$!F`8BDRA$\B6[A88R.XHJ_!HHW9)!H@7"UM@WO@8YV51Z%I
M#D*4U`<`W4SJ2[=91Q4=HU45`@N.@Y"=8$@$S'TDQ$\JA`N.@S4<I1=@H[F)
M85-JR3`\A='IWGU49`(8GYELPS=H6%!Y%_]-_*5^!(!@AD:,)>63`)NYV>4^
MAAHI"E6WU`<FS)'6?$-J45M"6,5D>%'RM<4WG,^KP&"J,.0,.B0_6B(KUJ7E
MM>8AW)G`*("/+&,&OL4:Y0]`O19NFL@%3F51->:O28&.B4>G#%[$L<%QNH$N
MWH=\T*,11"86/&43M(-;L*&>A$\]:04=(@09,%MOP!D\T!N/U-!O#9!7LE-J
M"N)J]ME<[A#]E(=`CB1*M@%]%B0JUB1LAJ2:=5XH<(=IW2$H\!%P\.8'#&AN
M`B=CPAYU?@&=N,JT<5V/G*5#[!%QK*%"%:5BW8D<W4>M7*,PZ@MEUB*]P1CG
MO87'&5%W\0BFM</_:GCBN8D?6#8D,A8"0'(EI0Q4CKH!?%(*!'17]FCC5$(E
MD.Z72LY>_N5=.Z+9.X;4.,@C0O@10B@<9Z;6SX2*]U2IE)8/CQ)<@U[!?;G+
M1`S?T=W21-))9'@7-SR>SN'/%XP;*@'A1YR1B(::*$KE:)5)P.7/-P`4[FT?
M?]3>=\C1*;II=*Z<>K(">^++('*$+1EIL$W9CJCH(?BH$7R-8[1H)GC,J\1#
MO;D@-[!6IUK#^2U89LX'`U0J.^XG;#HI&R#`P`5$LL!"KSEF<>[0?QR+*<+A
M@E%D,-W'?W1'98V;?2FI1H;!=(9I-?P*"L*E0@`+7#I#L2`$$G"=-82$_TC`
MQH6>IG\%8J.Z9T***C.D%FG6V8>A:E*L*D@Z:;%*RA/*D75MW'GB$Z1JQ2OE
MQV(BJ3:XBCBLZP`RZ7N]*AL0GC*L()Z!J17H&(2V31U:VB6TR7?X#G49@=)Y
M(67,";*5!XM4T"N1UHJT8(B611^.DT+NQ+>VCJ-:@KVB5_*5Y[["4L(\(2Y<
M*H\H4*MX`FQ=PGO``SZU"ADP8P[)RY3MU%LM::M:WL#2G*T29Q089_1TBKLD
M1<5A6RV>#^,!3/0\RM4^2C9PCL.]T7?!"STJJ\(.HZ)^"*.F;+B>TL]684H]
MT+G:767]:S#V)QA0)/3%ZB%%0$HM@-:(PJ'.(?\2X%NX:$6C.<4VS(=5U*9*
M=>NHE6UT*.T;`"'A`:-`DNPP#>=2JE'F#A.5V:F*I8]F_=CL+4.?$(=9Z6<,
MTJAJVBA,'0&^,<`WM,7Q)&YOT&[C'JD>QF:H]>0)PF76[1NPM"78C$,69JL1
M_<I4%`%;>NEKNFI`/`;U9(-#L,.',04C^%#=RM?F2F88A.PX12X54)R$]6TX
MS9F+V!F<EL?YZM/1LJXE@9M8'D+X&E%9%@'@[9'<-:_&WD+-!H52``;T)FU`
M%*N>?F0"?=AH@8/NO@33<BY^A:[AP)I\S%ILV5KJN5&NG1Y#C!NYWB[\HB;*
MOL_K2O#=(B`!JZ(!3XK_I?72]<ZMT3ZP]SHH3EQI5)893HSO8[;!O>4;-PQO
MOPE!J\@1G;`(OUI?2DE*'YHLS*EM"=/O>_;N2[C@4#*("KNC]$[AZ%R&\9`&
MX-$;D*V=OS[G/4#P]ZX#LUF#[I$&>H+NR';/:'A`T1T=4X37TOE;'#W="Q;K
M*R4:B#YNR[5N>YJPKN#36@8%`-]"K`Y![W517((8TJYP0$B;/-1BLJV06RBN
M6WA#NNQNK=+PLKY$?B"Q4>KP!-?,$_TM0X17Z3T7ZJD>![L>-C1!N+`;D.)=
M(.\="7\3VRJ#)SW7>GG1*:.P`8_#G'59<*X#%C<IS'AI4)QQ#1LP&8Q;L=[#
M_P[C:I\U<60]<2\7LFXQ`KZ=91$%A"+[Y[%TPJ,\WDLPL\"R(E(F;!5X;AR7
MLC5+'!QK,]KF53=KE<I25A'(5%:NLZ<5\SV\DFO,\?L.<,"6VCM_J3Y*LQE[
MA2ZZ;SFC<F)MLU7QLX#Y\RV\10)H+[*^A#D?0AUN;=^RQW2T<T-C"1%\1V*.
M`Z+.<#R3+TYXDK7&FD7C\TM`T'56*SOKLX1LM)+Y<C*0,F1L<$J/]!3?0WZ4
M!VGH:U"L-!EBR5-,[XI0#I9$LRA3<1(,2R)?]##@AP&QVDC@1$8/!B_W<U$/
M`[:I97"PWS"0M"&`M!?(="@Q-%5SR+7`$A(H-8=LM?_9LN9.WX.^CEM\!`1:
MZ\%0=Q1;#P,BW77[,?792G(6)XDBMK!"`W8H"[84$[9S47-H`_6,RF_?13%3
MYM6V%1<"')==C:%+3>XY$=H6:S:#!+8\0V98_W,]/[.CD396]>.`@9H![`$&
MQ'6?)5%EHUD&%*PRG&\EQY8ROP0#<'852`"H)8!P?;8R&#89(/9*!?55^4)P
MJX$&V-!J']<$7(!J"Y8`8$0!NE0%2'?_T,\P)PD&T?04;$!O@Q(!M+9-S'//
MY'1(!'A7_O9XSZ\96(`$L#<G)<`%8!0(=(`$\/="K4B$NS8V^\4$2$!S#\/!
MQH]6F\JM1D$!B!YP0;ANX\+_Y/UT8H<W8\-<'%2`0B560P6.!62`!%C3CO.X
M[$@`-+7/:[L4!5S`<9M;5DQ,!C5M%,QXA?./C?M%@:.08A^96G-T'."XCO?X
MEN_X!63`"VE$80D&?./5!&B`EG-YFJLYT"@``(@Y1)L!!>3XFM,YWDB`!F"X
M3M`J>A\X/Y"W!XV3!T!R@T0"F?/GH9/XH4\#``PZ*`4`F'OK((-K`(%2,<CJ
MRA2ZD"NZJR[YINN"B3<X&#4`\.RRI*\MI7.2JKHQ/DB"H7NZ.W;ZJ]/"C&><
M8.$(`.1YZ\!X9$D1)Y&>AP[#)+BZK)=:K!.[*EB`!F`3-C&!!"S[LF?`\NS"
MKC,7_Z"#$4DQ0603>AX,^[&O4Z)[NY4P05+2BY43-:IKD914-"P(NZ:'^[<;
M^[LKR+B'C'C[>8)[#B=Y51.<]R&TNX;+>UV`>\#/NP>0>^I0NUWT.@L=2R#0
MQRW\.\$G;;Q+O&#0N\/8>T_\.;JC$$(W0:A'4J8#?,5KQ,"3O,4;?+TGO!XL
M/`H-12!<^G1T^\GOC,G3?%E<?+ED?&%L_/:`T7D$PIX_RT7<O`%2?-%K1,XW
MR\Z?2L\/CQ955#C4IGW2#-$C?2G9_-5GA-)C"M/;B]/GNZ//MU:[N]8O_=&;
M_3DLP7]W_<IG4,OKRKYQ$3Z]:`/,5:C\M&#6C]6G_?9D??_?+SK:^X77MP_8
MF]%*K14VQ(KRL@>[L<?]E*N.2/DZ\#W@$\[?6SXP"+[`NSWSP+U8VTB;(<&Q
MQ4G3I0R,B0G_5'[FU_OFLWZJN+Y.$'XW&3[9//"=3`:EX.#IT<3:;%]@I3[-
M["]^>(`$"`ACO7Z$8'[RPWY0Y\/L;Q2^'[X9%X&L/+Q]4"*;BLDU!#_$>/Q8
M,'_7QW[X"]CXKP3T/Y;TVWY`G(P;Z<;M015DD('YH,]E\@[0*P+RD_]M+#\0
M@(1#8M%X1":52V;3^82"`)Y!U'HU`JK0`0"+]'[%8^''?$:GU6MVFTT(N-<.
M0N),/WP0A+J@83!P6%OP*#3TN"#_4UQD;'1TFMIZG*2L9(RT7-2*ZFH,RZ24
M$QTE/2-0*/UP6!"(^SAX$$`-$!`P"'!H(!"8.S34``T6'A[#)#Y&GC1.?MKD
M^E2$9OY*K;8V$_!()1!DX-W]($!0"&#XP"5X:(OP]:"8AH_/7):OMR^BO\>7
M=.J\U(]R32"I;*D2*'B@X-LW!WD:-/"3;D&#0;X2`<28<4D^C1V#<<3H[(D_
M31Z7#$3IIF`I`7D>&-"#X`,K0;D^&'@0QU4:![Z`F00:DDI0HI1``A393UJQ
MHD92/E6SDM1!!109W`JPX%R`E^'\+)"YAIVA=TW-,CMZ5BVDH2:3-B$9;2T(
MJ*,.U,*;_U=O`VUUK1$J=''N8$MI"1\>8MC>6R9QR4@H$%ER@0H#+%_&G%GS
M9LP:`'P&'5KT:-(!3)MNEUKU:M:K(_BUUK/03\2U-;6UG5N(XGJ,ES@>HYH#
M:>+%BW-&GGP`'^8.]#Z''OVY'=C5T8PMJUN[%=[;FW:/YUL)<.],K)]'SX:0
MX/)(TK=!!KZ]6P^T.XI/0GZ^^_?]S_>T;S\B_%,C/MP$5$L##Y8*B1^X&$2P
M"`+[,T`Z"RWT`(/)-N2P0P\_Y#"[9"9$PT`'(R2#Q`$\B,.M$W^#$,4R2+3.
M@`448"Y''7?D,<<'>@0R2"%[7$""#IBAT0P3962$1`)8_,!%3O]BE#%)V&X1
MQ$H*%:A@Q"279%(1)Z&4\IDPU6IC@2RUI%`""Y"Q$LPSQ1BS18_P0T*_.3MJ
M`P(V)T0``SB_/$:^/8_H#X'3(/!)(SR/T/-0C-@0P)P__3L@@T%IE%/2@-Y+
M8+4C,WK4B$@]-:D``BXED,I0""7&4%1G?$^!U#BX[\7Q7)U5(U59]8_71^(L
M],!>S>N/KW8T=537_(0]5I]?@7T/VD;:V,,.`\1!H\(/$N#6`(A4@8F-3J-5
MPK]0VQF55&?SM!9=>::E%KUX%V$#`08<0$6!5<)*((!5<0&K`0<"P,F-<^5%
MU#];#\$UURD9#HK>>JV[5TPW`CA@HK#_7J'CCH<.!@>^8M^EF)0L\5"%@#S\
M`&1--)0U9(,[438U8XJ1L?ABV'0>PPTU91$`K#,$6/65.,1MY8&NUEAXYR%$
M,8"!.&"1!>M9<BDY#0-\Z5)B,Z7NJ&>?ZP*:3C:\^=:<D+%9]8"K3&&.%ZA/
M)KMA-Q((V*MP:/$*'778>."0"6Z>..^,S):CKXWM?J.0"&1&0^X/R&$@#X'2
MIF8-!"`P[0.K$;84Z0]`#T`FG'!:H-P"\59\P%'B``>.A2)Z8"+/:RYS),YC
MIX1Q-QS7HXYP]`C8E@9D0L".I/G0`V%=[$!:@`00R`:!YL7]HYK?KR`V5F,5
M)R4.[6?B=@%M_W,Z9XVO"T&@=Z6`!TCX-APG0$T(MF6?EM3YT(4`!@<'.'A#
M%[10B)H"$*H#^.\A'R.%L#J0`9MIC%.PHU_Y;F*:UG'0#+MH@-'64#@/&$!^
M#Z*?M))6"L<!CA9?$P0M6%2.@S`@+`2DB`!-`[T/M.(#VI#AYI0P00X4XGNT
M(E'4R$8B!'@`%2=LS!%3N`C[L<$#?-B#_G!RBENT8GF\2$BY>'@./B"P:`?[
MX3F\N#SO'8&(OI!B^(8AJUG1*`(4@2*,IFB/*JZ!.<RK@[A4<8#M32\<6L$&
MY,#EAQ[NXGK'*V3W4@&--Z8FCI6[4"8U"2).=O)#$AA?WG@R)%(""?\""R"`
M<E29G#>1H51%.-4>A=%'J'Q.<U;R0B5;LTM>]M*7OP1F,-N!,WF=X0`*\(8F
ME;E,9EIH',3<"#2'$$M9@H*69[,&`":``5`*TYO?!&<X@\F!=@'/#`90P"VQ
M68H%"$H,KR0"-:MIB6NFXBYN,(`Z*^<ZOWS"`MQDC2<]J1?JO&>>QS"#+M9I
M#0-(H!C2%((\#SJ)>I9/`1=M@P_-D`!$JA%C1OAG-WV!+UA-%!1F0-A"K<&`
M`KP3HB"0J$D;45%1(&!P",BGT]2IT9G<<0$)@5P_DQ#20Y#T@C+-!$I5:@T"
MM/0+\)RF%)'Z!)K*88RG.\`!_'2TG7CQ)1#_""K:F$!4HR9QJI90ZE*WX50L
M0#6B4CTK$ZKJ!D7=1`&A,@/Q>-H*Z`&N.M9J98I*&E='I%6MI&BJ2Q-'V$S,
MU0T7/:7HG):YTD7`-`C0*@(BP(`(".!\0F5L!MMW6,2R]0INA2E<0WL$Q[HA
MJ\;,0S[/B1<['(!O634`WWZVVA0"@+2E5>S8>$O1%?XVF\,%GF^-:U73<N>E
M,44N58N[W%*H-KKM46XI%,45?1K3'%;+G!I&Q['PIL%R:PVN[Z[KB-96([=W
MJ85L6[5>LF47L:Q@@#KN>1-;Y).!!X!)`B!W@`8H!$MV$S`@NLO<],Z/OE2<
M+GH6(#<%6!86!:W6_X-W9M]1Y*]2#W"`TQZ0``B<XF#9HP6_\LM5E'*E=<CL
M[$Z`^]3G6C>Z[4W%:WKH"H4&2\,4X[`H"`"ZER2@`3M,F@^!V(JP:I06K3``
M`@C!TQFWM<8_)@..">(*C5(Y/3;&,F*";-45_NA@-M4#&I<\D2BS6(U>#967
MA=S<**`6NF$N@I9'T64NR_C+>([6F.GZ,9)IA8"6BT/F;(0+[YHA<W*#Q0+P
M6XW$TGBQ@(Z"GD5Q$&RX8A7SQ?2L!$W=#](9"G8&\W`U+8K]W41S-@1UJ#TU
M:E)7VLJ7EG435BT'YZ3!4C[.M:1H35U;G_;*P7;"KA>::F039=A;"9V?N_]U
MR\^BP28A;*2T*\<5?K[!U,TX=K.7H.QU,EO<;A&%!_"2QAZ6RWHS4=]=;,M?
M=\=!`?OC`R]:D@!OG2%UJ)QS@U%X;B60&YOF)KBCTHW%-)9C@<A,YV6OR`<2
M<S&O-3RQ-CS`"ASMQ`$14$"W_?AM2(0[X48P^-D0?G*D+)Q;ZK8LZNCFPQRE
MH1S[6L!K-!X.T'7V6R7>[(+14&SGXIKE0DBYSU9^],6D>]T>(+%_]^<`<.V"
M=N)0!TX_"-;3H6+G:-;<,3]0.*&;@N1-0#73\QQA4LMAZ6H/CRA.HQ-5</=@
MK6N@OF+RMQ5JE`$4H?O?6O?!K%3;VP*/(MR'D/3_>AV@@HHOS[.-2_0ZFUSM
M$T!%VTF!@)="WBR2_RWE3VUYM6\@K)IG@P("ZWGM@)ZTH@>WT9EN@0N<'O5G
ML%'G65^49V\K*_P\K^@6K*@'E-T,U9;O:`-N:>%"G@(`^%$II3]]ZI.2`1=P
MY^ZW\VQ)%RUN^N:8'0`W[^,KY,C8P##=SB!I_Q+/#;`ON>SA;@&!UM_^]Z^_
M]K&;;FN+6`";C;%*^:DL\2LS@#C*"8<5XB`%((0J,S;YT[\(S+5G*Z%OL9XC
M\Y\$E*$`(`>4RA+LB0,Y&Z,RX@7W:P/X0SO2D\`5##7NX[ATX`9:V)\'4!0!
M@`#;*I=Q*)H%VI\0XAO=_SJD^.*#B3@`;0`P!F,^]6+!)92UWK.:52FTCLD=
MX8,%1DNHWZN[UM&>/3B^T\@J7'@`JQ$^)+RUYF/",_PQUSN/6O`+%&2"M$/#
M.-0P-50K-XPF")3#/"0L.EPJ.U0".-3#0%PM/BR%+C($=$@//TP"0!3$1CPK
M0B2%'O,K'3L/100#%73$3*PF2!R%6$`IN^$8]+#$(V!$331%6>)$N0/%513%
MLWM#3#S%6,R;5)0#3_2H<S`^E!C%+(!%6?1%AJ%%-^BQYC$#2K2.7=P'//S%
M9>R58&R#6QBE1'3%.S1#9K3&8W'&>D%&(BC%:_3&6;N]--C&Q.C%;S1'%,E&
M:O\9Q]THQW-TQ_E(1V!91REHQW>TQ]8+QZ&;QC^LQWOT1S'+1[-#/#WZQX*,
M/)'3/)8:R%TQR(;4#@R@B'QLJ,-)0@=SR(L\C`FX@%PDK070/6[L1XP4R8Z@
M``EP&?0(&+:#BD`(@`!YP&H<R9@LB@K(`..P29OLIIO42>(8@-6KR(&3R:#T
ME`(H!*#H1J%$2ADA2@\PRI!,RJ?,C:5L2F6$RJJ,RJ+,(X:TRJUL#ZG,RF?A
MRK`,FG7*!A,4A?AP2K%4RZDART*P!K2DRK642[;$IK)\RT))R[D,RX6RRVJ`
M2YC4R\!$(I_IRU3X2R44S,2DR[,IS%(X3(M4S,3D2[?_]$N\C,O(W,K)-$LY
M>$R@Q,S`U,R[C)6\_$RA#,W*',W++,VG/$W#M$S`7$VN;$W'?$W$C,VUK`L!
M8T,!0P/>[*%:X+>PBPK*=,W4A,W;K,JZ0!HX2,D^$T,^`#&!V<+AK,"E"H`!
MJ(8!D#'DW,LVM!Y6&!Q^&ZV$H04XL")U4RN!H;3MY,[,K`L;^98?&9SC>QZ'
M^+ON4X-"L#V?4<]M8,_V3,ZZ,!B_*1DN-*RM4+XST,_T5,D3_$\`9<VZZ(H&
M@H,HDP7H"3[M`8M?4U#TM,X&?8,'A5"D](M;2K!7T$U>R"UCPH8U6-`/7<\2
M&=$(7:<75:G^+`7S/(,9I5%L_[+1A<)1Q!)1'HU)E?K1=0K2#AM2(A5)(_70
M&P51/UI2)KU()]W/BTE2(9M2*FW(LQF+U.!(+<E2J]I2+BW(LV$`U=@JZ\"P
M@JH0U]$6X22C&-U1,QW)LRG"U.!0OZ@K,P`XNQHRF*@KZ?RL,7V_,K73>\0F
M1FF',*V&`T`C/?A3[6F)?!+#\MP)0W50&4W4*D73=EA3Z[@:;W@>@8$`CH+&
M!KA/5IA3_^343NW2LUF70]A3V-`)#MRJ<8$#<H@`S8FV5LU11(75<URGAS$$
M!/2+KEJ5YA&8E!HM#=4[30W15QW6?UPGFO$`#GB/6UK1V+(%%GV%%@56(:76
M:DU4"_\X!&:1G7J15BDM5W.UTRDHA'(:3%9I5S70426!UV&M@$*(&`G!TBC%
M5V'=UQ&=@$)XO'6EEGL51X(M6`C=``\(&X!E5X%MV'=]6";M5XJDV(6UV*%S
MV(QM3W7M6&!A6)#%6)&-R0FH@`W8R9<5#0DHCKFCV9JU6=,HKY0X65,(697]
MQY(TGK8[F%JUAITEO)3U68?42$==JC\="*/]&Z1-6H,<``BZO9!#":C-URB9
M6ID$`(1L.[9YVH_E6:GM6G^,1U;IFFL``++](/LZVYA,VTN9QZ.,VXOD1!*#
MDJM2134(/J;:QT4DS;O]1DY,AP]H`'!A`'!`&N:A`SM`@.7_"1A#V@/KL5KT
M^LG$(URY'0@2VZQM\9?7\`:PRHIT&(>/:P54>HE]43=M<\"B.\[-1=N!`+"#
MT855T8;\"D"^&A@F:P6.*APYR]'`O435E%US-%P<48`]P%T;=-XG0R#4A=YT
MZ`GA?=W*,][C]<94W`-!8,-E-1A"XAN<6AY::)[K$1?M(:2!J-O!U=Y?G-MG
M)`?7?8KVS=[W9<;X91,4%!%2=%_\C45:.\+D&XB\Z"%2(.#W,S4*T(`+8$I^
MO%\`]D5:PS;=28D9BH/-5(6(_);+/;PAL(`!<&!#H$;;E.!['#8<\9,$R`DZ
ML`5U6`#U+(<1@P4QS"LTT`:2>06=_X(`"+`I6C`'`E)@$""J=BAAR#QA>QRV
M;."%K#HR?5F%0"C"'Y*;=&B`*<ZK0LA@$@LQ6[J+?/.35D`SK7N##!`I2S(.
M#OC?)'9$"KS"&$:GH2F'G2-!=K/C'[+!?,,?J]LQOO4C#&C@U5"E_M5<-E9B
M_AN[W(F#&T%<&$LC+&)`Q\'@-$*FXLNO!WB(U`E!'K2X#V;@$2XJ1[@S0];$
M9X,<6^`%!K`4VP(P7N`;`:`Z2C1@NVD),WBM'DJ`V/)6L/V@L#J`4S"$8Z1?
M4B!E/21$F^+E^+1"`EG;WBPP84Z)8LY#_=629O:/K;T&:9;#8*R0]%L#((P*
MJ+#F_L!FT?_49B:D10?H.60=NA7J&@W>ABL5Q6$>A7-&0UJ\P5?XAC'EH0,`
MN1J&YQR5YTJDY[.T9W2^8#1`,QK$5P44H"L.:,0::&A&B8-&:)3@.E6%'C\>
M(_\I07&>Z.HH9]2T:`E,9\OJU8H[5<K2G"$SC4@;AP8L:*L*:=@8Z>(LZ0CD
MYF^EMU<0%\U)44!H8MZLZ1,LZKJX:=K,:9WNCZ-.B7%^CZ0FYJ5FZH#T&QJ1
MZGJF:OVCYA7M(3FM1*=>SA5BF5_6MS\(!)2MZ*W6/FJ>,!(+``@PAQ$31:<6
ML$_;85E(G@G#A0!2ZX%@Z[9.C]?0G3;KL6-T:D>CCMHA`+>!`SK_F,^C7>O`
M]CS]]:$"W+&ZM@:.,H6%,(T?P1T+CMK)IFS%L^Q%CAM4L-[Z3>RN.1^:0%Q!
MP(G`&VW`+FW(TU].2P"4E@F\1FPW0-:=N`H/^NQ>#J&/R6J#OFVXH^96PV5'
M\V"0GH.<BVBFFFF%66[F3H]>\[5$#*I5^-+JIE/;SFZFHV8K`0?P3@V*)N_R
M9KGS3A(X"&]QXJ7K-AGW9KD,8&=22R>;6HUF4B9O)FG\)C@+<.[;DS+<\V]?
M6"<"/[H*4`C4`UV1$Q=C;7`'9SD*,..;Y?`.]_`/!_&Y(P<.9@,CL^^CPG`2
MM6I]37$57_$63\H59W$8ETD9YUH:KW$9',?QH+3Q'??Q'P?R(!?R(2?R(C?R
*(T?R)$>&(```.S\_
`
end
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>7
<FILENAME>y01848y0184802.gif
<DESCRIPTION>GRAPHIC
<TEXT>
begin 644 y01848y0184802.gif
M1TE&.#EA\P`I`/<``/KZ^OGY^?CX^&)B8O?W]U]?7V1D9!`0$!45%6!@8&9F
M9FEI:104%!,3$V5E96%A86-C8V=G9UU=70L+"Q(2$FQL;`P,#!@8&&AH:%Y>
M7FIJ:AH:&EQ<7!D9&0\/#VUM;186%@X.#FMK:Q$1$0D)"1L;&Q<7%QT='1P<
M'"$A(0T-#6YN;EA86%M;6UI:6G)R<O;V]F]O;R(B(BDI*5E961\?'U965G%Q
M<7!P<!X>'B4E)0@("`H*"O7U]2,C(U=75P<'!R<G)R8F)O/S\W1T=+Z^OG5U
M=2LK*R\O+_3T]/+R\B@H*%-34P8&!G9V=L7%Q=K:VB`@("0D)"PL+#$Q,3`P
M,)65E7AX>'-S<RTM+2XN+C,S,RHJ*CX^/GIZ>DM+2\+"PLK*RLO+RS4U-9V=
MG:2DI'Y^?GU]?8Z.CMG9V=;6UJVMK04%!38V-DQ,3(N+BX"`@%5557EY>7=W
M=[FYN;JZNLC(R/#P\$U-33(R,C0T-(>'A_'Q\=W=W9:6EJ*BHK6UM<;&QM[>
MWK2TM+BXN,/#PZZNKIJ:FNCHZ)*2DJ"@H)B8F#@X.#P\/)"0D$5%15)24D%!
M09.3D^/CXS\_/\3$Q#L[.[R\O+:VMM+2TJ&AH>'AX4A(2'Q\?-O;VX*"@JJJ
MJCT]/9Z>GCHZ.D-#0[>WMX.#@Y>7E\'!P3DY.;V]O>OKZT9&1LG)R5145'M[
M>Y24E']_?\#`P+*RLJBHJ`0$!(2$A+N[NZ.CHZFIJ41$1+^_OU%149^?GZNK
MJTI*2LS,S*:FIH^/CX&!@=34U(B(B-75U>7EY=?7U^3DY$Y.3LW-S:RLK(F)
MB;&QL4]/3]/3T["PL)N;F^WM[=_?W\?'Q^+BXH:&AD='1^;FYHV-C3<W-XJ*
MBIR<G*>GI^[N[IF9F;.SLZ^OK^_O[Z6EI>KJZNSL[%!04(6%A>#@X-C8V-S<
MW$E)24)"0N?GY\_/S]'1T<[.SI&1D=#0T$!`0`,#`XR,C.GIZ0````$!`0("
M`OO[^_S\_/W]_?[^_O___R'Y!```````+`````#S`"D```C_`/\)%.BOWS]^
M_O[Y6T@PX;]^#A\F3`@1XD""%Q_VX[?/X$4!"RTJ%`@1P$!_`0;RR\BRI<N7
M,&/*G$FSILV;.#/NZUB0'X!]/03TV\>/'\2"/442",`O0,%^_4#N8XK4W])^
M!/S][`<`H=%]`'I`W.</H3^R*X^BU9JSK=NW<./*E8FPG"=/4/JD@8*WC]]U
M>/>JV9M&#5XHU-08RY2FCYK'Q):UFAP(C)@G3ZI5"E3I21%93\``LQ,(%9A*
M8`J1?J(J3*4P=E"M@D'5X]S;N'/KAEOT%I$/3F(Y(;+BQ8H8..:LJ!#CAH8%
M'S1$`.ZD4XP/(EX0,<`=`J497):@_VB`I,,2*1UFU#!1`T6)%$&$<*%P1(J/
M)4?DUP@2))0,'Y64U0-#NQ5HX($'0E0'$2)<=\4-"<2B@08XF('%#1=6H$`$
M"XBP`G8OO!`#!@NLD`$&#L3`R11'Z+!$#4><4$()#,C000@^=.`!"E7(X)Z-
M.DPAQ`D(,'`$$BG4(,,M965E&X)01BFE31PY4X$(#V@P``89O!"!`V!RJ(!T
M&%3`H0,50,`!<PJL8$`$6$9`"0HRIM!!!W8&D<,!#>10`@4'A&()`Q2`0`("
M%%P`P@@GU$"!#O)1(08`/9DTY:689DI2/X,L`&8,%6B0)00<0G###0,4H,``
M#T3PP`(0./\P``<.<#A`!AHH4$$7"&RP00HEU-!!`Q>8`$(.)T0!`@A8CM#`
M`1Y$P4`#".A0@P\^3'!`"I)"151$)/6DT),2*1322`3"!%%:Z;X44DKC1C31
M0A-!-1.]":U4$X%&E560N>VZ9)!6%.D+54C@FBN+$0I\L,`"%0P`@08WN#``
M"QB\`($"#[2P0`$1N&!``04L0`.*-M@:2@@4;&#""3I0,*W+,E-P0@K-P&+"
M!>M)T80'",P@A9*(7C#%$]\&?%82`00`0\)0<;00`)2:*U-!'1UU=5)&K0L5
M``>7159(^KI+*47DNE15115I%<#8";,4U;KTCG54W64/M<L<(BS_\,('`VB`
MP0T%[%'!*PZL(((($;19``0/?!##JQ!\D(`".$"`@24(R%B##A/X:4$-#(!@
M@@4H!&&()C-L4,($#6R`P!8=E-"!#C(@(<0689@KDDI=\13W0?4B!';`+)W%
ME5DQ[2-41SX9'S54&]G;[[\P:;412,-?1*!6`-#&CUA(>6MI]N`/1>]#105`
M/4N5P&'$#14XT:$16%10P0<2K(!#!C'8V)8@-@`L+$`!-W"`!@)H!"*X00HR
MN,#-<G"!($!P!CSH50=&40=`M,,#4\C##&0@@Q1P03Y:*`$2M#"%,"`%(1DI
MB`!@8)3D3:0H8/$(]EY2%.W][B5CF0I'_W@RE"*RCVXSJ<@^"%`3J2F/*46$
MGK=D$H"S%;%\.S$(1VQS%C"<`0=.^%L$-,"@%^``.QC`0`%B(((YN$!_#KN"
M`=KT@`H8P`4X>,`OLI`%(:2``4*XP!%0D(43;&`+%%C",W91#1?4(!54Z.,6
MHI`%'\Q`"Y`*3S6JPI)O*8$`]O+>0KX%`*>H;VL@$4KW5"*`L0%@"!PA0/O*
MLI*?<$25JPR74T"2MHQ4!"$!`$G7>E"4@U"JESHI"BB'D@1*95$`QY17/YX`
M!QP0P0B""R,9K$`$+SCA`UBX@@(4@(45I*@"IF!&J/X&@1+MSPTM2E0#=/`R
M&7Q@#;23P0F^4/\&.KC``B!`P0S08(HV7``)03C"$:JP#4:(H6XL\<DJK-`-
MD,2P)_[H`1D2L4RPR(0H`>@%%'(I$:(``!A>^(,FBN$(/S0C$<7@QAN&<8I#
M2`(3=T">W``0AC_\L"5$](<Y`/$);GCA$WZXAC!\(09$_#2BU//'/0QQAN48
MX`5D0`;TTE465'AA?PG`P`IN``%-B"%_@5/`"Q(P1QP,(`%.$`88S"#6",3@
M0]@A10IDT#D*=$!(-.!%.*QPA`T$@0MYT(463L`C.#`#$C\(0@J6D`4]"*$*
M2`B#\%K2@WT(`P]\0,A&!-(OHU#C<#\9VT?YD8P$2$.TG+Q(4[KBCVK_<,(`
M;[""/6PA#5CLP0K:B(`;F+"".H@%F;(E`!E^P`<M`JPE&RG(-/;PC"_$`AI]
MH,,-GM$)*(3R(38LRC'.4(!@).,.8D`#'N`@S!T6A!`5R-(`O$`K"#"#&+#8
MD@0<8``,&&``-$B``YQ0"&2TX%49V!@'L/0%]C#@`#Y8U`R<L0=*V.(+B)+"
M!D9P`!!X0`NB8,(9UD"%%*1.!SE(00I:H;6([D,),3C!(I:X/(0DX1\=R44H
M-."5I\;0*(/8A@0F(8"N[9`D3O+')=Q`B&_<H0=\```!E*"$37`"&[\01Q*R
M0D48"((%D5!%VRH2DWZ\80R/.$51^*$&`S0B_Q9],`O!8M@/&/2@%ZD`10"4
MT)1IG$$"3P-;V79RB0HX@`,%X,XXRV"-0GP"9`GX@0%:4`%*9P`4U'B"'!ZP
M`A8\@%82X$`7/'"`$AP@!`R0P@%T``HL-&`$M3C!!$S0``:0H`,'L(`-2@$)
M'M1@`C5#`0+`H$6=]B$!%V"%*DSRE:ZX;QPUJ`$>JOA==_7@&`M`@A[\D)60
M[$-N6_0$*)30E?81I1Q&F`$E[`&#'")7(!WQA0P848!CK*0V,?$'+DY`!4,\
MQ1_.^((6X'"'C8@VAEDI`CL@(0A>;L0=3Y#EMR\"E5M`X`<1\"\$!O"!,J#"
M&MY80`*V1(,,9*``$O]P0BG2``\1%"`#;$U`!#B0@#9,H`,C@%T(+"`#"S2"
M$B-@@+!`H((._RD$)I@!)W(P`P:HH&470``""L&NN`D@'9`X;`7N$=VA+"4`
M5OB5,D9;-9C\!!ZAX`(5-(`(LK18MD:1)4A@`)6W`>`.IXC$*$0P";!8128"
M$$`"4L$*5ES"6T.Y&BZVX`-:/$4`1;#$&!PPB8V<S9<_.<01F'`,L!BE*#<^
MR).<4H01&2`.&.C;`M8@"2B$01@2B(`-$N`"DD4`#88H`C"ND($6.$`"+2@`
M"Q+`B`/(``@6R'G02Q"""42A=;#;P05(8($='*`)(+A`#O"$`!4@8`06Z$#_
M("P2L*FD@1%!0``'%^*4IOEC'6ZPU@P$T&V20L01<7B!#/+P#DH5,R/]$EW.
M,S=.X0]T,`ICT`6!`$I$T1$R,0\V\`94T`B?,`1GPV4PP0_1H`-:D`BN)`;;
M8`D1L`D%48``N!&P0`6/8`<$PQ1=\Q/@4A"S,"L+@`%&(`$V\`*Y<`6'X`F!
M(`(?X`(+T#^08`"E0`2S``UP$`$1D`$#T`(&P`(%D`H(<`#`M@,HX`$J@"<C
M4`-L<`+3H@)LP`//,FL6@``>0'0DL`,-0`(-4`*%L#8L`0"M0`_7H'T28`[4
M0Q1#<`78\`B*`C#O=A`"``EKD`87L`%[\!0U1&=%_U9WQ\05:C`#6;`$Y#`N
M3.$\,<$/Z!`#WY`!,_`%F7`P9%%F@&`".M`-&R%+=4`*2V`&2<`0U89C3-$+
M>3`&-@`&!'!,M]03@]8/E_`P#\`Q/P`!*T`.1(`#=J`.:!!\O.`"HL(-VJ`!
MEC$,3""%#S``VL@"V["&QV(!%K`!0D`/#&`"%(``#7`"/*`MU3=]$^!]E)`%
M",`#15>%&_`$3]$2_@`#8=`%R^`&#9`"M"!H6J$.V%`&,0`"!S`$9%%V`W$W
M_^`44!`)U,`/I"`%[5!DJN5+XW(P#-@/V>``6<`(9\!$Q#,2G201`3`)-A`-
M`.`-)J`%N=`/3C%Q,>$+(_\0!;2P9M-P`SD0":VP/LA39,;0!9?D!L40".3V
M#V!#-643D?U0!`GP`8F6`51Y!>HD`8M@#$4@!UC0`MJH`>$@`G!@"()@!@8@
M`3`'A0YP`TB0#P>P`8\``7L@"J!@"[]V`%9(`A/``"B``CR``BI`:Q.@#8`@
M"L.@`5,P`4U``70`-^3B#T-@!^U`#*6@!2@`"20(``*0!(Z`!U#P"2$0!9NP
M$@)@0^_2#Z;P"1UQ"`R0`X00722E%4NT1'Y`!2B0`&KPE$!4%!OA#;K07-,P
M`TB0`&=!-3(1E1?@`QXX%6C@`Y&P"[R9/$LT!+/0`&VP!+J@#%A`#%%!3.*R
M*;+_L``<P`(_D`$14`!&$`X;@P&@H`96$`&!90/2@`8#(`&^8`UH\`,2H``N
MH``MX`HVD`<6D`45\`9K0`>7X`GRL(Y\^6`J\&`AH`(-4`.U``(4<`WI$`9T
M(`J+<`9Z<`)/$#7($P"#$`F"H`1SH`52@`Y)L!&(4`-6(`"),`(F(`NE*#<8
MQ0^;P`[B0&[(8`E30`12,8@1>9S@T`94\`SP@#6;&#:(L``Q0'?[@`,IH`/K
M`%N;"`8=@`)$<`K7X`:D4`;N<&0MT14S%`!/\`6C,`-;4`5;H`&;T&YG07'[
M<`LB\'N\D`$VL`!R0`O3`0%>``Q/8`H)H"K!4`$+H`&:_W`,DL`!$I``&X-R
MKF`)%V`!)$`",T`%KI">ZT@!.U`/0',!C'ES'A`"(-``$&`$+J`,,Y!K+%,$
M*[$^&2$`N/`%Z>`/::`+.J`,K<`/!/`*`U`.`#`+Y2@.$'F"4<$/N%`%2H`2
M=Q`#4Z`,=C"++B$4!&`,"*@+I?`VIUEF"V$4N]`(A``V_4`()R0),$A2^U`$
M>"(,(C`&VZ`!#<<4909*590$UA`.9O``0:`'J4`&<_-_"K$/F*``))(`-Q!J
M1M`+7D`##J``N)`)M\`!3'`*PE!R$-`-F<`-KM("&/``EP,!;9!\$P`$0*`"
M'L``&]"&-]($,E`"(S`"/``$2/_@`2W3`!0P3^`W`<`6!=7J=PFC%6C``43&
M#Z40!3EP`_U@#&ZP!D,`<`B0`V406R<11=F0;5<P#+!@"WB``HQ0#$]CI`@A
M"'A@29K0;CLQ$V31$:9P!"_P"7MP`RN@.RZP"MQ39H40!%%0!'>`#GJ`#3?0
M=S;I$E/A/$LD2TD@"-[0'U]0DXTX+JI@.300!_\E`8Y0"E<0!\/X`H4@"(G0
M"8J@`''P`7A@")E0!J$V*P/@`C1``VW`E\`&!"7`!B"`#T!@`HS9`!80E]W7
M!-8'!#:Z5P!U*&Q`:G7P;>?B/?V``Q4P&S0Y`"F0`[N@,64!`&(0!#[@!^]S
M@CNQ#[/_<`1F<`UO8`:QL`=Z@`*_@`PZY3U#,`1OP`E;\`?^QQ'G(S!=PP=5
M(`)6(`G`I0T54`6-$`RT^A+[0`=4(`6`X`\"T`E'X`,W\`W?"D2@Q,`($;4$
MT,#[-P0:&1%D00BMX@"))L*V$`T84'L;XPC(4`2*X`@B\`,L8`"+0`QD,`#^
MB7(/D`$/D`H>X`$60"P-H`)`P`,EH([@%P+CP08,@`!`@"@^<`0DP`.&4FNH
M1@&RD!8NP0\),`?F0#4`4`AC(`0&X`977!#+H`<Y\`92-(<^T0,O\`-]8!!-
M>0@E(`28,%H4YVW^$@V,D`).\`U9\S8"84MJLQ.5D`<C6FS6_\`*4X`#!5>X
M+H$*"&`"P;`1`9`!4;`!AY`$9O%VI,45[I,21D8'4Y`%2D"3._1M=1`K:O*$
M+)`(@P`!!9``-&!&11`&:X`%#J##&3"QS"!\#A`Y-,`"+)`*.[`#%`!^-^(K
M7&L!)W"\R]D`.\``U-P!+M`,,K`!'B!]?*(#'8`*^1(P_,`'CX`#;4<6=^`%
M61`$K)`&!+`4:M`&""`'U,.;5<0/`L`'/G`&0["+8Y,,2\`%9J")<&=*!3$)
MD8`$V%"F(0$5K90,SC`.>'P22*$EXY`1`+`"43`&QA"Y+D$`8)`"&V`(4P$`
MR/`%0M`%:]!*'2%+,=19B(`.%9D5/?\0`)A0!>?0?A=5!+GR``9``TR0`(HP
M"'9D`)W*`3@`#*+@`#1@PS9@"]7`#,',!$8M`0/P`Z/FLT#0`;.&`E:P!GG`
M"1L0`@W@LRB0`A=`+.=@";/P!U)7*!;@??=8L'&#$D<0`<3J@H+P"$L`"M!$
MD]#`*X\@`!P<F<#:`[8@!=U0%E_#%+^@O<T%7>'#HRR@!UHP").P"M.0#$J0
M#=F@#M"0`7.0!)`L>OQ`"%V`!2;YD$4@`VU@"A/]$G0P`TN`!IQ,%M"P(HPP
MD^7&F[1I#GB@":MP%$/@`J&`"?_R.V=1!PL0`1)``ZN"`:W1#`70`C;`7S9P
M"L,`.9[6`F3_D`E%\#^O6WL*P`%;D*DJH++SB`++I0"TP`K3QS+FN`$,H`.'
M(`_L(`EC<`!5&*$(4`)@0!$M`0-K8`%C\`X5G!**\`OIL`\P0"F$<`11H`?+
MT!&0O!%)@`ECT`B2`!93(3880$**L-H$43W^@`BQ4`4I@`3G,`!.(`>F,@"F
M\`%=L`6GP,E#ZP_98`12L`(DCF.8@``@8`DC%1,$D`@YP``NL`EM&P"^4`51
MH`O&M1/W^Q#$-`0?,`5PL`RK@%^C8`5WT!3E0A#\4`<9)P(0P`1$X`>^H`JT
M$`/!;`,2((6TS`'7_0JS<`F`,`><RP(.P`(24`"-8#L',`)L,'T;_X`$*W`+
M+%`"/D`"C=`)&D`)(("JE$!57;#$%Q`"!X!S)2`+:$,NP%`,/W`X.V%*0S"3
M!+!$`2`!J9<!X(`(P],/Q]`)5HD&\?`T!0$#8J`!'$`$+[`+%]5#RV`&9D`$
M9W`E<J`E1'`#X/`&'-`"HD"G&,T/EX`#'``'@<`2Y'!4<H`&0Q`3\2`_Q1`#
MP<`']"(.;^`$S1`+A!!,0_MYR>`'$)``=KX"=O!)/5&X*W$+`^``/V"Y+I``
M:@GP#R`"*8,F&W=R7X`!-,<$_$75/P"R"5`%)%`+M;8!R`=0I$`*IV8!34`*
M=J`*CV`!M8``$]`&RD`L%$!!QJ("&X`*=/\3-S0D3%U1TV`#15#166TC%"PQ
M#EW#%=$5304XBT:&-4^3P;*Y/4Q!;M'523WQXQKA/+Z9;UK!1%GC//[PK&/[
MB"<(2D[B/@A!?^YS%C`TR/\P""-3`!+C>\2<EE8MJ7$0`8">`#"GEAD@A2QP
M<@90[PF0!QX`.WH9`M9':OK0`$``+6V`"8/0!2,`!![0`20`!)P.^47W8%)0
M"6XG,!J!-S_QR6V+>"]A$AU!*>8:+]TK2FZ',$R)10[1MG.&T>I3Y>%",/:'
M%*U?-[+HT0\I+O_"$4?*V`6\$M&@`183`;?2IRZ``30@RT%-,K,""07P#+PP
M`*Y0[PH@`1+P`P__(`%>L`4A0`)LT`3`2R@Y8`(1"@*UP`-+0`O!X`,>,/D,
M,&M!O`,J(".N0P7S@"]&"A#_!`XD6-#@080)%2YDV-#A0X@1^?D;)()&`B81
M'F!@P@%#BS@8(&1(((%7@@@.6D!0\,!%`0,N,G`P,.!'E29++APX88''A"86
M=ASP$"($#T6.2IP@4:)$K29L1B!H8,(##Q!9WNWKYR_B5[!AQ8XE6W:@/W^`
M,`P`R:%"`1<&"DCXT4*!@@$V.!2`.8`#B[\T"N!)L"!!@@*L$)A`0.'`B`,,
M2$QXW&`$A0TB7EA@4&/'!1)`5#0(<2`R@Q,SPO#KU]KL:]BQ9<_^YZ\?_R`#
M&IBTR`#!QHH!!18H</6#A@$%@FL:>)#7P8`!YVA(R%T`"8H-"%#7:S(B:*VB
M;!"42/`%"((.18%<)6$!!0H0%D:<*%2['P#:^?7OYU^;'QT'%FA!@@4*P.&!
M`C(8X`$C8GC`!@46^$&E7VSHB,"96G#A"@58X`0%'G)@`(0.-E!AAP8N\."`
M"TX\00<&0@`A!Q]XB"P%$RR8(`0/+KC@DGXFXJ<_(HLT$B)_^"GB+@P"C"&"
M!>9XP0`1'.#@@0\B,,``"0;00`$#(D@``@-:>,``#`J+Y`(*4D`A"J$L,,H"
M#T8@@80Z&V@`!`140""$"SH8H0$53#B!`0H:`/\$K0`F.O)1)-&"E"P`^DGC
MCU[*D"27/QPIXX]%_-!D$3+^D`:<4*U8I!=R-)'F$%'*4.0/6<D@8P\-;G@!
MAU=>J.`*(XPXPPM@L2"B$S/D>,4)'(Q808X;#)CC"B_DB.&%.3(1*(!^]IGT
M6X5:ZP?<L`+8!P``SMT'+:ZZLLTV=]%ZM[9]^+&W7G[:[:HUK_*UC;6N!')W
M77_M]6?=)/OAUERN'"7W88+FA1BBB0`(`-Y]N6(W2(3E;<U>UN1]]U^.[>W*
M8(Q#'OGDAN%U^6*0)YY87ID?LFT?@N']A[5Z_Q$79(`Q1FNB(!-.$BU^718Y
77H_=M6^?`-+EV><DAZP&^6JL$0H(`#L_
`
end
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>8
<FILENAME>y01848y0184803.gif
<DESCRIPTION>GRAPHIC
<TEXT>
begin 644 y01848y0184803.gif
M1TE&.#EA8``B`/<``/_\]<?'S7Q\>E%14NSJXZNJL4A(2,G)RBDI0M/>SSHZ
M4\_>SXR,C9:6IF1E<GJ&A4I*-%Q=6MO:VN'>TO_^_#DY0&IJ>OKZ^6QM8F]O
MA5-38TU-3][KWG)T@HZ-DX2$>"0D)K>WMKN_QS(R2:ZNJAD9)-O;X&1D4J:F
MI_/Q[%I:4L7$N,3-QE=7;;:UO=+1T$Q,66%A;N7DW^?GYY:6E/?W]VQL<&IJ
M6QD9,]O;V^KJZH:&FEI:0O/S\^_V[TM+/=_?WYR<D\O+S??Z]W-S9/?U\GEZ
M;#\_4GQ\98N,?8>'DR$A,;Z^OS`P0(R,A>_NZKN\KVAH9W5U:T%!3).3A8:&
MAI:5F5%16\_-R;;%MJVMGXB5DG)R?7!Z:%I::(.#=:>FJK_&O<'!PQ45&IV>
MH[&QMCL[28&!BC$S,:*AHG%R==[CWX:)@2DI-WM[AM_>VF5E9M?7V0("`ZJJ
MJF)B6(>'B79V=</#Q)^?GTI*9.WM[=;:UV-C>FAH;Z^OKPL+$65E8%142)>7
MC$1&6?/X\\_/UEQ<8$5%0("!?_/R\._R[T9&19.3EEU=9)F9GV!@9*>GHGY^
M?S`P.L_6SSDY.5Q=35=79,_/S^_O[__]^?_^_O_^^_O\^T!`0-?7UW!P<-O9
MUV!@7W=W?F]O;Y.3DZNVM^?EX.?FY6!G8.7EYL?'QUQ<<,W-S[>UL>/CXR`@
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MP^/CYLG'Q^/EX]'/SO___R'Y!```````+`````!@`"(```C_`/\)'$BPH,&#
M"!,J7,BPH<.'$"-*G`@Q1PZ*&#-2Y.2#T\%+5VYXTDBRI,(U#V`9I`!FR0@_
M)F/*_'<'Q)$#!?5T>#4&S\R?&JV,^//H"4$FG9H<N0.T:<$ALRP1.4`!H8!(
M=D;@J3$PB@HS$>(X'4LA3*5#AV!@04BG0")?AG0(/+"AG@)Z1<9*G*"E!\,9
M1GB0\*-@U`R#``*MHT#"@)5_0XQ@N-?FG=Z(,C0T,K&0`BE+UP2B<*!/4\%3
M49C\D]&'S[\P&@2)VC#O\D-,22I!\JL0E#P/B02"JN`D.,$Y&(3\\]&MPB4W
M1[+4BT'(MD,H@<ZD8`CL1`#3_R@@_Q"@I^"T:-Y$;\B%`=$+.+P,7L#D4>"%
M-R0"F*@O<(BBA)J8(D`!O"T4ASD97"10`A%T`$1!ES0B0"8$F6&#*P75H<&#
M_Z@2`PQ-E`&&!2P4-$,0QW@`A0\TW5#!*QMH,Q`!M"`B`HL&G1+!'TM,TP,F
M3(R$T`>?Z#)0#1YT0D<`!&$BB@+I%-0&&%P1%$,H'.9`R1@;1F++/@1=8@L$
M?_QQA2S_X''((Y)(PLY<@%10@3#M%#B0!W+DN40Z7T2!@8(%Y;#!%M0,I(,#
M%:C`Y$"J+&%)50.%((\+X`TD!98"97+%&,?TH$(#!0J!!!&S&+-$"X>IH\8T
M31A02"*">/]1R0`_]+$*/YH,41\Z/!(!1`9N;&#+'>Y02%`/7P`B`D$A4")/
M.&A"UH\!<G!Q;`M2`#H0%=%<,A`,&[A0SA$N0#H#(%(0HP@J<M@C4#$=(-!)
M'3TT<$4?4+!1P@BAB",$/+C\@PD738ABU"8Q.##)/\8>28(%U>`HT#LE_!"/
M#S/D0\LW<H#PP$`4A#!%*0?AX8!J`AG!!@>35()R)K78D4P-S8PA!T[_Z*!&
M'DX0<``,X^SASQ)RU`'*+7R4P$,/[X``C"D"G=*(%=@<9$TE[Q`@$`6@H#""
M'&-$<\(A&T1@AAPWW#)0%@YL49U!252`1Z4"E3%""`()T<@.F<S_H,$8."P@
MT#,#(/%/$=QD(,$I,/S1"R<+L(%#"8>D44$$>/^S3!=C[)!709M(D<0:J;S@
M3`5-1,-$"!:@L<M46)B!AK?_]("'`>_8R>PK5FQ2$!9+D%#5)9]8X,<H(TSQ
M"E/_8/#)&_\\$84:!<2`PQ_/P!+,#Y:@\0H"362>PQ0XM,&%406U8H@#]PR@
M0`5<:)%`IAS@.$T)=0BDS`Z/D(!)0I<80RY\1Y!-'&$1>*L!)!9A@$X4@`6#
M:(!`ZF`&!EPB!$=80AY&H``Y1$,!;:C""PR`@R:XX7.&P,$JQ"`!2&VM%2`H
MP2LJT(DSK*`\!^F!#7!0!H&`0P"L<"%"_^0P@%081`*DD-$_`$`*1FA-(`K2
MPR]`T(9!D$$)5-B&'M0P@EB4HCHKN((%#C,7;1W+#:\8Q"=0`("%`*$":.``
M1#+QAR,(B2`4("!#?,"".V1C"$U210$E0,:&I.,!M&-((9;@BXA0``0@2*1U
M'$*!MS6$%26@AT2F`8,[3O(G(1@#`R2"B4M4Z9,_@40)G(%*F:3@#E3`1PMZ
M&)%(M"%*K93($/:P#E7,X0Q<4,``KM"+6$"CD',Y@37X8Q`XF"$]N8R(-#BV
M!!CD013,N$,<3AFH,:#B/PCA010P%$V(4``%<&"`?G3`3(0<`!GM),@AR%/.
0>MKSGOC,IS[WN0.0@```.S\_
`
end
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>9
<FILENAME>y01848y0184804.gif
<DESCRIPTION>GRAPHIC
<TEXT>
begin 644 y01848y0184804.gif
M1TE&.#EAPP*%`/<``/GY^?/S\_O[^_W]_>?GY^WM[??W]]O;V_S\_-_?W^'A
MX<_/S^/CX^OKZ^_O[_7U]=75U</#P]?7U\G)R?;V]L?'Q_'Q\=/3T^GIZ<O+
MR]G9V:NKJ^7EY;>WM\W-S;V]O;^_O_#P\-W=W='1T?KZ^KN[NY^?G[.SLZ^O
MK\7%Q;&QL?CX^*>GI]C8V*6EI?[^_L'!P>3DY.KJZJ.CH[FYN9N;F[6UM:VM
MK=[>WJFIJ<S,S,;&QIF9F9>7E]K:VM+2TN+BXJ&AH=34U-S<W(V-C>;FYH>'
MA^SL[).3D^[N[O+R\L[.SLK*RO3T](&!@>#@X-;6UIV=G=#0T'M[>[*RLL#`
MP,+"PI65E<C(R(^/CZBHJ+Z^OK2TM(F)B>CHZ+JZNJZNKJ*BHH.#@XJ*BHN+
MBY&1D;R\O+"PL)J:FH2$A(6%A:RLK+BXN*JJJI"0D)R<G*2DI):6EJ"@H,3$
MQ'EY>;:VMHZ.CG5U=::FIIZ>GF]O;YB8F'Y^?G]_?Y24E'U]?7=W=W-S<WAX
M>'%Q<8B(B(R,C&-C8X:&AFEI:9*2DE=75W)R<GQ\?%U=76=G9V!@8'9V=FUM
M;61D9&YN;F5E97!P<("`@%]?7UI:6F9F9FQL;&MK:X*"@GIZ>F%A85M;6TM+
M2U-34W1T=&AH:%E966IJ:DU-35965DE)26)B8E%144A(2$1$1%Q<7#L[.U55
M55Y>7D9&1E!04#P\/#8V-D='1T-#0T)"0E)24C$Q,4%!03<W-UA86$Q,3"HJ
M*C,S,RPL+"LK*TI*2D]/3____P``````````````````````````````````
M````````````````````````````````````````````````````````````
M````````````````````````````````````````````````````````````
M````````````````````````````````````````````````````````````
M`````````````````````"'Y!```````+`````##`H4```C_`(D)'$BPH,&#
M"!,J7,BPH<.'$"-*G$BQHL6+&#-JW,BQH\>/($.*'$FRI,F)%$ZJ7,FRI<N7
M,&/*G$FSILV;+@'@W,FSI\^?0(,*'4H49P,F!E((*,JTXP4T5)(TG4JUJM6K
M,$-8&"`PA`,$`I-\-?@`P`MB""AP)09`YXNU"`,@>"M`P-RZ7`>L`/L6`=<5
M=@\*D,)"`*"E#PIP15`@R8."+P(D62K00@BP!`><%0@`,UN="1$\6+L"KD#/
MQ)J81D#"``EB+QY0[BO@A>T7`$H3(]$DX8`F2S&O';`6@`70"`R<33[\`6;<
ME`>TICS00@'*!^(45'*$K^4D7`V$_\B;1(:%S5C3JU_/OB@3'@&()9A1`P(Q
M""R0'"#X(,,'$!9@`,($#0QP@'\%.)``,0<44%!2'4#PP`(;G,!!`1%4<,$`
M%Z1P@0$8E.!!`P24`,-^!C%0@Q@G-$(`,1)<L5\#/-RP@&D*L(#""180LX`)
MB0A1T`$$2&"!`R>`D,``$GQ00@,&)&#!$/$))$`'*(!`S`=..B``"B].0(P`
M$H#P`0,$?7`""RT0<P$*-HC)@00B5%!``R2R,$<#Q)2`0@G4$93!&17X&)\'
M:!+@(`,T@)"!0".@H-,$()Q!C`$31$"#?0S,`(,#Q&A@@Q!*##2`!Q7"(-`-
M$CA@@$`*!/]1`PH"#,"%"Q$`4$`'440P``8UJ'!!H.T5:^RQR)XT"`8#10#&
M0#:P09`*$0SD@Q"/79`#9C$P0<P)&A04@0LA#/2!0$/``$0.2>2PA$X2;.`7
M,3[X<%!L&WS`Q@V4G;!@##P,9$!9`!CRH@TL$/,#,4O`49`*.:1`#!!;E,9`
M'2D1<\0)5!0Z$`1@5)F&`68!P,<5#_````0F@%:0""(0@P$5`M7!@`@J+-"'
M#!N$(`$+O1'#`P4VC'#0!@6<M4%*+/"@@`9#`''%BZ>YT8,$Q&RP0`\"N."!
M0&X4\,,,.W1`S!D^N!RJ'#6?*\8AA8BA`#&+I"3'HV=@C18`6!C_04$"=B0K
M^."$%U[1%%1G(,;7Q$20A=X"U<"G0!#PL``Q&9@MT!-6$(,"Y`(%H$(0S!*C
MI7QE&%&!`"8@<;D$64"PE`;A&B3`!8/4<(D6Y1(SP^48]$$#GQ5<`8$">@B4
M0!8"/0!'M03-@,2K"?200@,'2"N0`R:402R6S$[AJ&P]7*`!$<1X4`(Q`U0Y
MD`18@^`Q_`;88`82#@0,`1E8"%1&#RR87$%2P(*Y;6`_(+@`%RJ0@`LDC!AS
M(\`=-E"H#01A#P&HP04$\H$#Z(P%6+,!"NPSD!2<+@4F($8@.#``$TCL#@*Q
M00V($08_4(T!92B4`NZ``E`9[H=`#.+@_^P@E3[1P5+$`,,=SC40%$A,(!<H
M0;DB,$-854L%;2H(`BJ@/<UI@`J)*-0-MN`@"<S`0<1H018A$P`_-,`)7A*(
M"QY%`BB0X0H(:(`00D"!4CP&!HD02!1,4"J"T"`,^P'"&C!@@`.H`#,8R,$,
M2#@0`(P`#<1(`P$:(``#U,`">$@#`*QP`V*L@`8%J1?FUL<PK%6!"G^@@IBD
MP(,B[J$-*D`("9Z`!QK&@!@T$$`48#`$#=0@/BE$`A*"\*P-L($!`XB"MX@1
M!QG\H`=1X,H.=M`[@5!((!W(I0EP0($<S($8;XB#%F`1!&)PP`I3B,\%IL""
MW&2@"SU0FQ#WR?_/?A:E#`(D@"$&TH`K$`0#*(A`!@+``1M(P0$/*($*8&`!
M&=@G`S;P``<&P@`3U6YAQ"``!!H0@0>$TP-1,@&!0DHU:A'$`(\*V$!`0+7[
M((X@3&C##4R`@6BJX0PT<%_C+@""`A!@`R5@@`%`L`$:."``%5!`!'Q(C`;0
M8`.E=$$'BDH,%_@(?18XP>AV4)`$+(@8*4!!!VS`%25PX0!D@)4)OO"B8$Z`
M``Q80X\$8@`8<`$%/II;!@9F!`((H`(GB(`)!%!*8E0`4W.KZ@<B8`.S)0`$
M!QK`!#:PA$*.*0B-ZL"K.%`&$P10('0JPZ/DB"(,&*%V!RBL/V=+V]K_WD0N
M`_$`(`92/(+$!@,60`!C&J`3`!"@"'59`5L*<`3E6JD!7EC+J\:T@A<80#0-
M*`!K&G"$5PE7(%6(V4`Z28QN$B,`U/D`(`2(%AE(R388(``!.!`H`W2R+D4`
MPF,,P(`$D&``!M`+=03``1$\)@0,((!RX\.8Y[8@8P-9@7,-H``"N"S`/@0`
M![SPJ@>\8`4&``(*@A:6)RBW+9?:'F5"0``'`)@S`J"`9Q[`@>[LY@$D",`+
MFN"%$+RFDD4@P&-@4P0CI>D/TR4&$:@F!42@Z3Y&0*-MITSE*IMD"'EPPX+,
M4-J:VL3+#%&""P@!A"`:@*I`^4$8XO`JOKE!_V)%>$,/@("`$+3A#6"VLI[W
MS&>*!,"^`BF`E*WR@!#HL\\N*4"`!3*`!NS5N*`!0&013>E*6_K2F,ZTIC?-
MZ9$(0%7L2T`'4#20`"Q`J*7^0`J2?!7Y<J8$&RQ(`"9=$`Z4X*R=SK6N=]U/
M#U0Q!5W8P:#9XH(U$H0/']``L:I"!`<U(`MU$"]!`."$0R\@$2E`,Z^WS>UN
M\X0!3.A`!`+@@`E4@`/&Y<P%T/R`'ER.&&.@3@-RH(+]9""N!2&"F!B=`1<$
M8<A2P,-J!<*!@:>I7+<3X>0N8((/+,4"<*@!KN.R@`B4CJW$8$"/]M,@<:40
M`'@`J4`4:X+';$!S`_\A0`TV.A`5F"#6#Q`KGSH%0H(0P`4;8+2V3O"8!*``
M#E&HJ0<5$H`#`*`!H#I``R20H'`UH.A_%J^Q.6`!&.C``@M`Y7DK8(;X"(@&
M%>#3`CY`-05(P&@*0,%C"5*`"GR`3WU-+*V]3?>ZP\0",7""`@#@`14P0`D%
M>-9Y;U#F@7"@!B_Z`2!XD$MBC"`/+7"0`2X!X?,B0@7Z(4819C`!/X3K`!VH
M@B,($H?&$^0`CWC5!8(@@1-8@D%[6``1^&0&&LBA"X<F"`2TH(#>_(`21W!G
M!B8@)C#L>R!3V$\,>I`'%Z#Q#1]8P&MV8`2U98`(<E!!?'2@M2O$9PLPB+C_
M8[-P`?8NX`>+V(\4NH`%&ZS/`1+(P"E^"3:O)J0`/,`!"'HI"`:8@`D)\`?$
MT#(F\`,/$`D40`$&-1![T`E4P`==L`&5L!]JD@-FTP`E(`>;X`,%8`(+D#P#
M"`A?8#(C0`/!-Q!O$`0_P"PPT`9LH'=V%X,RV!)I0#EXP```0`$R=1!0T`.]
M$0&"0`!?$`0#L`!:`&&&0&L8@`L34`"/,&ER,$TR0P<"00(TT`@/-!!*T`.T
M$#.,\$1&`%(!$'0#<09J`&$4<`%%`!<Z$`9%`!B$L`#O-CHR@!"((!!"@`@>
ML`-.(!![H`!K`05EL%<"H05)>`-L$SIPX#(TD$(5_X![!@$`S=8XN80!AS`0
M"P!#8T(#DE!%G-$""N`96;`%47`+ED@,,$`ML5`$VI$#5%`"PM`!)@`%!/$&
MSP)``YA+`H`!02!3`>`$9C,`2I``KR`0.;`')*,)<R`":I,#3E`[+.`#(O`'
M3S"#UGB-(B$&`N$!A5`!`6`!B7@0"T`&O3$!7*`P/1`E=B`'A1<)[Q9H@B`0
M87".*W`"93!D&*`%'C,!1K`&,U`0,+`%DM`CG;`$`C$%U1("-X!$`Y`!E@`Z
M!0`'5N`R'J`&'J`$$C`%)X`^Q$`%/>!9F1$(`G$`<A`?E?`:;0`'YT@,0M`'
MI2,06Y!"!:"-[B0'H.8F/?^P'U"0"&!2$"APDFA5!D4@!:EP&BY`,\3`!%&P
M!FY`$-QC!BX#`E<P`X<0!%KB`%V`<W[@50F`!C<0`8LP"4,&-K18!JIB`EI"
M!51P"&^P&U,I$#B`!U1`"Z_!`D@Y!%K`![0X$`[``D2P,!&`!VL`!]J&C89Y
MF!1A!".I!1J@!`;@!S_``-QC+P,Q!#S@0U,P`5K`2IC3`^PC"O0W$'$``E8P
M!G<R"&Y@!O9R`%UP!BD@`R$P"1_``VI0!`+Q`A^0!AE@"BFP`@>0!4MP`XHI
M`YE@/0[BC!$P`>9E$!`@)@/0`3$S:AJ0`A!P+EP`9GH`%@@`!C80`4TY$&.P
M()7_4WD,0`15P`-DY0.I$`%,P"Q8,`E?<`$9`P285!`_@#X`H%A44)\*``<.
ML@"8\`%(<`<GF!",4$J:0'\U$`0(``E2(!!CH#)1T$O$H`*O4F\#*"8;D'-C
M@`)JP`,(8`99@`<T(`,9H`8T4`LODB1HT0$38#W$4`4.`@(P(`<Y=P,WD`$9
M,&R(V:,^NA`D%``1``*<E`(=<`$6$`'LU0!D4#M+P`(P0!T0L`89%PD&$0`V
MD`,.X@`E\`$9Q2`E<`(E0``*4`(;8`2`X`6,!GHH@`HG0#WN%Q\$H`(@4`+[
MD0(10"VH)FL.(@`$\"J"IG$,<A]S9SD$!P<J,&A&L$$>_Y"%C+8`0=`!\F2F
M-+`@;V(&"T5P:L"<'"D0*;!:<X"4U;D!?:`'3Y80(\`G&3!D9D4,(N!#%X`U
M&%`ZLA-2\=%QKG8`)S`!"P``%P`#=:H`!D`#,!!5[C0Y"S!'KQ)Y[@0"(!`?
M;,`"+"`&T/.CUGJM%S$`-?".FG$:+1`'E],!*&<1.V!_!;$([/42!,`'`X$:
M(=`!4_`:-<`X!6$:"B%I9+`%;/<#AH`#;$$`$7`'57(%I^JIGG@1;V$2J'$0
M+B`"`L`"U8JM$CNQ#M$`]600&'`"<Q,`)?"2%E$`!3L0RDD3E7H0*5`!CU$`
MID<1">`OIK$`)3!=7'I\Q%"82__7'D(@K2`PEA3;LSYK$)5W$,F!'LE"7@KQ
M774W`!80M#_;M$[[M%`;M5([M51;M59[M5B;M5J[M5S;M5[[M6`;MF([MF1;
MMF9[MFB;MC#!M&K;MF[[MG`;MW([MW1;MW9[MWB;MWJ[MWS;MW[[MX9#`I,V
M`$)65D8S7@Q`)Q)`7P4A!3Q;LT(@`05"$!9P`1.PIXQ6N`3QC09A=LP(N*`;
MNA8Q`H;0.T^`"(#5KE>P"Y1K`S,0!810"1-W`*L@A8(D"4@P")3)%CS0!6.@
M'0>A!$BPERUG!K(V!5'@!X3`:J+;O,Z+$#1@"Q[3`<&@!001@'=`5O6*`BED
M*GY@!#7_\&-RE$)1L(`P(E-L2PQ*T`6'.Q`YH*_\`;QD,''/6[_U6P5TX)F^
M,P4Y0!`5@`00X`CVF@"!(+[$\`"DL#RTU@,]\`!BD',"T0"'T*L)X0!D0$D"
MP0*<N3V*20P]0+_V&\*AVP%OT`@QH`%@8`)A0!!7$`0ML`D%RA:<0+]8(`H7
ML`GCJ@:Q@`H72U!BX`D83!!*0`2Q-A`N4`<%\0"#D`.'D`8+*\)0[+=,8`(=
M8`0;@$(07+.#D`5EL`@B)P`S$`3$4@:.P`-3T`4$D04SL`'I^"`L<(<'8<%!
M7`,V4!`.``@9X`&Y%\5\G+=2$`84H`IT<`!HD(4?@`8.X``9_P"_Q+`%HT"(
M`]$*+:`$!$`&8^D",\`!4P`Y>$4".E`)".$`?$"SQ(`'XTH,%+`'?;S*?TL`
M^^$!CW(!3S8`$7!6*]`Y;*%8+F`"&W!60CH0!X!K$+`?#'"3`7`"/8`T""$`
MR;H!IP,C-[`!*-`[!O".K'S-V%P1"9O-W-S-WOS-X!S.XCS.0=&M!H$`>[P1
MVWRO!V'.IV$0`[!L$I&^#U$KH4'.^&Q;@A8`2%<"+%<0(?"=!S$BQ&`!=6P0
MP\*E/#H0&7!&!Q$`H(&ATW8`$V#/`'!7=FPA!J'(&/`!$L+/Z3H0)N`@$%T0
M%R!>`Y``/'HEITP0-_``2.*Q!O$!//^*`0'@%4?"`-:<SSPM%`5@=#1&!R*'
M%@>``SBP""PV`1T`&@$P`7F`)D4P"2$`!6IS"!4`!6)0AP=1`+5`!Z%)$!WP
M1&EPRG=P`VC`7Y[7A.V*`!!P"4*0@PL06=4S!'JP"%[0!"S`H`51`#&@"`M`
M`#SPU3(`"-+"FJ>@,K7F"(BWU9Z0!`E`!T-P$!_0;%/`HTT```9@`"O@V(K0
MTYXM%$?@1\0P!)6PNXZW!@6`"3(P!350`1#P8Q=0"'10`TP``9+@!3AH)0_@
M`2)@!3O``C2P`SSK`'U0!0)P!BZ0KD(066K0`49+#+)0`AZ(`8,@`B6`9B2@
M"'#PIQ<`'LK_8P<GX`&!X`-X[0=)7`04T*]/D`$>&P2A``$B@`>/8,`C>0=+
M<`0U,`.HQ@>:!`25P`1[,*Y`$`CG`@1T@&HAD`1-H`0/8`6A_=D0[A,X,`5X
MJ`>%QQD-$`.2H`&,0`1`X#Z.A`8Y4`%"(`IL$`0H$F)\L`80``!QD,4#006,
M\P.G(`AQ$&E!``<!$`"9H`);\$3$0`F'S`-0P`<Q<`>#=@"YL`$!(`*D0&I/
MD,PMD`DC(`!MP#R5!`40T`*$4`(54`):)Q"@,`A2H0/Q6'D!P`,ID`!2,`6;
M\`@BMP"SP`4S(`**4`-.`#H?$`7.M0CWR'808`$$H`-IU`@1?N@X_X$%AW`$
M`E`"=^`%=8`9(:``51`*/L"];'`!F#$$#3`&-7``!M`$BK`$0O4&;/``#\`)
M46`!_CJ2Q!`#"A``6)``*O#5/$"EQ&`$I_P((+`':O`#IFD*N`8`*@`)+@``
M`Q`*H:D!=_`$@O`(6K`$9Q`%@1(#&T``&L`!)]"_`[$#7!`).%``:^`)36`'
M[<L$"D`!%D`"#X`!H\9H$P`(-2`+/Z`(8U`0%F"0$V`(`;#:&`3,78`#```*
M%"`#F(#H"$\3&0`N!B`!!X`!IQ!IN),%--4'&EDE0-`#6)@`\D4*&CT0?<`C
M#=`%+*#3E033'-!B3P`?!%$#\)L%&TP,G__0`3,@!@N0!C)@,`.A`4#P!QL`
M``*`"J2F`%G``70P#`JP`V90`X.F`6)``$'``#?PCRDW3U)"!90PJTGV`"Y`
MI!S```([7@%`!BA@!A.@!S40**XB`)$@4QS0Z@(A`CW@(*H04H:>\'CO$J%.
M`DEPT3?@`*.0<@&`*X\0`T:@`U+VTR]'`9]``I@`9F3``\SH!-9K$'*N`DVP
MG,0PE0)_!3$_`R:``F70`D;0`J4@TVF@'PH`"EHM'T1P!HO0""/P!2:`:CZ@
M!@0@"`JP!NU$$!(@!LSR`9EP$$;`1,G>^@(1!RET"#!@0<[5/+*"RH?PSR/9
M!5+``:Q`#`:?]]S_OQ(A@`$/(`)-3@`TT,$#L0$JD'QB$,2;7RW!U`AJ2A"7
M``F1C00P'L&!P`(.H`-C`!`CB`T<V(/.`6)92A`<B('%@2P0U)008X`AL2D=
M!BI".%!!%@X$IO2HXH2,!H8)9B0P%*'&"0$,+P`B0.R#'F(7'#"<$F&@`5,U
M&?+8`&2&``F7<@`@2.-2CP@3Q/Q1PI#`B08.4"!M=-'K5[!AQ8XE6];L6;1I
MU:YEV];M6[AQY<ZE6]?N7;QG$_1Q)9`ACCU+0D1Q$N`B'H$47+#B</&+AA?$
MD(#Q6@.8I!D5C/2YV,$GL40+&>[@((``!20Q9'@U\@%`!%\X"#XI4Q.1_XH&
M4+HL81@`1J(),EQ0NL#P1Y<D#BZX*'#&`T-!6DXG:%7@XN01%(@9J.$$0=-!
M6B`H`%&I,4$$#P8,M"!I2E[X\>7/IU_?_GW\^?7OGTO`,$,'.&"JH9@8LJ!`
M`/X#BP#K+BI`0090`@L#BQ@:<*`&UO,J@9T:8(`A`0+0,*P0""B0&/]Z2^#$
MKQ1@J$&&#C!@Q+$&F%$LH?C3<4<>>_3Q1R"#%')((HLT\D@DDU1R22:;=/))
M**.4<DHJJ[3R2BRSU')++KOT\DLPPQ1S3#++-/-,--WZ3X#U%"1FP`N]8G,`
M&HFA<X`3XV0(S][:"K'.[2HDB$5BV-R3T(OH3/]T`#<5K7'$`/1,<U)**[74
M20.T2&,,"(C1`!`]M!C(A3N<T&@*1#1Q8@%B7"B.F!Q&F40@"'88R(=)`+&C
M`6+`0.2.-%QD"(M/_E@(`!X&FH#5`\80Q`7M)M"!H`4^BP$2)[IPDY@@@OB.
MF!#08,2$$(@IP`A"M&`*@#A&4<.'@2#HE!B-B!&"A8$B0`B.2:9PHHJ!=@B"
MVBFT^\`G%31))1*`=;A#$,HNE7ABBBO>[PJ?!+`(!#4H*'`&"0#`)*8$>B"(
MA^($Z&&"&S-082`):C"@0"(^(&:$+#!@*`4R9(B"@0#N&`B&#(CQ(`<&C$B`
MF`BH(*@#C0IP0E)B',C_XJ2!5K5Q``OH@)&8/R2HNH>:)IB@T"@&\B"0'APH
M@=6!#&$(#4>$RJ`/0!S(`=^L&XP"A4@M%GQPP@MOZY%O!TKAE4"`&(B,.S21
M8[T$-B"(B!:(>6`02L30>0&;B9&`DBRL^&X,V2@P(7.",G`DBQH>((&3@6SP
MZ0<]Q.ABIRHL'^@$RY^H`RP;6&#AC($DT<XC(B[Z1,,3Q!Y!H`'<&$B'",3(
M(0>_*%B%H',72):8!390X0LV:""(DR;B=6*,Y0V7?W[Z";]"!P!F9GH,"]HG
MIHT,W$%"$#!904!`C!<$P2_$J,`,8-8'"C3A.X(`P0-@T(,D,.0+EHC!3PPA
M_P,!S.!L"VA#`PA1M`^LH0E,H0$;S/6'!AA`4,1H@!C$8`1%:.<0,*#``Q`0
M`CH\P0`/&`@C%D`"!VR@)AF(@@"\,#"C>:`!:(#$V;;#"PWE@`^%F$2G*G`%
M`1A!$"\;B!Z$XH`'@,`2]6-C&]V(IA`@P00?6&(@UE"!@="``0H`(XKJ18P-
MB.!-("/(`6`P$`9T(0=?*)<+RH`"'L"-(!)``4,ZT(49N,`P&BC##4S0F`60
M(0?6F<!G/L`"%#R'("+8@$5<T*D+]*`&)3#,!US@`EL18P)(N,$,0N>`*]P`
M"0<4G=@80(2E#80.,3'`'TA@M`,>X&4*\`0QB1&[@?]TP`11"-T;O?E-<(93
MG.,D9SG->4YTIE.=ZV1G.]WY3GC&4Y[SI&<][7E/?.93G_OD9S_]^4^`!E2@
M`R5H00UZ4(3.[P&2'$`"DBD7"_"JD!<*0`8JH`"J)52C&XUG`KR`*+14`!2K
M(08#*`%%N8R`-P011.)T$(DS$"$,'*5I3=U9`#,LP`)N88(BZF4#1=Q@(`2(
M`%,@H(,JU&2A.R5&"Q8@2&(DH`3"4MP)&*((!64`"5S[Q$5<Q($(B&VH'HA`
M!1Q``"):X$,,@($05D`0`UC4`@]@@``<H$J$#(`!$Y!`3`10@9@,0`,P"!DQ
M#K"`CF``!'@T;`8D-)``+&#_`@D8P!,8!3J$!$!8&N@(013P5*;@(`(0.-$#
M8A"3`LSK`D,82`4\`(*E.<`&[*E`!@A@([+FB"$-J(!%7D,,M0+((@>PC@("
M(`(03"`#`BB"!S0@``#`0)5>X)4%=BH`#^R$`QXX008>X`7#%"`%%?A/"684
M0V($P&DHVE9.Q`H!$'B7?!AR``,L(@$0N,@!$7`NG0XP!\?5U0`[(4@`;F"1
M`(B550ZH`&+KI`&).D"R+B)J!G:"@0RD@%<<8F].=N(`$(,@OD1404>(J\N&
M6)0`$S`,!DJ[@/'64KDS2T`*OF"=!HBM`+>M5@68.H`#T`"VQ)A778&;`YB=
M8`0>_Q@143_0$0]4`(\04.Y./["`>4$`)@.(0`1`(,@(C$"0#(@Q0R#02F(H
M(`(GT&T"3$#@ABS6(CXY0`D$<``*+\L#,:E7A9E*3P-LH`S)!,`$?/!6@C0`
MI&$)I1H&D@<DS)08*D"$;&3``3NX*`%Z2,%`9D``&P`@!E<0@6Z74#2"-$)!
M$5##"T*0B1>)2@P'>.AQ7;`$`^Q`D")82`E2X&*"G``&/G"`%VQ@@0M<`B%O
M((8/4*``(+1/`IQ`B0#"UH,#?,`$!'C##XB1@0_4P=MON,`1&-("$RC``2]H
MPPL.P(,JN"`$.$C#0+30:8),H`,*6(/E2D#'$27`#349P_],`]`#%R!2!#,0
M2`<>@9`GL,`#9FA""JR`@Z^U;A."5(`>%N"#V1*D!((4!+,[4(`&S*`*'!B`
M%4IPA`$@H'2400$+*.`#>%G`#D53@A#*P`$2;`$'%``#$#*0<&*$@@$/.,&'
M5/`'P]"`M1=)1`=.EX`*+,0$"#EP"79"B`00@`1XF$`1SE`$):@`!C8(P1(8
M(`)5#N0+:A"(`KJ`D.9I@`4$^`!4"?*'E5(!`C$HUP84P`$#4(`,"=`!&R@@
M=6+L8%I9@`$"H``%`R0`!4`'@!.0```$P*$0DJG=!3@0@!^4F`DCVL($@,``
MIDPA!C/P`0?@``0(($%TE6P!:?'_$`$6P`N!!:""68EAO<BOAP&B0$@#<B"%
M(D0&7!M8`@Z<,)`S,*`&&.C`!#BP`@"D(0;U[M7/7Z``+FQ@IT;`@`-(T($%
M"(@A5,C"$X@1AR*(P$U6"!M#UM`!([N^"H@$(*"!$J"`#1@"#)"!]4`^$=@"
M!8B?>3H"2.B%$_B6)F"1#K"$RCL+*R`"/3@`$5B#'!`J`!"#&9`"#&&L!8@"
M,1B(3$NX`N`#W2*&%!`J@M"#<AF(#(@$'K`$]?$LRRF$#R`B@G``&C"W!2@!
M+X@`C6`!&#@"Z2,&&J""#`$"%&@"#["",C``(R`&.+".%WB!`:`!&Y@!$C``
M,GB`')B#_RB`*E$8@`Q@`S``&#OX/IG@`0)@BC8P`!]@`2F(@B)@@"O`,SNH
MI(%H@B#H"#5H`F'[,]&Q!#SK@#@@!AS8@#,H$`70/1+8`!#(@Q<8@AI8`A0H
M@#F@`@G4(!4X&QU0`1;0@9#['91P@B>[@9J@`2AHK0ZHBH00@639`15@@@LH
M#AK``QMX*P2H1*;YK%Q:+&(P`B1(`@`T@"Z``H1@@5<A"`Z8`158&CX8B`U@
M@`)P@QB8*3-@"D+0``1(@O62``E01"ZX@0`X%Z0;B`%0`PU0@1?@@#:P`PMH
M'I`C!B!@K('`@3>PG`.PIO(A""Y@E4[T@1O(16`DAAOH@!UH`?_6(28?D(`V
MH*P(*(0?^$(%L`*&\(,NH*IG'`A#$00%N($$B(*5@@,/H*2F^@$!:(,*.`'9
M(`@F4"4G4``"4")B,(,G8+9)8QV8F0&FJ$-BB((#V`,@"`,4P(#OT`2.!"XM
MN`%\^P`KTH,GJ(H(T`(-&!$2^((38)4?2,=G&@@$$`/E,HX>@*J\8X$.H($#
MX("0JY#W0!$X$($9>J=O00`J4(,:9`@W<`(52$6QN``3F``C0($,8`$DFP`Z
MR`*^@0&)J@$3V`2F<`*%4)L9F!?%"<*!4(55\SB6BY&$2SG2!*YPU*4;&($9
MP!<3V("QA"LS]!#URX`2B(HOU*2J<0#_`S`!,O`<`_"$#XB>&3B/98J`-"B@
M+@`!2(0`(\@`P\@!`=``)(BD`>"`"C`!$+@!WZF:&1`633H!$W@HPYJ!$C@!
MZB2&$Y@"/Q`;IK,.#LB"#J`#`Q"!+.B!"L"3$U"!PE3##0@$7>J`$D`EAL!&
MC"@`%Y@!7@&!0R*&+<B!\W"$0'`1+"#$"8```.@!/[B"F@@`I(.M"V"L$M`(
M)X@`%S"\`S`"%["9#1#-;"J#/NBTZ[,)A*B!&G`1%?@0$3B!"?`"1)0`ZZR!
M*R`F(OB:`IB"(#""!DB`+X@RW=,`JPI*AG"!*'`$`+B`6%0`41D(%?")%<`#
M#>@`A``=0"(`_R3HT($@26(`@2OH`18P`#:0@"B@`\,BHX%8`!.XB#Z(B06H
MB2E@`:6<`7R+@@RX`'PY+`&``\AT$QAXE2F`@`4(`@?HO`X0`UY!4X98@!I8
M#Q=@%22H`)M1@1-(`*9`A-@D'Q-@@1H8"&?$B`1@*E#5F8$X@"#8@`(Z`"2@
MJA=%@;1A"`:PQ<[[-E]S2PSH@GRQB!QE@`U0M'BR$8E22;&``$\]BPE(.#HX
M!`RP@1,8`&8EAC/8+SDXO3HC!@S0/0BE`@%H@@/P`'SC02*(@!TH`F*8!#;8
M@13P@A$P`4`A`,KX@0,83W")@'+1@+-Y@D/:@`D`MH$0`0TP`PG@`/\N"`!3
M10`[&(/(DP,-V($#@$@!T,H'B-6!*`$SX``KT`@-8`(X<!$TP(`D.)$A(,TV
M$(`G,`,A.($5X``.V`,6&($_LD$:4(`,F*DJ\#N/B``PR(&#`PT2.``J6($W
MV`$"L``12`$#D``<2(`.P($O6($C2(`YP`('`($,DE45W`(IJ!9BX`&4&DI!
MTKT+0(2:2`%5VL(CT!@TN`"?F``!>#4<``(S>(`Y$`@#0+H)(+P-V$@:X)4L
MF+0Q*(`;4$$TH-"RJY`FH`(<(($]((9"\-<2>"8L&-</*)<+\(!*<D^IQ8`'
MZ(`,V`)7^IH6$`*;\`$,J"07X`P<.(,GV(+_''&`@<$`40&#)5"`U7"!$<"!
M!^".(=@!$#"`%MB!)["!XAB>$'`"^V,@3R.!)*B"$&""&%``27A3#WB"G1*!
M+YA"8I@#&EB`''`1+3``&Q"!$.`>)N`"8H@!%)!2?(6![66($7B5B%D`!_B!
MS!DL8OB"J1N(H*L##Y"#@>@F*^`"$:@*/S"`,`@``"0&+O@0*AL(,1@"($``
M"##5M-6EI5D#"V@!#\"#G805BY""#KH5+*@#G8E5$;#.+#B;%."")1@>8K`#
MG0J!/("`%':G=51,LT```D@<L`@!A-``L4D`%X,J#(BL']`!`B```NN4,3,`
M`)"RBW"(#U"!7(P`_QNP`;-J@`5`E`*P#J%53P#80W,IE^!*``EP*X)@@`J`
M`0,(@)H($'/Q"2"C`1]S@*7Q$*2(D0R`*I0K`!>!@`OPRP++$993JSNS`!G"
M@%K]$(80@3`SC`:H5LABD`]AE;.A*P$H@083QYT(@`"@*P,@@$">@#TK`"3H
M+`XS+`8A!@[(QI+:J7D!9!K"U2<8`0VPB$YA%5LFL@((+D'.U8$`+Q1)@0A@
MJLQ25:`A,A2920(#`/OR9@@88".<9AH:B!/]B1.M"0%@``N(`2(Z@#CAY.`4
M@,8HM/3*`!C0K7GTB.V0@`@PC`>X`+$R``\0`EXT6ER5*,3#$("FH0=0@O\5
M&`!5`H`$N`##^),](8`1H.<T2Z^="@`(4-6!4`[*V@Y$>0"):I`'F$>FT)CT
MTI,[.X#_@#,`T`#82Z_TDJ'U2)`W^0])MHY:AC-B6(&82!``.`!_5DE$>Q,.
MB8F-1K#_(``)D*@C.`)2-A%YDNFU(("'MJGY*(#3%6NS/B@*4`+V/6NV;FO"
M:8`,R(`%P+H1R(`=D``+R"CX"(`+,.7Q:(&_=&O!'NPV4@`FB`K)L@(8D+(?
M0$GZ^((T0+4WX:\%,$+"OFS,+IP7$`'%%CXGU@&+XV/[X($T0($!(0$F:#W+
M/HL"H`%ORVS8CFTM$8`AF``0P-6!`"L/N`!(G`__`C"^@7B`#`"!OE*+$G"%
M36@OS1F(F24&$D``"@B!(U""]&B`)/@.$CB"$/@.`V@`$:GFF'B`(W"`(T``
M$I"!O1T`!VB`M1P4"RB`MQJ`(OB.=9Q9!!AO]B:!`'@!$GBF%2@`!V"3)$B"
M9Q(`&2@7KS;"<OGOWI9M![\G`[@`$+`"7F2/'5`N7BR`!"@""SB""]@!OT``
M'(B!9:F`X'@`RZ8`"!`!(1"4$)``AS)"#_`!5',`*3B`*E"I)_`!$AB"(5``
MW.YQ'(``2!0!0S!9KZ@70M`!BRZ"&*B"(UZ!$JB"!5B!`$B!'=B!<OF""#B#
M\^B$`#,#%&@!$@`!+!@!_Y;F`AT``=UB@`^``2LPC3M@+7:$`2E8`1VX`B%(
M+3>P``5PD1V`@05H@B3`9L"=@P]@`G%F+"0CAC4@!BGP1$EZ<$JGIP>(L@F`
M1`?8`2Q@`O^Q:R%0@"5;`K%Z`BR8@Q88`B'(``\88(:0@,4.9[-I`0?0$#-7
MI00`@2JH@B70@0X5@!C0`29X*`NP\R%@D0'P@@J_"`<BAI-B@/KM<1XP@!=P
M@1]8@1?HG0>P@&>:W!-0P1B@`Q44``C0QU81`0%X@02X`E%#/IA9@B)0@20X
M@1RHQ);4@!DX@A5(!#P1`34P-'BY@1;OSO,-@I>T:00(2&)H'F+@V"V(@`)@
M^/]*G_AX"H`1^`&3)@@,J"TI^.G4_8$12`$.&`%SBP$S2`$(,``$&``E.`,K
MF/0"B(`O$`H9B(`/B)\86``N(+00D`(IB``O:`*+"($JV($2'@@H8`((4.ZP
MN%QB6)4;8(%..0"DFP&7'(`H$)L&("(7R(,>*``!"(03&`280<17Q8(`8(!A
MY0$%T8`2C(`DL(,-``2Z(@,R6(#U8'@KW8`-$)L-:#J!7`,QP'L"4($<,(#<
M*R5*&(CFN2!!+R='H7C)]XHC&*_BW@X&P(((2('_"``/T`$8V!8J*RJ"(`$I
MFW2$'H$2:`"/7@#<-A?7VL%<C0`IL.P'4/V4%B_KG!#_4R8(H^0#`&`!0,C%
MB!^5UZ:"@4D!E(B#"]B``M"`/3#(*;8J8MBV`5!WH:(`,1B1Z16BEO2`/)``
M!<B!$U`EAA<"IQT$VXW(W(8!%)A7/;J7%Q``2!@(CIT`&L#7F9Y\_@<(8@('
M$BQH\"#"A`H7,FSH\"'"(1$^3#APX(<$"$M2>$$@\($'+`P,%BA)L,`$'3@*
M3EB2X0*(%$,,$,3184<#@E6JB%@Q4,"2"1=>!&B!903"`!XR!#!(0R`88@IZ
M8"`FXX/`$C>8&*"``DP0",0V/(#1HL+(`BJ(,:@@<$>8'!@"N.F`A`+!(B($
M$EA`C`"$&!\4=&@:E5B,"<0Z_P@AEN(##`<$"!2(4.##!AXA%$00^$9@&&(0
M_`HT<@`BZM2J5[-N[?HU[-BR9].N;?LV[MRYL:28`$-(!0U,0.`(X)'8"P8Z
M%HP\B."!!1D+=*3`(L-@B92C"Q`<8&5!A!`#$5@905H@@@\?I#1A\`$"WH,!
M#EQH6O!!00$#B`$`(%``3?\5$"``)`@`@'X"-36```(!P)V"$':W'S$DX+<0
M``ON9T``"19$@'T#0>A?A@,1H!N**:JX(HLMNO@BC#'*^%H5WR7`@0,.8!#@
M0`,D@(4'(0X$@`$:')#!`@?X,,$$$@XT`@@59)`300:`H-Y)((!P&D$'1'`!
M!AEX(/]60@C.>"::::JY)IMMNODFG#("$$$5(_B7T`H0&'GG0`8(P00,,A3@
M7V*=$92<%15$`,$%'RX`0@8$Q:##8`45L`46+<"@0YR=>OHIJ*&*.BJII1J$
M@0=,^+`02#I`<:%``PPQ0@1>_/1#!5`41,$(.RP`)!,D$(3!`A.L-!`$$S`!
MA$$1S+&$#DV8.BVUU5I[+;;9=NH%#!^TL)`#6$A1!(4?20%#!CX)U(!&7`[T
MXP@.B&!&"D(.4<4<11"TPPX1'$=0HCM`P*>V!1M\,,()*YSM`4">J%`#%:20
M0$$6[*##!10*P,`$$C1'C`$CF`&#?Q94`(,'!,(T08@">!#_P0($"P1!!0D$
MH,`#(A#0``<%-3`"CPL+/33111M]=$,_),JL0D5$2>5`(52PA!`K(```$,%5
M,`1W`$@P];$.P%#%#_$%4`$66_!HP0@IF/&$!O$AH`"M1PR`!04MX"!!#`11
M<`(9.OR+-.&%&WXXXG$.X,$.2U2ED%`>0"U0GG,L4*<'+1``117&$L-!!CH,
M;.)R%!.C!.,9-#B0#EAD`,(6(7B@P@0_5-$"30>0,,0!(/J-`AF*)3X\\<4;
M?SQL`"B0P`&P(J1!`D`X3\P`#=P(9@+^_2Q"4QPDH(!X`]U,@`("&<```1R4
M2TP`#5R0``$&'*`!]"$6(,`#!P0@_[,#(PB)O,(,L#H`$K"`!CP@`JGEH00R
ML($.1!&#!B(L!_&'8`-8WP,SJ,$-<A!Y"$@6,4*P`P(4H0)?&)@.3D0`3K4`
M`O`A`!>6L(0`7.X`@QM/`.+3P1WRL(<^%-41/*"#`4A@`@^`0!'\(X(+M``#
M$A#"`S)``@A@0`CD&@`&1E"`$:@K/PT(WP_#*,8QDG%%!2!`!##`&0!8+@8'
M^,`1$H"#$6C@*A$00@-`T#8E#&$)S7N!B.+S@@$BY`'!HAP$;"4;!BBA3T\@
M2`,\,`(?3*^,EAP>`@P`R)\H!`''&<`F#_("#%XR6U"HC`@@<``+Z(IZ3+!`
M`AAP``<<P?\!*Q`"!PZ@+B8(0`D2^@(JB/"0"YBB.1H`Q15F4P,)#.0`3B"(
M"@`Q`Q,(KY36-)R5-K"7-W8`*0@I0`=NT```+*`#8@E`!%+0S`ZXZV`1%.,"
M'/`!#8R``!?(P`$X`(`)-""-"P@`](J@`1&4`'T``($!)."`@:#@%V1X"!,<
M$06!T"`0-Q#("#JPGQC$X`?720(-(#2$!%0E`$.``L%4\"V!:&`4T,2*`EQ`
MD!,!H`47<)(/.C!!@4!A=7U+CW\DH`%BY.0!.%C`$#*D@Q@8Z`(,>&25`E2$
MA5(@-.R#@@*^98&1*$%=L7R`!&1B@"$(H`D8H-`*F"<"_T2@?$3_%0$0#.`%
M"2RA`0B(0?D:T)0%%*$J#6C!`L03`^B1@`.-),8/B$$![@0``D.`50!PD(`"
MO(``!V@`"1#`@!9P0%A[<<!(5[`"$62``1;0&1`&T`0<**`I"1B"W8C5@B*$
M4C3L6X(!'A"#`19`"!+@4%,T\$@`[$4&YDE`@UK`!8$PX`(7L``)CN2!GL4@
M!7.XC@(DH"^!%*`%)&`7`(Y@@">LP`?!X0`#%,FI@5A``U"HB@(@T%/-+J4)
M".@,`'XP`2\8P`,;J(`#$I"!'5`@`%+0057"I8,"B`T"52.(MXB1A+7&P`"+
M(P8&L""0"_1L`68(T@#88`4)K$`#-###_T*Y&P$6U,$`+C"#!@HQ$!M8@1C5
M/`"$LH`!"`1!""P`@`L(<+4P[.<`;A#("T2PT-[YS0E-"0`-*+9<&T<@`BL5
MB`>*$((.S(`-Y`,#%R2$`13`8*@0X`++5I""+]B@;VL)01UL,`(@="`,'0A!
M!NKP@0)@X`9;&`$")@"&"HRW!U_P@`YYZ!_NB"<`ONL/`G+8E$CCA0(`H`"F
MT2,SB+2@"X-`T`9J@`*!7($,)SK`'!AQ(@@$P@,"Z4(&<K"8$S"%(#,8JD"<
M21`:E```)7#+0(1Y`")DP*T"F<$4/C:6APFS`+JX@`!,T`=B:(&H,$!""1I+
M!"@R@`P50$$UB?]!/X%,P"TBN(18$L"""<@4`AMP#-.J;#)/+.$!'5C`RU;G
M`!/0P`3E,X(PB8$"&IQ`!$_8@`DD`(`.3($85A@",8QP@:$>H`,U*,$`U#`"
M"3P`!<PD!A*((8%1NYL&P":&"&X``Q08X`0E&$)T40`!CA.#"@*GM04LX($Q
M<+@&$9"``"30@Q*`@!@VJ$`#!+`#<*,`:@+H`3$6$(C2G@!6*/C`!1Q@$6*8
MH`R.MCD12I!=FIB@"SE!`0A0)H(L2``$72#&`:[@\HA[3WQ(>$`75'"`$1S`
M!0/@@`M*\``=P$`@SQS(!2H`@AD```4I>,(`-+"!KRU4V#=8``8>@('_,3#`
M`&@_```X<`;_6F`[C34!&K$R$">PX`$:.($%0#`H$XC\"CFA@ZM9D(')&Z`'
MDAE`!#I`@`Z(KP`\P`$&R+```43"/R3@`5)"+A`0F.X3`Q"!STT@@`F0B04^
MB8`)/,"``9@`*1T(]]IE2H`^B($8AW^W`DP0(A0@!0!7($#CZ\6G`ZB``+3/
M3JYM0(?X1\-!0!D`"'^HP0`$P`9XDP2\!`L4P`E<0%"A0`',P,E=DXI8@0GH
M@0QPP!JX0&A00">PP!*L"["E@`K4@$#('^U%0!R`D4#TV),X`D$$`2E,@25L
MET"D@55,@9,00QILP'H)1!Y0B1%8&BRP0`*4_X$<<!U>'$$')`'<O0$`(``&
MH(%BI4&(0$$K"0PQ2`$3\``Q),`7+(`P^8`-$`/U"<2'"43`'4$/R`&/'`$+
M`$$.M$``S(`6E$\."('HB!L3",0"V%D;&H%Q$$,&I$`.L,`+B`$7^(?CX=@S
MO1XQJ(0.O)M`)$#B!0$%Y`!3(``7G$?-+8862$@0$%40'`!>$%0&1`$"E$#<
M7")2_,"5&<`>1)T6J,`(?$$7T8`-^$<+?`L-[&(,4$$!(`&?`$`9*-YBS`\,
ME``*`!(2%$`,<`(-%!T?X`#!;$`,&$$,=(`/2,`:",09#)44J$`$Z``?$,0%
MP,`7N``"W$`)G,8)N/_:0(P!^_3`><R`0-A`&Q`8![`!"$2!$EP`&\0,%%P4
M"?@!01"!!DC!ZRE!"<C`"N3B"`0!#0"!'30*"K#`%22``00""`S5"/!A%13$
M#"1!`'2!%!`#)GA$#.1!5>CC])E.)A`#$-2`%)"!'#S"2N'!?GP!#]1!&<A`
M#[1!!SC!E1'##FB`#Q+`!GQ!!P0<\3FEN]C`"1(#&H@'`Q#"5;)4(9Q`'3@&
MZB'`N`V$#P+`&T3`G60!(-D`')R&")Q!"=#`'F;!`B#`298A"VK@BBP`$@"!
M(<2!![#`1=U`#8#!&1##`VQ`(ST`&H"`JA'#((Q!I'R."?3,0(1!*_W%'Q#_
M!!=\P4%DP;J<0#5]@!\$@28*A!PTAP\2PQBP0!N40!X00QM("P9PP9*I@0@(
M@`PX)#&008@,HT!4P`20`"-L`21DU15X@`F0P$(20Q683A482CL*1!MXT[KP
MP!E0X!R8``^@@`!LP`8@(EL4'G4J`!@0`C.QW4)=@!UD@2)!P!E@@`J``0=H
M0/L)01L0PQ*T`8`-A`:T02&LRL"=2`VX10JD5F/"71`TATPU@!8T"3%``1&\
M`7[\FG_H@*LM06(-Q)$M`!<<0!2L@9!(``\PP+AMP`+4`1?400&D@0"LP`(D
MP0'DP09TY1G<HP$(&H-T00`D`"/P0/FD00$("0`8_X$=1($-%,`!^*/1,9,.
M;($#?"5!M$`8U,`CY0$6X,<):!0$[``Q""<`[(#JR1HQ;(5_2&48-(H06(%_
M:,`-"$`(V`%!T($`S$`0K,$#U$&%:6$+L%D>"$%C@($4T``,4(!,"40$["(/
M"H06-)(+<$0G9,56=L$$?<"QI,$1Z,`;T$03Y,%U$$.CS@$6>,$,<(`6U-A6
M$`0:T``:5`%^%H`9+()`,&08F`XQG,''R0&SK(``E-F[G`!Q.)P4-`@4%!T#
MN!HG5,@*1``;"(0:Y&J(0@$3>.D`^*I`"$$.D``*&(JVA$`!R$"-.DD#4,;,
M,(`,>,0*>`%^K$`2D%(`A/^/$L"*L:V`6SV`#-R)`O02]<B`#,0K`QQ!03B`
M##0`@XA`$E@`*24$$Y@``FA")QS!!K``,1RE%^!!`-A!&+3``3"!&1"`!(1&
M'L2`K/V`#R"!LO7`%(P!#Q"`!F""$;B!_)W`E!5$&2#&!Z#`(`I$'`BL"H2(
M&^3`2J@!7M3`!YB`"(0&"S1%`]@`%2J`$S!!`!1!%U3!&]380$B!#6B.%`B!
M#(P!`53`&;2`'.R`$P"`!BR7"@P&`M2!.A%#M0H$&S3&0#@`%SQ.#@S!$*PJ
M.V$!,VG`'`C$'.!``T`"IT#"`OA%=7S`%C#J$J!`#&A!HV0L,;2`S?U`.\&=
M38'_`05L0!\B0`L@P1>X0:-0P7W10!@T1RX6`"@J``+@P)]M0<UM0=_,`1SL
M`!Q8`$'@Z0)LP0#D@!L$2*#50>OZP*IP:@B,00D00P[,0`=L@`/,@0<DP1JH
MX:H0@Q=,9@Z,&@/(@034F!T$(D'8@!00`1?XR!H2`QL@A?G:)$MI0`MT``7@
M@0M(`0)XP0:801N4I3XJ0!6<@1D(A)IR`1I\@*.900M\``5`0!PTR0&,`16P
MP.4*1/LEP11@W`?DP`ETA@)<P!<P(<6L@1:T@>`<P@EY#0@<`=<.!!LL5`R@
M`1(4'3$4PIV@@19\RQ:X*`5,`!E`)#KQ0`D<1[6!IAKH_Q0,/-(%%&'-O8`"
M(!T7R,`1,()`N(`*A(&=#`3:",04B]P6G,#C$-4,K<4/K,$'A,`*+&T/-$I4
M!``/7`&N)=,EVL`'I`_71`8*3*`!0,$8?$`$'%:V`$`"D("%/<!Y[,R."00*
MY(]/'`$!4$P(/$%M"80,H!0Q%`'4G`<&]`TQ7$"%"40,_!TQ]%(F95(1=!$Q
M($`!4``'/,#ND``)5/)"X$6)M#("E"JA',&J^(YB@0Q_"(0"E.J0L-8K*P^4
M]JL2;!HQ<`<%],Z_0(B0;,:@0,B@A$")A$^)"(0/U`?<F83?X-@J7YHM!X`!
M&"=_-`4!M`!W7`UWB8_,7*$H._](I"UC?/1'"-%$`;260`A+I8GS_KQSB60:
M07@2?UQ-`'!`@%C6,D*`A(A'I"E`WUC(0)?KI8%(HOWR+R\600"`NAKT0%"`
M-LM`4^`S/1.$H(@(^RA6$*XR0A^TINU*00\.!?"(#"B`?\2'#`B90(`101M$
MOUX-1_M-3]O'4,]T3"<U0H#T-AL$2+NS1K,/,RNU0ERA/&=T0V`UAMP0\I!`
M`B"`?=740'``=Y#&SXW?Z:P`IU``4]U'`I#T7XQQB!*#!30&"<27K<Q-".A*
M""3`)@&4"$C("L3`"AC6+>%``7`U8"XV8S?VM2C/73]`0@T$`PR(-TV``22`
M3V@`VW#_B`CLE$!<*0,LU&0@B_B(!1`L3_D```00@'A8P`'@CP`$P"@3A``4
M`068E@!PIV/WMF__=JA0``ZL``:L0,@T@>]B#0=0(3%X@`4P"P*<!DZ?CPPX
MP"8)@`(T0=!AV&1Q1PM(!@E8@+ZX56HAP(E\"P*(0`,<05D-`080#`/H3"EG
M)G#7MWW?-YHH@`4HK`"05'-X`0.L#@,P`'X\2#H#IP\X;*QT2/6`#`;X3OH0
M@``(0$Z$SP,<"-2:CP,X;/5P@)`4]H)P)GZ/.(F7N(F?.(JG^"5!2`(XP#ZS
M3P+H%?5`CX0[@`98CS!;`!5"Z<TT!0/,Q<,H`%EOH@$DZ5_\__@`>;2'#X`!
MY,25QG@SGP;Z\(<"$`!:QP@8!<UX*+:*=[F7$\Y(D$`,!$`3[,5F/``0"`O$
M63(#>(U`B'AOD8_O%D$`;)5C&IM53,9V!?1/',&=U"N&-<$PAU#.$8"TP%(F
MT7)"M$`<<-D!O(`*\``(`,`2],$7<$?(/4$4A($*4,`%1`$("`D!(()82,`,
MN,!<"T0AS.T);``?2&(-P$&O8<&JG(`&=(`6*/"7[SJOEXH`/-(`^``&`,%*
M3%@`?/8`5``$*,!B00`.A,_[&&P(_("5<P=.V_GU33G[6,`3B,<+>+AM)T`+
MX/0#X$<#B``&"$L`W(Q>Y!H4*'A#"/^`D!+#!\Q`>9+)"&P`A0B3"YR'!'P<
M02`!&ZC3]&X:'?2`?VQ!`'@=`5R!`2A!%!Q``E2`!91``]CZ5/>ZQF^\FD1>
M*>_(7-!UF^,?`+C+S<R4B1"``X`[@1O`0AG`&!-#CDP6]3"`D/2W?00`=U2V
MNE[6N(]$?UB`PCF$_PD$#O"`#/"`$=CN!.C!!_B',''A0'A`&=CN0"B!&#`!
M%?A$#&3!7@S$!QCHB8"!"SA!"'P`:0Z`"O@`6PK!&N8`$@@/*'%\FOB:LM&]
MBK,R<R%64SB`8SV,Q/^K-1($%!1!SY2K5?@'`_C`3O,'#HSV1R"&?8!/00\*
MY?@$B#P`Q?3_31)@0,\(-[E"A+\I(@H`@*W/3%B&W`:XI7YL7$&(0!#L`!H<
M@`"-`'T;P!5\V[L5G0HL``$0@8Z\)C%$^FEXW$=D#]ZCR0(EOXK;!X%0#YD3
MQ`,$P`(2C(M/$,$80-```).;#P4QQ`7UR0!-^.JL.VI@`!AL`!,L5):)<C6%
MA@R8@!O`@`#@@`F$08@\P2-E@`8`A(09B1@0,\C@@L$-`&RXX$&!V`(;8!8(
M(%8`C<4*82*$X(#"@D&1(TF6-'D294J5*UFV=/D29DR9,VG6M'D39TZ=.WGV
M]/D3:%"A0XD6-7H4:5*E2YDV=?H4:E2I4ZE6M7H5:U:M6[EV]?H5(&Q8L6/)
=EC5[%FU:M6O9MG7[%FY<N7/IUK5[%V_>M0$!`#L_
`
end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
