<SEC-DOCUMENT>0001021408-01-507194.txt : 20011009
<SEC-HEADER>0001021408-01-507194.hdr.sgml : 20011009
ACCESSION NUMBER:		0001021408-01-507194
CONFORMED SUBMISSION TYPE:	10-K
PUBLIC DOCUMENT COUNT:		12
CONFORMED PERIOD OF REPORT:	20010630
FILED AS OF DATE:		20010924

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			TRIO TECH INTERNATIONAL
		CENTRAL INDEX KEY:			0000732026
		STANDARD INDUSTRIAL CLASSIFICATION:	SPECIAL INDUSTRY MACHINERY, NEC [3559]
		IRS NUMBER:				952086631
		STATE OF INCORPORATION:			CA
		FISCAL YEAR END:			0625

	FILING VALUES:
		FORM TYPE:		10-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-14523
		FILM NUMBER:		1743538

	BUSINESS ADDRESS:	
		STREET 1:		355 PARKSIDE DR
		CITY:			SAN FERNANDO
		STATE:			CA
		ZIP:			91340
		BUSINESS PHONE:		8183659200

	MAIL ADDRESS:	
		STREET 1:		355 PARKSIDE DRIVE
		CITY:			SAN FERNANDO
		STATE:			CA
		ZIP:			91340
</SEC-HEADER>
<DOCUMENT>
<TYPE>10-K
<SEQUENCE>1
<FILENAME>d10k.htm
<DESCRIPTION>FORM 10-K
<TEXT>
<HTML>
<HEAD>
 <TITLE>Form 10-K</TITLE>
</HEAD>
<BODY BGCOLOR="#FFFFFF">
<HR SIZE=1 NOSHADE> <HR SIZE=1 NOSHADE> <DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="center"><FONT SIZE="5" COLOR="#000000" FACE="'Times New Roman', Times"> <B>UNITED STATES</B></FONT></DIV>
<DIV ALIGN="center"><FONT SIZE="5" COLOR="#000000" FACE="'Times New Roman', Times"><B>SECURITIES AND EXCHANGE COMMISSION</B></FONT></DIV>
<DIV ALIGN="center"><FONT SIZE="3" COLOR="#000000" FACE="'Times New Roman', Times"><B>Washington, D.C. 20549</B></FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="center"><HR WIDTH="21%" SIZE="1" NOSHADE></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="center"><FONT SIZE="5" COLOR="#000000" FACE="'Times New Roman', Times"><B>FORM 10-K</B></FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>

<TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="4%" ALIGN="left" VALIGN="top"><DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B></B></FONT><FONT SIZE="2" COLOR="#000000" FACE="Wingdings"><B>&#120;</B></FONT><FONT SIZE="2" COLOR="#000000"
FACE="'Times New Roman', Times"><B></B></FONT></DIV>
</TD>
<TD WIDTH="96%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B></B><B>ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</B></FONT></DIV>
</TD>
</TR>
</TABLE>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>For the fiscal year ended June 30, 2001</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>OR</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>

<TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="4%" ALIGN="left" VALIGN="top"><DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B></B></FONT><FONT SIZE="2" COLOR="#000000" FACE="Wingdings"><B>&#168;</B></FONT><FONT SIZE="2" COLOR="#000000"
FACE="'Times New Roman', Times"><B></B></FONT></DIV>
</TD>
<TD WIDTH="96%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B></B><B>TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</B></FONT></DIV>
</TD>
</TR>
</TABLE>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Commission File Number 0-13914</B></FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="center"><FONT SIZE="5" COLOR="#000000" FACE="'Times New Roman', Times"><B>TRIO-TECH INTERNATIONAL</B></FONT></DIV>
<DIV ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>(Exact name of Registrant as specified in its Charter)</B></FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>

<TABLE ALIGN="center" WIDTH="614" CELLSPACING=0 CELLPADDING=0>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>California</B></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B></B><B>95-2086631</B></FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>(State or other jurisdiction of</B></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>(I.R.S. Employer</B></FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>incorporation or organization)</B></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>Identification Number)</B></FONT></TD>
</TR>
<TR>
<TD COLSPAN=3 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=3><FONT SIZE="2">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>355 Parkside Drive</B></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="center"></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>San Fernando, California</B></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B></B><B>91340</B></FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>(Address of principal executive offices)</B></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>(Zip Code)</B></FONT></TD>
</TR>
</TABLE>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Registrant&#146;s Telephone Number: 818-365-9200</B></FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Securities registered pursuant to Section 12(b) of the Act:</B></FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>

<TABLE ALIGN="center" WIDTH="614" CELLSPACING=0 CELLPADDING=0>
<TR>
<TD VALIGN="bottom" ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>Name of each exchange</B></FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>Title of each class<FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
</B></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>On which registered<FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
</B></FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Common Stock, no par value</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">AMEX</FONT></TD>
</TR>
</TABLE>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Securities registered pursuant to Section 12(g) of the Act:</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>None</B></FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indicate by check mark whether the registrant (1) has filed all reports required to be filed with the
Commission by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the
past 90 days.&nbsp;&nbsp;&nbsp;&nbsp;Yes&nbsp;&nbsp;</FONT><FONT SIZE="2" COLOR="#000000" FACE="Wingdings">&#120;</FONT><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;No&nbsp;&nbsp;</FONT><FONT SIZE="2"
COLOR="#000000" FACE="Wingdings">&#168;</FONT><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"></FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The aggregate market value of voting stock held by non-affiliates of Registrant, as of September 7, 2001,
was approximately $7 million (based upon the closing bid for shares of Registrant&#146;s Common Stock as reported by the AMEX on September 7, 2001). Shares of Common Stock held by each officer, director and holder of 5% or more of the outstanding
Common Stock (including shares with respect to which a holder has the right to acquire beneficial ownership within 60 days) have been excluded in that such persons may be deemed to be affiliates. This determination of affiliate status is not
necessarily a conclusive determination for other purposes.</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The number of shares of common stock outstanding as of September 7, 2001 is 2,927,596.</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indicate by check mark if disclosure of delinquent filers pursuant to item 405 of Regulation S-K is not
contained herein, and will not be contained, to the best of Registrant&#146;s knowledge, in the definitive proxy statement incorporated by reference in Part III of this Form 10-K.&nbsp;&nbsp;</FONT><FONT SIZE="2" COLOR="#000000"
FACE="Wingdings">&#168;</FONT><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"></FONT></DIV>
<DIV><FONT SIZE="5">&nbsp;</FONT></DIV>
<HR SIZE=1 NOSHADE> <HR SIZE=1 NOSHADE> <DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"> <B>TRIO-TECH INTERNATIONAL</B></FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>INDEX</B></FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>

<TABLE ALIGN="center" WIDTH="615" CELLSPACING=0 CELLPADDING=0>
<TR>
<TH VALIGN="bottom" ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>Page</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
</TR>
<TR>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="3" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>
<A HREF="#TX1">PART I</A>
</B></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">
<A HREF="#TX2">Item 1</A>
</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Business</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">3</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">
<A HREF="#TX3">Item 2</A>
</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Properties</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">10</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">
<A HREF="#TX4">Item 3</A>
</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Legal Proceedings</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">11</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">
<A HREF="#TX5">Item 4</A>
</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Submission of matters to a vote of security holders</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">11</FONT></TD>
</TR>
<TR>
<TD COLSPAN=5 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=5><FONT SIZE="2">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="3" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>
<A HREF="#TX6">PART II</A>
</B></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
</TR>
<TR>
<TD COLSPAN=5 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=5><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">
<A HREF="#TX7">Item 5</A>
</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Market for registrant&#146;s common equity and related stockholder matters</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">11</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">
<A HREF="#TX8">Item 6</A>
</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Selected financial data</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">12</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">
<A HREF="#TX9">Item 7</A>
</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Management&#146;s discussion and analysis of financial condition and results of operations</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">13</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">
<A HREF="#TX10">Item 7A</A>
</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Quantitative and qualitative disclosures about market risk</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">20</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">
<A HREF="#TX11">Item 8</A>
</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Financial statements and supplementary data</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">20</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">
<A HREF="#TX12">Item 9</A>
</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Changes in and disagreements with accountants on accounting and financial disclosure</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">20</FONT></TD>
</TR>
<TR>
<TD COLSPAN=5 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=5><FONT SIZE="2">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="3" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>
<A HREF="#TX13">PART III</A>
</B></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
</TR>
<TR>
<TD COLSPAN=5 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=5><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Item 10</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Directors and executive officers of registrant</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">21</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Item 11</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Executive compensation</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">21</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Item 12</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Security ownership of certain beneficial owners and management</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">21</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Item 13</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Certain relationships and related transactions</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">21</FONT></TD>
</TR>
<TR>
<TD COLSPAN=5 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=5><FONT SIZE="2">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="3" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>
<A HREF="#TX14">PART IV</A>
</B></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
</TR>
<TR>
<TD COLSPAN=5 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=5><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">
<A HREF="#TX15">Item 14</A>
</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Exhibits, financial statement schedules, and reports on Form 8-K</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">21</FONT></TD>
</TR>
<TR>
<TD COLSPAN=5 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=5><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD COLSPAN=3 VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">
<A HREF="#TX16"><B>Signatures</B></A>
</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">23</FONT></TD>
</TR>
<TR>
<TD COLSPAN=5 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=5><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD COLSPAN=3 VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Exhibits</B></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
</TR>
<TR>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="3" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">
<A HREF="#TX18">Independent Auditors&#146; Report</A>
</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">24</FONT></TD>
</TR>
<TR>
<TD COLSPAN=5 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=5><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="3" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">
<A HREF="#TX19">Consolidated Balance Sheets</A>
<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;as of June 30, 2001 and 2000</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">25</FONT></TD>
</TR>
<TR>
<TD COLSPAN=5 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=5><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="3" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">
<A HREF="#TX20">Consolidated Statements of Income and Comprehensive Income</A>
<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<A HREF="#TX20"></A>
for the Years Ended June 30, 2001, 2000 and 1999</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">26</FONT></TD>
</TR>
<TR>
<TD COLSPAN=5 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=5><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="3" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">
<A HREF="#TX21">Consolidated Statements of Shareholders&#146; Equity</A>
<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<A HREF="#TX21"></A>
for the Years Ended June 30, 2001, 2000 and 1999</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">27</FONT></TD>
</TR>
<TR>
<TD COLSPAN=5 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=5><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="3" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">
<A HREF="#TX22">Consolidated Statements of Cash Flows</A>
<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<A HREF="#TX22"></A>
for the Years Ended June 30, 2001, 2000 and 1999</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">28</FONT></TD>
</TR>
<TR>
<TD COLSPAN=5 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=5><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="3" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">
<A HREF="#TX23">Notes to Consolidated Financial Statements</A>
<B></B></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">30</FONT></TD>
</TR>
</TABLE>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"> <B>TRIO-TECH INTERNATIONAL</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>PART I
<A NAME="TX1"></A>
</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>NOTE CONCERNING FORWARD-LOOKING STATEMENTS</B></FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The discussions of Trio-Tech International&#146;s (the &#147;Company&#148;) business and activities set
forth in this Form 10-K and in other past and future reports and announcements by the Company may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended, and assumptions regarding future activities and results of operations of the Company. In light of the &#147;safe harbor&#148; provisions of the Private Securities Litigation Reform Act of 1995, the following
factors, among others, could cause actual results to differ materially from those reflected in any forward-looking statement made by or on behalf of the Company: market acceptance of Company products and services; changing business conditions or
technologies in the semiconductor industry, which could affect demand for the Company&#146;s products and services; the impact of competition; problems with technology; product development schedules; delivery schedules; changes in military or
commercial testing specifications which could affect the market for the Company&#146;s products and services; difficulties in profitably integrating acquired businesses, if any, into the Company; risks associated with conducting business
internationally and especially in Southeast Asia, including currency fluctuations and devaluation, currency restrictions, local laws and restrictions and possible social, political and economic instability; and other economic, financial and
regulatory factors beyond the Company&#146;s control. See the discussions elsewhere in this Form 10-K, including under the heading &#147;Certain Risks That May Affect Our Future Results&#148;, for more information. In some cases, you can identify
forward-looking statements by the use of terminology such as &#147;may,&#148; &#147;will,&#148; &#147;expects,&#148; &#147;plans,&#148; &#147;anticipates,&#148; &#147;estimates,&#148; &#147;potential,&#148; &#147;believes,&#148; &#147;can
impact,&#148; &#147;continue,&#148; or the negative thereof or other comparable terminology.</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We undertake no obligation to update forward-looking statements to reflect subsequent events, changed
circumstances, or the occurrence of unanticipated events.</FONT></DIV>
<DIV><FONT SIZE="5">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>ITEM 1
<A NAME="TX2"></A>
&#151;BUSINESS</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trio-Tech International was incorporated in 1958 under the laws of the State of California. As used herein,
the term &#147;Trio-Tech&#148; or &#147;Company&#148; or &#147;we&#148; or &#147;us&#148; or &#147;Registrant&#148; includes Trio-Tech International and, or its subsidiaries unless the context otherwise indicates. Our mailing address and executive
offices are located at 355 Parkside Drive, San Fernando, California 91340, and our telephone number is (818) 365-9200.</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;With more than 43 years dedicated to the semiconductor and related industries, we have applied our expertise
in design, engineering, manufacturing, distribution and test services to our global customer base.</FONT></DIV>
<DIV><FONT SIZE="5">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>General</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trio-Tech designs, develops, manufactures and markets a broad range of equipment and systems used in the
manufacture and testing of semiconductor devices and electronic components. In addition, we operate test facilities in the United States, Europe and Southeast Asia that provide semiconductor-testing services to component manufacturers and
users.</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company operates in three industry segments: Manufacturing, Testing Services and
Distribution.</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We manufacture &#147;wet&#148; processing and cleaning stations used in the manufacture of semiconductor
circuits and temperature controlled chucks that are used to manufacture and test semiconductor wafers and other microelectronic substrates in what is commonly called the &#147;front-end&#148;, or creation of semiconductor circuits. Additionally, we
also manufacture centrifuges, leak detectors, HAST (Highly Accelerated Stress Test) systems and &#147;burn-in&#148; systems that are used primarily in the &#147;back-end&#148; of the semiconductor manufacturing process to test finished semiconductor
devices and electronic components.</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  We currently operate five test facilities, one in the United States, one in Europe and three in Southeast
Asia. These provide customers a comprehensive range of testing services, such as burn-in and product life testing, for finished or packaged components. During 2000 and 2001 we closed two test facilities due to uncertainties in the Semiconductor
industry.</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our business in Southeast Asia has an active distribution operation. This provides marketing and support to
distribute their own manufactured equipment in addition to distributing complimentary products from other manufacturers that are used by the Company&#146;s customers and other semiconductor and electronics manufacturers.</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are actively pursuing a strategic growth plan, which is designed to increase our addressable market by
expanding product offerings with equipment and services for the front-end of the manufacturing process. This growth may be achieved through new product development and/or, although no agreements have been executed, the acquisition of complementary
products and companies. The November 1997 acquisition of Universal Systems, a leader in the design and manufacture of wet process equipment, together with the continuing development of our temperature controlled chucks and the development of our
COBIS-II burn-in systems, are important steps in this direction.</FONT></DIV>
<DIV><FONT SIZE="5">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Company History</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>

<TABLE ALIGN="center" WIDTH="615" CELLSPACING=0 CELLPADDING=0>
<TR>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1958</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Incorporated in California</FONT></TD>
</TR>
<TR>
<TD COLSPAN=3 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=3><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1976</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">The Company formed Trio-Tech International Pte Ltd (TTI Pte) in Singapore.</FONT></TD>
</TR>
<TR>
<TD COLSPAN=3 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=3><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1984</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">The Company formed the European Electronic Test Center (EETC), a Cayman Islands subsidiary, to
<BR>
operate a test facility in Dublin, Ireland.</FONT></TD>
</TR>
<TR>
<TD COLSPAN=3 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=3><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1985</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">The Company&#146;s Singapore subsidiary entered into a joint-venture agreement, Trio-Tech Malaysia, to
<BR>
operate a test facility in Penang.</FONT></TD>
</TR>
<TR>
<TD COLSPAN=3 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=3><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1986</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Trio-Tech International listed on the NASDAQ Small Cap market under the symbol TRTC.</FONT></TD>
</TR>
<TR>
<TD COLSPAN=3 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=3><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1988</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">The Company acquired the Rotating Test Equipment Product Line of Genisco Technology Corporation.</FONT></TD>
</TR>
<TR>
<TD COLSPAN=3 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=3><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1990</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Trio-Tech International acquired Express Test Corporation in California. Trio-Tech Malaysia opened a
<BR>
new facility in Kuala Lumpur.</FONT></TD>
</TR>
<TR>
<TD COLSPAN=3 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=3><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1992</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Trio-Tech Singapore opened Trio-Tech Bangkok, Thailand. Trio-Tech Singapore achieved ISO 9002
<BR>
certification.</FONT></TD>
</TR>
<TR>
<TD COLSPAN=3 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=3><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1994</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Trio-Tech Malaysia started a new components assembly operation in Batang Kali.</FONT></TD>
</TR>
<TR>
<TD COLSPAN=3 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=3><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1995</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Trio-Tech Singapore achieved ISO 9001 certification.</FONT></TD>
</TR>
<TR>
<TD COLSPAN=3 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=3><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1997</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">In November 1997, the Company acquired Universal Systems of Campbell, California.</FONT></TD>
</TR>
<TR>
<TD COLSPAN=3 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=3><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1998</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">In September 1998, the Company listed on AMEX under the symbol TRT.</FONT></TD>
</TR>
<TR>
<TD COLSPAN=3 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=3><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2000</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Trio-Tech Singapore achieved QS 9000 certification. Trio-Tech Malaysia closed its facility in
<BR>
Batang Kali.</FONT></TD>
</TR>
<TR>
<TD COLSPAN=3 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=3><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2001</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">The Company divested the Rotating Test Equipment Product Line. Trio-Tech Malaysia closed its facility
<BR>
in Kuala Lumpur.</FONT></TD>
</TR>
</TABLE>
<DIV><FONT SIZE="5">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Analysis of Sales</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Complete Business Segment and Geographic Area Information is set forth under Note 11 to the Consolidated
Financial Statements for the years ended June 30, 2001, 2000 and 1999 includes as part of this Form 10-K.</FONT></DIV>
<DIV><FONT SIZE="5">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"> <B>Background Technology</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 2001, the worldwide market for semiconductor devices was estimated at $175 billion. In addition to the
growing demand for semiconductors, integrated circuits are continually shrinking in size while increasing in capacity, complexity, and versatility. In order to fabricate these semiconductors, manufacturers must continually improve their equipment,
packaging and test facilities. In 2000, the world market for semiconductor manufacturing equipment was estimated at $48 billion, and is expected to decline by 20% in 2001.</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The market for semiconductor manufacturing equipment can be divided into &#147;front-end&#148; applications,
including wafer fabrication and assembly, and &#147;back-end&#148; applications, comprised of packaging and testing. We estimate that the semiconductor equipment market is approximately 70% front-end equipment, 20% back-end equipment and 10%
facilities.</FONT></DIV>
<DIV><FONT SIZE="5">&nbsp;</FONT></DIV>

<TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="2%" ALIGN="left" VALIGN="top"></TD>
<TD WIDTH="98%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B><I>&#147;Front-End&#148;</I></B></FONT></DIV>
</TD>
</TR>
</TABLE>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Semiconductor devices are fundamental building blocks used in electronic equipment and systems. Each
semiconductor device consists of an integrated circuit designed to perform a specific electronic function. Integrated circuits are manufactured through a series of complex steps on a wafer substrate, etching or depositing the circuit pattern on a
surface, typically a circular silicon wafer, measuring three to eight inches in diameter. Multiple integrated circuit patterns are transferred to the wafer, and each completed integrated circuit is called a device or die. The number of devices or
dies depends on the size of the circuit and the size of the wafer. Manufacturers can significantly increase the number of devices or dies per wafer by shrinking the circuit size or by expanding the wafer size. The transition to increased wafer size,
from 200mm (8 inch) to 300mm (12 inch) wafers, is currently underway throughout the industry.</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;After etching or deposition of integrated circuits, wafers are typically sent through a series of 100 to 300
additional processing steps. At many of these process steps, the wafer is washed and dried using wet process stations, which we manufacture.</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The finished wafer is then put through a series of tests where each separate integrated device on the wafer
is tested for functionality. Our Artic temperature chucks are used with a wafer prober to test semiconductor wafers at accurately controlled temperatures. After testing, the wafer is &#147;diced&#148; or cut up, and each die is then placed into a
packaging material, usually plastic or ceramic, with lead wires to permit mounting onto printed circuit boards.</FONT></DIV>
<DIV><FONT SIZE="5">&nbsp;</FONT></DIV>

<TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="2%" ALIGN="left" VALIGN="top"></TD>
<TD WIDTH="98%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B><I>&#147;Back-End&#148;</I></B></FONT></DIV>
</TD>
</TR>
</TABLE>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Finished devices are then put through a series of tests, such as burn-in and electrical testing, to ensure
they meet necessary performance and quality standards, before shipment to the customer. Our component centrifuges, leak detectors, HAST equipment and burn-in systems are all used to test and screen finished semiconductor devices to ensure they meet
the specifications required by the manufacturers and customers.</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trio-Tech&#146;s test services are concentrated on the back-end screening and test of semiconductor devices.
With the high concentration of semiconductor assembly and packaging facilities in Southeast Asia, a large demand exists for third party test services in this region. Customers use third party test services especially to accommodate fluctuations in
output or to benefit from economies that can be offered by third party service providers.</FONT></DIV>
<DIV><FONT SIZE="5">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"> <B>Products</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company designs, develops, manufactures and markets equipment for the manufacture and test of
semiconductor wafers, devices and other electronic components.</FONT></DIV>
<DIV><FONT SIZE="5">&nbsp;</FONT></DIV>

<TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="2%" ALIGN="left" VALIGN="top"></TD>
<TD WIDTH="98%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B><I>Front-End Products</I></B></FONT></DIV>
</TD>
</TR>
</TABLE>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>

<TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="2%" ALIGN="left" VALIGN="top"></TD>
<TD WIDTH="98%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><I>&nbsp;&nbsp;&nbsp;&nbsp;Wet Process Stations</I></FONT></DIV>
</TD>
</TR>
</TABLE>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Wet process benches are used for cleaning, rinsing and drying semiconductor wafers, magnetic disks, flat
panel displays and other microelectronic substrates. The wet process bench product line, which is manufactured by the Company&#146;s subsidiary Universal Systems, includes manual, semi-automated and automated wet process stations, and features
radial and linear robots, state-of-the-art PC touch-screen controllers and sophisticated scheduling and control software.</FONT></DIV>
<DIV><FONT SIZE="5">&nbsp;</FONT></DIV>

<TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="2%" ALIGN="left" VALIGN="top"></TD>
<TD WIDTH="98%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><I>&nbsp;&nbsp;&nbsp;&nbsp;Artic Temperature Controlled Wafer Chucks</I></FONT></DIV>
</TD>
</TR>
</TABLE>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Artic Temperature Controlled Chucks are used for test, characterization and failure analysis of
semiconductor wafers and other components at accurately controlled hot and cold temperatures. Several models are available with temperature ranges from -65C to +400C and in diameters from 4 to 12 inch. These systems provide excellent performance to
meet the most demanding customer applications. Several unique mechanical design features, for which patents are pending, provide excellent mechanical stability under high probing forces and across the temperature ranges.</FONT></DIV>
<DIV><FONT SIZE="5">&nbsp;</FONT></DIV>

<TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="2%" ALIGN="left" VALIGN="top"></TD>
<TD WIDTH="98%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B><I>Back-End Products</I></B></FONT></DIV>
</TD>
</TR>
</TABLE>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>

<TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="2%" ALIGN="left" VALIGN="top"></TD>
<TD WIDTH="98%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><I>&nbsp;&nbsp;&nbsp;&nbsp;Autoclaves and HAST (Highly Accelerated Stress Test) Equipment</I></FONT></DIV>
</TD>
</TR>
</TABLE>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We manufacture a range of autoclaves and HAST systems and specialized test fixtures. Autoclaves provide
pressurized, saturated vapor (100% relative humidity) test environments for fast and easy monitoring of integrated circuit manufacturing processes. HAST equipment, which provides a pressurized high temperature environment with variable humidity, is
used to determine the moisture resistance of plastic encapsulated devices. HAST provides a fast and cost-effective alternative to conventional non-pressurized temperature and humidity testing.</FONT></DIV>
<DIV><FONT SIZE="5">&nbsp;</FONT></DIV>

<TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="2%" ALIGN="left" VALIGN="top"></TD>
<TD WIDTH="98%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><I>&nbsp;&nbsp;&nbsp;&nbsp;Burn-in Equipment and Boards</I></FONT></DIV>
</TD>
</TR>
</TABLE>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We manufacture burn-in systems, burn-in boards and burn-in board test systems. Burn-in equipment is used to
subject semiconductor devices to elevated temperatures while testing them electrically to identify early product failures (&#147;infant mortalities&#148;) as well as to assure long-term reliability. Burn-in testing approximates, in a compressed time
frame, the electrical and thermal conditions to which the device would be subjected during its normal life.</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company offers the COBIS II burn-in system that offers state-of-the-art dynamic burn-in capabilities and
a Windows-based operating system with full data logging and networking features. The Company developed, and now offers, a new Power Line Conditioner (PLC 8001) for the COBIS II, which reduces all varieties of electrical interruptions. The Company
also offers burn-in boards for its BISIC, COBIS and COBIS II burn-in systems and other brands of burn-in systems. Burn-in boards are used to mount devices during high temperature environmental stressing.</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During 2000 through 2001, the Company developed several new products to complement the Burn-in processes
including semi-automatic and automatic burn-in board loaders and unloaders (LUBIB) designed to perform precise, high-speed transfer of IC packages from Tray to BIB or vice-versa while maintaining lead integrity; burn-in board cleaning systems
(CUBIB) designed to perform wet or dry cleaning for burn-in boards
and other modular boards; and burn-in socket contact conditioners (SCC 9001) which is a new innovation that removes fragments of solder residue off the contact pins of an IC Socket making the test process more productive with a dramatic reduction in
contact failure on socket pins.</FONT></DIV>
<DIV><FONT SIZE="5">&nbsp;</FONT></DIV>

<TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="2%" ALIGN="left" VALIGN="top"></TD>
<TD WIDTH="98%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><I>&nbsp;&nbsp;&nbsp;&nbsp;Component Centrifuges and Leak Detection Equipment</I></FONT></DIV>
</TD>
</TR>
</TABLE>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Component centrifuges and leak detection equipment are used to test the mechanical integrity of ceramic and
other hermetically sealed semiconductor devices and electronic parts for high reliability and aerospace applications. The Company&#146;s centrifuges spin these devices and parts at specific acceleration rates, creating g-forces up to 30,000 g&#146;s
(900,000 pounds per square inch), thereby exposing any mechanical weakness in the devices. Leak detection equipment is designed to detect leaks in hermetic packaging by first pressurizing the devices in a tracer gas or fluid and then visually
scanning for bubble trails emanating from defective devices. Applications include automotive and aerospace markets.</FONT></DIV>
<DIV><FONT SIZE="5">&nbsp;</FONT></DIV>

<TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="2%" ALIGN="left" VALIGN="top"></TD>
<TD WIDTH="98%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><I>&nbsp;&nbsp;&nbsp;&nbsp;Rate-of-Turn Tables</I></FONT></DIV>
</TD>
</TR>
</TABLE>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company sold its range of rate-of-turn tables in 2001.</FONT></DIV>
<DIV><FONT SIZE="5">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Testing Services</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We own and operate facilities that provide testing services for semiconductor devices and other electronic
components to meet the requirements of military, aerospace, industrial and commercial applications.</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company uses its own proprietary equipment for certain burn-in, centrifugal and leak tests, and
commercially available equipment for various other environmental tests. The Company conducts the majority of its testing operations in Southeast Asia with facilities in Singapore, Malaysia and Thailand. All of the facilities in Southeast Asia are
ISO 9002 as well as QS 9000 certified. The Company also operates test facilities in California and Ireland.</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The testing services are used by manufacturers and purchasers of semiconductors and other components who
either lack testing capabilities or whose in-house screening facilities are insufficient for testing devices to military or certain commercial specifications. For those customers with adequate in-house capabilities, we offer testing services for
their &#147;overflow&#148; requirements and also provide independent testing verification services.</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trio-Tech&#146;s laboratories perform a variety of tests, including stabilization bake, thermal shock,
temperature cycling, mechanical shock, constant acceleration, gross and fine leak tests, electrical testing, static and dynamic burn-in tests, and vibration testing. The laboratories also perform qualification testing, consisting of intense tests
conducted on small samples of output from manufacturers who require qualification of their processes and devices.</FONT></DIV>
<DIV><FONT SIZE="5">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Distribution Activities</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company&#146;s Singapore subsidiary continues to develop its international distribution division. The
distribution operation markets, sells and supports our products in Southeast Asia. In addition to our own products, this operation also distributes other complementary products from other manufacturers based in the United States, Europe, Japan and
other countries. These products are widely used by high quality and volume production manufacturers in the semiconductor and electronic industries. The products include environmental chambers, shaker systems, handlers, interface systems, vibration
systems, solderability testers and other manufacturing products.</FONT></DIV>
<DIV><FONT SIZE="5">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"> <B>Product Research and Development</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We continue to invest in research and development to improve our products and services. Our efforts were
concentrated in the &#147;Front End&#148; and in developing new testing technology that allows us to offer more advanced processes. The Company incurred research and development costs of $216,000 in 2001, $205,000 in 2000 and $347,000 in
1999.</FONT></DIV>
<DIV><FONT SIZE="5">&nbsp;</FONT></DIV>

<TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="2%" ALIGN="left" VALIGN="top"></TD>
<TD WIDTH="98%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><I>&nbsp;&nbsp;&nbsp;&nbsp;Artic Temperature Controlled Wafer Chucks</I></FONT></DIV>
</TD>
</TR>
</TABLE>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We continue to develop our range of Artic temperature controlled wafer chucks. In July 1999, the Company
introduced its new range of TC3000 series chucks for production wafer probing applications. These new chucks offer high levels of mechanical stability under high probing loads. A triaxial guarding option is available which enables very precise
electrical measurements on the wafer. This new generation of chucks has been expanded for use in all major production wafer probers and for new applications such as high power device testing. The Company has also applied this new technology to 300
mm chucks in the new TC31200 temperature chuck for the emerging 12 inch or 300mm wafers.</FONT></DIV>
<DIV><FONT SIZE="5">&nbsp;</FONT></DIV>

<TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="2%" ALIGN="left" VALIGN="top"></TD>
<TD WIDTH="98%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><I>&nbsp;&nbsp;&nbsp;&nbsp;Wet Process Stations</I></FONT></DIV>
</TD>
</TR>
</TABLE>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company is actively developing its line of wet process equipment. During 2001, we completed development
of our Chemical Dispense Units (CDUs), which allows us to offer a complete wet process and chemical supply system.</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, the Company also produced several new systems that allow photo resist stripping, rinsing and
drying, all in a single process chamber. Other tools under development include a sophisticated plating tool and an advanced chemical dispensing tool that utilizes ozone injection systems for organic cleaning of silicon wafers. Use of ozone injection
eliminates the need for toxic chemicals.</FONT></DIV>
<DIV><FONT SIZE="5">&nbsp;</FONT></DIV>

<TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="2%" ALIGN="left" VALIGN="top"></TD>
<TD WIDTH="98%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><I>&nbsp;&nbsp;&nbsp;&nbsp;Testing Services</I></FONT></DIV>
</TD>
</TR>
</TABLE>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During 2000 through 2001, the Company developed new equipment and facilities to participate in a new
generation of burn-in technology known as HBI (Hybrid Burn-in) that has been developed to meet the unique test requirements of the latest microprocessor products. The HBI Test System is a multiple position, independently programmed system that can
economically run long test times at unique burn-in conditions. We developed significant facilities, including a power sub-station and greater air conditioning, to house the HBI technology.</FONT></DIV>
<DIV><FONT SIZE="5">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Marketing, Distribution and Services</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company markets its products and services worldwide, directly and through independent sales
representatives. Additionally we have approximately 20 independent sales representatives operating in the United States and another 21 in various foreign countries. Of the 41 sales representatives, 5 represent the Distribution Segment and the
balance represent the Manufacturing Segment. Trio-Tech&#146;s United States marketing efforts are coordinated from its California locations, Southeast Asia and European marketing efforts are assigned to its subsidiaries in Singapore and Ireland,
respectively. The Company advertises its products in trade journals and participates in trade shows.</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Independent testing laboratories, users, assemblers and manufacturers of semiconductor devices; including
many large well-known corporations purchase the Company&#146;s products and services. These industries depend on the current and anticipated market demand for integrated circuits and products utilizing semiconductor devices. During the year ended
June 30, 2001, the Company had sales of $5,421,000 (15%) and $8,859,000 (25%) to Catalyst Semiconductor and AMD, respectively.</FONT></DIV>
<DIV><FONT SIZE="5">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"> <B>Backlog</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth the Company&#146;s backlog at the dates indicated (amounts in
thousands):</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>

<TABLE ALIGN="center" WIDTH="506" CELLSPACING=0 CELLPADDING=0>
<TR>
<TH VALIGN="bottom" ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>June 30,
<BR>
2001</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>June 30,
<BR>
2000</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Manufacturing backlog</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$2,076</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;6,455</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Testing service backlog</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">5,863</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">3,920</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Distribution backlog</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">509</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">845</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="3" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$8,448</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$11,220</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE></FONT></TD>
</TR>
</TABLE>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based upon past experience, the Company does not anticipate any significant cancellations or renegotiation
of profits. The purchase orders for manufacturing, testing and distribution require delivery within the next 12 months. The Company does not anticipate any difficulties in meeting delivery schedules.</FONT></DIV>
<DIV><FONT SIZE="5">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Manufacturing and Supply</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company&#146;s products are designed by its engineers and are assembled and tested at its facilities in
California, Singapore and Ireland. We purchase all parts, and certain components, from outside sources for assembly by the Company. We have no written contracts with any of our key suppliers.</FONT></DIV>
<DIV><FONT SIZE="5">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Competition</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The semiconductor equipment industry is highly competitive. The principal competitive factors in the
industry are product performance, reliability, service and technical support, product improvements, price, established relationships with customers and product familiarity. The Company has competitors for its various products. However, the Company
believes its products compete favorably with respect to each of these factors in the markets in which it operates. There can be no assurance that competition will not increase or that the Company&#146;s technological advantages may not be reduced or
lost as a result of technological advances by competitors or changes in semiconductor processing technology.</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There are numerous testing laboratories in the areas in which the Company operates that perform a range of
testing services similar to those offered by the Company. Since the Company has sold and will continue to sell its products to competing laboratories and other test products are available from many other manufacturers, the Company&#146;s competitors
can offer the same testing capabilities. This equipment is also available to semiconductor manufacturers and users who might otherwise use outside testing laboratories, including the Company, to perform environmental testing. The existence of
competing laboratories and the purchase of testing equipment by semiconductor manufacturers and users are potential threats to the Company&#146;s future testing services revenues and earnings.</FONT></DIV>
<DIV><FONT SIZE="5">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Patents</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trio-Tech holds a United States Patent granted in 1987 in relation to its pressurization humidity testing
equipment. The Company also holds a United States Patent granted in 1994 on certain aspects of its Artic temperature test systems. In 2000, the Company filed, and was granted in 2001, a new United States patent (20 years) for several aspects of its
new range of Artic temperature chucks.</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the semiconductor industry it is typical for companies to receive notices from time to time alleging
infringement of patents or other intellectual property rights of others. We can provide no assurance that we will not receive notices alleging infringement. Moreover, the cost of litigation of any claim or damages resulting from infringement of
patents or other intellectual property could materially and adversely affect our business, financial condition and results of operations.</FONT></DIV>
<DIV><FONT SIZE="5">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"> <B>Employees</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of June 30, 2001, the Company had approximately 59 employees in the United States, 407 in Southeast Asia,
and 17 in Ireland for a total of approximately 483 employees. None of the Company&#146;s employees is represented by a labor union. There are approximately 359 employees in the testing segment, 104 employees in the manufacturing segment and 20 in
the distribution segment.</FONT></DIV>
<DIV><FONT SIZE="5">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>ITEM 2
<A NAME="TX3"></A>
&#151;PROPERTIES</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth information as to the location and general character of the principal
manufacturing and testing facilities of the Registrant:</FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>

<TABLE ALIGN="center" WIDTH="540" CELLSPACING=0 CELLPADDING=0>
<TR>
<TH VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>Location</B></FONT><FONT SIZE="1"><HR ALIGN="left" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>Principal Use</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>Approx.
<BR>
Sq. Ft.
<BR>
Occupied</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>Owned (O) or
<BR>
Leased (L)
<BR>
Expiration Date</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
</TR>
<TR>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">355 Parkside Dr.</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Headquarters/</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">21,000</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(L</FONT></TD>
<TD VALIGN="top" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">) Jan. 2002</FONT></TD>
</TR>
<TR>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">San Fernando, CA 9l340</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Testing/Manufacturing</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="right"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="left"></TD>
<TD></TD>
</TR>
<TR>
<TD COLSPAN=8 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=8><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">6951-A Via Del Oro</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Manufacturing</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">15,000</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(L</FONT></TD>
<TD VALIGN="top" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">) Feb. 2004</FONT></TD>
</TR>
<TR>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">San Jose, CA 95119</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="left"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="right"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="left"></TD>
<TD></TD>
</TR>
<TR>
<TD COLSPAN=8 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=8><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Abbey Road</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Testing</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">18,400</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(O</FONT></TD>
<TD VALIGN="top" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
</TR>
<TR>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Deansgrange Co.</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="left"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="right"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="left"></TD>
<TD></TD>
</TR>
<TR>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Dublin, Ireland</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="left"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="right"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="left"></TD>
<TD></TD>
</TR>
<TR>
<TD COLSPAN=8 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=8><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1004, Toa Payoh North, Singapore</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="left"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="right"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="left"></TD>
<TD></TD>
</TR>
<TR>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">HEX 07-01/07,</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Testing</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">6,833</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(L</FONT></TD>
<TD VALIGN="top" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">) Sept. 2003</FONT></TD>
</TR>
<TR>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">HEX 03-01/03,</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Testing/Manufacturing</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2,959</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(L</FONT></TD>
<TD VALIGN="top" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">) Sept. 2003</FONT></TD>
</TR>
<TR>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">HEX 03-16/17,</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Testing</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,983</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(L</FONT></TD>
<TD VALIGN="top" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">) Jul. 2002</FONT></TD>
</TR>
<TR>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">HEX 01-08/15</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Testing/Manufacturing</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">6,865</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(L</FONT></TD>
<TD VALIGN="top" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">) Jan. 2003</FONT></TD>
</TR>
<TR>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">HEX 01-16/17</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Testing</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,983</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(L</FONT></TD>
<TD VALIGN="top" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">) Feb. 2004</FONT></TD>
</TR>
<TR>
<TD COLSPAN=8 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=8><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1008, Toa Payoh North, Singapore</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="left"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="right"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="left"></TD>
<TD></TD>
</TR>
<TR>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">HEX 03-01/06,</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Testing</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">7,345</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(L</FONT></TD>
<TD VALIGN="top" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">) Feb. 2003</FONT></TD>
</TR>
<TR>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">HEX 03-09/15,</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Logistics</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">4,435</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(L</FONT></TD>
<TD VALIGN="top" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">) Jan. 2003</FONT></TD>
</TR>
<TR>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">HEX 03-16/18,</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Distribution</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">5,130</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(L</FONT></TD>
<TD VALIGN="top" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">) Jan. 2003</FONT></TD>
</TR>
<TR>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">HEX 01-08</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Power Substation</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">603</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(L</FONT></TD>
<TD VALIGN="top" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">) Jun. 2003 *1</FONT></TD>
</TR>
<TR>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">HEX 07-17/18,</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Testing</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">4,315</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(L</FONT></TD>
<TD VALIGN="top" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">) Nov. 2003</FONT></TD>
</TR>
<TR>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">HEX 07-01</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Testing</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">3,466</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(L</FONT></TD>
<TD VALIGN="top" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">) Jan. 2004</FONT></TD>
</TR>
<TR>
<TD COLSPAN=8 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=8><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Plot 1A, Phase 1</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Testing</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">49,924</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(O</FONT></TD>
<TD VALIGN="top" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
</TR>
<TR>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Bayan Lepas Free Trade Zone</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="left"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="right"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="left"></TD>
<TD></TD>
</TR>
<TR>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">11900 Penang</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="left"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="right"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="left"></TD>
<TD></TD>
</TR>
<TR>
<TD COLSPAN=8 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=8><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">327, Chalongkrung Road,</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Testing</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">11,300</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(O</FONT></TD>
<TD VALIGN="top" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
</TR>
<TR>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Lamplathew, Lat Krabang,</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="left"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="right"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="left"></TD>
<TD></TD>
</TR>
<TR>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Bangkok 10520, Thailand</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="left"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="right"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="left"></TD>
<TD></TD>
</TR>
<TR>
<TD COLSPAN=8 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=8><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Lot No. B7, Kawasan MIEL</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Manufacturing</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">24,142</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(O</FONT></TD>
<TD VALIGN="top" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
</TR>
<TR>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Batang Kali, Phase II,</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="left"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="right"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="left"></TD>
<TD></TD>
</TR>
<TR>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">43300 Batang Kali</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="left"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="right"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="left"></TD>
<TD></TD>
</TR>
<TR>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Selangor Darul Ehsan, Malaysia</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="left"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="right"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="left"></TD>
<TD></TD>
</TR>
</TABLE>
<DIV ALIGN="left"><HR WIDTH="10%" SIZE="1" NOSHADE></DIV>

<TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="4%" ALIGN="left" VALIGN="top"><DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">*1</FONT></DIV>
</TD>
<TD WIDTH="96%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">The Company built and owns a Power Substation building, which building is situated on property that the Company leases. The
lease expires in June 2003, the Company anticipates that similar terms will be offered, at renewal, on such lease and does not believe that material expenses will be incurred.</FONT></DIV>
</TD>
</TR>
</TABLE>
<DIV><FONT SIZE="5">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"> <B>ITEM 3
<A NAME="TX4"></A>
&#151;LEGAL PROCEEDINGS</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On August 24, 1995, the Company was named in a civil action brought against 106 defendants alleging that
they may have caused or contributed to soil and groundwater contamination that required the defendants to pay $3,750,000 to the Federal Environmental Protection Agency to settle. On April 6, 2001, the Company was dismissed from this action and has
no liability.</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company is, from time to time, the subject of litigation claims and assessments arising out of matters
occurring in its normal business operations. In the opinion of management, resolution of these matters will not have a material adverse effect on the Company&#146;s financial statements.</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There are no material proceedings to which any director, officer or affiliate of the Registrant, any
beneficial owner of more than five percent of the Registrant&#146;s common stock or any associate of such person is a party that is adverse to the Registrant or its properties.</FONT></DIV>
<DIV><FONT SIZE="5">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>ITEM 4
<A NAME="TX5"></A>
&#151;SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;None.</FONT></DIV>
<DIV><FONT SIZE="6">&nbsp;</FONT></DIV>
<DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>PART II
<A NAME="TX6"></A>
</B></FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>ITEM 5
<A NAME="TX7"></A>
&#151;MARKET FOR REGISTRANT&#146;S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Registrant&#146;s common stock is traded on the American Stock Exchange under the symbol
&#147;TRT&#148;. The following table sets forth, for the periods indicated, the range of high and low sales prices of our common stock as quoted by AMEX. These prices do not include retail mark-ups, markdowns or commissions:</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>

<TABLE ALIGN="center" WIDTH="506" CELLSPACING=0 CELLPADDING=0>
<TR>
<TH VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>Quarter Ended</B></FONT><FONT SIZE="1"><HR ALIGN="left" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>High</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>Low</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Fiscal 2000</B></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;September 30, 1999</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">4.88</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2.75</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;December 31, 1999</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">4.25</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">3.00</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;March 31, 2000</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">7.00</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">3.63</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;June 30, 2000</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">8.00</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">3.63</FONT></TD>
</TR>
<TR>
<TD COLSPAN=5 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=5><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Fiscal 2001</B></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;September 30, 2000</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">7.00</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">5.50</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;December 31, 2000</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">6.25</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">3.00</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;March 31, 2001</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">4.50</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">3.13</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;June 30, 2001</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">3.70</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">3.00</FONT></TD>
</TR>
<TR>
<TD COLSPAN=5 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=5><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Fiscal 2002</B></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;July 1, 2001 to September 7, 2001</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">4.10</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">3.16</FONT></TD>
</TR>
</TABLE>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Approximately 609 shareholders of record as of September 7, 2001 hold the Registrant&#146;s common stock.
Approximately 2,002,631 shares are held by Cede and Co., a clearinghouse that holds stock certificates in &#147;street&#148; name for an unknown number of shareholders.</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company has never declared any cash dividends on its common stock. Any future determinations as to cash
dividends will depend upon the earnings and financial position of the Company at that time and such other factors as the Board of Directors may deem appropriate. It is anticipated that no dividends will be paid to holders of common stock in the
foreseeable future.</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In December 1999, the Company repriced certain outstanding warrants and options covering an aggregate of
529,480 shares of the Company&#146;s common stock, which had an exercise price in excess of $5.00 per share down to $5.00 per share.</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  In March 2000, the Company amended its outstanding redeemable warrants covering 349,600 shares of Common
Stock that were issued in 1997, and expired in November 2000 and were exercisable in full at $5.00 per share. That amendment provided that, for each two warrants exercised on or before May 10, 2000, the Company would issue to the holder thereof a
new redeemable warrant to purchase one share of the Company&#146;s Common Stock. In response to that amendment, persons holding Warrants covering an aggregate of 73,740 shares of Common Stock exercised their Warrants and received in connection with
that exercise new warrants covering a total of 36,870 shares of Common Stock. The new warrants expire on May 6, 2002, have an exercise price of $8.00 per share and may only be amended or modified by a written instrument signed by the holder or the
Company against whom enforcement of the amendment or modification is sought.</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On September 18, 2000, the Company announced that, for and with respect to any two shares of its Common
Stock issued after that date upon exercise of the Company&#146;s outstanding $5.00 warrants, which shares are held for at least six months after the exercise of those warrants, the Company would grant the holder of those shares a new warrant to
purchase one share of its Common Stock. The new warrants would be exercisable at $8.00 per share, expire two years from the date of grant and otherwise be on the same terms as the $5.00 warrants.</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In response to the foregoing, an aggregate of 19,830 shares of the Company&#146;s Common Stock were issued
upon the exercise of the Company&#146;s $5.00 warrants after September 18, 2000, and, provided those shares are held for at least six months from the date of exercise, the Company issued the holders thereof new warrants covering an aggregate of
9,915 shares. The remaining $5.00 warrants, covering an aggregate of 233,030 shares of the Company&#146;s Common Stock, expired without exercise at the close of business on November 3, 2000.</FONT></DIV>
<DIV><FONT SIZE="5">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>ITEM 6
<A NAME="TX8"></A>
&#151;SELECTED FINANCIAL DATA</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>

<TABLE ALIGN="center" WIDTH="615" CELLSPACING=0 CELLPADDING=0>
<TR>
<TH VALIGN="bottom" ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>June 30,
<BR>
2001</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>June 30,
<BR>
2000</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>June 30,
<BR>
1999</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>June 30,
<BR>
1998</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>June 30,
<BR>
1997</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
</TR>
<TR>
<TH VALIGN="bottom" ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=10 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>(In thousands except share and per share amounts)</B></FONT></TH>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Consolidated Statements of Income</B></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
</TR>
<TR>
<TD COLSPAN=12 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=12><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Net sales</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$36,133</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$26,943</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$21,181</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$21,852</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$21,548</FONT></TD>
</TR>
<TR>
<TD COLSPAN=12 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=12><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Income (loss) from Operations</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,121</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">501</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(207</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">969</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">3,057</FONT></TD>
</TR>
<TR>
<TD COLSPAN=12 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=12><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Net Income</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,163</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,034</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">195</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">831</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,002</FONT></TD>
</TR>
<TR>
<TD COLSPAN=12 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=12><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Net income per share:</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">0.40</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">0.37</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">0.07</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">0.34</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">0.54</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">0.39</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">0.36</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">0.07</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">0.33</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">0.54</FONT></TD>
</TR>
<TR>
<TD COLSPAN=12 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=12><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Weighted average common shares outstanding</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2,884</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2,759</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2,745</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2,413</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,850</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">3,006</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2,895</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2,757</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2,484</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,961</FONT></TD>
</TR>
<TR>
<TD COLSPAN=12 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=12><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Consolidated Balance Sheets</B></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
</TR>
<TR>
<TD COLSPAN=12 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=12><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Current assets</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$15,501</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$17,279</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$12,723</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$14,036</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$13,843</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Current liabilities</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">7,599</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">8,349</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">5,934</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">7,439</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">7,039</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Working capital</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">7,902</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">8,930</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">6,789</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">6,597</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">6,804</FONT></TD>
</TR>
<TR>
<TD COLSPAN=12 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=12><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Total assets</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">24,150</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">22,712</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">18,932</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">19,331</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">18,528</FONT></TD>
</TR>
<TR>
<TD COLSPAN=12 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=12><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Long-term debt and capitalized leases</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,745</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">586</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">962</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">426</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">723</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Shareholders&#146; equity</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$11,609</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$10,448</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;9,051</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;8,763</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;6,463</FONT></TD>
</TR>
</TABLE>
<DIV><FONT SIZE="5">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"> <B>ITEM
<A NAME="TX9"></A>
7&#151;MANAGEMENT&#146;S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (IN THOUSANDS, EXCEPT SHARE AMOUNTS)</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>The following discussion should be read in conjunction with the Company&#146;s Consolidated Financial
Statements, including the related notes thereto, and other financial information included herein. In addition, in order to take advantage of the &#147;safe harbor&#148; provisions of the Private Securities Litigation Reform Act of 1995, we hereby
notify our readers that the factors set forth in &#147;Certain Factors that May Affect Our Future Results&#148; as set forth below in this Item 7, as well as other factors, in the past have affected and in the future could affect our actual results,
and could cause our results for future periods to differ materially from those expressed in any forward looking statements made by or on our behalf, including without limitation those made in this report. In addition, past operating results are not
necessarily indicative of the results to be expected in future periods. See &#147;Note Concerning Forward-Looking Statements&#148; prior to &#147;Part I&#151;Item 1&#151;Business&#148; on page 3.</I></FONT></DIV>
<DIV><FONT SIZE="5">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Year Ended June 30, 2001 (&#147;2001&#148;) Compared to Year Ended June 30, 2000 (&#147;2000&#148;)</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net sales increased by $9,190 or 34.1% from $26,943 in 2000 to $36,133 in 2001, as we were able to stay
ahead of the current downturn in the semiconductor cycle due to our established customer base. However, we believe that due to the current condition of the semiconductor industry and our lower backlog, our first quarter of fiscal year 2002 will have
decreased sales. We are uncertain whether sales will increase in the ensuing quarters of fiscal year 2002; therefore, we anticipate that the current fiscal year will have lower sales than fiscal year 2001.</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Geographically, net sales in the United States increased $1,332 or 12.7% from $10,529 in 2000 to $11,861 in
2001. The increase was attributable to the Artic Thermal Chuck. Net sales for the Southeast Asia operations increased $7,815 or 50.5% from $15,460 in 2000 to $23,275 in 2001 due mainly to higher manufacturing and testing volumes. Net sales for
Europe increased $43 or 4.5% from $954 in 2000 to $997 in 2001. The increase was due primarily to an increase of $321 in testing offset by a decrease of $278 in distribution due to the closing of the European Distribution Operation which was
subsequently transferred to the U.S.</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Manufacturing Segment sales increased $5,107 or 38.2% from $13,361 in 2000 to $18,468 in 2001 due to
higher volumes of the Artic Temperature Controlled Chucks and the COBIS-II Burn-in Board Systems. The Testing Services Segment sales increased $3,389 or 43.9% from $7,723 in 2000 to $11,112 in 2001 due to the introduction of the new HBI technology
and the achievement of the QS 9000 certification. The Distribution Segment increased $694 or 11.9% from $5,859 in 2000 to $6,553 in 2001 due to a slight increase in demand for test equipment and a change in selling emphasis between existing
products.</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company&#146;s cost of sales varies depending on the mix of sector and geographic sales and increased
$6,902 or 34.8% from $19,847 in 2000 to $26,749 in 2001. As a percentage of sales, it increased 0.3% from 73.7% in 2000 to 74% in 2001. The cost as a percentage of sales remained rather constant despite the significant increase in sales and change
in the product mix. Various other factors including unit volumes, yield issues associated with production at factories, ramp of new technologies, variations in inventory valuation and mix of shipments will continue to affect the amount of cost of
sales and the variability of gross margin percentages in future quarters.</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating expenses increased by $1,668 or 25.3% from $6,595 in 2000 to $8,263 in 2001. This increase is
consistent with the level of sales and as a percentage of sales decreased by 1.6% from 24.5% in 2000 to 22.9% in 2001.</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General and Administrative (&#147;G&amp;A&#148;) expenses increased by $1,566 or 34.3% from $4,570 in 2000
to $6,136 primarily due to increases in headcount and related expenses such as payroll and payroll related costs, bonuses, travel and entertainment, insurance and increased depreciation on office equipment and vehicles. Other increases included the
plant expansion in Southeast Asia and the relocation expenses related thereto. As a percentage of sales, G&amp;A was consistent at 17%.</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  Sales expenses increased by $91 or 5% from $1,820 in 2000 to $1,911 in 2001 due to increases in
commissions. As a percentage of sales, selling expenses decreased 1.5% from 6.8% in 2000 to 5.3% in 2001.</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Research and Development increased by $11 or 5.4% from $205 in 2000 to $216 in 2001. This increase is
primarily due to increased payroll and payroll related costs and supplies offset by decreased travel to Original Equipment Manufacturers (OEM&#146;s).</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Manufacturing Segment income from operations increased by $31 or 26.3% from $118 in 2000 to $149 in 2001
due to the economies of scale from the higher volumes of the Artic Temperature Controlled Chucks, Semi-automatic Wet Process Benches and the COBIS-II Burn-in Board Systems. The Testing Services Segment income from operations increased $397 or 101%
from $394 in 2000 to $791 in 2001 due to the increase in volumes afforded by the new HBI Testing Systems. The Distribution Segment income from operations increased by $367 or 114% from a loss of $322 in 2000 to income of $45 in 2001 due to a change
in sales mix from lower margin equipment to more profitable new technology products. Corporate operating profit was reduced by $175 or 56.3% from $311 in 2000 to $136 in 2001 by reductions in overhead charged through to divisions and subsidiaries in
order to afford divisions and all subsidiaries greater control locally.</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense increased in 2001 by $107 or 116.3%, from $92 in 2000 to $199 in 2001, due to increases in
lines of credit, capitalized leases and financing activity for capital expenditures.</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other income has decreased by $410 or 36.7% from $1,116 in 2000 to $706 in 2001 primarily due to costs in
2000 associated with the closure of the Company&#146;s Kuala Lumpur, Malaysia facility. The gain on sale of building relates to one of the Company&#146;s Singapore facilities. The Company also reversed an accrual of $295 that was held for the
settlement of the civil action, which subsequently was dismissed, in which the Company was named along with 106 other defendants that alleged that they may have caused or contributed to soil and underground contamination.</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The effective tax rate for the year ended June 30, 2001 was 22% compared to 7% for the comparable prior year
period. The increase in tax rate was primarily due from higher income from foreign operations.</FONT></DIV>
<DIV><FONT SIZE="5">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Year Ended June 30, 2000 (&#147;2000&#148;) Compared to Year Ended June 30, 1999 (&#147;1999&#148;)</B></FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net sales increased by $5,762 or 27.2% from $21,181 in 1999 to $26,943 in 2000 due to the worldwide upturn
in the semiconductor industry.</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Geographically, the increase in sales was mainly seen in the U.S., net sales increased $5,589 or 113.2% from
$4,939 in 1999 to $10,529 in 2000. 32% and 68% of the increase were attributable to the Artic Thermal Chuck and Semi-automatic Wet Process Benches, respectively. Net sales for the Southeast Asia operations increased $415 or 2.8% from $15,045 in 1999
to $15,460 in 2000 due mainly to higher manufacturing volume in Singapore and testing volume in Malaysia. Net sales for Europe decreased $243 or 25% from $1,197 in 1999 to $954 in 2000.</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Manufacturing Segment sales increased $6,531 or 95.3% from $6,853 in 1999 to $13,384 in 2000 due to
higher volumes of the Artic Temperature Controlled Chucks, Semi-automatic Wet Process Benches and the COBIS-II Burn-in Board Systems. The Testing Services Segment sales increased $484 or 6.7% from $7,239 in 1999 to $7,723 in 2000. The Distribution
Segment declined $1,253 or 17.7% from $7,089 in 1999 to $5,836 in 2000 as a result of lower demand in Southeast Asia.</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cost of sales increased $4,343 or 28% from $15,504 in 1999 to $19,847 in 2000. As a percentage of sales, it
increased 0.5% from 73.2% in 1999 to 73.7% in 2000. The cost as a percentage of sales remained rather constant despite the significant increase in sales.</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating expenses increased by $711 or 12.1% from $5,884 in 1999 to $6,595 in 2000 in order to cope with
the increased demand in sales and provision for the downsizing of the facility in Kuala Lumpur. In addition, the Company&#146;s subsidiary, Universal Systems moved to a new facility in February 1999.</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  The Manufacturing Segment income from operations increased by $1,592 or 108% from a loss of $1,474 in 1999
to a profit of $118 in 2000 due to the economies of scale from the higher volumes of the Artic Temperature Controlled Chucks, Semi-automatic Wet Process Benches and the COBIS-II Burn-in Board Systems. The Testing Services Segment income from
operations declined $492 or 55.5% from $886 in 1999 to $394 in 2000. This decrease is primarily due to price erosion from increased competitive pressure and intensified price-based competition. The Distribution Segment income from operations
declined by $326 from income of $4 in 1999 to a loss of $322 in 2000 due to the sales mix of the products sold. Corporate operating profit was reduced by $66 or 17.5% from $377 in 1999 to $311 in 2000 due to increased costs.</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Research and development expenses decreased by $142 to $205 in 2000 from $347 in 1999 due to the maturity in
the development of a range of Artic Temperature Controlled Chucks.</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense decreased in 2000 by $16 or 14.8%, from $108 in 1999 to $92 in 2000, due to decreases in
lines of credit and capitalized leases.</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other income has decreased by $377 or 47.3% from $797 in 1999 to $420 in 2000 primarily due to costs in 2000
associated with the closure of the Company&#146;s Kuala Lumpur, Malaysia facility. The gain on sale of building relates to one of the Company&#146;s Singapore facilities.</FONT></DIV>
<DIV><FONT SIZE="5">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Liquidity and Capital Resources</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash generated by operating activities during the year ended June 30, 2001 was $5,012 compared to $1,164
generated by operating activities during the year ended June 30, 2000. The cash flow from operating activities in 2001 was comprised of $1,163 from net income, a decrease accounts receivables, inventories and other receivables of $1,671, $838 and
$683 respectively, and a decrease in prepaid expenses and other current assets of $320, $1,632 of non-cash depreciation and amortization. These amounts were partially offset by positive cash flow comprised of $1 gain on sale of property and
equipment, a decrease in accounts payable and accrued expenses of $1,096, $74 in income taxes payable, $71 in deferred income taxes and $53 in minority interest.</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used by investing activities during 2001 was $7,152 compared to $549 used by investing activities
in the 2000 year. The net cash used by investing activities was a result of (1) capital expenditures of $4,451 which included a Power Sub-station and enhanced air conditioning for its new HBI Test facilities in Southeast Asia coupled with further
investment in the European Operations Test Equipment and U.S. Operations for Manufacturing equipment, (2) an increase in cash deposits of $2,541 (3) an increase in other assets of $263 offset by (4) proceeds from sale of property, plant and
equipment of $103.</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by financing activities during 2001 was $1,516 compared to $138 used by financing
activities in the 2000 year. The cash outflow from financing activities include $1,698 of payments on lines of credit, long term obligations and capitalized leases, which was offset by a cash inflow of $2,858 from additional borrowing under lines of
credit and long term obligations and the issuance of common stock in the Company of $356 upon exercise of options and warrants.</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash deposits have historically been the Company&#146;s primary source of liquidity. The Company
has a committed line of credit with a bank, aggregating $2,469 and lines of credit with various other banks, totaling $823, which were used to support short-term borrowing and commercial paper comprised of letters of credit, trust receipts, shipping
and banker&#146;s guarantees. These lines of credit and their anticipated cyclical increases are sufficient to finance buildups in inventories and other cash requirements.</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash deposits and corporate guarantees (the Company guarantees, but subsidiaries are the primary debtor)
collateralize the first line of credit with a bank, aggregating $2,469, and contain certain debt covenants including maintaining a minimum net worth. The Company was in compliance with all debt covenants at June 30, 2001. There were no borrowings
under all these lines at June 30, 2001 and these lines of credit expire between December 2001 and July 2002. Interest rates for these lines are from between 6.25% and 8.5%.</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  The Company has various other machinery term loans, capitalized lease obligations and notes payable used
for financing equipment and leasehold improvements with various banks and lending institutions aggregating $2,665. The equipment and improvements financed collateralizes these loans. Interest rates range from 4.63% to 13.39%. These term loans expire
between March 2002 and July 2007 (see Note 7 to the Consolidated Financial Statements).</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company has two credit agreements that provide for mortgage loans totaling $350. Borrowings under the
mortgage loans amounted to $112 and $64 as of June 30, 2001. Interest is at the bank&#146;s prime rate (4.88% at June 30, 2001) plus 3.52% on the first loan and 3.0% on the second loan. The loans will expire in July 2007 and January 2008,
respectively.</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Approximately $2,988 of cash deposits are held in the Company&#146;s 55% owned Malaysian subsidiary. $2,420
of this cash is denominated in the currency of Malaysia. On September 1, 1998, the government of Malaysia announced its intention to limit the movement of certain cash balances denominated in Malaysian currency. Of the $2,420, $1,471 is currently
available for movement, as the Central Bank of Malaysia has authorized $1,800 for movement and the Company has utilized $329 of this authorization. During 2001, limits on the movement of cash balances were removed. In addition, approximately $4,098
is available as dividend (after making deductions for income tax) pursuant to Malaysian regulations in force from July 1, 2000. There is an additional amount of $1,205 that is used as collateral for the Singapore credit facility.</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In March 2000, the Company executed a letter of intent to acquire all of the issued and outstanding capital
stock of Thermo Voltek Corp. (doing business as KeyTek), an indirect, wholly owned subsidiary of Thermo Electron Corporation. Subsequent to September 30, 2000, the Company elected not to pursue the acquisition of KeyTek due to the uncertainty in the
global electronics markets.</FONT></DIV>
<DIV><FONT SIZE="6">&nbsp;</FONT></DIV>
<DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>CERTAIN RISKS THAT MAY AFFECT OUR FUTURE RESULTS</B></FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We hereby caution stockholders, prospective investors in Trio-Tech International and other readers that the
following important factors, among others, in some cases have affected, and in the future could affect, our stock price or cause our actual results for the fiscal year ending June 30, 2001 and future fiscal years and quarters to differ materially
from those expressed in any forward-looking statements, oral or written, made by or on behalf of us. In particular, due to the condition of the semiconductor industry and our lower backlog, we believe we will have decreased sales in the first
quarter of fiscal year 2002. We also are uncertain if sales will increase in the ensuing quarters of fiscal year 2002. Therefore, we believe that the current fiscal year will have lower sales than fiscal year 2001.</FONT></DIV>
<DIV><FONT SIZE="5">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Our operating results are affected by a variety of factors</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our operating results are affected by a wide variety of factors that could materially affect revenues and
profitability or lead to significant variability of quarterly or annual operating results. These factors include, among others, factors relating to:</FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>

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<TR>
<TD WIDTH="4%" ALIGN="left" VALIGN="top"></TD>
<TD WIDTH="2%" ALIGN="left" VALIGN="top"><DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"></FONT><FONT SIZE="2" COLOR="#000000" FACE="Wingdings">&#159;</FONT><FONT SIZE="2" COLOR="#000000"
FACE="'Times New Roman', Times"></FONT></DIV>
</TD>
<TD WIDTH="94%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">economic and market conditions in the semiconductor industry;</FONT></DIV>
</TD>
</TR>
</TABLE>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>

<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="4%" ALIGN="left" VALIGN="top"></TD>
<TD WIDTH="2%" ALIGN="left" VALIGN="top"><DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"></FONT><FONT SIZE="2" COLOR="#000000" FACE="Wingdings">&#159;</FONT><FONT SIZE="2" COLOR="#000000"
FACE="'Times New Roman', Times"></FONT></DIV>
</TD>
<TD WIDTH="94%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">market acceptance of our products and services;</FONT></DIV>
</TD>
</TR>
</TABLE>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>

<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="4%" ALIGN="left" VALIGN="top"></TD>
<TD WIDTH="2%" ALIGN="left" VALIGN="top"><DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"></FONT><FONT SIZE="2" COLOR="#000000" FACE="Wingdings">&#159;</FONT><FONT SIZE="2" COLOR="#000000"
FACE="'Times New Roman', Times"></FONT></DIV>
</TD>
<TD WIDTH="94%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">changes in technologies in the semiconductor industry, which could affect demand for our products and services;</FONT></DIV>
</TD>
</TR>
</TABLE>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>

<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="4%" ALIGN="left" VALIGN="top"></TD>
<TD WIDTH="2%" ALIGN="left" VALIGN="top"><DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"></FONT><FONT SIZE="2" COLOR="#000000" FACE="Wingdings">&#159;</FONT><FONT SIZE="2" COLOR="#000000"
FACE="'Times New Roman', Times"></FONT></DIV>
</TD>
<TD WIDTH="94%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">changes in testing processes;</FONT></DIV>
</TD>
</TR>
</TABLE>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>

<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="4%" ALIGN="left" VALIGN="top"></TD>
<TD WIDTH="2%" ALIGN="left" VALIGN="top"><DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"></FONT><FONT SIZE="2" COLOR="#000000" FACE="Wingdings">&#159;</FONT><FONT SIZE="2" COLOR="#000000"
FACE="'Times New Roman', Times"></FONT></DIV>
</TD>
<TD WIDTH="94%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">the impact of competition;</FONT></DIV>
</TD>
</TR>
</TABLE>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>

<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="4%" ALIGN="left" VALIGN="top"></TD>
<TD WIDTH="2%" ALIGN="left" VALIGN="top"><DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"></FONT><FONT SIZE="2" COLOR="#000000" FACE="Wingdings">&#159;</FONT><FONT SIZE="2" COLOR="#000000"
FACE="'Times New Roman', Times"></FONT></DIV>
</TD>
<TD WIDTH="94%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">the lack of long-term purchase or supply agreements with customers and vendors;</FONT></DIV>
</TD>
</TR>
</TABLE>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>

<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="4%" ALIGN="left" VALIGN="top"></TD>
<TD WIDTH="2%" ALIGN="left" VALIGN="top"><DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"></FONT><FONT SIZE="2" COLOR="#000000" FACE="Wingdings">&#159;</FONT><FONT SIZE="2" COLOR="#000000"
FACE="'Times New Roman', Times"></FONT></DIV>
</TD>
<TD WIDTH="94%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">changes in military or commercial testing specifications, which could affect the market for our products and
services;</FONT></DIV>
</TD>
</TR>
</TABLE>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>

<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="4%" ALIGN="left" VALIGN="top"></TD>
<TD WIDTH="2%" ALIGN="left" VALIGN="top"><DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"> </FONT><FONT SIZE="2" COLOR="#000000" FACE="Wingdings">&#159;</FONT><FONT SIZE="2" COLOR="#000000"
FACE="'Times New Roman', Times"></FONT></DIV>
</TD>
<TD WIDTH="94%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">difficulties in profitably integrating acquired businesses, if any, into the Company;</FONT></DIV>
</TD>
</TR>
</TABLE>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>

<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="4%" ALIGN="left" VALIGN="top"></TD>
<TD WIDTH="2%" ALIGN="left" VALIGN="top"><DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"></FONT><FONT SIZE="2" COLOR="#000000" FACE="Wingdings">&#159;</FONT><FONT SIZE="2" COLOR="#000000"
FACE="'Times New Roman', Times"></FONT></DIV>
</TD>
<TD WIDTH="94%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">the loss of key personnel or the shortage of available skilled employees;</FONT></DIV>
</TD>
</TR>
</TABLE>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>

<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="4%" ALIGN="left" VALIGN="top"></TD>
<TD WIDTH="2%" ALIGN="left" VALIGN="top"><DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"></FONT><FONT SIZE="2" COLOR="#000000" FACE="Wingdings">&#159;</FONT><FONT SIZE="2" COLOR="#000000"
FACE="'Times New Roman', Times"></FONT></DIV>
</TD>
<TD WIDTH="94%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">international political or economic events;</FONT></DIV>
</TD>
</TR>
</TABLE>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>

<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="4%" ALIGN="left" VALIGN="top"></TD>
<TD WIDTH="2%" ALIGN="left" VALIGN="top"><DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"></FONT><FONT SIZE="2" COLOR="#000000" FACE="Wingdings">&#159;</FONT><FONT SIZE="2" COLOR="#000000"
FACE="'Times New Roman', Times"></FONT></DIV>
</TD>
<TD WIDTH="94%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">currency fluctuations; and</FONT></DIV>
</TD>
</TR>
</TABLE>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>

<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="4%" ALIGN="left" VALIGN="top"></TD>
<TD WIDTH="2%" ALIGN="left" VALIGN="top"><DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"></FONT><FONT SIZE="2" COLOR="#000000" FACE="Wingdings">&#159;</FONT><FONT SIZE="2" COLOR="#000000"
FACE="'Times New Roman', Times"></FONT></DIV>
</TD>
<TD WIDTH="94%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">other technological, economic, financial and regulatory factors beyond our control.</FONT></DIV>
</TD>
</TR>
</TABLE>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unfavorable changes in these or other factors could materially and adversely affect our financial condition
or results of operations. We may not be able to generate revenue growth and any revenue growth that is achieved may not be sustained. Our business, results of operations and financial condition would be materially adversely affected if operating
expenses increase and are not subsequently followed by increased revenues. Although we have reported profits for the twenty-eight most recent consecutive quarters, we may not be able to sustain such profitability in the future and do not expect to
do so in the first quarter of the current fiscal year.</FONT></DIV>
<DIV><FONT SIZE="5">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>The semiconductor industry cycles have a large effect on our business</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our business depends primarily upon the capital expenditures of semiconductor manufacturers, assemblers and
other testing companies worldwide. These industries depend on the current and anticipated market demand for integrated circuits and products utilizing semiconductor devices. The global semiconductor industry generally, and the semiconductor testing
equipment industry in particular, are volatile and cyclical, with periodic capacity shortages and excess capacity. In periods of excess capacity, the industry sharply cuts its purchases of capital equipment, including our distributed products, and
reduces testing volumes, including our testing services. Excess capacity also causes downward pressure on the selling prices for our products and services.</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our operating results have been adversely affected by past downturns and slowdowns. There is no assurance
that there will not be downturns or slowdowns in the future that may adversely affect our financial condition or operating results. In addition, if one or more of our primary customers reduces its or their purchases or use of our products or testing
services, our financial results could be materially and adversely affected. We anticipate that we will continue to be primarily dependent on the semiconductor industry for the foreseeable future.</FONT></DIV>
<DIV><FONT SIZE="5">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Rapid technological changes may make our products obsolete or result in decreased prices or increased expenses</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Technology changes rapidly in the semiconductor industry and may make our services or products obsolete.
Advances in technology may lead to significant price erosion for products tested with our older testing technologies. Our success will depend in part on our ability to develop and offer more advanced testing technologies and processes in the future,
to anticipate both future demand and the technology to supply that demand, to enhance our current products and services, to provide those products and services at competitive prices on a timely and cost-effective basis and to achieve market
acceptance of those products and services. To accomplish these goals, we may be required to incur significant engineering expenses. As new products or services are introduced, we may experience warranty claims or product returns. We may not be able
to accomplish these goals correctly or timely enough. If we fail in our efforts, our products and services may become obsolete or less competitive.</FONT></DIV>
<DIV><FONT SIZE="5">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Our dependence on international sales involves significant risk</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sales and services to customers outside of the United States accounted for approximately 69%, 48% and 65% of
our net revenues for fiscal 2001, 2000 and 1999, respectively. Approximately 65%, 57% and 71% of our net revenues in fiscal 2001, 2000 and 1999, respectively, were generated from business in Southeast Asia. We expect that our non-U.S. sales and
services will continue to generate the major part of our future revenues.
Testing services in Southeast Asia were performed primarily for American companies, and to a lesser extent German companies, selling products and doing business in that region. International business operations may be adversely affected by many
factors including fluctuations in exchange rates, imposition of government controls, trade restrictions, political, economic and business events and social and cultural differences.</FONT></DIV>
<DIV><FONT SIZE="5">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>We may incur losses due to foreign currency fluctuations</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Significant portions of our revenues are denominated in Singapore, Malaysian and other currencies.
Consequently, a portion of our costs, revenues and operating margins may be affected by fluctuations in exchange rates, primarily between the U.S. Dollar and such foreign currencies. We are also affected by fluctuations in exchange rates if there is
a mismatch between our foreign currency denominated assets and liabilities. Foreign currency adjustments resulted in a decrease of $358 to shareholders&#146; equity for fiscal 2001, a decrease of $50 to shareholders&#146; equity for fiscal 2000 and
an increase of $147 to shareholders&#146; equity for fiscal 1999.</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;From time to time, we try to partially mitigate the effects of currency fluctuations over the short term by
purchasing non-Southeast Asian currency denominated short-term instruments. We also try to reduce our risks by purchasing certain equipment and supplies in U.S. Dollars and seeking payment, when possible, in U.S. Dollars. However, we may not be
successful in our attempts to mitigate our exposure to exchange rate fluctuations. Those fluctuations could have a material adverse effect on the Company&#146;s financial results.</FONT></DIV>
<DIV><FONT SIZE="5">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>We do not rely on patents to protect our products or technology</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We hold U.S. patents relating to our pressurization humidity testing equipment and certain aspects of our
Arctic temperature test systems. Additionally, in 2001, we were granted patents for certain aspects of our new ranges of Arctic temperature chucks. However, generally we do not rely on patent or trade secret protection for our products or
technology. Competitors may be able to copy and replicate our technology and designs. Competitors may develop technologies similar to or more advanced than ours. We cannot assure you that our current or future products will not be copied or will not
infringe on the patents of others.</FONT></DIV>
<DIV><FONT SIZE="5">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Competition</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The semiconductor equipment and testing industries are intensely competitive. Significant competitive
factors include price, technical capabilities, quality, automation, reliability, product availability and customer service. We face competition from established and potential new competitors, many of whom have greater financial, engineering,
manufacturing and marketing resources than our Company&#146;s resources. New products or testing facilities offered by our competitors could cause a decline in our revenues or a loss of market acceptance of our existing products and services.
Increased competitive pressure could also lead to intensified price-based competition. Price-based competition may result in lower prices, adversely affecting our operating results.</FONT></DIV>
<DIV><FONT SIZE="5">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Customer concentration</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The semiconductor manufacturing industry is highly concentrated, with a relatively small number of large
manufacturers and assemblers accounting for a substantial portion of our revenues from product sales and testing revenues. Our experience has been that sales to particular customers may fluctuate significantly from quarter to quarter and year to
year. In fiscal 2001, 2000, and 1999, sales of equipment and services to our two largest customers accounted for approximately 40%, 28% and 26%, respectively, of our net revenues. Our ability to maintain close, satisfactory relationships with our
customers is essential to our stability and growth. The loss of or reduction or delay in orders from our significant customers, or delays in collecting accounts receivable from our significant customers, could adversely affect our financial
condition and results of operations.</FONT></DIV>
<DIV><FONT SIZE="5">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"> <B>Limited market for certain of our products and services</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If our competitors or we sell testing equipment to semiconductor manufacturers and assemblers, the
likelihood that they will make further purchases of such equipment, or that they will contract for testing services by our laboratories, may be affected. Although military or other specifications require certain testing to be done by independent
laboratories, over time other current customers may have less need for our testing services We believe that there is a growing trend toward outsourcing of the integrated circuit test process. As a result, we anticipate continued growth in the test
laboratory business. However, in an attempt to diversify our sales mix, we may seek to develop and introduce new or advanced products, and to acquire other companies in the semiconductor equipment manufacturing business.</FONT></DIV>
<DIV><FONT SIZE="5">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Acquisition and integration of new businesses could disrupt our ongoing business, distract management and employees, increase our expenses and adversely affect our
business</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We anticipate that a portion of any future growth will be accomplished through the acquisition of other
entities. The success of those acquisitions will depend, in part, on our ability to integrate the acquired personnel, operations, products, services and technologies into our organization, to retain and motivate key personnel of the acquired
entities and to retain the customers of those entities. We may not be able to identify suitable acquisition opportunities, obtain financing on acceptable terms to bring the acquisition to fruition or to integrate such personnel, operations, products
or services. The process of identifying and closing acquisition opportunities and integrating acquisitions into our operations may distract our management and employees, disrupt our ongoing business, increase our expenses and materially and
adversely affect our operations. We may also be subject to certain other risks if we acquire other entities, such as the assumption of additional liabilities. We may issue additional equity securities or incur debt to pay for future
acquisition.</FONT></DIV>
<DIV><FONT SIZE="5">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>We are dependent on key suppliers</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have no written contracts with any of our key suppliers. Our key suppliers may terminate their
relationships with us at any time without notice. We cannot assure you that we will be able to find satisfactory replacement suppliers or that new suppliers would not be more expensive than the current suppliers if any of our key suppliers were to
terminate their relationship with us.</FONT></DIV>
<DIV><FONT SIZE="5">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>We are highly dependent on key personnel</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our success has depended, and, to a large extent will depend, on the continued services of S.W. Yong, our
Chief Executive Officer and President, Victor H. M. Ting, our Vice President and Chief Financial Officer, and our other key senior executives and engineering, marketing, sales, productions and other personnel. We do not have an employment agreement
with Mr. Yong or Mr. Ting, but we are the beneficiary of &#147;key man&#148; life insurance in the amount of $6 million on Mr. Yong and $2 million on Mr. Ting. The Company also has &#147;key man&#148; life insurance in the amount of $3 million on
Tony DiPiero, the President of our subsidiary Universal Systems. The loss of these key personnel, who would be difficult to replace, could harm our business and operating results. Competition for management in our industry is intense and we may be
unsuccessful in attracting and retaining the executive management and other key personnel that we require.</FONT></DIV>
<DIV><FONT SIZE="5">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Our management has significant influence over corporate decisions</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Currently our officers and directors and their affiliates beneficially own 31% of the outstanding shares of
common stock, including options held by them that are exercisable within 60 days of the date of this 10-K. As a result, they may be able to significantly influence matters requiring approval of the shareholders, including the election of directors,
and may be able to delay or prevent a change in control of the Company.</FONT></DIV>
<DIV><FONT SIZE="5">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>We have not paid cash dividends</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have never paid any cash dividends on our common stock. We anticipate that the future earnings, if any,
will be retained for use in the business or for other corporate purposes. We do not expect to pay cash dividends on our common stock in the future.</FONT></DIV>
<DIV><FONT SIZE="5">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"> <B>Possible dilutive effect of outstanding options and warrants</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of June 30, 2001, there were 642,165 shares of common stock reserved for issuance upon exercise of
outstanding stock options and warrants. The outstanding options and warrants are currently exercisable at exercise prices ranging from $3.67 to $8.00 per share. We anticipate that the trading price of our common stock at the time of exercise of any
such outstanding options or warrants will exceed the exercise price under those options and warrants. Thus such exercise will have a dilutive effect on our shareholders.</FONT></DIV>
<DIV><FONT SIZE="5">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>The market price for our common stock is subject to fluctuation</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The trading price of our common stock has from time to time fluctuated widely. The trading price may
similarly fluctuate in the future in response to quarter-to-quarter variations in our operating results, announcements of innovations or new products by us or our competitors, general conditions in the semiconductor industry and other events or
factors. In addition, in recent years, broad stock market indices in general, and the securities of technology companies in particular, have experienced substantial price fluctuations. Fluctuations in the trading price of our common stock may
adversely affect our liquidity.</FONT></DIV>
<DIV><FONT SIZE="5">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>ITEM 7A
<A NAME="TX10"></A>
&#151;QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Interest Rate Risk</I>.&nbsp;&nbsp;&nbsp;&nbsp;We do not use derivative financial instruments in our
investment portfolio. Our investment portfolio is generally comprised of cash deposits. Our policy is to place these investments in instruments that meet high credit quality standards. These securities are subject to interest rate risk, and could
decline in value if interest rates fluctuate. Due to the short duration and conservative nature of our investment portfolio, we do not expect any material loss with respect to our investment portfolio.</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Foreign Currency Exchange Rate Risk</I>.&nbsp;&nbsp;&nbsp;&nbsp;Although the majority of our sales, cost
of manufacturing and marketing are transacted in U.S. dollars, significant portions of our revenues are denominated in Singapore, Malaysian and other currencies. Consequently, a portion of our costs, revenues and operating margins may be affected by
fluctuations in exchange rates, primarily between the U.S. Dollar and such foreign currencies. We are also affected by fluctuations in exchange rates if there is a mismatch between our foreign currency denominated assets and liabilities. Foreign
currency adjustments resulted in a decrease of $358 to shareholders&#146; equity for fiscal 2001, a decrease of $50 to shareholders&#146; equity for fiscal 2000 and an increase of $147 to shareholders&#146; equity for fiscal 1999.</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;From time to time, we try to partially mitigate the effects of currency fluctuations over the short term by
the hedging of foreign currency exposure through U.S. Dollar borrowings and forward foreign exchange rate contracts, as well as purchasing non-Southeast Asian currency denominated short-term instruments. We also try to reduce our risks by purchasing
certain equipment and supplies in U.S. Dollars and seeking payment, when possible, in U.S. Dollars. However, we may not be successful in our attempts to mitigate our exposure to exchange rate fluctuations. Those fluctuations could have a material
adverse effect on the Company&#146;s financial results.</FONT></DIV>
<DIV><FONT SIZE="5">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>ITEM 8
<A NAME="TX11"></A>
&#151;FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The information called for by this item is included in the Company&#146;s consolidated financial statements
beginning on page 25 of this Annual Report on Form 10-K.</FONT></DIV>
<DIV><FONT SIZE="5">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>ITEM 9
<A NAME="TX12"></A>
&#151;CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;None</FONT></DIV>
<DIV><FONT SIZE="6">&nbsp;</FONT></DIV>
<DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"> <B>PART III
<A NAME="TX13"></A>
</B></FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The information required by Items 10 through 13 of Part III of this Form 10-K is hereby incorporated by
reference from the Company&#146;s Proxy Statement to be filed with the Securities and Exchange Commission within 120 days after the end of fiscal 2001.</FONT></DIV>
<DIV><FONT SIZE="6">&nbsp;</FONT></DIV>
<DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>PART IV
<A NAME="TX14"></A>
</B></FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>ITEM 14
<A NAME="TX15"></A>
&#151;EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;(1and 2)&nbsp;&nbsp;&nbsp;&nbsp;FINANCIAL STATEMENTS AND SCHEDULES:</FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>

<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="4%" ALIGN="left" VALIGN="top"></TD>
<TD ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following financial statements, including notes thereto and the
independent auditors&#146; report with respect thereto, are filed as part of this Annual Report on Form 10-K, starting on page 23 hereof:</FONT></DIV>
</TD>
</TR>
</TABLE>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>

<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="8%" ALIGN="left" VALIGN="top"></TD>
<TD ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;Independent Auditors&#146; Report</FONT></DIV>
</TD>
</TR>
</TABLE>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>

<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="8%" ALIGN="left" VALIGN="top"></TD>
<TD ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;Consolidated Balance Sheets</FONT></DIV>
</TD>
</TR>
</TABLE>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>

<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="8%" ALIGN="left" VALIGN="top"></TD>
<TD ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;Consolidated Statements of Income and Comprehensive
Income</FONT></DIV>
</TD>
</TR>
</TABLE>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>

<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="8%" ALIGN="left" VALIGN="top"></TD>
<TD ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;Consolidated Statements of Shareholders&#146;
Equity</FONT></DIV>
</TD>
</TR>
</TABLE>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>

<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="8%" ALIGN="left" VALIGN="top"></TD>
<TD ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;&nbsp;Consolidated Statements of Cash Flows</FONT></DIV>
</TD>
</TR>
</TABLE>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>

<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="8%" ALIGN="left" VALIGN="top"></TD>
<TD ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;&nbsp;Notes to Consolidated Financial Statements</FONT></DIV>
</TD>
</TR>
</TABLE>
<DIV><FONT SIZE="5">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;REPORTS ON FORM 8-K:</FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>

<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="4%" ALIGN="left" VALIGN="top"></TD>
<TD ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company did not file any reports on Form 8-K during the quarter ended
June 30, 2001.</FONT></DIV>
</TD>
</TR>
</TABLE>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;EXHIBITS:</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>

<TABLE ALIGN="center" WIDTH="614" CELLSPACING=0 CELLPADDING=0>
<TR>
<TH VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>Number</B></FONT><FONT SIZE="1"><HR ALIGN="left" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>Description</B></FONT><FONT SIZE="1"><HR ALIGN="left" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
</TR>
<TR>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;3.1</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Articles of Incorporation, as currently in effect. [Previously filed as Exhibit 3.1 to the Annual Report
<BR>
on Form 10-K for June 30, 1988.]</FONT></TD>
</TR>
<TR>
<TD COLSPAN=3 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=3><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;3.2</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Bylaws, as currently in effect. [Previously filed as Exhibit 3.2 to the Annual Report on Form 10-K for
<BR>
June 30, 1988.]</FONT></TD>
</TR>
<TR>
<TD COLSPAN=3 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=3><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;4.1</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Form of Redeemable Warrants to purchase Common Stock issued in May 2000.</FONT></TD>
</TR>
<TR>
<TD COLSPAN=3 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=3><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">10.5</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Real Estate Lease dated December 15, 1986, between San Fernando Associates and Registrant.
<BR>
[Previously filed as Exhibit 10.17 to the Annual Report on Form 10-K for June 28, 1987.]</FONT></TD>
</TR>
<TR>
<TD COLSPAN=3 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=3><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">10.9</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Credit Facility Letter dated January 4, 2001, between Trio-Tech International Pte. Ltd. and Standard
<BR>
Chartered Bank*</FONT></TD>
</TR>
<TR>
<TD COLSPAN=3 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=3><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">10.10</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1998 Stock Option Plan. [Previously filed as Exhibit 1 to the Company&#146;s proxy statement filed under
<BR>
regulation 14A on October 27, 1997].</FONT></TD>
</TR>
<TR>
<TD COLSPAN=3 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=3><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">10.11</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Directors Stock Option Plan. [Previously filed as Exhibit 2 to the Company&#146;s proxy statement filed
<BR>
under regulation 14A on October 27, 1997].</FONT></TD>
</TR>
<TR>
<TD COLSPAN=3 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=3><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">10.12</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Real Estate Lease dated February 1, 1999 between Martinvale Development Company and Universal
<BR>
Systems.</FONT></TD>
</TR>
<TR>
<TD COLSPAN=3 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=3><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">10.13</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Real Estate Lease dated February 16, 2001 between JTC Corporation and Trio-Tech International PTE
<BR>
for Block 1004 Toa Payoh North #07-01/07 and #03-01/03. *</FONT></TD>
</TR>
</TABLE>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>

<TABLE ALIGN="center" WIDTH="615" CELLSPACING=0 CELLPADDING=0>
<TR>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">10.14</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Real Estate Lease dated May 13, 1999 between JTC Corporation and Trio-Tech International PTE for
<BR>
Block 1004 Toa Payoh North #03-16/17. *</FONT></TD>
</TR>
<TR>
<TD COLSPAN=3 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=3><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">10.15</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Real Estate Lease dated October 13, 1999 between JTC Corporation and Trio-Tech International PTE
<BR>
for Block 1004 Toa Payoh North #01-08/15. *</FONT></TD>
</TR>
<TR>
<TD COLSPAN=3 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=3><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">10.16</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Real Estate Lease dated December 7, 2000 between JTC Corporation and Trio-Tech International PTE
<BR>
for Block 1004 Toa Payoh North #01-16/7. *</FONT></TD>
</TR>
<TR>
<TD COLSPAN=3 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=3><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">10.17</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Real Estate Lease dated January 3, 2000 between JTC Corporation and Trio-Tech International PTE for
<BR>
Block 1008 Toa Payoh North #03-01/06. *</FONT></TD>
</TR>
<TR>
<TD COLSPAN=3 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=3><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">10.18</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Real Estate Lease dated October 13, 1999 between JTC Corporation and Trio-Tech International PTE
<BR>
for Block 1008 Toa Payoh North #03-09/15 and #03-16/18. *</FONT></TD>
</TR>
<TR>
<TD COLSPAN=3 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=3><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">10.19</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Real Estate Lease dated May 2, 2000 between JTC Corporation and Trio-Tech International PTE for
<BR>
Block 1008 Toa Payoh North #01-08. *</FONT></TD>
</TR>
<TR>
<TD COLSPAN=3 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=3><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">10.20</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Real Estate Lease dated September 12, 2000 between JTC Corporation and Trio-Tech International PTE
<BR>
for Block 1008 Toa Payoh North #07-17/18. *</FONT></TD>
</TR>
<TR>
<TD COLSPAN=3 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=3><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">10.21</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Real Estate Lease dated October 30, 2000 between JTC Corporation and Trio-Tech International PTE
<BR>
for Block 1008 Toa Payoh North #07-01. *</FONT></TD>
</TR>
<TR>
<TD COLSPAN=3 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=3><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">21.1</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Subsidiaries of the Registrant (100% owned by the Registrant except as otherwise stated):</FONT></TD>
</TR>
<TR>
<TD COLSPAN=3 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=3><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="top" ALIGN="left"><FONT SIZE="3" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Trio-Tech International Pte. Ltd., a Singapore Corporation</FONT></TD>
</TR>
<TR>
<TD COLSPAN=3 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=3><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="top" ALIGN="left"><FONT SIZE="3" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Trio-Tech Test Services Pte. Ltd., a Singapore Corporation</FONT></TD>
</TR>
<TR>
<TD COLSPAN=3 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=3><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="top" ALIGN="left"><FONT SIZE="3" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Trio-Tech Reliability Services, a California Corporation</FONT></TD>
</TR>
<TR>
<TD COLSPAN=3 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=3><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="top" ALIGN="left"><FONT SIZE="3" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Express Test Corporation, A California Corporation</FONT></TD>
</TR>
<TR>
<TD COLSPAN=3 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=3><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="top" ALIGN="left"><FONT SIZE="3" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">European Electronic Test Center, Ltd., A Cayman Islands Corporation</FONT></TD>
</TR>
<TR>
<TD COLSPAN=3 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=3><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="top" ALIGN="left"><FONT SIZE="3" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Trio-Tech Malaysia, a Malaysia Corporation (55% owned by the Registrant)</FONT></TD>
</TR>
<TR>
<TD COLSPAN=3 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=3><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="top" ALIGN="left"><FONT SIZE="3" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Trio-Tech Kuala Lumpur, a Malaysia Corporation (100% owned by Trio-Tech Malaysia)</FONT></TD>
</TR>
<TR>
<TD COLSPAN=3 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=3><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="top" ALIGN="left"><FONT SIZE="3" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Trio-Tech Bangkok, a Thailand Corporation</FONT></TD>
</TR>
<TR>
<TD COLSPAN=3 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=3><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="top" ALIGN="left"><FONT SIZE="3" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Prestal Enterprise Sdn Bhd, a Malaysia Corporation (76% owned by the Registrant)</FONT></TD>
</TR>
<TR>
<TD COLSPAN=3 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=3><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="top" ALIGN="left"><FONT SIZE="3" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">KTS Incorporated, doing business as Universal Systems, a California Corporation</FONT></TD>
</TR>
<TR>
<TD COLSPAN=3 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=3><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">23.1</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Independent Auditors&#146; Consent*</FONT></TD>
</TR>
</TABLE>
<DIV ALIGN="left"><HR WIDTH="10%" SIZE="1" NOSHADE></DIV>

<TABLE BORDER="0" WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="4%" ALIGN="left" VALIGN="top"><DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;*</FONT></DIV>
</TD>
<TD WIDTH="96%" ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"> Filed electronically herewith</FONT></DIV>
</TD>
</TR>
</TABLE>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"> <B>SIGNATURES
<A NAME="TX16"></A>
</B></FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant
has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>

<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="52%" ALIGN="left" VALIGN="top"></TD>
<TD ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">TRIO-TECH INTERNATIONAL</FONT></DIV>
</TD>
</TR>
</TABLE>
<DIV><FONT SIZE="5">&nbsp;</FONT></DIV>

<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="52%" ALIGN="left" VALIGN="top"></TD>
<TD ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">By:<I></I></FONT></DIV>
</TD>
</TR>
</TABLE>

<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="56%" ALIGN="left" VALIGN="top"></TD>
<TD ALIGN="left" WIDTH="44%" VALIGN="top"> <DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">/s/&nbsp;&nbsp;&nbsp;&nbsp;V<SMALL>ICTOR </SMALL>
H.M. T<SMALL>ING&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</SMALL>
</FONT></DIV>
</TD>
</TR>
</TABLE>

<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="56%" ALIGN="left" VALIGN="top"></TD>
<TD ALIGN="left" WIDTH="44%" VALIGN="top"> <DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><U><HR SIZE=1 NOSHADE></U></FONT></DIV>
</TD>
</TR>
</TABLE>

<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="56%" ALIGN="left" VALIGN="top"></TD>
<TD ALIGN="left" WIDTH="44%" VALIGN="top"> <DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Victor H.M. Ting</FONT></DIV>
</TD>
</TR>
</TABLE>

<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="56%" ALIGN="left" VALIGN="top"></TD>
<TD ALIGN="left" WIDTH="44%" VALIGN="top"> <DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Vice President and Chief Financial Officer</FONT></DIV>
</TD>
</TR>
</TABLE>
<DIV><FONT SIZE="3">&nbsp;</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Date: September 19, 2001</FONT></DIV>
<DIV><FONT SIZE="6">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirement of the Securities Exchange Act of 1934, the following persons on behalf of the
Registrant and in the capacities and on the dates indicated have signed this report below.</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>

<TABLE ALIGN="center" WIDTH="614" CELLSPACING=0 CELLPADDING=0>
<TR>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>Signature</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>Title</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>Date</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
</TR>
<TR>
<TD COLSPAN=5 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=5><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="top" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">/s/&nbsp;&nbsp;&nbsp;&nbsp;A. C<SMALL>HARLES </SMALL>
W<SMALL>ILSON</SMALL>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<BR>
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<BR>
</U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Charles Wilson&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Director, Chairman of the Board</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">September 19, 2001</FONT></TD>
</TR>
<TR>
<TD COLSPAN=5 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=5><FONT SIZE="5">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="top" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">/s/&nbsp;&nbsp;&nbsp;&nbsp;S. W. Y<SMALL>ONG</SMALL>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<BR>
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<BR>
</U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;S. W. Yong &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Director, Chief Executive Officer
<BR>
and President</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">September 19, 2001</FONT></TD>
</TR>
<TR>
<TD COLSPAN=5 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=5><FONT SIZE="5">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="top" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">/s/&nbsp;&nbsp;&nbsp;&nbsp;V<SMALL>ICTOR </SMALL>
H.M. T<SMALL>ING</SMALL>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<BR>
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<BR>
</U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Victor H.M. Ting&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Vice President, Chief Financial
<BR>
Officer and Principal
<BR>
Accounting Officer</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">September 19, 2001</FONT></TD>
</TR>
<TR>
<TD COLSPAN=5 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=5><FONT SIZE="5">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="top" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">/s/&nbsp;&nbsp;&nbsp;&nbsp;J<SMALL>ASON </SMALL>
T. A<SMALL>DELMAN</SMALL>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<BR>
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<BR>
</U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Jason T. Adelman&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Director</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">September 19, 2001</FONT></TD>
</TR>
<TR>
<TD COLSPAN=5 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=5><FONT SIZE="5">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="top" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">/s/&nbsp;&nbsp;&nbsp;&nbsp;R<SMALL>ICHARD </SMALL>
M. H<SMALL>OROWITZ</SMALL>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<BR>
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<BR>
</U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Richard M. Horowitz&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Director</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">September 19, 2001</FONT></TD>
</TR>
<TR>
<TD COLSPAN=5 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=5><FONT SIZE="5">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="top" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">/s/&nbsp;&nbsp;&nbsp;&nbsp;W<SMALL>ILLIAM </SMALL>
L. S<SMALL>LOVER</SMALL>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<BR>
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<BR>
</U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;William L. Slover&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Director</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top" NOWRAP ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">September 19, 2001</FONT></TD>
</TR>
</TABLE>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"> <B>INDEPENDENT AUDITORS&#146; REPORT
<A NAME="TX18"></A>
</B></FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Board of Directors</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Trio-Tech International</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">San Fernando, California:</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have audited the accompanying consolidated balance sheets of Trio-Tech International and subsidiaries
(the &#147;Company&#148;) as of June 30, 2001 and 2000, and the related consolidated statements of income and comprehensive income, shareholders&#146; equity, and cash flows for each of the three years in the period ended June 30, 2001. 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.</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We conducted our audits in accordance with auditing standards generally accepted in the United States of
America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements. An audit also includes 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.</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In our opinion, such consolidated financial statements present fairly, in all material respects, the
financial position of Trio-Tech International and subsidiaries as of June 30, 2001 and 2000, and the results of their operations and their cash flows for each of the three years in the period ended June 30, 2001 in conformity with accounting
principles generally accepted in the United States of America.</FONT></DIV>
<DIV><FONT SIZE="6">&nbsp;</FONT></DIV>

<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="52%" ALIGN="left" VALIGN="top"></TD>
<TD ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">DELOITTE &amp; TOUCHE LLP</FONT></DIV>
</TD>
</TR>
</TABLE>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>

<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="52%" ALIGN="left" VALIGN="top"></TD>
<TD ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">/<SMALL>S</SMALL>
/&nbsp;&nbsp;&nbsp;&nbsp;D<SMALL>ELOITTE </SMALL>
&amp; T<SMALL>OUCHE </SMALL>
LLP</FONT></DIV>
</TD>
</TR>
</TABLE>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Los Angeles, California</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">September 7, 2001</FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"> <B>TRIO-TECH INTERNATIONAL AND SUBSIDIARIES</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>CONSOLIDATED BALANCE SHEETS
<A NAME="TX19"></A>
</B></FONT></DIV>
<DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>(In thousands, except share amounts)</B></FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>

<TABLE ALIGN="center" WIDTH="615" CELLSPACING=0 CELLPADDING=0>
<TR>
<TH VALIGN="bottom" ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>June 30,
<BR>
2001</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>June 30,
<BR>
2000</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>ASSETS</B></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
</TR>
<TR>
<TD><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">CURRENT ASSETS:</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;1,149</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;1,956</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash deposits</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">7,693</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">5,152</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trade accounts receivable, less allowance for doubtful accounts of $174 in 2001 and
<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$221 in 2000</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">4,432</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">6,103</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other receivables</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">162</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">845</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,918</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2,756</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">147</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">467</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current
assets</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">15,501</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">17,279</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD COLSPAN=7 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=7><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">PROPERTY, PLANT AND EQUIPMENT, Net</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">7,534</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">4,497</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">OTHER ASSETS, Net</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,115</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">936</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">TOTAL ASSETS</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$24,150</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$22,712</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD COLSPAN=7 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=7><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>LIABILITIES AND SHAREHOLDERS&#146; EQUITY</B></FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD COLSPAN=7 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=7><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">CURRENT LIABILITIES:</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lines of credit</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;241</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;2,646</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">4,128</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">3,689</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">3,303</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes payable</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">168</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">242</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current portion of long-term debt and capitalized leases</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,096</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">435</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current
liabilities</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">7,599</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">8,349</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">LONG-TERM DEBT AND CAPITALIZED LEASES, net of current portion</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,745</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">586</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">DEFERRED INCOME TAXES</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">649</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">720</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">MINORITY INTEREST</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2,548</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2,609</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">COMMITMENTS AND CONTINGENCIES</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">SHAREHOLDERS&#146; EQUITY:</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common stock; no par value, authorized, 15,000,000 shares; issued and
<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;outstanding 2,927,596 shares (2001) and 2,836,618 shares (2000)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">9,423</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">9,067</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Retained earnings</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2,889</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,726</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive loss</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(703</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(345</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total shareholders&#146;
equity</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">11,609</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">10,448</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">TOTAL LIABILITIES AND SHAREHOLDERS&#146; EQUITY</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$24,150</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$22,712</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
</TABLE>
<DIV><FONT SIZE="7">&nbsp;</FONT></DIV>
<DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">See notes to consolidated financial statements.</FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"> <B>TRIO-TECH INTERNATIONAL AND SUBSIDIARIES</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
<A NAME="TX20"></A>
</B></FONT></DIV>
<DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>(In thousands, except share amounts)</B></FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>

<TABLE ALIGN="center" WIDTH="615" CELLSPACING=0 CELLPADDING=0>
<TR>
<TH VALIGN="bottom" ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=8 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>Year Ended</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
</TR>
<TR>
<TH VALIGN="bottom" ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>June 30,
<BR>
2001</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>June 30,
<BR>
2000</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>June 30,
<BR>
1999</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">NET SALES</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$36,133</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$26,943</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$21,181</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">COST OF SALES</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">26,749</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">19,847</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">15,504</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">GROSS PROFIT</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">9,384</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">7,096</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">5,677</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD COLSPAN=10 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=10><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">OPERATING EXPENSES:</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General and administrative</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">6,136</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">4,570</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">3,877</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Selling</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,911</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,820</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,660</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Research and development</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">216</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">205</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">347</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">8,263</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">6,595</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">5,884</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD COLSPAN=10 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=10><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">INCOME (LOSS) FROM OPERATIONS</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,121</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">501</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(207</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
</TR>
<TR>
<TD COLSPAN=10 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=10><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">OTHER INCOME (EXPENSE)</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(199</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(92</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(108</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other income</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">706</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">420</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">797</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on sale of building</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">696</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">507</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,024</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">689</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">INCOME BEFORE INCOME TAXES AND MINORITY INTEREST</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,628</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,525</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">482</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">INCOME TAXES</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(355</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(106</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(45</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">INCOME BEFORE MINORITY INTEREST</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,273</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,419</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">437</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">MINORITY INTEREST</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(110</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(385</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(242</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">NET INCOME</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,163</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,034</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">195</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD COLSPAN=10 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=10><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">OTHER COMPREHENSIVE (LOSS) INCOME :</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign currency translation adjustment</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(358</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(50</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">147</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">COMPREHENSIVE INCOME</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;805</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;984</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;342</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">EARNINGS PER SHARE:</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;0.40</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;0.37</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;0.07</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;0.39</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;0.36</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;0.07</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">WEIGHTED AVERAGE NUMBER OF COMMON AND POTENTIAL
<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;COMMON SHARES OUTSTANDING</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2,884</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2,759</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2,745</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">3,006</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2,895</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2,757</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
</TABLE>
<DIV><FONT SIZE="7">&nbsp;</FONT></DIV>
<DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">See notes to consolidated financial statements.</FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"> <B>TRIO-TECH INTERNATIONAL AND SUBSIDIARIES</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>CONSOLIDATED STATEMENTS OF SHAREHOLDERS&#146; EQUITY
<A NAME="TX21"></A>
</B></FONT></DIV>
<DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>(In thousands, except share amounts)</B></FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>

<TABLE ALIGN="center" WIDTH="613" CELLSPACING=0 CELLPADDING=0>
<TR>
<TH VALIGN="bottom" ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=5 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>Common Stock</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH ROWSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>Retained
<BR>
Earnings</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 ROWSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>Accumulated
<BR>
Other
<BR>
Comprehensive
<BR>
Loss</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 ROWSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>Total</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
</TR>
<TR>
<TH VALIGN="bottom" ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>Number of
<BR>
Shares</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>Amount</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Balance, July 1, 1998</B></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2,747</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$8,708</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;497</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$(442</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;8,763</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Net income</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">195</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">195</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Exercise of stock options</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">8</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">12</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">12</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Repurchase of common stock</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(14</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(66</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(66</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Foreign currency translation adjustment</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">147</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">147</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD COLSPAN=15 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=15><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Balance, June 30, 1999</B></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2,741</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">8,654</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">692</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(295</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">9,051</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Net income</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,034</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,034</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Exercise of stock options</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">21</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">45</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">45</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Issuance of common stock</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">75</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">368</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">368</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Foreign currency translation adjustment</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(50</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(50</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD COLSPAN=15 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=15><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Balance, June 30, 2000</B></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2,837</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">9,067</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,726</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(345</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">10,448</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Net income</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,163</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,163</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Issuance of common stock</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">43</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">214</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">214</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Exercise of stock options</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">48</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">142</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">142</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Foreign currency translation adjustment</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(358</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(358</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD COLSPAN=15 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=15><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Balance, June 30, 2001</B></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2,928</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$9,423</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$2,889</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$(703</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$11,609</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
</TABLE>
<DIV><FONT SIZE="7">&nbsp;</FONT></DIV>
<DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">See notes to consolidated financial statements.</FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"> <B>TRIO-TECH INTERNATIONAL AND SUBSIDIARIES</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>CONSOLIDATED STATEMENTS OF CASH FLOWS
<A NAME="TX22"></A>
</B></FONT></DIV>
<DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>(In thousands)</B></FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>

<TABLE ALIGN="center" WIDTH="615" CELLSPACING=0 CELLPADDING=0>
<TR>
<TH VALIGN="bottom" ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=8 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>Year Ended</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
</TR>
<TR>
<TH VALIGN="bottom" ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>June 30,
<BR>
2001</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>June 30,
<BR>
2000</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>June 30,
<BR>
1999</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>CASH FLOWS FROM OPERATING ACTIVITIES:</B></FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;1,163</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;1,034</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;195</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments to reconcile net income to net cash provided by operating
<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;activities:</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,632</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,523</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,222</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Gain)/loss on sale of property and equipment</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(1</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(809</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">7</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(71</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">138</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Minority interest, net</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(53</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">210</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">149</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities:</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,671</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(1,643</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(336</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other receivables</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">683</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(563</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">17</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">838</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(957</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">257</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">320</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(377</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">215</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(1,096</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2,437</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(936</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes payable</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(74</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">171</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(619</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;Net cash provided by operating activities</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">5,012</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,164</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">172</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD COLSPAN=10 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=10><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>CASH FLOWS FROM INVESTING ACTIVITIES:</B></FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash deposits</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(2,541</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(653</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(552</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capital expenditures</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(4,451</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;(1,327</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(703</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other assets</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(263</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(363</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(123</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sale of property and equipment</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">103</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,794</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">46</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;Net cash used in investing activities</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;(7,152</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(549</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;(1,332</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD COLSPAN=10 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=10><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>CASH FLOWS FROM FINANCING ACTIVITIES:</B></FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payments on lines of credit</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(806</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(246</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(481</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrowings under lines of credit</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">565</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">126</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">214</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Principal payments of debt and capitalized leases</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(892</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(431</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(308</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from long-term debt</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2,293</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Issuance of common stock</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">356</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">413</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Repurchase of common stock</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(54</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;Net cash provided by (used in) financing activities</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,516</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(138</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(629</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD COLSPAN=10 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=10><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>EFFECT OF EXCHANGE RATE CHANGES ON CASH</B></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(183</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(114</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">77</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD COLSPAN=10 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=10><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>NET (DECREASE)/INCREASE IN CASH</B></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B></B>(807</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">363</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(1,712</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>CASH, BEGINNING OF YEAR</B></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B></B>1,956</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,593</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">3,305</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>CASH, END OF YEAR</B></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B></B>$&nbsp;&nbsp;1,149</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;1,956</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;1,593</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD COLSPAN=10 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=10><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION</B></FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash paid during the year for:</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;184</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;126</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;104</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;134</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;161</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;786</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
</TABLE>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">See notes to consolidated financial statements.</FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"> <B>TRIO-TECH INTERNATIONAL AND SUBSIDIARIES</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>CONSOLIDATED STATEMENTS OF CASH FLOWS</B></FONT></DIV>
<DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>(In thousands)</B></FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>NON-CASH INVESTING AND FINANCING ACTIVITIES</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>

<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD WIDTH="4%" ALIGN="left" VALIGN="top"></TD>
<TD ALIGN="left" VALIGN="top"> <DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the years ended June 30, 2001 and 1999, the Company financed
acquisitions of equipment amounting to $541 and $1,161 under capital lease arrangements, respectively.</FONT></DIV>
</TD>
</TR>
</TABLE>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Concluded</FONT></DIV>
<DIV><FONT SIZE="7">&nbsp;</FONT></DIV>
<DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">See notes to consolidated financial statements.</FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"> <B>TRIO-TECH INTERNATIONAL AND SUBSIDIARIES</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
<A NAME="TX23"></A>
</B></FONT></DIV>
<DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Years Ended June 30, 2001,</B><B> 2000 and</B><B> </B><B>1999</B></FONT></DIV>
<DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>(In thousands, except per share and share amounts)</B></FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>1.&nbsp;&nbsp;&nbsp;&nbsp;SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Principles of Consolidation&#151;</I>Trio-Tech International and subsidiaries (the &#147;Company&#148; or
&#147;TTI&#148;) is a designer and manufacturer of equipment used to test the structural integrity of semiconductor devices that must meet high-reliability specifications. The Company also owns and operates testing facilities that perform structural
and electronic testing of semiconductor devices and acts as a distributor of electronic testing equipment in Singapore and other Southeast Asian countries. The consolidated financial statements include the accounts of the Company and its principal
subsidiaries: Trio-Tech International Pte Ltd (TTI Pte), Trio-Tech Test Services Pte Ltd (TTTS Pte), Express Test, European Electronic Test Centre (EETC), Trio-Tech Bangkok (TTBK), Trio-Tech Malaysia (TTM) (a 55% owned subsidiary of TTI Pte),
Prestal Enterprise Sdn Bhd (PESB) (a 76% owned subsidiary of TTI Pte) and Universal Systems. All material intercompany transactions, profits and balances have been eliminated.</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Use of Estimates&#151;</I>The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and 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. Actual results could differ from those estimates.</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Accounting Period&#151;</I>The Company&#146;s fiscal reporting period coincides with the 52-53 week
period ending on the last Friday in June. Fiscal 2001, 2000 and 1999 are a 52, 53 and 52-week reporting period, respectively. For simplicity purposes the Company refers to its fiscal year end as June 30.</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Cash and Cash Deposits</I>&#151;The Company considers all highly liquid investments purchased with an
original maturity of three months or less to be cash. Cash deposits consist of bank balances and amounts invested in interest earning instruments having maturity of 12 months or less. Approximately $2,988 of cash deposits are held in the
Company&#146;s 55% owned Malaysian subsidiary. $2,420 of this cash is denominated in the currency of Malaysia. On September 1, 1998, the government of Malaysia announced its intention to limit the movement of certain cash balances denominated in
Malaysian currency. During 2001, limits on the movement of cash balances were removed. Of the $2,420, $1,471 is currently available for movement, as the Central Bank of Malaysia has authorized $1,800 for movement and the Company has utilized $329 of
this authorization. In addition, approximately $4,098 is available as dividend (after making deductions for income tax) pursuant to Malaysian regulations in force from July 1, 2000. There is an additional amount of $1,205 that is used as collateral
for the Singapore credit facility.</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Inventories</I>&#151;Inventories are stated at the lower of cost, using the first-in, first-out (FIFO)
method, or market.</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Property, Plant and Equipment&#151;</I>Property, plant and equipment are stated at cost, less accumulated
depreciation and amortization. Depreciation and amortization are provided for over the estimated useful lives of the assets or the terms of the leases, whichever are shorter, using the straight-line method. Capital grants from the Industrial
Development Authority in Ireland are accounted for when claimed by reducing the cost of the related assets. The grants are amortized over the depreciable lives of those assets.</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Foreign Currency Translation&#151;</I>All assets and liabilities of operations outside the United States
have been translated at the foreign exchange rates in effect at year-end. Revenues and expenses for the year are translated at average exchange rates in effect during the year. Unrealized translation gains and losses are not included in determining
net income but are accumulated and reported as a separate component of shareholders&#146; equity entitled accumulated other comprehensive loss. Net realized gains and losses resulting from foreign currency transactions are credited or charged to
income.</FONT></DIV>
<DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>TRIO-TECH INTERNATIONAL AND SUBSIDIARIES</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS&#151;(Continued)</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Years Ended June 30, 2001, 2000 and 1999</B></FONT></DIV>
<DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>(In thousands, except per share amounts)</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  <I>Other Assets&#151;</I>The excess of cost over net assets acquired is included in other assets and is
being amortized over 5-10 years. The Company reviews the carrying value of all intangible assets on a regular basis, and if future cash flows are believed insufficient to recover the remaining carrying value of an intangible asset, the carrying
value is written down in the period the impairment is identified to its estimated fair value.</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Taxes on Income&#151;</I>Deferred income taxes are computed annually for differences between the
financial statement basis and tax basis of assets and liabilities. Such deferred income tax asset and liability computations are based on enacted tax laws and rates applicable to periods in which the differences are expected to reverse. Valuation
allowances are established when necessary to reduce deferred income tax assets to the amount expected to be realized.</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Retained earnings&#151;</I>It is the intention of the Company to reinvest earnings of its foreign
subsidiaries in the operations of those subsidiaries. Accordingly, no provision has been made for U.S. income and foreign withholding taxes that would result if such earnings were repatriated. These taxes are undeterminable at this time. The amount
of earnings retained in foreign subsidiaries is $7,563 at June 30, 2001.</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Revenue recognition</I>&#151;The Company recognizes revenue when products are shipped to customers or
upon the completion of services.</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Research and Development Costs&#151;</I>The Company incurred research and development costs of $216 in
2001, $205 in 2000 and $347 in 1999 that were charged to operating expenses as incurred.</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Stock Based Compensation&#151;</I>In October 1995, the Financial Accounting Standards Board (FASB) issued
Statement of Financial Accounting Standards (SFAS) No. 123, <I>Accounting for Stock-Based Compensation.</I> The Company has determined that it will not change to the fair value method and will continue to use Accounting Principles Board Opinion No.
25 for measurement and recognition of employee stock-based transactions.</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Earnings per Share&#151;</I>The Company adopted SFAS No. 128, <I>Earnings per Share
</I>(&#147;EPS&#148;). Basic Earnings Per Share is computed by dividing net income available to common shareholders (numerator) by the weighted average number of common shares outstanding (denominator) during the period. Diluted EPS gives effect to
all dilutive potential common shares outstanding during a period. In computing diluted EPS, the average price for the period is used in determining the number of shares assumed to be purchased from exercise of stock options and warrants.</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table is a reconciliation of the weighted-average shares used in the computation of basic and
diluted EPS for the years presented herein:</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>

<TABLE ALIGN="center" WIDTH="561" CELLSPACING=0 CELLPADDING=0>
<TR>
<TH VALIGN="bottom" ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>June 30,
<BR>
2001</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>June 30,
<BR>
2000</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>June 30,
<BR>
1999</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Net income used to compute basic and diluted earnings
<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per share</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,163</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,034</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;195</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Weighted average number of common shares
<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;outstanding&#151;basic</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2,884,000</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2,759,000</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2,745,000</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Dilutive effect of stock options and warrants</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">122,000</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">136,000</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">12,000</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Number of shares used to compute earnings per
<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;share&#151;diluted</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">3,006,000</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2,895,000</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2,757,000</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE></FONT></TD>
</TR>
</TABLE>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>TRIO-TECH INTERNATIONAL AND SUBSIDIARIES</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS&#151;(Continued)</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Years Ended June 30, 2001, 2000 and 1999</B></FONT></DIV>
<DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>(In thousands, except per share amounts)</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  Stock options and warrants to purchase 612,165 shares at prices ranging from $3.67 to $8.00 per share were
outstanding during 2001 and were excluded in the computation of diluted EPS because their effect would have been antidilutive. Stock options and warrants to purchase 36,870 shares at a price of $8.00 per share were outstanding during 2000 and were
excluded in the computation of diluted EPS because their effect would have been antidilutive. Stock options and warrants to purchase 697,105 shares at prices ranging from $3.69 to $7.69 per share were outstanding during 1999 and were excluded in the
computation of diluted EPS because their effect would have been antidilutive.</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Recently Issued Accounting Pronouncements</I>&#151;In July 2001, the Financial Standards Board
(&#147;FASB&#148;) issued Financial Accounting Standards (&#147;SFAS&#148;), No. 141, &#147;Business Combinations,&#148; and SFAS No. 142, &#147;Goodwill and Other Intangible Assets&#148;. SFAS No. 141 replaces Accounting Principles Board Opinion
No. 16 (APB No. 16), &#147;Business Combination,&#148; and eliminates pooling-of-interests accounting prospectively. It also provides guidance on purchase accounting related to the recognition of intangible assets and accounting for negative
goodwill. SFAS No. 142 changes the accounting for goodwill from an amortization method to an impairment-only approach. Under SFAS No. 142, goodwill will be tested annually and whenever events or circumstances occur indicating that goodwill might be
impaired. Upon adoption of SFAS No. 142, amortization of goodwill recorded for business combinations consummated prior to July 1, 2001 will cease, and intangible assets acquired prior to July 1, 2001 that do not meet the criteria for recognition
under SFAS No. 141 will be reclassified to goodwill. Companies are required to adopt SFAS No. 142 for fiscal years beginning after December 15, 2001. In connection with the adoption of SFAS No. 142, companies will be required to perform a
transitional goodwill impairment assessment. The Company has not yet determined the effects, if any, that SFAS No. 142 will have on its consolidated financials position and results of operations. During the year ended June 30, 2001, goodwill
amortization totaled approximately $34.</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Reclassification&#151;</I>Certain reclassifications have been made to the previous year&#146;s financial
statements to conform to current year presentation.</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Fair Values of Financial Instruments</I>&#151;The carrying value of trade accounts receivable and
accounts payable approximate the fair value due to their short-term maturities. The carrying values of the Company&#146;s lines of credit and long-term debt are considered to approximate their fair value because the interest rates are based on
variable reference rates or approximates rates currently available to the Company.</FONT></DIV>
<DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>TRIO-TECH INTERNATIONAL AND SUBSIDIARIES</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS&#151;(Continued)</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Years Ended June 30, 2001, 2000 and 1999</B></FONT></DIV>
<DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>(In thousands, except per share amounts)</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  <I>Concentration of credit risk&#151;</I>Financial instruments that subject the Company to credit risk
consists primarily of accounts receivable. Concentration of credit risk with respect to accounts receivable is generally diversified due to the number of entities composing the Company&#146;s customer base and their geographic dispersion. The
Company had two major customers who accounted for 15% and 25% of the Company&#146;s sales during fiscal year 2001; these customers represented 16% and 25% of accounts receivable at June 30, 2001. Two major customers accounted for 15% and 13% of the
Company&#146;s sales during fiscal year 2000; these customers represented 18% and 8% of accounts receivable at June 30, 2000. Two major customers accounted for 15% and 14% of the Company&#146;s net sales during fiscal year 1999. The Company performs
ongoing credit evaluations of its customers and maintains an allowance for potential credit losses. The allowance for doubtful accounts is composed of:</FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>

<TABLE ALIGN="center" WIDTH="560" CELLSPACING=0 CELLPADDING=0>
<TR>
<TH VALIGN="bottom" ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=8 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>Year Ended</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
</TR>
<TR>
<TH VALIGN="bottom" ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>June 30,
<BR>
2001</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>June 30,
<BR>
2000</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>June 30,
<BR>
1999</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Beginning</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$221</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$219</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$468</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additions charged to cost and expenses</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">60</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">34</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">55</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Recovered</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(85</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(32</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(229</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Actual write-offs</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(22</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(75</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Ending</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$174</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$221</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$219</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
</TABLE>
<DIV><FONT SIZE="5">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>2.&nbsp;&nbsp;&nbsp;&nbsp;INVENTORIES</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories consist of the following:</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>

<TABLE ALIGN="center" WIDTH="560" CELLSPACING=0 CELLPADDING=0>
<TR>
<TH VALIGN="bottom" ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>June 30,
<BR>
2001</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>June 30,
<BR>
2000</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Raw materials</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$1,180</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$1,251</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Work in progress</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">311</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,160</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Finished goods</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">427</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">345</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="3" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$1,918</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$2,756</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE></FONT></TD>
</TR>
</TABLE>
<DIV><FONT SIZE="5">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>3.&nbsp;&nbsp;&nbsp;&nbsp;PROPERTY, PLANT AND EQUIPMENT</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Property, plant and equipment consist of the following:</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>

<TABLE ALIGN="center" WIDTH="559" CELLSPACING=0 CELLPADDING=0>
<TR>
<TH VALIGN="bottom" ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>Useful
<BR>
Life in years</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>June 30,
<BR>
2001</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>June 30,
<BR>
2000</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Building and improvements</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">3-20</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;1,059</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;999</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Leasehold improvements</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">3-27</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2,524</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,177</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Machinery and equipment</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">3-7</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">7,113</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">5,033</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Furniture and fixtures</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">3-5</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">766</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">793</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Equipment under capital leases</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">3-5</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2,003</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,666</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="3" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">13,465</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">9,668</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Less:</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accumulated depreciation and amortization</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">4,825</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">4,204</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accumulated amortization on equipment under capital leases</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,106</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">967</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="3" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$ 7,534</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$4,497</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE></FONT></TD>
</TR>
</TABLE>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>TRIO-TECH INTERNATIONAL AND SUBSIDIARIES</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS&#151;(Continued)</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Years Ended June 30, 2001, 2000 and 1999</B></FONT></DIV>
<DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>(In thousands, except per share amounts)</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"> <B>4.&nbsp;&nbsp;&nbsp;&nbsp;OTHER ASSETS</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other assets consist of the following:</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>

<TABLE ALIGN="center" WIDTH="560" CELLSPACING=0 CELLPADDING=0>
<TR>
<TH VALIGN="bottom" ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>June 30,
<BR>
2001</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>June 30,
<BR>
2000</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Cost in excess of net assets acquired, net of accumulated amortization of $730
<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2001) and $696 (2000)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;393</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$430</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Intangibles, net of accumulated amoritization of $86 (2001) and $38 (2000)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">133</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">141</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Other</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">589</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">365</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Total</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$1,115</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$936</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE></FONT></TD>
</TR>
</TABLE>
<DIV><FONT SIZE="5">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>5.&nbsp;&nbsp;&nbsp;&nbsp;LINES OF CREDIT</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash deposits have historically been the Company&#146;s primary source of liquidity. The Company
has a committed line of credit with a bank, aggregating $2,469 and lines of credit with various other banks, totaling $823, which were used to support short-term borrowing and commercial paper comprised of letters of credit, trust receipts, shipping
and banker&#146;s guarantees. These lines of credit and their anticipated cyclical increases are sufficient to finance buildups in inventories and other cash requirements.</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash deposits and corporate guarantees (the Company guarantees, but subsidiaries are the primary debtor)
collateralize the first line of credit with a bank, aggregating $2,469, and contain certain debt covenants including maintaining a minimum net worth. The Company was in compliance with all debt covenants at June 30, 2001. There were no borrowings
under all these lines at June 30, 2001 and these lines of credit expire between December 2001 and July 2002. Interest rates for these lines are from between 6.25% and 8.5%.</FONT></DIV>
<DIV><FONT SIZE="5">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>6.&nbsp;&nbsp;&nbsp;&nbsp;ACCRUED EXPENSES</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses consist of the following:</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>

<TABLE ALIGN="center" WIDTH="560" CELLSPACING=0 CELLPADDING=0>
<TR>
<TH VALIGN="bottom" ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>June 30,
<BR>
2001</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>June 30,
<BR>
2000</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Payroll and related</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$1,751</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;912</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Legal and audit</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">150</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">430</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Utilities</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">473</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">62</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Other</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,315</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,899</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Total</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$3,689</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$3,303</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE></FONT></TD>
</TR>
</TABLE>
<DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>TRIO-TECH INTERNATIONAL AND SUBSIDIARIES</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS&#151;(Continued)</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Years Ended June 30, 2001, 2000 and 1999</B></FONT></DIV>
<DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>(In thousands, except per share amounts)</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"> <B>7.&nbsp;&nbsp;&nbsp;&nbsp;LONG-TERM DEBT AND CAPITALIZED LEASES</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Long-term debt and capitalized leases consist of the following:</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>

<TABLE ALIGN="center" WIDTH="560" CELLSPACING=0 CELLPADDING=0>
<TR>
<TH VALIGN="bottom" ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>June 30,
<BR>
2001</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>June 30,
<BR>
2000</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Machinery loans, due in various installments through 2003 bearing interest at
<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5%, collateralized by equipment</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$1,186</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
</TR>
<TR>
<TD COLSPAN=5 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=5><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Notes payable, due in various installments through 2005 bearing interest at prime
<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;plus 1.5% (Bank&#146;s prime rate of 6.25% at June 30, 2001), collateralized by
<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;equipment</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">601</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
</TR>
<TR>
<TD COLSPAN=5 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=5><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Capitalized lease obligations, due in various installments through 2005 bearing
<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;interest at rates ranging from 4.63% to 13.39%, collateralized by leased assets
<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(see Note 9)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">878</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;801</FONT></TD>
</TR>
<TR>
<TD COLSPAN=5 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=5><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Mortgage loan, due in monthly installments through 2008, bearing interest at prime
<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;plus 3% and 3.52% (Bank&#146;s prime rate of 4.88% at June 30, 2001),
<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;collateralized by Building</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">176</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">220</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="3" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2,841</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;1,021</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less current portion</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,096</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">435</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="3" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$1,745</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;586</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE></FONT></TD>
</TR>
</TABLE>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Maturities of long-term debt as of June 30, 2001 are as follows (exclusive of capitalized lease
obligations):</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>

<TABLE ALIGN="center" WIDTH="485" CELLSPACING=0 CELLPADDING=0>
<TR>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>Year Ending
<BR>
June 30,</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TH>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2002</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;698</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2003</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">705</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2004</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">375</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2005</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">121</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2006</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">64</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="3" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$1,963</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE></FONT></TD>
</TR>
</TABLE>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Aggregate collateral is $2,579</FONT></DIV>
<DIV><FONT SIZE="5">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>8.&nbsp;&nbsp;&nbsp;&nbsp;TAXES ON INCOME</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The provision (benefit) for income taxes consist of the following:</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>

<TABLE ALIGN="center" WIDTH="559" CELLSPACING=0 CELLPADDING=0>
<TR>
<TH VALIGN="bottom" ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>June 30,
<BR>
2001</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>June 30,
<BR>
2000</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>June 30,
<BR>
1999</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Current:</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Domestic</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;73</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">425</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;(105</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">44</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="3" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">426</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(32</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">44</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Deferred:</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(71</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">138</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="3" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$ 355</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$106</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$45</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE></FONT></TD>
</TR>
</TABLE>
<DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>TRIO-TECH INTERNATIONAL AND SUBSIDIARIES</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS&#151;(Continued)</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Years Ended June 30, 2001, 2000 and 1999</B></FONT></DIV>
<DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>(In thousands, except per share amounts)</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  Income (loss) before income taxes and minority interest related to domestic and foreign operations is as
follows:</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>

<TABLE ALIGN="center" WIDTH="560" CELLSPACING=0 CELLPADDING=0>
<TR>
<TH VALIGN="bottom" ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>June 30,
<BR>
2001</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>June 30,
<BR>
200</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>June 30,
<BR>
1999</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Domestic</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;(154</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;271</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$(500</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Foreign</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,782</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,254</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">982</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="3" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$1,628</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$1,525</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$482</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
</TABLE>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The reconciliation between the U.S. federal statutory tax rate and the effective income tax rate is as
follows:</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>

<TABLE ALIGN="center" WIDTH="560" CELLSPACING=0 CELLPADDING=0>
<TR>
<TH VALIGN="bottom" ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>June 30,
<BR>
2001</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>June 30,
<BR>
2000</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>June 30,
<BR>
1999</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Statutory federal tax rate</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">35</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">35</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">35</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;%</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Foreign income taxes</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;(15</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(37</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(56</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Other</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">9</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">30</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Effective rate</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">22</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">7</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">9</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;%</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
</TABLE>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company files income tax returns in several countries. Income in one country is not offset by losses in
another country. Accordingly, no benefit is provided for losses in countries except where the loss can be carried back against income recognized in previous years. Income taxes are provided in those countries where income is earned. The effect of
providing tax against profits while not providing benefit for losses results in an effective tax rate that differs from the federal statutory rate.</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The components of deferred income tax assets (liabilities) are as follows:</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>

<TABLE ALIGN="center" WIDTH="559" CELLSPACING=0 CELLPADDING=0>
<TR>
<TH VALIGN="bottom" ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>June 30,
<BR>
2001</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>June 30,
<BR>
2000</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Deferred tax assets:</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net operating loss carry forward</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$809</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;952</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for local tax</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">6</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">79</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for bad debts</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">61</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">77</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reserve for obsolescence</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">72</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">61</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">17</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">30</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total deferred tax assets</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">965</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,199</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD COLSPAN=7 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=7><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Deferred tax liabilities:</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">415</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">216</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">234</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">504</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total deferred income tax liabilities</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">649</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">720</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subtotal</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">316</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">479</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Valuation allowance</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(965</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;(1,199</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net deferred tax liability</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$(649</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;(720</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
</TABLE>
<DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>TRIO-TECH INTERNATIONAL AND SUBSIDIARIES</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS&#151;(Continued)</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Years Ended June 30, 2001, 2000 and 1999</B></FONT></DIV>
<DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>(In thousands, except per share amounts)</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  The valuation allowance was decreased by $234 and $391 in 2001 and 2000, respectively.</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At June 30, 2000, the Company had net operating loss carry forwards of approximately $2,311 available to
offset future U.S. federal taxes, which expire as follows: $1,053 in 2004, $151 in 2005, $170 in 2006 and $937 in 2014.</FONT></DIV>
<DIV><FONT SIZE="5">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>9.&nbsp;&nbsp;&nbsp;&nbsp;COMMITMENTS AND CONTINGENCIES</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company leases certain of its facilities and equipment under long-term agreements expiring at various
dates through 2007. Certain of these leases require the Company to pay real estate taxes and insurance and provide for escalation of lease costs based on certain indices. Future minimum payments under capital leases and noncancellable operating
leases as of June 30, 2001 are as follows:</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>

<TABLE ALIGN="center" WIDTH="560" CELLSPACING=0 CELLPADDING=0>
<TR>
<TH VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>Year ending June 30,</B></FONT><FONT SIZE="1"><HR ALIGN="left" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>Capital
<BR>
Leases</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>Rental
<BR>
Commitments</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2002</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$496</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;659</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2003</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">234</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">483</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2004</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">159</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">186</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2005</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">89</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2006</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">64</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Thereafter</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">49</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Total future minimum lease payments</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,091</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$1,328</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE></FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Less amount representing interest</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(213</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Present value of net minimum lease payments</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">878</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Less current portion of capitalized lease obligations</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(398</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Long-term obligations under capital leases</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$480</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
</TABLE>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total rental expense on all operating leases, both cancelable and noncancellable, amounted to $765 in 2001,
$543 in 2000 and $415 in 1999. Total rental income under sublease was $118 in 2001, $169 in 2000, and $59 in 1999.</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On August 24, 1995, the Company was named in a civil action brought against 106 defendants alleging that
they may have caused or contributed to soil and groundwater contamination that required the defendants to pay $3,750 to the Federal Environmental Protection Agency to settle. On April 6, 2001, the Company was dismissed from this action.</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company is, from time to time, the subject of litigation claims and assessments arising out of matters
occurring in its normal business operations. In the opinion of management, resolution of these matters will not have a material adverse effect on the Company&#146;s financial statements.</FONT></DIV>
<DIV><FONT SIZE="5">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>10.&nbsp;&nbsp;&nbsp;&nbsp;STOCK OPTIONS</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company has three stock option plans under which officers, directors and employees are eligible to
receive options to purchase shares of the Company&#146;s common stock. One of these plans, adopted in 1988, has been terminated except for outstanding options, which are still exercisable, to purchase an aggregate of 27,000 shares. Additionally, the
Board of Directors issues non-qualified options at their discretion at a price not less than fair market value at the date of grant.</FONT></DIV>
<DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>TRIO-TECH INTERNATIONAL AND SUBSIDIARIES</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS&#151;(Continued)</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Years Ended June 30, 2001, 2000 and 1999</B></FONT></DIV>
<DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>(In thousands, except per share amounts)</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  On December 8, 1997, the Company&#146;s shareholders approved the Company&#146;s 1998 Stock Option Plan
(the &#147;1998 Plan&#148;) under which employees, officers, directors and consultants receive options to purchase the Company&#146;s common stock at a price that is not less than 100 percent of the fair market value at the date of grant. The Plan
Administrator at the rate of at least 20% per year over five years determines vestment. There are 300,000 shares authorized for grant under the 1998 Plan.</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On December 8, 1997, the Company&#146;s shareholders approved the Directors Stock Option Plan (the
&#147;Directors Plan&#148;) under which duly elected non-employee Directors and the President (if he or she is a director of the Company) of the Company (currently six individuals) receive options to purchase the Company&#146;s common stock at a
price of 85% of the fair market value of the underlying shares on the date of grant. Each option granted under the Plan shall be exercisable in full at any time and from time to time commencing as of the date of grant. The shares are nonqualified
and there are 300,000 shares authorized for grant under the Directors Plan.</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company applies Accounting Principles Board Opinion No. 25<I>, Accounting for Stock Issued to
Employees</I>, and related interpretations in accounting for its Plans. Accordingly, no compensation expense has been recognized. Had compensation cost for the Company&#146;s Plan been determined based upon the fair value at the grant date for
awards under this Plan consistent with the methodology prescribed under SFAS No. 123, the Company&#146;s net income and earnings per share would have been reduced to the pro forma amounts indicated below:</FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>

<TABLE ALIGN="center" WIDTH="560" CELLSPACING=0 CELLPADDING=0>
<TR>
<TH VALIGN="bottom" ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=6 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>Year Ended</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
</TR>
<TR>
<TH VALIGN="bottom" ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>June 30,
<BR>
2001</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>June 30,
<BR>
2000</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>June 30,
<BR>
1999</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Net Income:</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As Reported</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$1,163</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$1,034</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;195</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pro forma</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;822</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;699</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;(204</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
</TR>
<TR>
<TD COLSPAN=8 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=8><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Basic Earnings per Share:</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As Reported</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;0.40</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;0.37</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;0.07</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pro forma</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;0.29</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;0.25</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$(0.07</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
</TR>
</TABLE>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The fair value of the options granted during fiscal 2001, 2000 and 1999 was $5.40, $4.95 and $3.85,
respectively, on the date of grant using the Black Scholes option-pricing model with the assumptions listed below:</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>

<TABLE ALIGN="center" WIDTH="560" CELLSPACING=0 CELLPADDING=0>
<TR>
<TH VALIGN="bottom" ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=8 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>Year Ended</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
</TR>
<TR>
<TH VALIGN="bottom" ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>June 30,
<BR>
2001</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>June 30,
<BR>
2000</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>June 30,
<BR>
1999</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Volatility</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">56.7</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">52.6</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">42.1</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Risk free interest rate</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">4.97</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">6.18</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">5.91</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">%</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Expected life (years)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2.54</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2.93</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2.65</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
</TABLE>
<DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>TRIO-TECH INTERNATIONAL AND SUBSIDIARIES</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS&#151;(Continued)</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Years Ended June 30, 2001, 2000 and 1999</B></FONT></DIV>
<DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>(In thousands, except per share amounts)</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  The following table summarizes the stock option activity for the three years ended June 30,
2001:</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>

<TABLE ALIGN="center" WIDTH="561" CELLSPACING=0 CELLPADDING=0>
<TR>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>Stock Options</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>Number of
<BR>
Shares</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Balance at July 1, 1998 (weighted average price of $4.77 per share)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">192,688</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Granted at a weighted average price of $3.85 per share</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">59,500</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exercised at a weighted average price of $1.60 per share</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(7,500</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Canceled at a weighted average price of $1.60 per share</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(7,500</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
</TR>
<TR>
<TD COLSPAN=4 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=4><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Balance at June 30, 1999 (weighted average price of $4.77 per share)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">237,188</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Granted at a weighted average price of $4.95 per share</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">167,750</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exercised at a weighted average price of $2.17 per share</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(20,625</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
</TR>
<TR>
<TD COLSPAN=4 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=4><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Balance at June 30, 2000 (weighted average price of $5.89 per share)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">384,313</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Granted at a weighted average price of $5.40 per share</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">86,000</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exercised at a weighted average price of $3.33 per share</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(47,688</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Canceled at a weighted average price of $5.41 per share</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(14,625</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD COLSPAN=4 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=4><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Balance at June 30, 2001 (weighted average price of $4.83 per share)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">408,000</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Options exerciseable at June 30, 2001 at a weighted average price of $4.66 per share</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">334,000</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
</TABLE>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table summarizes the stock option activity for the three years ended June 30,
2001:</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>

<TABLE ALIGN="center" WIDTH="561" CELLSPACING=0 CELLPADDING=0>
<TR>
<TH COLSPAN=9 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>Year Ended June 30, 2001</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
</TR>
<TR>
<TH COLSPAN=5 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>Options and Warrants Outstanding</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=3 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>Options and Warrants Exercisable</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
</TR>
<TR>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>Number
<BR>
Outstanding</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>Weighted Average
<BR>
Remaining
<BR>
Contractual Life</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>Exercise Price</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>Number
<BR>
Exercisable</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>Exercise Price</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;27,000</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">0.45</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">3.67</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;27,000</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">3.67</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;30,000</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">0.56</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">4.69</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;30,000</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">4.69</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;22,500</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">0.56</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">3.67</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;22,500</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">3.67</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;45,000</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1.25</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">5.00</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;45,000</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">5.00</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;15,000</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1.25</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">5.00</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;15,000</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">5.00</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;15,000</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1.25</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">5.00</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;15,000</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">5.00</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;69,920</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1.35</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">5.00</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;69,920</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">5.00</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;34,960</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1.35</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">5.00</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;34,960</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">5.00</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9,915</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1.35</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">8.00</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;9,915</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">8.00</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;75,000</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1.38</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">5.00</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;75,000</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">5.00</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5,000</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1.44</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">5.00</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;5,000</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">5.00</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;45,000</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2.02</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">3.69</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;45,000</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">3.69</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;14,500</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2.02</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">4.34</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;10,875</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">4.34</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;35,000</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">3.03</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2.82</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;35,000</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2.82</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;75,500</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">3.74</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">6.00</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;37,750</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">6.00</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;36,870</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">3.86</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">8.00</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;36,870</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">8.00</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;42,000</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">4.03</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">5.37</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;42,000</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">5.37</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;40,000</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">4.03</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">5.63</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;10,000</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">5.63</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4,000</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">4.76</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">3.40</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;1,000</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">3.40</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1"><HR ALIGN="left" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;642,165</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2.19</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">5.05</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">567,790</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">4.97</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1"><HR ALIGN="left" WIDTH="100%" SIZE="2" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE></FONT></TD>
</TR>
</TABLE>
<DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>TRIO-TECH INTERNATIONAL AND SUBSIDIARIES</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS&#151;(Continued)</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Years Ended June 30, 2001, 2000 and 1999</B></FONT></DIV>
<DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>(In thousands, except per share amounts)</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  Included in the total options and warrants outstanding at June 30, 2001 were 234,165 warrants issued in
fiscal 1997, 1998, 2000 and 2001 that permit purchase of common stock of the Company at an average price of $5.56.</FONT></DIV>
<DIV><FONT SIZE="5">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>11.&nbsp;&nbsp;&nbsp;&nbsp;BUSINESS SEGMENTS</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company operates principally in three industry segments, the designing and manufacturing of equipment
(that tests the structural integrity of integrated circuits and other products which measure the rate of turn), the testing service industry (that performs structural and electronic tests of semiconductor devices) and the distribution of various
products from other manufacturers in Singapore and Southeast Asia.</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The allocation of the cost of equipment, the current year investment in new equipment and depreciation
expense have been made on the basis of the primary purpose for which the equipment was acquired.</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company&#146;s wholly owned subsidiary, TTI Pte. in Singapore (including TTI Pte.&#146;s wholly owned
subsidiaries, TTTS Pte and TTBk, 55% owned joint venture of Trio-Tech Malaysia, another subsidiary wholly owned by Trio-Tech Malaysia and 76% owned Prestal Enterprise Sdn Bhd) operates in the manufacturing, the testing service and the distribution
industry segments.</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All intersegment sales are sales from the manufacturing segment to the testing and distribution segment.
Corporate assets mainly consist of cash and prepaid expenses. Corporate expenses mainly consist of salaries, insurance, professional expenses and directors&#146; fees.</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Business Segment Information:</B></FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>

<TABLE ALIGN="center" WIDTH="614" CELLSPACING=0 CELLPADDING=0>
<TR>
<TH VALIGN="bottom" ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>Net Sales</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>Operating
<BR>
Income
<BR>
(loss)</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>Assets</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>Depr.
<BR>
and
<BR>
Amort.</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>Capital
<BR>
Expenditures</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Manufacturing</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2001</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$18,468</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;149</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;6,898</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;488</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;163</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="3" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2000</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">13,361</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">118</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">9,020</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">450</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">436</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="3" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1999</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">6,831</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(1,474</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">7,156</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">425</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">657</FONT></TD>
</TR>
<TR>
<TD COLSPAN=14 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=14><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Testing Services</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2001</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">11,112</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">791</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">16,563</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,051</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">3,806</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="3" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2000</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">7,723</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">394</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">11,553</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">924</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">654</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="3" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1999</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">7,239</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">886</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">9,131</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">731</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,052</FONT></TD>
</TR>
<TR>
<TD COLSPAN=14 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=14><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Distribution</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2001</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">6,553</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">45</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">350</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">92</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">478</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="3" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2000</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">5,859</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(322</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2,081</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">149</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">237</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="3" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1999</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">7,111</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">4</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2,605</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">66</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">154</FONT></TD>
</TR>
<TR>
<TD COLSPAN=14 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=14><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Corporate and unallocated</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2001</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">136</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">339</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">4</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="3" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2000</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">311</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">58</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="3" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1999</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">377</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">40</FONT></TD>
</TR>
<TR>
<TD COLSPAN=14 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=14><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Total Company</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2001</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$36,133</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;1,121</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$24,150</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$1,632</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$4,451</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="3" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2000</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">26,943</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">501</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">22,712</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,523</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,327</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="3" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1999</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">21,181</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(207</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">18,932</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,222</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,863</FONT></TD>
</TR>
</TABLE>
<DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>TRIO-TECH INTERNATIONAL AND SUBSIDIARIES</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS&#151;(Continued)</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Years Ended June 30, 2001, 2000 and 1999</B></FONT></DIV>
<DIV ALIGN="center"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>(In thousands, except per share amounts)</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"> <B>Geographic Area Information:</B></FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>

<TABLE ALIGN="center" WIDTH="614" CELLSPACING=0 CELLPADDING=0>
<TR>
<TH VALIGN="bottom" ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>United
<BR>
States</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>Europe</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>Southeast
<BR>
Asia</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>Eliminations
<BR>
and Other</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>Total
<BR>
Company</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Net sales to customers</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2001</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$11,253</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">6,761</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">18,489</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(370</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$36,133</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="3" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2000</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$14,432</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2,893</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">10,121</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(503</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$26,943</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="3" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1999</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;8,552</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2,219</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">11,502</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(1,092</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$21,181</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD COLSPAN=17 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=17><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Operating Income (loss)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2001</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;(483</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">64</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1,404</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">136</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;1,121</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="3" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2000</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;132</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">27</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">30</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">311</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;501</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="3" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1999</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;(813</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(81</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">305</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">382</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;(207</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
</TR>
<TR>
<TD COLSPAN=17 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=17><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Property, plant and equipment&#151;net</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2001</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;869</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">424</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">6,241</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;7,534</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="3" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2000</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;996</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">259</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">3,242</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;4,497</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="3" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">1999</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;829</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">299</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">4,408</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">2</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;5,538</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
</TABLE>
<DIV><FONT SIZE="5">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>12.&nbsp;&nbsp;&nbsp;&nbsp;QUARTERLY FINANCIAL DATA (UNAUDITED)</B></FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company&#146;s summarized quarterly financial data are as follows:</FONT></DIV>
<DIV><FONT SIZE="2">&nbsp;</FONT></DIV>

<TABLE ALIGN="center" WIDTH="615" CELLSPACING=0 CELLPADDING=0>
<TR>
<TH VALIGN="bottom" ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>Sep. 30,</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>Dec. 31,</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>Mar. 31,</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
<TH><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TH>
<TH COLSPAN=2 VALIGN="bottom" NOWRAP ALIGN="center"><FONT SIZE="1" COLOR="#000000" FACE="'Times New Roman', Times"><B>Jun. 30,</B></FONT><FONT SIZE="1"><HR ALIGN="center" WIDTH="100%" SIZE="1" NOSHADE></FONT></TH>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Year ended June 30, 2000</B></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Revenues</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$5,556</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;6,787</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$5,925</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$8,675</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Expenses</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">5,493</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">6,189</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">5,719</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">8,017</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Income before income taxes and minority interest</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">63</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">598</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">206</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">658</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Income taxes</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">47</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(111</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(65</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">23</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Income before minority interest</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">110</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">487</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">141</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">681</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Minority interest</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(66</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">18</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(27</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(310</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Net income</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;44</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;505</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;114</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;371</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Net income per share:</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;0.02</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;0.18</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;0.04</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;0.13</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fully diluted</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;0.02</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;0.18</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;0.04</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;0.12</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD COLSPAN=13 VALIGN="bottom" ALIGN="left"></TD>
<TR>
<TD COLSPAN=13><FONT SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR><TD> </TD></TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times"><B>Year ended June 30, 2001</B></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Revenues</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$9,158</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$12,035</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$7,877</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$7,063</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Expenses</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">8,875</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">11,133</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">7,797</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">6,700</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Income before income taxes and minority interest</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">283</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">902</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">80</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">363</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Income taxes</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(68</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(211</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">35</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(111</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Income before minority interest</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">215</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">691</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">115</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">252</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Minority interest</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(31</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(53</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(2</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">(24</FONT></TD>
<TD VALIGN="bottom" ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">)</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="1" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Net income</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;184</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;638</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;113</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;228</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD><FONT SIZE="1"><HR ALIGN="right" WIDTH="100%" SIZE="2" NOSHADE></FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">Net income per share:</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"></TD>
<TD></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;0.06</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;0.22</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;0.04</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;0.08</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="left"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fully diluted</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;0.06</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;&nbsp;&nbsp;0.22</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;0.04</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
<TD><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" NOWRAP ALIGN="right"><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">$&nbsp;&nbsp;0.08</FONT></TD>
<TD><FONT SIZE="2" COLOR="#000000" FACE="'Times New Roman', Times">&nbsp;</FONT></TD>
</TR>
</TABLE>
 </BODY>
</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.9
<SEQUENCE>3
<FILENAME>dex109.txt
<DESCRIPTION>CREDIT FACILITY LETTER
<TEXT>
<PAGE>

                                                                    EXHIBIT 10.9

                                            Standard. Chartered
                                            -------------------

Date : 4 January 2001                       Standard Chartered Bank
                                            Corporate & Institutional Banking
Our Ref:  C&IB/CDT/CFS/LG/AH                Credit Operations
                                            CPF Tampines Building #03-00
                                            1 Tampines Central 5
PRIVATE AND CONFIDENTIAL                    Singapore 529508
------------------------

Trio-Tech International Pte Ltd             Postal Address:
1008 Toa Payoh North                        Robinson Road P. O. Box 1901
#03-09/18   Singapore 903801                Singapore 903801
Toa Payoh Industrial Estate
Singapore 318996

                                            Telephone +65 225 8888
                                            Facsimile +65 260 2513
                                            Telegrams STANCHART
                                            Telex RS 24290
Attn:- Mr Mok Chia Kwang
----
       Financial Controller

Dear Sirs

BANKING ARRANGEMENTS
--------------------

Standard Chartered Bank (the "Bank") is pleased to confirm its willingness to
continue to make available to Trio-Tech International Pte Ltd (the "Customer")
the banking facilities (the "Facilities") outlined below on the following terms
and conditions, subject to the Bank's Standard Terms and Conditions, as set out
in Form 338-1198 attached hereto, and to the satisfactory completion of
documentation:

BANKING FACILITIES
------------------

AMOUNT              DESCRIPTION AND PRICING
------              -----------------------

1      SGD500,000   Overdraft in current account, repayable upon demand, to
                    assist with working capital requirements.

                    Interest at prime plus 1.25% p.a. payable monthly in arrears
                    to the debit of the Customer's current account.


1a)   (USD200,000)  Overdraft in United States Dollar (USD) current account,
                    repayable upon demand, to assist with working capital
                    requirements.

                    Interest at USD prime plus 1% p.a. payable monthly in
                    arrears to the debit of the Customer's USD current account.

2)   SGD2,000,000   For opening irrevocable letters of credit, drafts at sight
                    and/or at usance for period up to 120 days, covering the
                    import of electronic test equipment and accessories into
                    Singapore and/or Malaysia.

2a) (SGD1,000,000)  Loans against trust receipts and/or acceptance against trust
                    receipts for period up to 120 days, covering the release of
                    goods imported under and complementary to limit 2).

                    Interest at SBFR plus 1.25% p.a. during the term of each
                    trust receipt.

2b) (SGD1,000,000)  Shipping guarantees may be issued to secure the release of
                    goods imported under letters of credit or collection bills
                    routed through the Bank.

Initials: M.C.K                                                   Initials: V.T
<PAGE>

                                                           Standard. Chartered
                                                           -------------------

2c)  (SGD1,000,000)  For opening irrevocable letters of credit, drafts at sight
                     and/or at usance for period up to 120 days, covering the
                     import of electronic test equipment and accessories in
                     favour of Singapore or Malaysian suppliers.

                     Note:
                     -----
                     Combined outstandings under limits 2a) to 2c) must not
                     exceed SGD1,000,000 at any one time.

2d)  (SGD500,000)    Loans against imports by way of promissory notes covering
                     collection DA and DP bills for period up to 120 days,
                     including original usance period. Financing of approved
                     suppliers' invoices are also permitted but at the sole
                     discretion of the Bank and pricing is at 0.25% flat for
                     commission.

                     Interest at SBFR plus 1.25% p.a. during the term of each
                     bill.

                     Condition
                     ---------
                     Proceeds of invoice financing are to be paid direct to
                     suppliers and not credited to the Customer's account.

3)    SGD2,000,000   For issuing standby letters of credit for a period of 365
                     days in favour of suppliers in consideration of credits
                     terms granted to the Customer.


3a)  (SGD2,000,000)  For issuing customs and other non-shipping guarantees for
                     period not exceeding twelve months.

                     Counter indemnities to be held.

3b)  (SGD2,000,000)  For issuing advance payment guarantees / performance bonds
                     retention bonds for period not exceeding twelve months.

                     Counter indemnities to be held.

3c)  (SGD1,000,000)  For issuing tender bonds for period not exceeding six
                     months.

                     Counter indemnities to be held.

4)    SGD1,292,000   A 4-year term loan to assist the Customer in financing
                     the construction of a high tension power sub-station.

                     Interest at prime plus 1.5% p.a.

                     Tenor
                     -----
                     4 years from date of first drawdown.

                     Drawdown
                     --------
                     Drawdown in tranches against contractors invoices &
                     architect's certification. 3 days notice is to be given to
                     the Bank before drawdown.

                     Repayment
                     ---------
                     Repayable in 47 monthly instalments of SGD26,916 each
                     (excluding interest) and a final instalment of SGD26,948
                     (excluding interest).

Initials: M.C.K                                                    Initials: V.T
<PAGE>

                                                             Standard. Chartered
                                                             -------------------
                  Prepayment
                  ----------

                  Partial repayments will be applied in inverse order of
                  maturity and may not be redrawn. The Customer is to give at
                  least 30 days written notice before such repayment is
                  effected.

                  Commitment / Cancellation Fee
                  -----------------------------

                  A fee of 1% flat on the amount prepaid if full prepayment is
                  made within one year from the date of first drawndown.

                  Condition: For limits 1). 1a) and 4)
                  ------------------------------------

                  In the event that the Bank's prime rate is lower than its 1-
                  month cost of funds rate, the Bank reserves the right to
                  convert the prime rate to its 1-month cost of funds rate.

                  Note:-
                  ------

                  I)   Combined outstandings under limits 1) and 1a) must
                       not exceed SGD500,000 at any one time.

                  ii)  The Bank may at any time at its sole discretion suspend
                       the availability of prime-based funds by reason or
                       circumstances affecting the money market including but
                       not limited to volatile rate fluctuations or tight
                       liquidity.

SECURITY
--------

   Security for the above Facilities and for facilities which may be extended by
   the Bank to the Customer from time to time :-

   1)  Registered charge over fixed deposits of SGD1,650,000 and USD300,000 in
       the name of the

       Customer and supported by an appropriate board resolution.

   2)  Existing corporate guarantee for SGD2,500,000 executed by Trio-Tech
       International USA and supported by an appropriate board resolution.

   3)  Fresh registered fixed charge over high tension power sub-station located
       at Mukim No. 17 Lots No. A4551 J and No. A4551 K.

       Fire insurance policy covering the above asset for the full reinstatement
       value with the Bank's interest indicated as mortgagee thereon including
       mortgagee, non-cancellation and reinstatement value clauses and premium
       paid receipt are to be lodged with the Bank.

CONDITIONS
----------

   1)  Loans to parent company Trio-Tech International USA (directly and
       indirectly) and
        associated companies must not exceed SGD3,500,000 at all times.

   2)  The Customer is to maintain a minimum networth of SGD6,000,000 at all
       times.

       Networth is defined as the aggregate of paid-up capital and revenue
       reserves, excluding revaluation reserves and deducting any loans made to
       the directors in their personal capacities or to the parent company,
       Trio-Tech International USA directly and indirectly or other related
       companies and other intangible assets.

   3)  Gearing ratio of Trio-Tech International Pte Ltd (Singapore) is not to
       exceed 1. Gearing ratio is defined as total external debts: networth.

   4)  Any dividends to be declared are subject to prior written consent from
       the Bank which will not be unreasonably withheld.

Initials: M.C.K                                                Initials: V.T
<PAGE>

                                                   Standard. Chartered
                                                   -------------------

5)   The Customer is to submit to the Bank its quarterly management accounts and
     its operating subsidiaries including Trio-Tech International (M) Sdn Bhd,
     Trio-Tech (KL) Sdn Bhd and Trio Tech International (Thailand) Co. Ltd.

6)   The Customer is to submit to the Bank its quarterly lists of stocks and
     ageing debtors (trade and non-trade, including related company debts) and
     stocks are subject to periodic inspection by the Bank's officers.

INTEREST
--------

The Bank's Singapore Dollar and United States Dollar prime lending rates are
currently 6.25% p.a. and 9.5% p.a. respectively and are subject to fluctuation
without prior notice but the rates and any changes thereto are notified in the
press and are featured in the Bank's statements of account and on notices
displayed at the Bank's branches.

The Bank's Standard Bills Finance Rate (SBFR) for all Trade Finance related
loans is also subject to fluctuation without prior notice and will be determined
by the Bank according to market forces but the prevailing rate and any changes
thereto are featured in the Bank's Trade Finance statements and are available on
request from our Trade Customer Services Centre. The SBFR for Singapore Dollar
denominated Trade loans is currently 6.25% p.a. and for Foreign Currency Trade
loans is the respective currency's local inter-bank offer rate or Cost of Funds
(i.e. SIBOR) for three months or such other period as the Bank in its discretion
may consider appropriate.

INSURANCE
---------

The Customer agrees that fire insurance for the asset described under paragraph
herein (individually and collectively referred to as "Security") shall be
obtained through the Bank's approved insurance company, Commercial Union
Assurance Company Plc, a member company of the CGU Insurance Group (CGU) for
such amount(s) and on such terms as the Bank may require to cover the rights and
interests of the Bank for as long as banking facilities are being extended to
the Customer by the Bank. The fire insurance policy shall cover against risks of
fire and extraneous perils and such other risk(s) as the Bank may in its
absolute discretion require and determine fit. In the event where Customer is
not the owner of the said asset, the Customer agrees to procure the consent of
the owner of the said asset to take up the said fire insurance through CGU.

The Customer agrees that the Bank shall be entitled to deduct all costs, fees,
expenses and payments (including but not limited to premium payments) to CGU
from the Customer's account to ensure that the fire insurance policy is in place
and/or duly renewed on such terms as the Bank may require. The Customer consents
to the Bank disclosing to CGU any information whatsoever about the Customer and
the Security for any purpose in connection with the said fire insurance policy.

FEES
----

Upon acceptance of the Facilities detailed in this letter, a facility fee of
SGD500 becomes payable and will be debited to the Customers account accordingly.

DISCLOSURE
----------

The Customer hereby consent to Standard Chartered Bank, Singapore, its officers
and agents disclosing information relating to the Customer and the Customers,
account or dealing relationship with the Bank, including but not limited to
details of the Customer's Facilities, any security taken, transactions
undertaken and balances and positions with the Bank, to (i) the head office of
the Bank, any of its representative and branch offices in any jurisdiction,
related corporations and its agents and independent contractors who are under a
duty of confidentiality to the Bank; (ii) any potential assignee of the Bank or
other participant in any of its rights and/or obligations in relation to the
Customer's Facilities and (iii) any guarantors, third party pledgors or security
providers.

MAS NOTICE 757
--------------

In accordance with MAS Notice 757, Facilities denominated in Singapore Dollars
granted to nonresidents are only to be used to finance operations and economic
activities in Singapore specifically allowed under the said MAS Notice 757.
Singapore Dollar denominated facilities granted to nonresidents are not to be
used for:-

Initials: M.C.K                                                   Initials: V.T
<PAGE>

                                                        Standard. Chartered
                                                        -------------------

(a)  speculating in the Singapore Dollar currency and interest rate markets;

(b)  financing third-country trade between countries not involving Singapore;

(c)  financing the acquisition of shares of companies not listed on the
     Singapore Exchange; and

(d)  financing any activities outside Singapore; except when approved by the
     Monetary Authority of Singapore.


ACCEPTANCE
----------

This offer will remain open for acceptance for a period of thirty days from the
date of this letter, after which time it will lapse unless an extension has been
agreed by the Bank in writing.

To confirm your acceptance of this offer, please return the attached duplicate
copy of this letter duly signed in acceptance together with a certified true
extract of the board resolution as per specimen attached to:

                         Standard Chartered Bank
                         Corporate & Institutional Banking Credit Operations
                         1 Tampines Central 5
                         #03-00 CPF Tampines Building
                         Singapore 529508

                         Attention:    Ms Anna Hee

This Facility letter supersedes all previous Facility letters.

DOCUMENTATION
-------------

Please advise the name of the solicitors who will be acting for the Customer in
the completion of the legal documentation.

All expenses costs and fees relating to the completion of the charge are to be
borne by the Customer and will be debited from the Customer's account
accordingly.

We also enclosed a set of documents which should be duly completed and returned
to the Bank at the abovementioned address.

AVAILABILITY
------------

In accordance with normal banking practice, the Facilities are made available
solely at the discretion of the Bank and are subject to repayment on demand by
the Bank.

Without prejudice to this obligation of the Customer, the Facilities shall be
subject to review by the Bank from time to time.

We are pleased to make this offer of banking arrangements and look forward to
receiving your formal acceptance in due course.

Yours faithfully
For and on behalf of
Standard Chartered Bank


By: /s/ Laurance Goh
------------------------
Laurence Goh
Senior Manager
Corporate Financial Services

Initials: M.C.K                                         Initials: V.T
<PAGE>

                                                      Standard.Chartered
                                                      ------------------


We confirm the Customer's acceptance of the Facilities on the terms and
conditions outlined in this letter dated 4 January 2001



By: /s/ Yong Siew Wai
----------------------------------------------------
For and on behalf of Trio-Tech International Pte Ltd

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.13
<SEQUENCE>4
<FILENAME>dex1013.txt
<DESCRIPTION>REAL ESTATE LEASE DATED FEB 16, 2001
<TEXT>
<PAGE>

                                                                   EXHIBIT 10.13

JTC(L)3729/199

1 March, 2001

                                                    JTC Corporation
                                                    JTC East Zone Office
TRIO-TECH INTERNATIONAL PTE LTD                     25 Kallang Avenue 405-01
BLOCK 1008 TOA PAYOH NORTH                          Singapore 339416
#03-09
SINGAPORE 318996                                    telephone 1800-299 9405
                                                    facsimile 885 4232
                                                    email   feedback@ jtc.gov.sg
                                                    web site  www.jtc.gov.sg


Dear Sirs,

ACCEPTANCE OF RENEWAL OFFER ON PTE LOTS A4551, A4551A, A4551G AT BLK 1004 TOA
PAYOH NORTH #07-01/07 AND #07-R1, #03-01/03

1    We are pleased to forward herewith the stamped letter of acceptance dated
     16 Feb 2001, for your retention.


Yours faithfully


By: /s/ Margie Ho
--------------------------
Margie Ho (Mrs)
JTC East Zone
for Director
Customer Services Group

ENCL.

DID-8854207
FAX: 8854232
EMAIL:margieho@jtc.gov.sg
<PAGE>

                         TRIO-TECH
                         ---------
                        INTERNATIONAL

8 February 2001
                                                     [STAMP]
JTC EAST ZONE
25 KALLANG AVENUE
#15-01
SINGAPORE 339416

Attn: Ms Mabel Tan

Dear Sirs,

RENEWAL OF TENANCY FOR PTE LOT: AA45519 A4551A, A455IG AT BLK 1004 TOA PAY0H
NORTH #07-01/07 SINGAPORE 318995, #07-R1, SINGAPORE 318995, #03-01/03 SINGAPORE
318995

1.   We refer to your letter of Offer dated 14 November 2000 and hereby confirm
     acceptance of the covenants, terms and conditions of the Tenancy.

2.   We enclose herewith a cheque for the amount of $1,178.00 and a
     Banker's/Insurance Guarantee for the amount of $37,006.39 as security
     deposit as confirmation of our acceptance.



                                           By: /s/ Lee Siew Kuan
-------------------------------------------------------------------------------
Signature of authorised signatory     :    Lee Siew Kuan
Name of authorised signatory          :    Director of Logistic
Designation

For and on behalf of :
TRIO-TECH INTERNATIONAL PTE LTD
In the presence of :


                                           By: /s/ Betty Ang
-------------------------------------------------------------------------------
Name of witness                       :    Miss Betty Ang
NRIC No.                              :    S6945849A
<PAGE>

JTC(L)3729/199/MT

14 November, 2000
                                                      DID: 8854193
                                                      FAX: 8854232
                                                      EMAIL: mabeitan@jtc.gov.sg
TRIO-TECH INTERNATIONAL PTE LTD
BLOCK 1008 TOA PAYOH NORTH
#03-09
SINGAPORE 318996

Dear Customer,

RE: RENTAL AND PROPERTY TAX REBATES FOR TENANTS UPON RENEWAL PTE LOT NO. AA4661,
A4551 A, A4651G

1.   In November 1999, we informed you that JTC has extended the rental rebate
     measures announced in January 1999 by another year until 31st December
     2000. On the 31st of December 2000, the rebates given to you will cease to
     be effective and rental payable will revert to the contracted amounts
     without further notice.

2.   You may be pleased to note that the Ministry of Finance has extended the
     property tax rebate for another year from 1st July 2000 to 3 June 2001, but
     at a lower rate of 25%. This works out to a rebate of 3% on the rent
     payable after any rental rebates, if applicable.

3.   You may like to take note that the rental and property tax rebate, will
     cease on 31st Dec 2000 or 30th June 2001 respectively or when your tenancy
     expires, whichever is earlier. An updated statement of account reflecting
     the amount payable, due to the renewed rental rates and property tax
     rebates is attached. If you have any queries, please do not hesitate to
     contact me at DID 8854193.

4.   On behalf of JTC, I wish you continued success in the years ahead


Yours Faithfully,


By: /s/ Mabel Tan
------------------------------
MABEL TAN (MISS)
SNR LEASE MANAGEMENT OFFICER
JTC EAST ZONE
CUSTOMER SERVICES GROUP
ENCL
<PAGE>

JTC(L)3729/199/MT

14 November, 2000                                     DID: 8854193
                                                      FAX: 8854232
                                                      EMAIL: mabeltan@jtc.gov.sg

TRIO-TECH INTERNATIONAL PTE LTD
BLOCK 1008 TOA PAYOH NORTH
#03-09
SINGAPORE 318996

Attn : Ms Betty Ang                      LUM

Dear Sirs,

OFFER OF TENANCY OF FLATTED FACTORY AT BLK 1004 TOA PAYOH NORTH #07-01/07, #07-
R1 & #03-01/03, SINGAPORE 318996 PTE LOTS A4561, A4551A, A4551G ("THE PREMISES")

1.   We are pleased to offer a tenancy of the Premises subject to the following
     covenants, terms and conditions in this letter and in the annexed
     Memorandum of Tenancy ("the Offer"):

     1.01   Location:

            Units #07-01/07, #07-R1, #03-01/03, , at Blk 1004 Toa Payoh North
            ("the Building" ) as delineated and edged in red on the plan
            attached to the Offer.

     1.02   Term of Tenancy:

            2 years 10 months 15 days ("the Term") with effect from 16 Nov 2000
            ("the Commencement Date").

     1.03   Tenancy Agreement:

            Upon due acceptance of the Offer in accordance with clause 2 of this
            letter, you shall have entered into a tenancy agreement with us
            ("the Tenancy") and will be bound by the Ovenants, terms and
            conditions thereof.

            In the event of any inconsistency or conflict between any covenant,
            term or condition of this letter and the Memorandum of Tenancy, the
            relevant covenant, term or condition in this letter shall prevail.
<PAGE>

                                                         Jurong Town Corporation

1.04 Area:

       Site                Unit No.         Floor Area
                                             (sq m)

     4551                  #07-01/07         637.7        )
     4551A                 #07-R1              9.4        ) subject
     4551G                 #03-01/03         274.9        ) to
                                            922.00        ) survey

1.05 Rent and Service Charge:

     For Discounted Rent:
     --------------------

     (a)  Discounted rate of: -

          Site             Unit No.         Discounted Rent per
                                              sqm per month
          4551             #07-01/07              $10.96
          4551A               #07-R1              $10.96
          4551 G           #03-01/03              $12.03

     for so long as the Tenant shall occupy by way of tenancy an aggregate floor
     area of 1,000 square metres in the Building or in the various flatted
     factories belonging to the Landlord, and

     (b)  Normal rate of

          Site             Unit No.         Normal Rent per sqm
                                                 per month
          4551             #07-01/07              $11.30
          4551A               #07-R1              $11.30
          4551 G           #03-01/03              $12.40

     in the event that the said aggregate floor area occupied is at any time
     reduced to below 1,000 square metre (when the discount shall be totally
     withdrawn) with effect from the date of reduction in the said aggregate
     floor,

     ("Rent" ) to be paid without demand and in advance without deduction on the
     1st day of each month of the year (i.e. 1st of January, February, March,
     etc.). The first payment shall be made on 16 Dec 2000.
<PAGE>

                                                         Jurong Town Corporation

     Service charge:

     $2.10 per square metre per month, ("Service Charge") as charges for
     services rendered by us, payable without demand on the same date and in the
     same manner as the Rent, subject to our revision from time to time.

1.06 Security Deposit/ Banker's Guarantee:

     For Discounted Rent:
     -------------------

     You will at the time of acceptance of the Offer be required to place with
     us a deposit of $37,006.39 equivalent to 3 months' Rent (at the discounted
     rate) and Service Charge ("Security Deposit") as security against any
     breach of the covenants, terms and conditions in the Tenancy.

     The Security Deposit may be in the form of cash and/or acceptable Banker's
     Guarantee in the form attached (effective from 16 Nov 2000 to 31 Mar 2004)
     and/or such other form of security as we may in our absolute discretion
     permit or accept.

     The Security Deposit must be maintained at the same sum throughout the Term
     and shall be repayable to you without interest or returned to you for
     cancellation, after the termination of the Term (by expiry or otherwise) or
     expiry of the Banker's Guarantee, as the case may be, subject to
     appropriate deductions or payment to us for damages or other sums due under
     the Tenancy.

     If the Rent at the discounted rate is increased to the normal rate or
     Service Charge is increased or any deductions are made from the Security
     Deposit, you are to immediately pay the amount of such increase or make
     good the deductions so that the Security Deposit shall at all times be
     equal to 3 months' Rent and Service Charge.

1.07 Mode of Payment:

     Except for the payment to be made with your letter of acceptance pursuant
     to clause 2 of this letter, during the Term, you shall pay Rent, Service
     Charge and GST by Interbank GIRO or any other mode to be determined by us.

     You have an existing account with us from which we will continue to deduct
     the aforesaid payments. You are therefore not required to submit a duly
     completed GIRO form as part of the Mode of Acceptance herein unless you
     wish to have a separate GIRO account to meet the aforesaid payments.
<PAGE>

                                                         Jurong Town Corporation

1.08 Permitted Use:

     (a)  You shall commence full operations for

          #07-01/07
          ---------
          assembly and test of semi-conducters and test equipment only

          #07-RI
          ------
          storage of raw materials related to the production only

          #03-01/03
          ---------
          ancillary storage of raw materials to main operation at #07-01/07

          only and for no other purpose whatsoever ("the Authorised Use").

     (b)  Thereafter, you shall maintain full and continuous operations and use
          and occupy the whole of the Premises for the Authorised Use.

     (c)  Subject to clauses (a) and (b) above, you shall use and occupy at
          least sixty per cent (60%) of the gross floor area of the Premises for
          industrial activities and ancillary stores, and use and occupy the
          remaining gross floor area, if any, for offices, neutral areas,
          communal facilities and such other uses as may be approved in writing
          by us and the relevant governmental and statutory authorities Provided
          That you shall not use and occupy the Premises for the purpose of
          commercial office and storage unrelated to the Authorised Use.

1.09 Preparation and Submission of Plans:

     (a)  No alteration, addition, improvement, erection, installation or
          interference to or in the Premises or the fixtures and fittings
          therein is permitted without Building Control Unit's [BCU(JTC)] prior
          written consent. Your attention is drawn to clauses 2.10 to 2.19 and
          2.34 of the Memorandum of Tenancy.

     (b)  If you have made any changes to the original layout of your factory,
          you shall be required to engage a qualified architect or engineer to
          prepare and submit plans showing the layout of all installations
          including any alterations and additions. And you may wish to make and
          submit to Controller, BCU(JTC) four copies of fresh layout plan
          showing the alterations or additions etc, for our record/approval. If
          you have any enquiries on the preparation and submission of your plans
          for JTC endorsement, please contact Mr Song Bee Keng/Mr Foo See Keong
          at Tel No 5688389/5688382.
<PAGE>

                                                         Jurong Town Corporation

     (c)  No work shall commence until the plans have been approved by our
          BCU(JTC).

1.10 Special Conditions:

     (a)  Loading Capacity:

          Normal (Ground & Non-ground) Floor Premises

          You shall comply and ensure compliance with the following
          restrictions:

          (i)   maximum loading capacity of the goods lifts in the Building; and

          (ii)  maximum floor loading capacity of 15.0 or 10.0 kiloNewtons per
                square metre respectively of the Premises on the 3d and 7th
                storey of the Building PROVIDED THAT any such permitted load
                shall be evenly distributed.

          We shall not be liable for any loss or damage that you may suffer from
          any subsidence or cracking of the ground floor slabs and aprons of the
          Building.

1.11 Option for renewal of tenancy:

     (a)  You may within 3 months before the expiry of the Term make a written
          request to us for a further term of tenancy

     (b)  We may grant you a further term of tenancy of Premises upon mutual
          terms to be agreed between you and us subject to the following :

          (i)   there shall be no breach of your obligations at the time you
                make your request for a further term;

          (ii)  our determination of revised rent, having regard to the market
                rent of the Premises at the time of granting the further term,
                shall be final;

          (iii) we shall have absolute discretion to determine such covenants,
                terms and conditions, but excluding a covenant for renewal of
                tenancy; and

          (iv)  there shall not be any breach of your obligations at the expiry
                of Term.
<PAGE>

                                                         Jurong Yown Corporation

2.   Mode of Acceptance:

     The Offer shall lapse if we do not receive the following within three weeks
     from the date of this letter.

     .    Duly signed letter of acceptance of all the covenants, terms and
          conditions in the Tenancy in the form enclosed at the Appendix 1.
          (Please date as required in the Appendix)

     .    Payment of the sum $50,568.57 (inclusive of GST) arrived at Appendix
          2.

     .    Alternatively, please let us have your remittance of $1,178.00
          (inclusive of GST) and the Bankers Guarantee (in lieu of the three
          months' cash deposit) for the sum of $37,006.39. Please note that your
          first month's rent of $12,384.18 will be deducted through your Giro
          Account in Dec 2000.

3.   Please note that payments made prior to your giving us the other items
     listed above may be cleared by and credited by us upon receipt. However, if
     the said other items are not forthcoming from you within the time
     stipulated herein, the Offer shall lapse and there shall be no contract
     between you and us arising hereunder. Any payments received shall then be
     refunded to you without interest and you shall have no claim of whatsoever
     nature against us.

4.   Variation to the Tenancy

     This letter and the Memorandum of Tenancy constitute the full terms and
     conditions governing the Offer and no terms or representation or otherwise,
     whether express or implied, shall form part of the Offer other than what is
     contained herein. Any variation, modification, amendment, deletion,
     addition or otherwise of the covenants, terms and conditions of the Offer
     shall not be enforceable unless agreed by both parties and reduced in
     writing by us.

5.   Car-Parking Scheme:

     (a)  The car park for Block 1004 Toa Payoh North is currently managed by
          Wilson Parking (S) Pte Ltd and you will have to observe and be bound
          by all the rules and regulations governing the use and operation of
          the car park. You are requested to contact the following person on the
          use of the car park:
<PAGE>

                                                         Jurong Town Corporation

               Ms Susan Ng
               Wilson Parking (S) Pte Ltd
               32 Sultan Gate
               Singapore 198480
               TelNo.2966600

     (b)  The Corporation shall not be liable for any loss, damage, injury,
          liability, claim or action you may sustain or suffer in the use of the
          car park and the tenants shall fully indemnify the Corporation against
          any loss, claims, penalties, demands, damage arising from the private
          management and operations of the car park by the tenants.

6.   Please note that our granting of your request/application here does not at
     any time prejudice or waive any of our rights or remedies for breaches of
     your obligations to us. Any waiver by us, to be effective, must be clearly
     and specifically stated in writing.


Yours faithfully

By: /s/ Mabel Tan
------------------------------
MABEL TAN (MISS)
SNR LEASE MANAGEMENT OFFICER
JTC EAST ZONE
CUSTOMER SERVICES GROUP
ATTD

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.14
<SEQUENCE>5
<FILENAME>dex1014.txt
<DESCRIPTION>REAL ESTATE LEASE DATED MAY 13, 1999
<TEXT>
<PAGE>

                                                                   EXHIBIT 10.14

          TRIO-TECH
          ---------
         INTERNATIONAL



3 June 1999

Marketing & Sales Department                                       BY HAND
Jurong Town Corporation
Jurong Town Hall
301 Town Hall Road Singapore 609431


Dear Ms Lai Get Luan


ACCEPTANCE OF OFFER OF TENANCY FOR THE PREMISES AT BLK 1004 TOA PAYOH NORTH
#03-16 TO #03-17 TOA PAYOH INDUSTRIAL ESTATE SINGAPORE 318995

1.   We refer to your letter of offer dated 13 May 1999 for the Tenancy and
     hereby confirm our acceptance of all the covenants, terms and conditions
     stipulated therein.

2.   We hereby enclose following as for an of confirmation of our acceptance :

     (i)     A cheque (cheque no. : SCB 132065) for the amount of S$ 2,778.20.

     (ii)    A Banker's Guarantee for the amount of S$7,808.24 which will be
             forwarded to you by 7th June 99.

     (iii)   A copy of our RCB Certificate.

3.   In addition, we also enclose herewith a duly completed GIRO authorisation
     form as requested by you for your information and record.


By: /s/ Lee Siew Kuan
------------------------------------------------
Name of authorised signatory : Mrs Lee Siew Kuan
Designation: Director Of Logistics
for and on behalf of:

TRIO-TECH INTERNATIONAL PTE LTD

In the presence of


By: /s/ Chong Siew Chang
-------------------------------
Name of witness: Chong Siew Chang
NRIC No: 6928801/D

LSK/ic-
<PAGE>

JTC(L)3729/199/TEMP IALGUSN                          DID: 5688574
                                                     FAX: 5688593
                                                     Email: getluan@jtc.gov.sgw

13 May 1999

Trio-Tech International Pte Ltd
5 Kian Teck Rd                                       BY LUM
                                                     ------

Singapore 628765

(Attn: Ms Betty Ang)

Dear Sirs,

OFFER OF TENANCY FOR FLATTED FACTORY SPACE

1.   We are pleased to offer a tenancy of the Premises subject to the following
     covenants, terms and conditions in this letter and in the annexed
     Memorandum of Tenancy ("the Offer") :

     1.01 Location:

          Pte Lot A455 I (h), Blk 1004 ("the Building"), Toa Payoh North #03-16
          to #03-17 Toa Payoh Industrial Estate Singapore 318995 ("the
          Premises") as delineated and edged in red on the plan attached to the
          Offer.

     1.02 Term of Tenancy:

          3 years ("the Term") with effect from 01 August 1999 ("the
          Commencement Date").

     1.03 Tenancy Agreement:

          Upon due acceptance of the Offer in accordance with clause 2 of this
          letter, you shall have entered into a tenancy agreement with US ("the
          Tenancy") and will be bound by the covenants, terms and conditions
          thereof.

          In the event of any inconsistency or conflict between any covenant,
          term or condition of this letter and the Memorandum of Tenancy, the
          relevant covenant, term or condition in this letter shall prevail.

     1.04 Area:

          Approximately 184.20 square metres (subject to survey).
<PAGE>

                                                         Jurong Town Corporation

     1.05 Rent and Service Charge:

          (a)  Discounted rate of $12.03 per square metres for so long as the
               Tenant shall occupy by way of tenancy an aggregate floor area of
               not less than 1,000 square metres in the Building or in the
               various flatted factories belonging to the Landlord, and

          (b)  Normal rate of $12.40 per square metres with effect from the date
               the said aggregate floor area occupied is reduced to below 1,000
               square metres (ie. when the discount shall be totally withdrawn),

               ("Rent") to be paid without demand and in advance without
               deduction on the 1st day of each month of the year (i.e. I st of
               January, February, March, etc.). The next payment shall be made
               on 01 September 1999.

          Service charge:

          $2.10 per square metre per month, ("Service Charge") as charges for
          services rendered by us, payable without demand on the same date and
          in the same manner as the Rent, subject to our revision from time to
          time.

     1.06 Security Deposit/Banker's Guarantee:

          You will at the time of acceptance of the Offer be required to place
          with us a deposit of $7,808.24 equivalent to 3 months' Rent (at the
          discounted rate) and Service Charge ("Security Deposit") as security
          against any breach of the covenants, terms and conditions in the
          Tenancy.

          The Security Deposit may be in the form of cash and/or acceptable
          Banker's Guarantee in the form attached (effective from 01 June 1999
          to 31 January 2003) and/or such other form of security as we may in
          our absolute discretion permit or accept.

          The Security Deposit must be maintained at the same sum throughout the
          Term and shall be repayable to you without interest or returned to you
          for cancellation, after the termination of the Term (by expiry or
          otherwise) or expiry of the Banker's Guarantee, as the case may be,
          subject to appropriate deductions or payment to us for damages or
          other sums due under the Tenancy.

          If the Rent at the discounted rate is increased to the normal rate or
          Service Charge is increased or any deductions are made from the
          Security Deposit, you are to immediately pay the amount of such
          increase or make good the deductions so that the Security Deposit
          shall at all times be equal to 3 months' Rent and Service Charge.

     1.07 Mode of Payment:

          You have an existing account with us from which we will deduct the
          aforesaid payments. You are therefore not required to submit a duly
          completed GIRO form as part of the Mode of Acceptance herein unless
          you wish to have a separate GIRO account to meet the aforesaid
          payments.
<PAGE>

     1.08 Permitted Use:

          (a)  Subject to clause 1. 12 of this letter, you shall commence full
               operations within four (4) months of the Commencement Date for
               the purpose of IC testing, services and packing for
               semi-cofiductors industry only and for no other purpose
               whatsoever ("the Authorised Use").

          (b)  Thereafter, you shall maintain full and continuous operations and
               use and occupy the whole of the Premises for the Authorised Use.

          (c)  Subject to clauses (a) and (b) above, you shall use and occupy at
               least sixty percent (60%) of the gross floor area of the Premises
               for industrial activities and ancillary stores, and use and
               occupy the remaining gross floor area, if any, for offices,
               neutral areas, communal facilities and such other uses as may be
               approved in writing by us and the relevant governmental and
               statutory authorities PROVIDED THAT you shall not use and occupy
               the Premises for the purpose of commercial office and storage
               unrelated to the Authorised Use.

     1.09 Approvals

          The Tenancy is subject to approvals being obtained from the relevant
          government and statutory authorities.

     1.10 Possession of Premises:

          (a)  Keys to the Premises will be given to you two (2) months prior to
               the Commencement Date subject to due acceptance of the Offer
               ("Possession Date").

          (b)  From the Possession Date until the Commencement Date, you shall
               be deemed a licensee upon the same terms and conditions in the
               Tenancy.

          (c)  if you proceed with the Tenancy after the Commencement Date, the
               licence fee payable from the Possession Date to the Commencement
               Date shall be waived ("Rent-Free Period"). Should you fail to so
               proceed, you shall

               (i)   remove everything installed by you;
               (ii)  reinstate the Premises to its original state and condition;
                     and
               (iii) pay us a sum equal to the prevailing market rent
                     payable for the period from the Possession Date up to the
                     date the installations are removed and reinstatement
                     completed to our satisfaction,

               without prejudice to any other rights and remedies we may have
               against you under the Tenancy or at law.
<PAGE>

     1.11 Preparation and Submission of Plans:

          (a)  No alteration, addition, improvement, erection, installation or
               interference to or in the Premises or the fixtures and fittings
               therein is permitted without Building Control Unit [BCU(JTC)]
               prior written consent. Your attention is drawn to clauses 2.10 to
               2.19 and 2.34 of the Memorandum of Tenancy.

          (b)  You will be required to prepare and submit floor layout plans of
               your factory and plans of the air-conditioning works in
               accordance with the terms of the tenancy and the 'Guide'
               attached. It is important that you should proceed with the
               preparation and submission of the plans in accordance with the
               procedures set out in the said 'Guide'.

          (c)  Should there be alteration of existing automatic fire alarm and
               sprinkler system installation, alteration plans shall be
               submitted to Building Control Unit [BCU(JTC)] for approval on
               fire safety aspects. All air-conditioning, fire alarm & sprinkler
               system plans must be signed by a relevant Professional Engineer,
               registered with the Professional Engineers Board of Singapore.

          (d)  Upon due acceptance of the Offer, a copy of the floor and
               elevation plans (transparencies) will be issued to you to assist
               in the preparation of the plans required herein.

          (e)  No work shall commence until the plans have been approved by
               Building Control Unit [BCU(JTC)].

     1.12 Final inspection:

          You shall ensure that final inspection by us of all installations is
          carried out and our approval of the same is obtained before any
          operations in the Premises may be commenced.

     1.13 Special Conditions:

          1 You shall comply and ensure compliance with the following
          restrictions:

          (a)  maximum loading capacity of the goods lifts in the Building; and

          (b)  maximum floor loading capacity of 15.00 kiloNewtons per square
               metre of the Premises on the 3rd storey of the Building PROVIDED
               THAT any such permitted load shall be evenly distributed.

          We shall not be liable for any loss or damage that you may suffer from
          any subsidence or cracking of the ground floor slabs and aprons of the
          Building.
<PAGE>

                 2   Option for renewal of tenancy:
                     ------------------------------
                     (a)  You may within 3 months before the expiry of the Term
                          make a written request to us for further term of
                          tenancy.

                     (b)  We may grant you a further term of tenancy of the
                          Premises upon mutual terms to be agreed between you
                          and us subject to the following:

                          (i)    there shall be no breach of your obligations at
                                 the time you make your request for a further
                                 term;

                          (ii)   our determination of revised rent, having
                                 regard to the market rent of the Premises at
                                 the time of granting the further term, shall be
                                 final;

                          (iii)  we shall have absolute discretion to determine
                                 such covenants, terms and conditions, but
                                 excluding a covenant for renewal of tenancy;
                                 and

                          (iv)   there shall not be any breach of your
                                 obligations at the expiry of the Term.

2.   Mode of Acceptance:

     .    The Offer shall lapse if we do not receive the following by 27 May
          1999:-

     .    Duly signed letter of acceptance (in Duplicate) of all the covenants,
          terms and conditions in the Tenancy in the form enclosed at the
          Appendix. (Please date as required in the Appendix)

     .    Payment of the sum set out in clause 4.

     .    Duly completed GIRO authorization form (if any).

 3.    Please note that payments made prior to your giving us the other items
     listed above may be cleared by and credited by us upon receipt. However, if
     the said other items are not forthcoming from you within the time
     stipulated herein, the Offer shall lapse and there shall be no contract
     between you and us arising hereunder. Any payments received shall then be
     refunded to you without interest and you shall have no claim of whatsoever
     nature against US.
<PAGE>

4.   The total amount payable is as follows:

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------
                                                            AMOUNT                             +3 % GST
--------------------------------------------------------------------------------------------------------
Rent:
-----
<S>                                                   <C>               <C>                <C>

Rent at $12.03 psm per month on
184.20 sqm for period 01 August 1999
to 31 August 1999                                     $    2,215.93

Less:
6.6% Property tax rebate on rental value
(01/07/1998 to 30/06/2000)                            $      146.25
                                                      -------------
                                                      $    2,069.68

--------------------------------------------------------------------------------------------------------
Service Charge:
---------------

Service Charge at $2.10 psm per
month on 184.20 sqm for period
01 August 1999 to 31 August 1999                      $      386.82     $     2,456.50     $       73.70
                                                      -------------
--------------------------------------------------------------------------------------------------------
Deposit equivalent to three months' rent
and service charge (or Banker's
Guarantee provided in accordance with
sub-paragraph 1.06 above)                                               $     7,808.24

--------------------------------------------------------------------------------------------------------

Stamp fee payable on Letter of
Acceptane which will be stamped by
JTC on your behalf                                                      $       248.00
--------------------------------------------------------------------------------------------------------


   Sub-Total Payable                                                    $    10,512.74     $       73.70
--------------------------------------------------------------------------------------------------------

Add: 3 % GST                                                            $        73.70
                                                                        --------------
--------------------------------------------------------------------------------------------------------

Total Amount Payable                                                    $    10,586.44
                                                                        --------------
--------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>

5.   Rent-Free Period:

     As the Commencement Date will not be deferred, we advise you to accept the
     Offer as soon as possible and to collect the keys to the Premises on the
     scheduled date in order to maximize the Rent-Free Period referred to in
     clause 1. 1 0(c) of this letter.

6.   Variation to the Tenancy

     This letter and the Memorandum of Tenancy constitute the full terms and
     conditions governing the Offer and no terms or representation or otherwise,
     whether express or implied, shall form part of the Offer other than what is
     contained herein. Any variation, modification, amendment, deletion,
     addition or otherwise of the covenants, terms and conditions of the Offer
     shall not be enforceable unless agreed by both parties and reduced in
     writing by us.

7.   Car-Parking Scheme:

     (a)  The car park for Blk 1004 is currently managed by a Tenants' Committee
          and you will:

          (i)    have to contribute towards all the operational and management
                 costs, if any, incurred in connection with the car parks;

          (ii)   observe and be bound by all the rules and regulations
                 governing the use and operation of the car park. A copy of the
                 Tenant Committeds current rules and regulations is obtainable
                                                                 -------------
                 from the Tenants' Committee. You are required to contact:

                Ms Susan Ng
                Wilson Parking (S) Pte Ltd
                32 Sultan Centre
                Singapore 198480
                Tel No: 2966600

                a member of the Committee, on your use of the car park.

     (b)  The Corporation shall not be liable for any loss, damage, injury,
          liabilities, claim or action you may sustain or suffer in the use of
          the car park and the tenants shall fully indemnify the Corporation
          against any loss, claims, penalties, demands, damage arising from the
          private management and operations of the car park by the tenants.
<PAGE>

8.   Application for Approvals, Utilities etc.

     Upon your acceptance of the covenants, terms and conditions of the Offer,
     you are advised to proceed expeditiously as follows:

     8.01 Preliminary Clearance:

          Comply with the requirements of the Chief Engineer (Central Building
          Plan Unit), Pollution Control Department and/or other departments
          pursuant to your application/s for preliminary clearance. (Please note
          that we have referred your application to the relevant department/s)

     8.02 Discharge of Trade Effluence:

          Complete the attached Application for Permission to Discharge Trade
          Effluent into Public Sewer and return the application form direct to
          the Head, Pollution Control Department, Ministry of Environment,
          Environment Building, 40 Scotts Road. Singapore 228231 (Telephone No.
          7327733).

     8.03 Electricity:

          Engage a registered electrical consultant or competent contractor to
          submit three sets of electrical single-line diagrams to and in
          accordance with the requirements of our Property Support Department
          (PSD), Customer Services Group, JTC East Zone Office for endorsement
          before an application is made to the Power Supply Pte Ltd to open an
          account for electricity connection. Please contact our Property
          Support Department (PSD) at Blk 25 Kallang Avenue #05-01 Kallang Basin
          Industrial Estate Singapore 339416 direct for their requirements.

     8.04 Water:

          Submit four copies of sketch plans, prepared by a licensed plumber,
          showing the section and layout of the plumbing, to our Building
          Control Unit [BCU(JTC)] for approval prior to the issue of a letter to
          Water Conservation Department Public Utilities Board to assist you in
          your application for a water sub-meter.

     8.05 Telephone:

          Apply direct to Singapore Telecommunications Ltd for all connections.
<PAGE>

     8.06 Automatic Fire Alarm System (Incorporating Heat Detector)

          Engage a registered electrical consultant/professional engineer to
          submit two sets of fire alarm drawings, indicating the existing
          fixtures if any, the proposed modifications of the fire alarm and the
          layout of machinery, etc to and in accordance with the requirements of
          our Building Control Unit [BCU(JTC)]. Please contact our Building
          Control Unit [BCU(JTC)] at 301 Jurong Town Hall Road (3rd level)
          Singapore 609431 direct for further requirements.

     8.07 Factory Inspectorate

          Complete and return direct to Chief Inspector of Factories the
          attached form, "Particulars to be submitted by occupiers or Intending
          Occupiers of Factories".



Yours faithfully


 By: /s/ Lai Get Luan
 --------------------
LAI GET LUAN (Ms)
MARKETING & SALES DEPARTMENT
INDUSTRIAL PARKS DEVELOPMENT GROUP
JURONG TOWN CORPORATION
Attd

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.15
<SEQUENCE>6
<FILENAME>dex1015.txt
<DESCRIPTION>REAL ESTATE LEASE DATED OCT 13, 1999 BLOCK 1004
<TEXT>
<PAGE>

                                                                   EXHIBIT 10.15

            TRIO-TECH
            ---------
          INTERNATIONAL

25 November 1999

Marketing & Sales Department        [STAMP]  BY HAND
                                             -------
Jurong Town Corporation
Jurong Town Hall
301 Town Hall Road
Singapore 609431

Dear Ms Lai Get Luan

ACCEPTANCE OF OFFER OF TENANCY FOR THE PREMISES AT BLK 1004 TOA PAYOH NORTH #01-
08 TO #01-15 TOA PAYOH INDUSTRIAL ESTATE SINGAPORE 318995

1.   We refer to your letter of dated 13 October 1999 and a letter of amendment
     dated 19 November 1999 for the Tenancy and hereby confirm our acceptance of
     all the covenants, terms and conditions stipulated therein.

2.   We enclose herewith a cheque for the amount of $12,499.07 and the Banker's
     guarantee as security deposit as confirmation of our acceptance.

3.   In addition, we also enclose herewith a duly completed GIRO authorization
     form as requested by you for your information and record.


                                 By: /s/ Yong Siew Wai

---------------------------------------------------------------------------
Name of authorized signatory  :  Mr. Yong Siew Wai
Designation                   :  President, Chief Executive Officer
For and on behalf of

TRIO-TECH INTERNATIONAL PTD LTD

In the presence of :

                                 By: /s/ Betty Ang

---------------------------------------------------------------------------
Name of witness               :  Miss Betty Ang
NRIC No.                      :  S6945849A
<PAGE>

                                                   DID :5688574
                                                   FAX: 5688593
                                                   Email: getluan@jtc.gov.sg


19 November, 1999

Trio-Tech International Pte Ltd                    BY FAX @ 264 2235 & BY LUM
5 Kian Teck Rd                                     --------------------------
Singapore 628765




(Attn: Mrs Lee Siew Kuan/Ms Betty Ang)

Dear Sirs

AMENDMENT TO LETTER OF OFFER OF TENANCY IN RESPECT OF THE PREMISES AT BLK 1004
TOA PAYOH NORTH #01-08 TO #01-15 TOA PAYOH INDUSTRIAL ESTATE


1    We refer to your letter dated 15 November 1999 and our letter of offer
     dated 13 October 1999.

2    We are agreeable to your request to defer the commencement date of the said
     tenancy from 01 January 1999 to 16 January 2000. Hence, our letter of offer
     dated 13 October 1999 shall be amended as follows: -

     Sub-Paragraph 1.02:
     -------------------
     Term of Tenancy:
     ----------------

     3 years ("the Term") with effect from 16 January 2000 ("the Commencement
     Date").

     Sub-Paragraph 1.05:
     -------------------
     Rent and Service Charge:
     ------------------------
     Standard Rent:
     --------------

     (a)  Discounted rate of $16.30 per square metres for so long as the Tenant
          shall occupy by way of tenancy an aggregate floor area of not less
          than 1,000 square metres in the Building or in the various flatted
          factories belonging to the Landlord, and
<PAGE>

    (b) Normal rate of $16.80 per square metres with effect from the date the
        said aggregate floor area occupied is reduced to below 1,000 square
        metres (ie. when the discount shall be totally withdrawn),

        ("Rent") to be paid without demand and in advance without deduction on
        the 1st day of each month of the year (i.e. 1st of January, February,
        March, etc.). The next payment shall be made on 01 February 2000.

     Service charge:

     $2.10 per square metre per month, ("Service Charge") as charges for
     services rendered by us, payable without demand on the same date and in the
     same manner as the Rent, subject to our revision from time to time.

     Sub-Paragraph 1.06:
     --------------------
     Security Deposit/Banker's Guarantee:
     ------------------------------------

     You will at the time of acceptance of the Offer be required to place with
     us a deposit of $35,201.04 equivalent to 3 months' Rent (at the discounted
     rate) and Service Charge ("Security Deposit") as security against any
     breach of the covenants, terms and conditions in the Tenancy.

     The Security Deposit may be in the form of cash and/or acceptable Banker's
     Guarantee in the form attached (effective from 16 November 1999 to 15 July
     2003) and/or such other form of security as we may in our absolute
     discretion permit or accept.

     The Security Deposit must be maintained at the same sum throughout the Term
     and shall be repayable to you without interest or returned to you for
     cancellation, after the termination of the Term (by expiry or otherwise) or
     expiry of the Banker's Guarantee, as the case may be, subject to
     appropriate deductions or payment to us for damages or other sums due under
     the Tenancy.

     If the Rent at the discounted rate is increased to the normal rate or
     Service Charge is increased or any deductions are made from the Security
     Deposit, you are to immediately pay the amount of such increase or make
     good the deductions so that the Security Deposit shall at all times be
     equal to 3 months' Rent and Service Charge.

     Paragraph 2:
     ------------
     Mode of Acceptance:
     -------------------

     The Offer shall lapse if we do not receive the following by 22 November
     1999:-

     .   Duly signed letter of acceptance (in duplicate) of all the covenants,
         terms and conditions in the Tenancy in the form enclosed at the
         Appendix. (Please date as required in the Appendix)

     .   Payment of the sum set out in clause 4.

     .   Duly completed GIRO authorization form.
<PAGE>

                                             Jurong Town Corporation

3    The Statement of Account in paragraph 4 of our offer is adjusted
     accordingly as follows:-

     <TABLE>
     <CAPTION>
     -------------------------------------------------------------------------------------------------------------
                                                                     AMOUNT                              +3 % GST
     -------------------------------------------------------------------------------------------------------------
     <S>                                                            <C>                  <C>              <C>
     Rent:
     -----

     Rent at $16.30 psm per month on 637.70
     sqrn for period 16 January 2000 to
     15 February 2000                                               $10,394.51

     Less:
     ----

     6.6% Property tax rebate on rental value
     (01/07/1998 to 30/06/2000)                                     $   686.04
                                                                    ----------
                                                                    $ 9,708.47

     -------------------------------------------------------------------------------------------------------------
     Service Charge:
     --------------

     Service Charge at $2.10 psm per month
     on 637.70 sqrn for period
     16 January 2000 to 15 February 2000                            $ 1,339.17        $11,047.64           $331.43
                                                                    ----------
     -------------------------------------------------------------------------------------------------------------
     Deposit equivalent to three months' rent
     and service charge (or Banker's Guarantee
     provided in accordance with sub-paragraph
     1.06 above)                                                                      $35,201.04
     -------------------------------------------------------------------------------------------------------------
     Stamp fee payable on Letter of Acceptane
     which will be stamped by JTC on your
     Behalf                                                                           $ 1,120.00
     -------------------------------------------------------------------------------------------------------------
               Sub-Total Payable                                                      $47,368.68           $331.43
     -------------------------------------------------------------------------------------------------------------
     Add: 3 % GST                                                                     $   331.43
                                                                                      ----------
     -------------------------------------------------------------------------------------------------------------
     Total Amount Payable                                                             $47,700.11
                                                                                      ----------
     -------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>

4    All other terms and conditions stipulated in unchanged. our letter of offer
     dated 13 October 1999 remain unchanged.

5    Please let us have letter of offer dated remittance amounting to $12,499.07
     together with your letter of 13 October 1999 and $47,700.11. a Banker's
     Guarantee in acceptance of the the above amendments (Alternatively, you may
     lieu of the cash deposit terms and conditions together with your wish to
     produce a cheque of of $35,201.04) by 22 stipulated in our November 1999.

6    We enclose herewith a draft of the letter of acceptance and the Banker's
     Guarantee format for your use/reference


Yours faithfully

By: /s/ Lai Get Luan

______________________________
LAI GET LUAN (Ms)
MARKETING & SALES DEPARTMENT
INDUSTRIAL PARKS DEVELOPMENT GROUP
JURONG TOWN CORPORATION

Attd:  Draft of letter of acceptance
       Banker's Guarantee format
<PAGE>

                                                       DID: 5688574
                                                       FAX: 5688593
                                                       Email: getluan@jtc.gov.sg


13 October 1999

Trio-Tech International Pte Ltd
5 Kian Teck Rd
Singapore 628765                              BY FAX @ 264 2235 & By LUM
                                              --------------------------


(Attn-. Mrs Lee Siew Kuan/Ms Betty Ang)

Dear Sirs,

OFFER OF TENANCY FOR FLATTED FACTORY SPACE

1.   We are pleased to offer a tenancy of the Premises subject to the following
     covenants, terms and conditions in this letter and in the annexed
     Memorandum of Tenancy ("the Offer"):

     1.01  Location:

           Pte Lot A455 1 (i), Blk 1004 ("the Building"), Toa. Payoh North #01 -
           08 to #01-15 Toa Payoh Industrial Estate Singapore 318995 ("the
           Premises") as delineated and edged in red on the plan attached to the
           Offer.

     1.02  Term of Tenancy;

           3 -years ("the Term") with effect from of 01 January 2000 ("the
           Commencement Date")

     1.03  Tenancy Agreement:

           Upon due acceptance of the Offer in accordance with clause 2 of this
           letter, you shall have entered into a tenancy agreement with US ("the
           Tenancy") and will be bound by the covenants, terms and conditions
           thereof.

           In the event of any inconsistency or conflict between any covenant,
           term of condition of this letter and the Memorandum of Tenancy, the
           relevant covenant, term or condition in this letter shall prevail.

     1.04  Area:

           Approximately 637.70 square metres (subject to survey).
<PAGE>

                                                         Jurong Town Corporation

1.05  Rent and Service Charge.

      (a)  Discounted rate of $16.30 per square metres for so long as the Tenant
           shall occupy by way of tenancy an aggregate floor area of not less
           thin 1,000 square metres in the Building or in the various flatted
           factories belonging to the Landlord, and

      (b)  Normal rate of $16.80 per square metres with effect from the date the
           said aggregate floor area occupied is reduced to below 1,000 square
           metres (ie. when the discount shall be totally withdrawn),

           ("Rent") to be paid without demand and in advance without deduction
           on the 1st day of each mouth of the you (i.e. 1st of January,
           February, March, etc.). The next payment shall be made on 01 February
           1999.

      Service charge:

      $2.10 per square metre per month, ("Service Charge") as charges for
      services rendered by us, payable without demand on the same date and in
      the same manner as the Rent, subject to our revision from time to time.

1.06  Security Deposit/Banker's Guarantee:

      You will at the time of acceptance of the Offer be required to place with
      us a deposit of $35,201.04 equivalent to 3 months' Rent (at the discounted
      rate) and Service Charge ("Security Deposit") as security against any
      breach of the covenants, terms and conditions in the Tenancy.

      The Security Deposit may be in the form of cash and/or acceptable Banker's
      Guarantee in the form attached (effective from 0 November 1999 to 30 June
      2003) and/or such other form of security as we may in our absolute
      discretion or accept.

      The Security Deposit must be maintained at the same sum throughout the
      Term and shall be repayable to you without interest or returned to you for
      cancellation, after the termination of the Term (by expiry or otherwise)
      or expiry of the Banker's Guarantee, as the case may be, subject to
      appropriate deductions or payment to us for damages or other sums due
      under the Tenancy.

      If the Rent at the discounted rate is increased to the normal rate or
      Service Charge is increased or any deductions are made from the Security
      Deposit, you are to immediately pay the amount of such increase or make
      good the deductions so that the a Security Deposit shall at all times be
      equal to 3 months' Rent and Service Charge.
<PAGE>

                                                         Jurong Town Corporation

1.07  Mode of Payment:

      You have an existing account with us from which we will deduct the
      aforesaid payments. You are therefore not required to submit a duly
      completed GIRO form as part of the Mode of Acceptance herein unless you
      wish to have a separate GIRO account to meet the aforesaid payments.

1.08  Permitted Use:

      (a)  Subject to clause 1.12 of this letter, you shall commence full
           operations within four (4) months of the Commencement Date for the
           purpose of design and assembly of printed circuit boards and burn-in
           test equipment only and for no other purpose whatsoever ("the
           Authorised Use").

      (b)  Thereafter, you shall maintain full and continuous operations and use
           and occupy the whole of the Premises for the Authorised Use.

      (c)  Subject to clauses (a) and (b) above, you shall use and occupy at
           least sixty percent (60%) of the gross floor area of the Premises for
           industrial activities and ancillary stores, and use and occupy the
           remaining gross floor area if any, for offices, neutral areas,
           communal facilities and such other uses as may be approved in writing
           by us and the relevant governmental and statutory authorities
           PROVIDED THAT you shall not use and occupy the Premises for the
           purpose of commercial office and storage unrelated to the Authorised
           Use.

1.09  Approvals

      The Tenancy is subject to approvals being obtained from the relevant
      government and statutory authorities.

1.10  Possession of Premises:

      (a)  Keys to the Premises will be given to you two (2) months prior to the
           Commencement Date subject to due acceptance of the Offer ("Possession
           Date").

      (b)  From the Possession Date until the Commencement Date, you shall be
           deemed a licensee upon the same terms and conditions in the Tenancy.
<PAGE>

                                                        Jurong Town Corporation

      (c)  If you proceed with the Tenancy after the Commencement Date, the
           licence fee payable from the Possession Date to the Commencement Date
           shall be waived ("Rent-Free Period"). Should you fail to so proceed,
           you shall:

           (i)     remove everything installed by you;

           (ii)    reinstate the Premises to its original state and condition;
                   and

           (iii)   pay us a sum equal to the prevailing market rent payable for
                   the period from the Possession Date up to the date the
                   installations are removed and reinstatement completed to our
                   satisfaction,

           without prejudice to any other rights and remedies we may have
           against you under the Tenancy or at law.

1.11  Preparation and Submission of Plans:

      (a)  No alteration, addition, improvement, erection, installation or
           interference to or in the Premises or the fixtures and fittings
           therein is permitted without Building Control Unit [BCU(PTC)] prior
           written consent. Your attention is drawn to clauses 2.10 to 2.19 and
           2.34 of the Memorandum of Tenancy.

      (b)  You will be required to prepare and submit floor layout plans of your
           factory and plans of the air-conditioning works in accordance with
           the terms of the tenancy and the 'Guide' attached. It is important
           that you should proceed with the preparation and submission of the
           plans in accordance with the procedures set out in the said 'Guide'.

      (c)  Should there be alteration of existing automatic fire alarm and
           sprinkler system installation, alteration plans shall be submitted to
           Building Control Unit [BCU(JTC)] for approval on fire safety aspects.
           All air-conditioning, fire alarm & sprinkler system plans must be
           signed by a relevant Professional Engineer, registered with the
           Professional Engineers Board of Singapore.

      (d)  Upon due acceptance of the Offer, a copy of the floor and elevation
           plans (transparencies) will be issued to you to assist in the
           preparation of the plans required herein-

      (e)  No work shall commence until the plans have been approved by Building
           Control Unit [BCU(JTC)]

1.12  Final inspection:

           You shall ensure that final inspection by us of all installations is
           carried out and our approval of the same is obtained before any
           operations in the Premises may be commenced.
<PAGE>

                                                      Jurong Town Corporation

     1.13   Special Conditions:

            1   You shall comply and ensure compliance with the following
                restrictions.-

                (a)   maximum loading capacity of the goods lifts in the
                      Building; and

                (b)   maximum floor loading capacity of 12.50 kiloNewtons per
                      square metre of the Premises on the 1st storey of the
                      Building PROVIDED THAT any such permitted load shall be
                      evenly distributed.

                We shall not be liable for any loss or damage that you may
                suffer from any subsidence or cracking of the ground floor slabs
                and aprons of the Building.

             2  Option for renewal of tenancy
                -----------------------------

                (a)   You may within 3 months before the expiry of the Term make
                      a written   request to us for a further term of tenancy.

                (b)   We may grant you a further term of tenancy of the Premises
                      upon mutual terms to be agreed between you and us subject
                      to the following:

                      (i)     there shall be no breach of your obligations at
                              the time you make your request for a further term;

                      (ii)    our determination of revised rent, having regard
                              to the market rent of the Premises at the time of
                              granting the further term, shall be final;

                      (iii)   we shall have absolute discretion to determine
                              such covenants terms and conditions, but excluding
                              a covenant for renewal of tenancy; and

                      (iv)    there shall not be any breach of your obligations
                              at the expiry of the term.

2.   Mode of Acceptance:

     The Offer shall lapse if we do not receive the following by November 1999:-

     .  Duly signed letter of acceptance (ie. duplicate) of all the covenants,
        terms and conditions in the Tenancy in the form enclosed at the
        Appendix.
        (Please date as required in the Appendix)

     .  Payment of the sum set out in clause 4.

     .  Duly completed GIRO authorization form (if any).
<PAGE>

                                                         Jurong Town Corporation

3.   Please note that payments made prior to your giving us the other items
     listed above may be cleared by and credited by us upon receipt, However, if
     the said other items are not forthcoming from you within the time
     stipulated herein, the Offer shall lapse and the shall be no contract
     between you and us arising hereunder. Any payments received shall then be
     refunded to you without interest and you shall have no claim of whatsoever
     nature against.

4    The total amount payable is as follows:

<TABLE>
<CAPTION>
     ----------------------------------------------------------------------------------------------------------
                                                                   AMOUNT                              +3 % GST
     ----------------------------------------------------------------------------------------------------------
     <S>                                                         <C>              <C>                  <C>
     Rent:
     ----
     Rent at $16.30 psm. per month on 637.70
     sqm for period 01 January 2000 to
     31 January 2000                                             $10,394.51

     Less:
     ----
     6.6% Property tax rebate on rental value
     (01/07/1998 to 30ID6/2000)                                  $   686.04
                                                                 ----------
                                                                 $ 9,708.47
     ----------------------------------------------------------------------------------------------------------
     Service Charge:
     --------------
     Service Charge at $2.10 psm per month
     on 637.70 sqm for period
     01 January 2000 to 31 January 2000                          $ 1,339.17       $11,047.64            $331.43
                                                                 ----------
     ----------------------------------------------------------------------------------------------------------
     Deposit equivalent to three months' rent
     and service charge (or Banker's Guarantee
     provided in accordance with sub-
     paragraph 1.06 above)                                                        $35,201.04
     ----------------------------------------------------------------------------------------------------------
     Stamp fee payable on Letter of Acceptance
     which will be stamped by JTC on your
     Behalf                                                                       $ 1,118.00
     ----------------------------------------------------------------------------------------------------------

         Sub-Total Payable                                                        $47,366.68            $331.43
     ----------------------------------------------------------------------------------------------------------
     Add: 3 % GST                                                                 $   331.43
                                                                                  ----------
     ----------------------------------------------------------------------------------------------------------

     Total Amount Payable                                                         $47,698.11
     ----------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>

                                                         Jurong Town Corporation

5.   Rent-Free Period:

     As the Commencement Date, will not be deferred, we advise you to accept the
     Offer as soon as possible and to collect the keys to the Premises on the
     scheduled date in order to maximize the Rent-Free Period referred to in
     clause 1.10(c) of this letter.

6.   Variation to the Tenancy

     This letter and the Memorandum of Tenancy constitute the full tenancy and
     conditions governing the Offer and no terms or representation or otherwise,
     whether express or implied, shall form part of the Offer other than what is
     contained herein. Any variation, modification, amendment deletion, addition
     or otherwise of the covenants, terms and conditions of the Offer shall not
     be enforceable unless agreed by both parties and reduced in writing by us.

7.   Car-Parking Scheme:

     (a)  The car park for Blk 1004 is currently managed by a Tenants' Committee
and you will:

          (i)  have to contribute towards all the operational and management
               costs, if any, incurred in connection with the car parks,

          (ii) observe and be bound by all the rules and regulations governing
               the use and operation of the car park. A copy of the Tenant
               Committee's current rules and regulations is obtainable from the
               Tenants' Committee. You are required to contact:

                    Ms Susan Ng
                    Wilson Parking (S) Pte Ltd
                    32 Sultan Contra
                    Singapore 198480
                    Tel No: 2966600

               a member of the Committee, on your use of the car park.

     (b)  The Corporation shall not be liable for any loss, damage, injury,
          liabilities, claim or action you may sustain or suffer in the use of
          the car park and the tenants shall fully indemnify the Corporation
          against any loss, claims, penalties, demands, damage arising from the
          private management and operations of the car park by the tenants.
<PAGE>

                                                         Jurong Town Corporation

8.   Application for Approvals, Utilities etc.

     Upon your acceptance of the covenants, terms and conditions of the Offer,
     you are advised to proceed expeditiously as follows:

     8.01 Preliminary Clearance

          Comply with the requirements of the Chief Engineer (Central Building
          Plan Unit), Pollution Control Department and/or other departments
          pursuant to your application/s for preliminary clearance. (Please note
          that we have referred your application to the relevant department/s).

     8.02 Discharge of Trade Effluence:

          Complete the attached Application for Permission to Discharge Trade
          Effluent into Public Sewer and return the application form direct to
          the Head, Pollution Control Department, Ministry of Environment,
          Environment Building, 40 Scotts Road. Singapore 228231 (Telephone No.
          7327733).

     8.03 Electricity:

          Engage a registered electrical consultant or competent contractor to
          submit three sets of electrical single-line diagrams to and in
          accordance with the requirements of our property Support Department
          (PSD), Customer Services Group, JTC East Zone Office for endorsement
          before an application is made to the Power Supply Pte Ltd to open an
          account for electricity connection. Please contact our Property
          Support Department (PSD) at Blk 25 Kallang Avenue #05-01 Kallang Basin
          Industrial Estate Singapore 339416 direct for their requirements.

     8.04 Water:

          Submit four copies of sketch plans, prepared by a licensed plumber,
          showing the section and layout of the plumbing to our Building Control
          Unit [BCU(JTC)] for approval prior to the issue of a letter to Water
          Conservation Department, Public Utilities Board to assist you in your
          application for a water sub-meter.

     8.05 Telephone:

          Apply direct to Singapore Telecommunications Ltd for all connections.
<PAGE>

     8.06 Automatic Fire Alarm System (Incorporating Beat Detector)

          Engage a registered electrical coa5ultanVprofessional engineer to
          submit two sets of fire alarm drawings, indicating the existing
          fixtures if any, the proposed modifications of the fire alarm and the
          layout of machinery, etc to and in accordance with the requirements of
          our Building Control Unit (BCU(JTC)]. Please contact our Building
          Control Unit [BCU(JTC)] at 301 Jurong Town Hall Road (3rd level)
          Singapore 609431 direct for further requirements.

     8.07 Factory Inspectorate

          Complete and return direct to Chief Inspector of Factories the
          attached form, "Particulars to be submitted by occupiers or Intending
          Occupiers of Factories".


Yours faithfully


By: /s/ Lai Get Luan
-----------------------------
LAI GET LUAN (Ms)
MARKETING & SALES DEPARTMENT
INDUSTRIAL PARKS DEVELOPMENT GROUP
JURONG TOWN CORPORATION
Attd

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.16
<SEQUENCE>7
<FILENAME>dex1016.txt
<DESCRIPTION>REAL ESTATE LEASE DATED DEC 7, 2000
<TEXT>
<PAGE>

                                                                   EXHIBIT 10.16

                    [LETTERHEAD OF TRIO-TECH INTERNATIONAL]

[LOGO] TRIO-TECH INTERNATIONAL






15 December 2000                                  [STAMP]

Marketing & Sales Department
JTC Corporation
The JTC Summit
8 Jurong Town Hall Road
Singapore 609434


Attn: Mr Teo Soon Siang

ACCEPTANCE OF OFFER OF TENANCY FOR THE PREMISES AT BLK 1004 TOA PAYOH NORTH #01-
16 TO #01-17 TOA PAYOH INDUSTRIAL ESTATE SINGAPORE 318995

We refer to your letter of offer dated 7 December 2000 for the Tenancy and
hereby confirm our acceptance of all the covenants, terms and conditions
stipulated therein.


1.   We enclose herewith a cheque for the amount of S$3,726.19 and the Banker's
     Guarantee as security deposit as confirmation of our acceptance.

2.   In addition, we also enclose herewith a duly completed GIRO authorisation
     form.



By: / s/ Lee Siew Kuan
---------------------------------------------------------------
Name of authorised signatory  :           Mrs Lee Siew Kuan
Designation                   :           Director of Logistics
For and on behalf of


TRIO-TECH INTERNATIONAL PTE LTD

In the presence of :



By: / s/ Betty Ang
---------------------------------------------------------------
Name of witness  :        Miss Betty Ang
NRIC No.         :        S6945849A


<PAGE>

[LETTERHEAD OF TRIO-TECH INTERNATIONAL

[LOGO] TRIO-TECH INTERNATIONAL






<PAGE>

                                       1

                        [LETTERHEAD OF jtc Corporation]

                                                       [LOGO OF jtc Corporation]
7 December 2000

(Attn: Miss Betty Ang)


Dear Sirs,

OFFER OF TENANCY FOR FLATTED FACTORY SPACE

1    We are pleased to offer a tenancy of the Premises subject to the following
     covenants, terms and conditions in this letter and in the annexed
     Memorandum of Tenancy ("the Offer"):

     1.01 Location:

          Pte Lot A4551(s), Blk 1004 ("the Building") Toa Payoh North #01-16 to
          #01-17, Toa Payoh Industrial Estate Singapore 318995 ("the Premises")
          as delineated and edged in red on the plan attached to the Offer.

     1.02 Term of Tenancy:

          3 years ("the Term") with effect from 1 March 2001 ("the Commencement
          Date").

     1.03 Tenancy Agreement:

          Upon due acceptance of the Offer in accordance with clause 2 of this
          letter, you shall have entered into a tenancy agreement with US ("the
          Tenancy") and will be bound by the covenants, terms and conditions
          thereof.

          In the event of any inconsistency or conflict between any covenant,
          term or condition of this letter and the Memorandum of Tenancy, the
          relevant covenant, term or condition in this letter shall prevail.

     1.04 Area:

          Approximately 184.20 square metres (subject to survey).


<PAGE>

                                       2

          1.05 Rent and Service Charge:

                Rent:
                ----

                (a)   Discounted rate of Dollars $16.30 per square metre per
                      month for so long as the Tenant shall occupy by way of
                      tenancy an aggregate floor area of 1000 square metres in
                      the Building or in the various flatted factories belonging
                      to the Landlord, and

                (b)   Normal rate of Dollars $16.80 per square metro per month
                      in the event that the said aggregate floor area occupied
                      is at any time reduced to below 1000 square metre (when
                      the discount shall be totally withdrawn) with effect from
                      the date of reduction in the said aggregate floor,

                ("Rent") to be paid without demand and in advance without
                deduction on the 1st day of each month of the year (i.e. 1st of
                January, February, March, etc.). The next payment shall be made
                on I April 2001.

                Service charge:
                --------------

                $2.10 per square metro per month, ("Service Charge") as charges
                for services rendered by us, payable without demand on the same
                date and in the same manner as the Rent, subject to our revision
                from time to time.

          1.06  Security Deposit/Banker's Guarantee:

                You will, at the time of acceptance of the Offer, be required to
                place with us a deposit of $10,167.84 equivalent to 3 months'
                Rent and Service Charge ("Security Deposit") as security against
                any breach of the covenants, terms and conditions in the
                Tenancy.

                The Security Deposit may be in the form of cash and/or
                acceptable Banker's Guarantee in the form attached (effective
                from 1 January 2001 to 31 August 2004) and/or such other form of
                security as we may in our absolute discretion permit or accept.

                The Security Deposit must be maintained at the same sum
                throughout the Term and shall be repayable to you without
                interest, or returned to you for cancellation, after the
                termination of the Term (by expiry or otherwise) or expiry of
                the Banker's Guarantee, as the case may be, subject to
                appropriate deductions or payment to us for damages or other
                sums due under the Tenancy.

                If the Service Charge is increased or any deductions are made
                from the Security Deposit, you are to immediately pay the amount
                of such increase or make good the deductions so that the
                Security Deposit shall at all times be equal to 3 months' Rent
                and Service Charge.
<PAGE>

                                       3

          1.07  Mode of Payment:

                 [Note: You have an existing account with us from which we will
                 -----
                 deduct the aforesaid payments. You are therefore not required
                 to submit a duly completed GIRO form as part of the Mode of
                 Acceptance herein unless you wish to have a separate GIRO
                 account to meet the aforesaid payments.]

          1.08   Permitted Use:

                  (a)  Subject to clause 1.12 of this letter, you shall commence
                       full operations within four (4) months of the
                       Commencement Date for the purpose of IC Testing only and
                       for no other purpose whatsoever ("the Authorised Use").

                  (b)  Thereafter, you shall maintain full and continuous
                       operations and use and occupy the whole of the Premises
                       for the Authorised Use.

                  (c)  Subject to clauses (a) and (b) above, you shall use and
                       occupy at least sixty percent (60%) of the gross floor
                       area of the Premises for industrial activities and
                       ancillary stores, and use and occupy the remaining gross
                       floor area, if any, for offices, neutral areas, communal
                       facilities and such other uses as may be approved in
                       writing by us and the relevant governmental and statutory
                       authorities PROVIDED THAT you shall not use and occupy
                       the Premises for the purpose of commercial office and
                       storage unrelated to the Authorised Use.

          1.09   Approvals

                  The Tenancy is subject to approvals being obtained from the
                  relevant government and statutory authorities.

          1.10   Possession of Premises:

                  (a)  Keys to the Premises will be given to you two (2) months
                       prior to the Commencement Date subject to due acceptance
                       of the Offer ("Possession Date").

                  (b)  From the Possession Date until the Commencement Date, you
                       shall be deemed a licensee upon the same terms and
                       conditions in the Tenancy.

                  (c)  if you proceed with the Tenancy after the Commencement
                       Date, the licence fee payable from the Possession Date to
                       the Commencement Date shall be waived ("Rent-Free
                       Period"). Should you fail to so proceed, you shall:


<PAGE>

                                       4

          (i)  remove everything installed by you;
          (ii) reinstate the Premises to its original state and condition; and
          (iii)pay us a sum equal to the prevailing market rent payable for
               the period from the Possession Date up to the date the
               installations are removed and reinstatement completed to our
               satisfaction,

          without prejudice to any other rights and remedies we may have against
          you under the Tenancy or at law.

1.11 Preparation and Submission of Plans:

     (a)  No alteration, addition, improvement, erection, installation or
          interference to or in the Premises or the fixtures and fittings
          therein is permitted without Building Control Unit [BCU(JTC
          Corporation)] prior written consent. Your attention is drawn to
          clauses 2.10 to 2.19 and 2.34 of the Memorandum of Tenancy.

     (b)  You will be required to prepare and submit floor layout plans of your
          factory and plans of the air-conditioning works in accordance with the
          terms of the tenancy and the 'Guide' attached. It is important that
          you should proceed with the preparation and submission of the plans in
          accordance with the procedures set out in the said 'Guide'.

     (c)  Should there be alteration of existing automatic fire alarm and
          sprinkler system installation, alteration plans shall be submitted to
          Building Control Unit [BCU(JTC Corporation)] for approval on fire
          safety aspects. All air-conditioning, fire alarm & sprinkler system
          plans must be signed by a relevant Professional Engineer, registered
          with the Professional Engineers Board of Singapore.

     (d)  Upon due acceptance of the Offer, a copy of the floor and elevation
          plans (transparencies) will be issued to you to assist in the
          preparation of the plans required herein.

     (e)  No work shall commence until the plans have been approved by Building
          Control Unit [BCU(JTC Corporation)].

1.12 Final inspection:

     You shall ensure that final inspection by us of all installations is
     carried out and our approval of the same is obtained before any operations
     in the Premises may be commenced.
<PAGE>

                                       5

1.13 Special Conditions:

     (1)  Normal (Ground & Non-ground) Floor Premises
          -------------------------------------------

          You shall comply and ensure compliance with the following
          restrictions:

          (a)  maximum loading capacity of the goods lifts in the Building; and

          (b)  maximum floor loading capacity of 12.50 kiloNewtons per square
               metre of the Premises on the Ist storey of the Building PROVIDED
               THAT any such permitted load shall be evenly distributed.

          We shall not be liable for any loss or damage that you may suffer from
          any subsidence or cracking of the ground floor slabs and aprons of the
          Building.

     (2) Option for renewal of tenancy
         -----------------------------

          (a)  You may within 3 months before the expiry of the Term make a
               written request to us for a further term of tenancy.

          (b)  We may grant you a further term of tenancy of the Premises upon
               mutual terms to be agreed between you and us subject to the
               following:

               (i)  there shall be no breach of your obligations at the time you
                    make your request for a further term;

               (ii) our determination of revised rent, having regard to the
                    market rent of the Premises at the time of granting the
                    further term, shall be final;

               (iii)     we shall have absolute discretion to determine such
                    covenants, terms and conditions, but excluding a covenant
                    for renewal of tenancy; and

               (iv)      there shall not be any breach of your obligations at
                    the expiry of the Term.
<PAGE>

                                       6

2.   Mode of Acceptance:

     The Offer shall lapse if we do not receive the following by 31 December
     2000:-

          Duly signed letter of acceptance (in duplicate) of all the covenants,
          terms and conditions in the Tenancy in the form enclosed at the
          Appendix. (Please date as required in the Appendix)

          Payment of the sum set out in clause 4.

          Duly completed GIRO authorization form.

3.        Please note that payments made prior to your giving us the other items
     listed above may be cleared by and credited by us upon receipt. However, if
     the said other items are not forthcoming from you within the time
     stipulated herein, the Offer shall lapse and there shall be no contract
     between you and us arising hereunder. Any payments received shall then be
     refunded to you without interest and you shall have no claim of whatsoever
     nature against us.

4.      The total amount payable is as follows:

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------
                                          Amount                          +3 % GST
-------------------------------------------------------------------------------------------
<S>                                       <C>             <C>             <C>
Rent at $16.30 psm per month on
184.20 sq rn for the period 1 March
2001 to 31 March 2001                     $3,002.46
-------------------------------------------------------------------------------------------
Less:
-------------------------------------------------------------------------------------------
3% property tax rebate on rental value    $   90.07
                                          $2,912.39
-------------------------------------------------------------------------------------------
Service Charge at $2.10 psm per
month on 184.20 sq m for the period
1 March 2001 to 31 March 2001             $  386.82       $ 3,299.21      $98.98
-------------------------------------------------------------------------------------------
Deposit equivalent to three months'
rent and service charge (or Banker's
Guarantee provided in accordance with
sub-paragraph 1.06 above)                                 $10,167.84
-------------------------------------------------------------------------------------------
Stamp fee payable on Letter of
Acceptance which will be stamped by
JTC on your behalf                                        $   328.00
-------------------------------------------------------------------------------------------
Sub-Total Payable                                         $13,795.05      $98.98
-------------------------------------------------------------------------------------------
Add: GST + 3%                                             $    98.98
-------------------------------------------------------------------------------------------
Total Amount Payable                                      $13,894.03
-------------------------------------------------------------------------------------------
</TABLE>
<PAGE>

                                       7

5.   Rent-Free Period:

     As the Commencement Date will not be deferred, we advise you to accept the
     Offer as soon as possible and to collect the keys to the Premises on the
     scheduled date in order to maximize the Rent-Free Period referred to in
     clause 1.10(c) of this letter.

6.   Variation to the Tenancy

     This letter and the Memorandum of Tenancy constitute the full terms and
     conditions governing the Offer and no terms or representation or otherwise,
     whether express or implied, shall form part of the Offer other than what is
     contained herein. Any variation, modification, amendment, deletion,
     addition or otherwise of the covenants, terms and conditions of the Offer
     shall not be enforceable unless agreed by both parties and reduced in
     writing by us.

7.   Car-Parking Scheme:

     (a)  The car park for Blk 1004 Toa Payoh North is currently managed by
          Wilson Parking (S) Pte Ltd and you will have to observe and be bound
          by all the rules and regulations governing the use and operation of
          the car park. You are requested to contact the following person on the
          use of the car park:

               Ms Susan Ng
               Wilson Parking (S) Pte Ltd
               32 Sultan Gate
               Singapore 198480
               TelNo:2966600

     (b)  The Corporation shall not be liable for any loss, damage, injury,
          liability, claim or action you may sustain or suffer in the use of the
          car park and the tenants shall fully indemnify the Corporation against
          any loss, claims, penalties, demands, damage arising from the private
          management and operations of the car park by the tenants.

8.   Application for Approvals, Utilities etc.

     Upon your acceptance of the covenants, terms and conditions of the Offer,
     you are advised to proceed expeditiously as follows:

     8.01 Preliminary Clearance:

          Comply with the requirements of the Chief Engineer (Central Building
          Plan Unit), Pollution Control Department and/or other departments
          pursuant to your application/s for preliminary clearance. (Please note
          that we have referred your application to the relevant department/s)
<PAGE>

                                       8

     8.02 Discharge of Trade Effluence:

          Complete the attached Application for Permission to Discharge Trade
          Effluent into Public Sewer and return the application form direct to
          the Head, Pollution Control Department, Ministry of Environment,
          Environment Building, 40 Scotts Road. Singapore 228231 (Telephone No.
          7327733).

     8.03 Electricity:

          Engage a registered electrical consultant or competent contractor to
          submit three sets of electrical single-line diagrams to and in
          accordance with the requirements of our Property Support Department
          (PSD), Customer Services Group, JTC East Zone Office for endorsement
          before an application is made to the Power Supply Pte Ltd to open an
          account for electricity connection. Please contact our Property
          Support Department (PSD) at Blk 25 Kallang Avenue #05-01 Kallang Basin
          Industrial Estate Singapore 339416 direct for their requirements.

     8.04 Water:

          Submit four copies of sketch plans, prepared by a licensed plumber,
          showing the section and layout of the plumbing, to our Building
          Control Unit [BCU(JTC Corporation)] for approval prior to the issue of
          a letter to Water Conservation Department, Public Utilities Board to
          assist you in your application for a water sub-meter.

     8.05 Telephone:

          Apply direct to Singapore Telecommunications Ltd for all connections.

     8.06 Automatic Fire Alarm System (Incorporating Heat Detector)

          Engage a registered electrical consultant/professional engineer to
          submit two sets of fire alarm drawings, indicating the existing
          fixtures if any, the proposed modifications of the fire alarm and the
          layout of machinery, etc to and in accordance with the requirements of
          our Building Control Unit [BCU(JTC Corporation)]. Please contact our
          Building Control Unit [BCU(JTC Corporation)] at The JTC Summit, One-
          Stop Centre (1st level) 8 Jurong Town Hall Road Singapore 609434
          direct for further requirements.
<PAGE>

                                       9

     8.07 Factory Inspectorate

          Complete and return direct to Chief Inspector of Factories the
          attached form, "Particulars to be submitted by occupiers or Intending
          Occupiers of Factories".



Yours faithfully

By: /s/ Teo Soon Siang
-----------------------------------
TE0 S0ON SIANG
MARKETING & SALES DEPARTMENT
INDUSTRIAL PARKS DEVELOPMENT GROUP
JTC CORPORATION

Encl

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.17
<SEQUENCE>8
<FILENAME>dex1017.txt
<DESCRIPTION>REAL ESTATE LEASE DATED JAN 3, 2000
<TEXT>
<PAGE>

                                                                   EXHIBIT 10.17

  TRIO-TECH
  ---------
INTERNATIONAL

5 January 2000

Marketing & Sales Department                   [STAMP]    BY HAND
                                                          -------
Jurong Town Corporation
Jurong Town Hall
301 Town Hall Road
Singapore 609431

Dear Ms Lai Get Luan


ACCEPTANCE OF OFFER OF TENANCY FOR THE PREMISES AT BLK 1008 TOA PAYOH NORTH #03-
01 TO #03-06 TOA PAYOH INDUSTRIAL ESTATE SINGAPORE 318996

1.   We refer to your letter of dated 3 January 2000 for the Tenancy and hereby
     confirm our acceptance of all the covenants, terms and conditions
     stipulated therein.

2.   We enclose herewith a cheque for the amount of S$ 10,295.52 and the
     Banker's guarantee as security deposit as confirmation of our acceptance.

3.   In addition, we also enclose herewith a duly completed GIRO authorization
     form as requested by you for your information and record.



By: /s/ Lee Siew Kuan
-------------------------------------------------------

Name of.authorized signatory  :  Mrs Lee Siew Kuan
Designation                   :  Director of Logistics
For and on behalf of

TRIO-TECH INTERNATIONAL PTE LTD

In the presence of


By: /s/ Betty Ang
-------------------------------------------------------
Name of Witness               :  Miss Betty Ang
NRIC No.                      :  S6945849A
<PAGE>

Pk

JTC(L)3601/2506ALGL/SN                            DID - 5688574
                                                  FAX; 5688593
                                                  Email: getluan@jtc.gov.sg


03 January, 2000                                  JTC



Trio-Tech International Pte Ltd
Blk 1008 Toa Payoh North
#03-09 to #03-15
Toa Payoh Industrial Estate
Singapore -318996

(Attn: Mrs Lee Siew Kuan/Ms Betty Ang)


Dear Sirs.


OFFER OF TENANCY FOR FLATTED FACTORY SPACE


I    We are pleased to offer a tenancy of the Premises subject to the following
     covenants, terrns, and conditions in this letter and in the annexed
     Memorandum of Tenancy ("the Offer"):

     1.01 Location:

          Pte Lot A19597(a), Blk 1008 ("the Building"), Toa Payoh North #03-01
          to #03-06 Toa Payoh Industrial Estate Singapore 318996 ("the
          Premises") as delineated and edged in red on the plan attached to the
          Offer.

     1.02 Term of Tenancy.-

          3 years ("the Term") with effect from 01 March 2000 ("the Commencement
          Date").

     1.03 Tenancy Agreement:

          Upon due acceptance of the Offer in accordance with clause 2 of this
          letter, you shall have entered into a tenancy apartment with US ("the
          Tenancy") and will be bound by the covenants, terms and conditions
          thereof

          In the event of any inconsistency or conflict between any covenant,
          term or condition of this letter and the Memorandum of Tenancy, the
          relevant covenant, term or condition in this letter shall prevail.

     1.04 Area:

          Approximately 682.40 square metres (subject to survey)-
<PAGE>

                                                                    2
                                                         Jurong Town Corporation



     1.05 Rent and Service Charge:

          (a)  Discounted rate of $12.03 per square metres for so long as the
               Tenant shall occupy by way of tenancy an aggregate floor area of
               not less than 1000 square metres in the Building or in the
               various flatted factories belonging to the Landlord, and

          (b)  Normal rate of $12.40 per square metres with effect from the date
               the said aggregate floor area occupied is reduced to below 1,000
               square metres (ie. when the discount shall be totally withdrawn),

               ("Rent") to be paid without demand and in advance without
               deduction on the 1st day of each month of the year (i.e. 1st of
               January, February, March, etc.) The next payment shall be made on
               01 April 2000.

          Service charge;

          $2.10 per square metre per month, ("Service Charge") as charges for
          services rendered by us, payable without demand on the same date and
          in the same manner as the Rent, subject to out revision from time to
          time,

     1.06 Security Deposit/Banker's Guarantee:

          You will at the time of acceptance of the Offer be required to place
          with us a deposit of $28,926.94 equivalent to 3 morkths' Rent (at the
          discounted rate) and Service Charge ("Security Deposit') as security
          against any breach of the covenants, terms and conditions in the
          Tenancy.

          The Security Deposit may be in the form of cash and/or acceptable
          Banker's Guarantee in the form attached (effective frorn 01 January
          2000 to 31 August 2003) and/or such other form of security as we may
          in our absolute discretion permit or accept.

          The Security Deposit must be maintained at the same sum throughout the
          Term and shall be repayable-to you without interest or returned to you
          for cancellation, after the termination of the Term (by expiry or
          otherwise) or expiry of the Banker's Guarantee, as the case may be,
          subject to appropriate deductions or payment to us for damages or
          other sums due under the Tenancy.

          If the Rent at the discounted rate is increased to the normal rate or
          Service Charge is increased or any deductions are made from the
          Security Deposit, you are to immediately pay the amount of such
          increase or make good the deductions so that the Security Deposit
          shall at all times be equal to 3 months' Rent and Service Charge.
<PAGE>

                                                                    3
                                                         Jurong Town Corporation

1.07  Mode of Payment:

      Except for the payment to be made with your letter of acceptance pursuant
      to clause 2 of this letter, during the Term, you shall pay Rent, Service
      Charge and GST by Interbank GIRO or any other mode to be determined by us.

      Accordingly, you are to provide us with the duly completed GIRO
      authorization form enclosed herewith.

      However, pending finalisation for the GIRO arrangement, you shall pay
      Rent; Service Charge and GST as they fall due by cheque.

1.08  Permitted use:

      (a) Subject to clause 1.12 of this letter, you shall commence full
          operations within four (4) months of the Commencement Date for the
          purpose of IC testing, services and packing for semi-conductor
          industry only and for no other purpose whatsoever ("the Authorised
          Use").

      (b) Thereafter, you shall maintain full and continuous operations and
          use and occupy the whole of the Premises for the Authorised Use.

      (c) Subject to clauses (a) and (b) above, you shall use and occupy at
          least sixty percent (60%) of the gross floor area of the Premises for
          industrial activities and ancillary stores, and use and occupy the
          remaining gross floor area, if any. for offices, neutral areas,
          communal facilities and such other uses as may be approved in writing
          by us and the relevant governmental and statutory authorities PROVIDED
          THAT you shall not use and occupy the Premises for the purpose of
          commercial office and storage unrelated to the Authorised Use.

1.09  Approvals

      The Tenancy is subject to approvals being obtained from the relevant
      government and statutory authorities.

1.10  Possession of Premises:

      (a) Keys to the Premises will be given to you two (2) months prior to the
          Commencement Date subject to due acceptance of the Offer ("Possession
          Date"),

      (b) From the Possession Date until the Commencement Date you shall be
          deemed a licensee upon the some terms and conditions in the Tenancy.
<PAGE>

                                                                    4
                                                         Jurong Town Corporation


     (c)  If you proceed with the Tenancy after the Commencement Date, the
          licence fee payable from the Possession Date to the Commencement Date
          shall be waived ("Rent-Free Period"). Should you fail to so proceed,
          you shall:

          (i)   remove everything installed by you.;
          (ii)  reinstate the Premises to its original state and condition; and
          (iii) pay us a sum equal to the prevailing market rent payable for the
                period from the Possession Date up to the date the installations
                are removed and reinstatement completed to our satisfaction,

          without prejudice to any other rights and remedies we may have against
          you under the Tenancy or at law.

1.11 Preparation and Submission of Plans:

     (a)  No alteration, addition, improvement, erection, installation or
          interference to or in the Promises or the fixtures and fittings
          therein is permitted without Building Control Unit [BCU(JTC)] prior
          written consent. Your attention is drawn to clauses 2.10 to 2.19 and
          2.34 of die Memorandum of Tenancy-

     (b)  You will be required to prepare and submit floor layout plans of your
          factory and plans of the air-conditioning works in accordance with the
          terms of the tenancy and the 'Guide' attached. It is important that
          you should proceed with the preparation and submission of the plans in
          accordance with the procedures set out in the said 'Guide'.

     (c)  Should there be alteration of existing automatic fire alarm and
          sprinkler system installation, alteration plans shall be submitted to
          Building Control Unit [BCU(ITC)] for approval on fire safety aspects.
          All air-conditioning, fire alarm & sprinkler system plans must be
          signed by a relevant Professional Engineer, registered with the
          Professional Engineers Board of Singapore.

     (d)  Upon due acceptance of the Offer, a copy of the floor and elevation
          plans (transparencies) will be issued to you to assist in the
          preparation of the plans required herein.

     (e)  No work shall commence until the plans have been approved by Building
          Control Unit (BCU(JTC)].

1.12 Final inspection:

          You shall ensure that final inspection by us of all installations is
          carried out and our approval of the same is obtained before any
          operations in the Premises may he commenced.
<PAGE>

                                                                               5

                                                         Jurong Town Corporation

     1.13 Special Conditions:

          1    You shall comply and ensure compliance with the following
               restrictions-

               (a)  maximum loading capacity of the goods lifts in the
                    Building,; and

               (b)  maximum floor loading capacity of 15.00 kiloNewtons per
                    square metre of the Premises on the 3rd storey of the
                    Building PROVIDED THAT any such permitted load shall be
                    evenly distributed.

               We shall not be liable for any loss or damage that you may suffer
               from any subsidence or cracking of the ground floor slabs and
               aprons of the Building.

          2    Option for renewal of tenancy:
               ------------------------------

               (a)  You may within 3 months before the expiry of the Term make a
                    written request to us for a further term of tenancy.

               (b)  We may grant you a further term of tenancy of the Premises
                    upon mutual terms to be agreed between you and us subject to
                    the following:

                    (i)   there shall be no breach of your obligations at the
                          time you make your request for a further term;

                    (ii)  our determination of revised rent, having regard to
                          the market rent of the Premises at the time of
                          granting the further term, shall be final;

                    (ii)  we shall have absolute discretion to determine such
                          covenants, terms and conditions, but excluding a
                          covenant for renewal of tenancy; and

                    (iv)  there shall not be any breach of your obligations at
                          the expiry of the Term.

2.   Mode of Acceptance:

     The Offer shall lapse if we do not receive the following by 07 January
     2000:-

     .    Duly signed letter of acceptance (in duuplicate) of all the covenants,
          terms and conditions in the Tenancy in the form enclosed at the
          Appendix.
          (Please date as required in the Appendix)

     .    Payment of the sum set out in clause 4.

     .    Duly completed GIRO authorization form.
<PAGE>

                                                                               6

                                                         Jurong Town Corporation

3.   Please note that payments made prior to your giving us the other items
     listed above may be cleared by and credited by us upon receipt. However, if
     the said other items are not forthcoming from you within the time
     stipulated herein, the Offer shall lapse and there shall be no contact
     between you and us arising hereunder. Any payments received shall then be
     refunded to you without interest and you shall have no claim of whatsoever
     nature against us.

4    The total amount payable is as follows:

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------
                                                 AMOUNT                           +3% GST
--------------------------------------------------------------------------------------------
<S>                                              <C>             <C>              <C>
Rent:
Rent at $12.03 psm per month on
682.40 sqm for period 01 March 2000 to           $8,209.27
31 March 2000

Less--
6.6% Property tax rebate on rental value
(01/07/1998 to 30/06/2000)                       $  541.91
                                                 ---------
                                                 $7,667.46
--------------------------------------------------------------------------------------------
Service Charge:

Service Charge at $2,10 psm per
month on 682.40 sqm for period
01 March 2000 to 31 March 2000                   $1,431.04       $ 9,100.50       $273.02
                                                 ---------
--------------------------------------------------------------------------------------------
Deposit equivalent to three months' rent
and service charge (or Banker's
Guarantee provided in accordance witb
sub-paragraph 1.06 above)                                        $28,926.94
--------------------------------------------------------------------------------------------
Stamp fee payable on Letter of
Acceptance, which will be stamped by
JTC on your behalf                                               $   922.00
--------------------------------------------------------------------------------------------
Sub-Total Payable                                                $38,949,44       $273.02
--------------------------------------------------------------------------------------------
Add- 3 % GST                                                     $   273.02
                                                                 ----------
--------------------------------------------------------------------------------------------
Total Amount Payable                                             $39,222.46
                                                                 ----------
--------------------------------------------------------------------------------------------
</TABLE>
<PAGE>

                                                                               7

                                                         Jurong Town Corporation

5.   Rent-Free Period:

     As the Commencement Date will not be deferred, we advise you to accept the
     0ffer as soon as possible and to collect the keys to the Premises on the
     scheduled date in order to maximize the Rent-Free Period referred to in
     clause 1.10(c) of this letter.

6.   Variation to the Tenancy

     This letter and the Memorandum of Tenancy constitute the full terms and
     conditions governing the Offer and no terms or representation or otherwise,
     whether express or implied, shall form part of the Offer other than what is
     contained herein. Any variation, modification, amendment, deletion,
     addition or otherwise of the covenants, terms and conditions of the Offer
     shall not be enforceable unless agreed, by both parties and reduced in
     writing by us.

7.   Car-Parking Scheme:

     (a)  The car park for Blk 1008 is currently managed by a Tenants' Committee
          and you will:

          (i)  have to contribute towards all the operational and management
               costs, if any, incurred in connection with the car parks;

          (ii) observe and be bound by all the rules and regulations governing
               the use and operation of the car park. A copy of the Tenant
               Committees current rules and regulations is obtainable from the
                                                        ------------------
               Tenants& Committee. You are required to contact:

               Ms Susan Ng
               Wilson Parking (S) Pte Ltd
               32 Sultan Centre
               Singapore 198480
               Tel No: 2966600

               a member of the Committee, on your use of the car park.

     (b)  The Corporation shall not be liable for any loss, damage, injury,
          liabilities, claim or action you may sustain or suffer in the use of
          the car park and the tenants shall fully indemnify the Corporation
          against any loss, claims, penalties, demands, damage arising from the
          private management and operations of the car park by the tenants.
<PAGE>

                                                                               8
                                                         Jurong Town Corporation

8.   Application for Approvals, Utilities etc.

     Upon your acceptance of the covenants, terms and conditions of the Offer,
     you are advised to proceed expeditiously as follows:

     8.01  Preliminary Clearance:

           Comply with the requirements of the Chief Engineer (Central Building
           Plan Unit); Pollution Control Department and/or other departments
           pursuant to your application/s for preliminary clearance. (Please
           note that we have referred your application to the relevant
           department/s)

     8.02  Discharge of Trade Effluence:

           Complete the attached Application for Permission to Discharge Trade
           Effluent into Public Sewer and return the application form direct to
           the Read, Pollution Control Department Ministry of Environment,
           Environment Building, 40 Scotts Road Singapore 229231 (Telephone No.
           7327733).

     8.03  Electricity:

           Engage a registered electrical consultant or competent contractor to
           submit three sets of electrical single-line diagrams to and in
           accordance with the requirements of our Property Support Department
           (PSD), Customer Services Group, ITC East Zone Office for endorsement
           before an application is made to the Power Supply Pte Ltd to open an
           account for electricity connection. Please contact our Property
           Support Department (PSD) at Blk 25 Kallang Avenue #05-01 Kallang
           Basin Industrial Estate Singapore 339416 direct for their
           requirements.

     8.04  Water:

           Submit four copies of sketch plans, prepared by a licensed plumber,
           showing the section and layout of the plumbing, to our Building
           Control Unit [BCU(JTC)] for approval prior to the issue of a letter
           to Water Conservation Department Public Utilities Board to assist you
           in your application for a water sub-meter.

     8.05  Telephone:

           Apply direct to Singapore Telecommunications Ltd for all connections.
<PAGE>

                                                                               9

                                                         Jurong Town Corporation

     8.06  Automatic Fire Alarm System (Incorporating Heat Detector)

           Engage a registered electrical consultant/professional engineer to
           submit two sets of fire alarm drawings, indicating the existing
           fixtures if any, the proposed modifications of the fire alarm and the
           layout of machinery, etc to and in accordance with the requirements
           of our Building Control Unit [BCU(JTC)]. Please contact our Building
           Control Unit (BCU(JTC)] at 301 Jurong Town Hall Road (3rd level)
           Singapore 609431 direct for further requirements.

     8.07  Factory Inspectorate

           Complete and return direct to Chief Inspector of Factories the
           attached form, "Particulars to be submitted by occupiers or Intending
           Occupiers of Factories".

Yours faithfully

By: /s/ Lai Get Luan

LAI GET LUAN (Ms)
MARKETING & SALES DEPARTMENT
INDUSTRIAL PARKS DEVELOPMENT GROUP
JURONG TOWN CORPORATION
Attd

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.18
<SEQUENCE>9
<FILENAME>dex1018.txt
<DESCRIPTION>REAL ESTATE LEASE DATED OCT 13, 1999 BLOCK 1008
<TEXT>
<PAGE>

                                                                   EXHIBIT 10.18

TRIO-TECH

25 November 1999

Marketing & Sales Department                 [STAMP]      BY HAND
                                                          -------
Jurong Town Corporation
Jurong Town Hall
301 Town Hall Road
Singapore 609431


Dear Ms Lai Get Luan

ACCEPTANCE OF OFFER OF TENANCY FOR THE PREMISES AT BLK 1008 TOA PAYOH NORTH #03-
09 TO #03-18 TOA PAYOH INDUSTRIAL ESTATE SINGAPORE 318996


1.   We refer to your letter of dated 13 October 1999 and a letter of amendment
     dated 19 November 1999 for the Tenancy and hereby confirm our acceptance of
     all the covenants, terms and conditions stipulated therein.

2.   We enclose herewith a cheque for the amount of $13,403.90 and the Banker's
     guarantee as security deposit as confirmation of our acceptance.

3.   In addition, we also enclose herewith a duly completed GIRO authorization
     form as requested by you for your information and record.


                                 By: /s/ Yong Siew Wai
--------------------------------------------------------------------------------
Name of authorized signatory  :  Mr.Yong Siew Wai
Designation President         :  Chief Executive Officer
For and on behalf of

TRIO-TECH INTERNATIONAL PTE LTD

In the presence of:


                                 By: /s/ Betty Ang
--------------------------------------------------------------------------------
Name of witness               :  Ms. Betty Ang
NRIC No.                      :  S6945849A
<PAGE>

JTC(L)3601/2506/LGL/SN

                                                      DID: 5688574
                                                      FAX: 5688593
                                                      Email: getluan@jtc.gov.sgw
19 November, 1999

                                                      J T C
Trio-Tech International Pte Ltd
5 Kian Teck Rd
Singapore 628765

                                                   BY FAX @ 264 2235 & BY LUM
                                                   --------------------------
(Attn: Mrs Lee Siew Kuan/Ms Betty Ang)

Dear Sirs

AMENDMENT TO LETTER OF OFFER OF TENANCY IN RESPECT OF THE PREMISES AT BLK 1008
TOA PAYOH NORTH #03-09 TO #03-18 TOA PAYOH INDUSTRIAL ESTATE

1    We refer to your letter dated 15 November 1999 and our letter of offer
     dated 13 October 1999.

2    We are agreeable to your request to defer the commencement date of the said
     tenancy from 01 January 1999 to 16 January 2000. Hence, our letter of offer
     dated 13 October 1999 shall be amended as follows:-

     Sub-Paragraph 1.02:
     -------------------
     Term of Tenancy:
     ----------------

     3 years ("the Term") with effect from 16 January 2000 ("the Commencement
     Date").

     Sub-Paragraph 1.05:
     -------------------
     Rent and Service Charge:
     ------------------------
     Standard Rent:
     --------------

     (a)  Discounted rate of $12.03 per square metres for so long as the Tenant
          shall occupy by way of tenancy an aggregate floor area of not less
          than 1,000 square metres in the Building or in the various flatted
          factories belonging to the Landlord, and
<PAGE>

                                                                   2

                                                         Jurong Town Corporation

     (b)  Normal rate of $12.40 per square metres with effect from the date the
          said aggregate floor area occupied is reduced to below 1,000 square
          metres (i.e. when the discount shall be totally withdrawn),

          ("Rent") to be paid without demand and in advance without deduction on
          the 1st day of each month of the year (i.e. 1st of January, February,
          March, etc.). The next payment shall be made on 01 February 2000.

          Service charge:

          $2.10 per square metre per month, ("Service Charge") as charges for
          services rendered by us, payable without demand on the same date and
          in the same manner as the Rent, subject to our revision from time to
          time.

     Sub-Paragraph 1.06:
     -------------------
     Security Deposit/Banker's Guarantee:
     ------------------------------------

     You will at the time of acceptance of the Offer be required to place with
     us a deposit of $37,667.75 equivalent to 3 months' Rent (at the discounted
     rate) and Service Charge ("Security Deposit") as security against any
     breach of the covenants, terms and conditions in the Tenancy.

     The Security Deposit may be in the form of cash and/or acceptable Banker's
     Guarantee in the form attached (effective from 16 November 1999 to 15 July
     2003) and/or such other form of security as we may in our absolute
     discretion permit or accept.

     The Security Deposit must be maintained at the same sum throughout the Term
     and shall be repayable to you without interest or returned to you for
     cancellation, after the termination of the Term (by expiry or otherwise) or
     expiry of the Banker's Guarantee, as the case may be, subject to
     appropriate deductions or payment to us for damages or other sums due under
     the Tenancy.

     If the Rent at the discounted rate is increased to the normal rate or
     Service Charge is increased or any deductions are made from the Security
     Deposit, you are to immediately pay the amount of such increase or make
     good the deductions so that the Security Deposit shall at all times be
     equal to 3 months' Rent and Service Charge.

     Paragraph 2:
     ------------
     Mode of Acceptance
     ------------------

     The Offer shall lapse if we do not receive the following by 22 November
     1999:-

     .    Duly signed letter of acceptance (in duplicate) of all the covenants,
          terms and conditions in the Tenancy in the form enclosed at the
          Appendix.
          (Please date as required in the Appendix)
     .    Payment of the sum set out in clause 4.
     .    Duly completed GIRO authorization form.
<PAGE>

                                                                   3

                                                         Jurong Town Corporation

3    The Statement of Account in paragraph 4 of our offer is adjusted
     accordingly as follows:-

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------
                                                     AMOUNT                              +3% GST
--------------------------------------------------------------------------------------------------
<S>                                                  <C>               <C>               <C>
Rent:
-----
Rent at $12.03 psm per month on 888.60
sqm for period 16 January 2000 to
15 February 2000                                     $10,689.86

Less:
6.6% Property tax rebate on rental value
(01/07/1998 to 30/06/2000)                           $   705.53
                                                     ----------
                                                     $ 9,984.33
--------------------------------------------------------------------------------------------------
Service Charge:
---------------
Service Charge at $2.10 psm per month
on 888.60 sqm for period
16 January 2000 to I5 February 2000                  $ 1,866.06        $11,850.39          $355.51
                                                     ----------
--------------------------------------------------------------------------------------------------
Deposit equivalent to three months' rent
and service charge (or Banker's Guarantee
provided in accordance with sub-paragraph
1.06 above)                                                            $37,667.75
--------------------------------------------------------------------------------------------------
Stamp fee payable on Letter of Acceptant
which will be stamped by JTC on your
behalf                                                                 $ 1,198.00
--------------------------------------------------------------------------------------------------
Sub-Total Payable                                                      $50,716.14          $355.51
--------------------------------------------------------------------------------------------------
Add: 3 % GST                                                           $   355.51
                                                                       ----------
--------------------------------------------------------------------------------------------------
Total Amount Payable                                                   $51,071.65
                                                                       ----------
--------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>

                                                                   4

                                                         Jurong Town Corporation

4    All other terms and conditions stipulated in our letter of offer dated 13
     October 1999 remain unchanged.

5    Please let us have your letter of acceptance of the terms and conditions
     stipulated in our letter of offer dated 13 October 1999 and the above
     amendments together with your remittance amounting to $51,071.65.
     (Alternatively, you may wish to produce a cheque of $13,403.90 together
     with a Banker's Guarantee in lieu of the cash deposit of $37,667.75) by 22
     November 1999.

6    We enclose herewith a draft of the letter of acceptance and the Banker's
     Guarantee format for your use/reference.



Yours faithfully



By: /s/ Lai Get Luan

LAI GET LUAN (Ms)
MARKETING & SALES DEPARTMENT
INDUSTRIAL PARKS DEVELOPMENT GROUP
JURONG TOWN CORPORATION

Attd: Draft of letter of acceptance
      Banker's Guarantee format
<PAGE>

JTC(L)3601/2506/LGL1SN                                 DID: 5688574
                                                       FAX: 5688593
                                                       Email: getluan@jtc.gov.sg

13 October 1999

Trio-Tech International Pte Ltd
5 Kian Teck Rd                                         BY FAX @ 264 2235
                                                       -----------------
Singapore 628765                                       & BY LUM
                                                       --------

(Attn: Mrs Lee Siew Kuan/Ms Betty Ang)

Dear Sirs,

OFFER OF TENANCY FOR FLATTED FACTORY SPACE

1.   We are pleased to offer a tenancy of the Premises subject to the following
     covenants. terms and conditions in this letter and in the annexed
     Memorandum of Tenancy ("the Offer"):

     1.01 Location:

          Pte Lot A19597, Blk 1008 (the Building"), Toa Payoh North 403-09 to
          #03-18 Toa Payoh Industrial Estate Singapore 318996 ("the Premises')
          as delineated and edged ill red on the plan attached to the Offer.

     1.02 Term of Tenancy:

          3 years ("the Term") with effect from 01 January 2000 (the
          Commencement Date").

     1.03 Tenancy Agreement:

          Upon due acceptance of the Offer in accordance with clause 2 of this
          letter, you shall have entered into a tenancy agreement with US ("the
          Tenancy") and will be bound by the covenants, terms and conditions
          thereof.

          In the event of any inconsistency or conflict between any covenant,
          term or condition of this letter and the Memorandum of Tenancy, the
          relevant covenant, term or condition in this letter shall prevail.

     1.04 Area:

          Approximately 888.60 square metres (subject to survey).
<PAGE>

                                                                               2
                                                         Jurong Town Corporation

     1.05 Rent and Service Charge:

          (a)  Discounted rate of $12.03 per square metres for so long as the
               Tenant shall occupy by way of tenancy an aggregate floor am of
               not less than 1,000 square metres in the Building or in the
               various flatted factories belonging to the Landlord, and

          (b)  Normal rate of $12.40 per square metres with effect from the date
               the said aggregate floor area occupied is reduced to below 1,000
               square metres (ie. when the discount shall be totally withdrawn),

               ("Rent") to be paid without demand and in advance without
               deduction on the 1st day of each month of the year (i.e. 1st of
               January, February, Much, etc.). The next payment shall be made on
               01 February 1999.

          Service charge:

          $2.10 per square metre per month, ("Service Charge") as charges for
          services rendered by us, payable without demand on the same date and
          in the same manner as the Rent, subject to our revision from time to
          time.

     1.06 Security Deposit/Banker's Guarantee:

          You will at the time of acceptance of the Offer be required to place
          with us a deposit of $37,667.75 equivalent to 3 months' Rent (at the.
          discounted rate) and Service Charge ("Security Deposit") as security
          against any breach of the covenants, terms and conditions in the
          Tenancy.

          The Security Deposit may be in the form of cash and/or acceptable
          Banker's Guarantee in the form attached (effective from 01 November
          1999 to 30 June 2003) and/or such other form of security as we may in
          our absolute discretion permit or accept.

          The Security Deposit must be maintained at the same sum throughout the
          Term and shall be repayable to you without interest or returned to you
          for cancellation, after the termination of the Term (by expiry or
          otherwise) or expiry of the Banker's Guarantee, as the case may be,
          subject to appropriate deductions or payment to us for damages or
          other sums due under the Tenancy.

          If the Rent at the discounted rate is increased to the normal rate or
          Service Charge is increased or any deductions are made from the
          Security Deposit, you are to immediately pay the amount of such
          increase or make good the deductions so that the Security Deposit
          shall at all times be equal to 3 months' Rent and Service Charge.
<PAGE>

                                                                               3
                                                         Jurong Town Corporation

     1.07 Mode of Payment:

          Except for the payment to be made with your letter of acceptance
          pursuant to clause 2 of this letter, during the Term, you shall pay
          Rent, Service Charge and GST by Interbank GIRO or any other mode to be
          determined by us.

          Accordingly, you we to provide us with the duly completed GIRO
          authorization form enclosed herewith.

          However, pending firialisation for the CIRO arrangement, you shall pay
          Rent, Service Charge and GST as they fall due by cheque.

     1.08 Permitted Use:

          (a)  Subject to clause 1.12 of this letter, you shall commence full
               operations within four (4) months of the Commencement Date for
               the purpose of IC testing, services and packing for semi-
               conductor industry only and for no other purpose whatsoever (the
               Authorised Use").

          (b)  Thereafter, you shall maintain full and continuous operations
               and use and occupy the whole of the Premises for the Authorised
               Use.

          (c)  Subject to clauses (a) and (b) above, you shall use and occupy at
               least sixty percent (60%) of the gross floor area of the Premises
               for industrial activities and ancillary stores, and use and
               occupy the remaining gross floor area, if any, for off-ices,
               neutral areas, communal facilities and such other uses as may be
               approved in writing by us and the relevant governmental and
               statutory authorities PROVIDED THAT you shall not use and occupy
               the Premises for the purpose of commercial office and storage
               unrelated to the Authorised Use,

     1.09 Approvals

          The Tenancy is subject to approvals being obtained from the relevant
          government and statutory authorities.

     1.10 Possession of Premises:

          (a)  Keys to the Promises will be given to you two (2) months prior to
               the Commencement Date subject to due acceptance of the offer
               ("Possession Date").

          (b)  From the Possession Date until the Commencement Date, you shall
               be deemed a licensee upon the same terms and conditions in the
               Tenancy.
<PAGE>

                                                                               4
                                                         Jurong Town Corporation

          (c)  If you proceed with the Tenancy after the Commencement Date, the
               licence fee payable from the, Possession Date to the Commencement
               Date shall be waived ("Rent-Free Period"). Should you fail to so
               proceed, you shall:

               (i)   remove everything installed by you;
               (ii)  reinstate the Premises to its original state and condition;
                     and
               (iii) pay us a sum equal to the prevailing market rent payable
                     for the period from the Possession Date up to the date the
                     installations are removed and reinstatement completed to
                     our satisfaction,

               without prejudice to any other rights and remedies we may have
               against you under the Tenancy or at law.

     1.11 Preparation and Submission of Plans:
          (a)  No alteration, addition, improvement, erection, installation or
               interference to or in the Premises or the fixtures and fittings
               therein is permitted without Building Control Unit [BCU(JTC)]
               prior written consent. Your attention is drawn to clauses 2. 10
               to 2.19 and 2.34 of the Memorandum of Tenancy.

          (b)  You will be required to prepare and submit floor layout plans of
               your factory and plans of the air-conditioning works in
               accordance with the terms of the tenancy and the 'Guide'
               attached. It is important that you should proceed with the
               preparation and submission of the plans in accordance with the
               procedures set out in the said 'Guide'.

          (c)  Should there be alteration of existing automatic fire alarm and
               sprinkler system installation, alteration plans shall be
               submitted to Building Control Unit [BCU(JTC)] for approval on
               fire safety aspects. All air-conditioning, fire alarm & sprinkler
               system plans must be signed by a relevant Professional Engineer,
               registered with the Professional Engineers Board of Singapore.

          (d)  Upon due acceptance of the Offer, a copy of the floor and
               elevation plans (transparencies) will be issued to you to assist
               in the preparation of the plans required herein,

          (e)  No work shall commence until the plans have been approved by
               Building Control Unit [BCU(JTC)].

     1.12 Final inspection:
          You shall ensure that final inspection by us of all installations is
          carried out and our approval of the same is obtained before any
          operations in the Premises may be commenced.
<PAGE>

                                                                               5
                                                         Jurong Town Corporation

     1.13 Special Conditions:

          1    You shall comply and ensure compliance with the following
               restrictions:

               (a)  maximum loading capacity of the goods lifts in the Building;
                    and

               (b)  maximum floor loading capacity of 15.00 kiloNewtons per
                    square metre of the Premises on the 3rd storey of the
                    Building PROVIDED THAT any such permitted load shall be
                    evenly distributed.

               We shall not be liable for any loss or damage that you may suffer
               from any subsidence or cracking of the ground floor slabs and
               aprons of the Building.

          2    Option for renewal of tenancy
               -----------------------------

               (a)  You may within 3 months before the expiry of the Term make a
                    written request to us for a further term of tenancy.

               (b)  We may grant you a further term of tenancy of the Premises
                    upon mutual terms to be agreed between you and us subject to
                    the following:

                    (i)   there shall be no breach of your obligations at the
                          time you make your request for a further term;

                    (ii)  our determination of revised rent, having regard to
                          the market rent of the Premises at the time of
                          granting the further term, shall be final;

                    (iii) we shall have absolute discretion to determine such
                          covenants, terms and conditions, but excluding a
                          covenant for renewal of tenancy, and

                    (iv)  there shall not be any breach of your obligations at
                          the expiry of the Term.

     2.   Mode of Acceptance:

          The Offer shall lapse if we do not receive the following by 27 October
          1999:-

          .    Duly signed letter of acceptance (in duplicate) of all the
               covenants, terms and conditions in the Tenancy in the form
               enclosed at the Appendix. (Please date as required in the
               Appendix)

          .    Payment of the sum set out in clause 4.

          .    Duly completed GIRO authorization form.
<PAGE>

                                                                               6
                                                         Jurong Town Corporation

3.   Please note that payments made prior to your giving us the other items
     listed above may be cleared by and credited by us upon receipt- However, if
     the said other items are not forthcoming from you within the time
     stipulated herein, the Offer shall lapse and there shall be no contract
     between you and us arising hereunder. Any payments rcmived shall then be
     refunded to you without interest and you shall have no claim of whatsoever
     nature against us.

4.   The total amount payable is as follows:

<TABLE>
<CAPTION>

----------------------------------------------------------------------------------------------------------------------------------
                                                                       AMOUNT                                      +3 % GST
----------------------------------------------------------------------------------------------------------------------------------
<S>                                                                <C>                      <C>                    <C>
Rent:
----
Rent at $12.03 psm per month on 888.60
sqm for period 01 January 2000 to 31 January 2000                   $10,689.86
Less:
6.6% Property tax rebate on rental value
(01/07/1998 to 30/06/2000)                                          $   705.53
                                                                    ----------
                                                                    $ 9,984.33
----------------------------------------------------------------------------------------------------------------------------------
Service Charge:
--------------
Service Charge at $2.10 psm per month on 888.60 sqrn
for period 01 January 2000 to 31 January 2000                       $ 1,866.06              $11,850.39             $355.51
                                                                    ----------
----------------------------------------------------------------------------------------------------------------------------------
Deposit equivalent to three months' rcat
and service charge (or Banker's Guarantee
provided in accordance with sub- paragraph 1.06 above)                                      $37,667.75
----------------------------------------------------------------------------------------------------------------------------------
Stamp fee payable on Letter of Acceptane which will be
stamped by JTC on your behalf                                                               $ 1,198.00
----------------------------------------------------------------------------------------------------------------------------------
Sub-Total Payable                                                                           $50,716.14             $355.51
----------------------------------------------------------------------------------------------------------------------------------
Add: 3 % GST                                                                                $   355.51
                                                                                            ----------
----------------------------------------------------------------------------------------------------------------------------------
Total Amount Payable                                                                        $51,071.65
                                                                                            ==========
----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>

5.   Rent-Free Period:

     As the Commencement Date will not be deferred, we advise you to accept the
     Offer as soon as possible and to collect the keys to the Premises on the
     scheduled date in order to maximize the Rent-free Period referred to in
     clause 1.10(c) of this letter.

6.   Variation to the Tenancy

     This letter and the Memorandtun of Tenancy constitute the full terms and
     conditions goveming the Offer and no terms or representation or otherwise,
     whether express or implied, shall form part of the Offer other thmi what is
     contained herein. Any variation, modification, amondment, deletion,
     addition or otherwise of the covenants, terms and conditions of the Offer
     shall not be enforceable unless agreed by both parties and reduced in
     writing by us.

7.   Car-Parldmg Scheme:

     (a) The car park for Blk 1008 is currently managed by a Tenants' Committee
     and you will:

         (i)  have to contribute towards all the operational and management
              costs, if any, incurred in connection with the car parks;

         (ii) observe and be bound by all the rules and regulations governing
              the uso and operation of the car park. A copy of the Tenant
              Committee's current rules and regulations is obtainable from the
                                                        ------------------

              Tenants' Committee. You are required to contact:

                      Ms Susan Ng
                      Wilson Parking (S) Pte Ltd
                      32 Sultan Centre
                      Singapore 198480
                      Tel No: 2966600

                      a member of the Committee on your use of the car park,

     (b) The Corporation shall not be liable -for any loss, damage, injury,
         liabilities, claim or action you may sustain or suft in the use of the
         car park and the tenants shall fully indemnify the Corporation against
         any loss, claims, penalties, demands, damage arising from the private
         management and operations of the car park by the tenants.

<PAGE>

                                                         Jurong Town Corporation

8.   Application for Approvals, Utilities etc.

          Upon your acceptance of the covenants, terms and conditions of the
          Offer, you are advised to proceed expeditiously as follows:

     8.01 Preliminary Clearance:

          Comply with the requirements of the Chief Engineer (Central Building
          Plan Unit), Pollution Control Department and/or other departments
          pursuant to your application/s for preliminary clearance. (Please note
          that we have referred your application to the relevant departmout/s)

     8.02 Discharge of Trade Effluence:

          Complete the attached Application for Permission to Discharge Trade
          Effluent into into Public Sewer and return the application form direct
          to the Head, Pollution Control Depaitment, Ministry of Environment
          Environment Building, 40 Scotts Road. Singapore 228231 (Telephone No.
          7327733).

     8.03 Electricity:

          Engage a registered electrical consultant or competent contractor to
          submit three sets of electrical single-line diagrams to and in
          accordance with the requirements of our Property Support Department
          (PSD), Customer Service Group, JTC East Zone Office for endorsement
          before an application is made to the Power Supply Pte Ltd to open an
          account for electricity connection. Please contact our Property
          Support Department (PSO) at Blk 25 Kallang Avenue #05-01 Kallang Basin
          Industrial Estate Singaporc 339416 direct for their requirements.

     8.04 Water:

          Submit four copies of sketch plans, prepared by a licensed plumber,
          showing the, section and layout of the plumbing, to our Building
          Control Unit [BCU(JTC)] for approval prior to the issue of a letter to
          Water Conservation Department, Public Utilities Board to assist you in
          your application for a water sub-meter.

     8.05 Telephone:

          Apply direct to Singapore Telecommunications Ltd for all connections.

<PAGE>

     8.06 Automatic Fire Alarm System (Incorporating Heat Detector)

          Engage a registered electrical consultant/professional engincer to
          submit two sets of fire alarm drawings, indicating the existing
          fixtures if any, the proposed modifications of the fire alarm and the
          layout of machinery, etc to and in accordance with the requirements of
          our Building Control Unit [BCU(JTC)]. Please contact our Building
          Control Unit [BCU(JTC)] at 301 Jurong Town Hall Road (3rd level)
          Singapore 609431 direct for further requirements.

     8.07 Factory Inspectorate

          Complete and return direct to Chief Inspector of Factories the
          attached form, "Particulars to be submitted by occupiers or Intending
          Occupiers of Factories".

Yours faithfully



By:/s/ Lai Get Luan

LAI GET LUAN (Ms)
MARKETING & SALES DEPARTMENT
INDUSTRIAL PARKS DEVELOPNENT GROUP
JURONG TOWN CORPORATION
Attd


</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.19
<SEQUENCE>10
<FILENAME>dex1019.txt
<DESCRIPTION>REAL ESTATE LEASE DATED MAY 2, 2000
<TEXT>
<PAGE>

                                                                   EXHIBIT 10.19

      TRIO-TECH
      ---------
    INTERNATIONAL

15 May 2000


Marketing & Sales Department                     [STAMP]    BY HAND
                                                            -------
Jurong Town Corporation
Jurong Town Hall
301 Town Hall Road
Singapore 609431

Attn: Mr Gerard Lien

ACCEPTANCE OF OFFER OF TENANCY FOR THE PREMISES AT BLK 1008 TOA PAYOH NORTH #01-
08 TOA PAYOH INDUSTRIAL ESTATE SINGAPORE 318996

1.   We refer to your letter of offer dated 2 May 2000 for the Tenancy and
     hereby confirm our acceptance of all the covenants, terms and conditions
     stipulated therein.

2.   We enclose herewith a cheque for the sum of the amount of S$4,226.31 as
     confirmation of our acceptance.

3.   In addition, we also enclose herewith a duly completed GIRO authorization
     form as requested by you for your information and record.

4.   Please be informed that we are taking over the fittings and fixtures from
     the existing tenant Poh Hin Paper Box Co and undertake to reinstate the
     Premises to its original condition and to the satisfaction of the
     Corporation upon termination of the Term (by expiry or otherwise).


                                    By: /s/ Lee Siew Kuan
-----------------------------------------------------------
Name of ,Authorised signatory    :  Mrs Lee Siew Kuan
Designation                      :  Director of Logistics
For and/on behalf of

TRIO-TECH INTERNATIONAL PTE LTD

In the presence of


                                    By: /s/ Betty Ang
-----------------------------------------------------------
Name of witness                  :  Miss Betty Ang
NRIC No.                         :  S6945849A
<PAGE>

JTC(L)3601/2506/TEMP/GL/SN

02 May,2000

Trio-Tech International Pte Ltd              BY- FAX @ 259 6355 & BY LUM
                                             ---------------------------
Blk 1008 Toa. Payoh North
#03-09 Toa Payoh Industrial Estate
Singapore 318996

(Attn, Ms Betty Ang)

Dear Sirs,

OFFER OF TENANCY FOR FLATTED FACTORY SPACE

1.   We are pleased to offer a tenancy of the Premises subject to the following
     covenants, terms and conditions in this letter and in the annexed
     Memorandum of Tenancy ("the Offer") -

     1.01   Location:

            Pte Lot A 195 97(c), Blk 1008 ("the Building'), Toa Payoh North #01-
            08 Toa Payoh Industrial Estate Singapore 318996 ("The Premises") as
            delineated and edged in red on the plan attached to the Offer.

     1.02   Term of Tenancy:

            3 years ("the Term") with effect from 01 July 2000 ("the
            Commencement Date")-

     1.03   Tenancy Agreement:

            Upon due acceptance of the Offer in accordance with clause 2 of this
            letter, you shall have entered into a tenancy agreement with US
            ("the Tenancy") and will be bound by the covenants, terms and
            conditions thereof

            In the event of any inconsistency or conflict between any covenant,
            term or condition of this letter and the Memorandum of Tenancy, the
            relevant covenant, term or condition in this letter shall prevail,

     1,04   Area:

            Approximately 56.0 square metres (subject to survey).
<PAGE>

     1.05   Rent and Service Charge:

            (a)  Discounted rate of $16.30 per square metre for so long as the
                 Tenant shall occupy by way of tenancy an aggregate floor area
                 of not less than 1,000 square metres in the Building or in the
                 various flatted factories belonging to the Landlord, and

            (b)  Normal rate of $16.30 per square metres with effect from the
                 date the said aggregate floor area occupied is reduced to below
                 1,000 square metres (ie. when the discount shall be totally
                 withdraft),

                 ("Rent") to be paid without demand and in advance without
                 deduction on the 1st day of each month of the year (i.e. 1st of
                 January, February, March, etc.). The next payment shall be made
                 on 01 August 2000.

            Service charge:

            $2.10 per square metre per month, ("Service Charge") as charges for
            services rendered by us, payable without demand on the same date and
            in the same manner as the Rent, subject to our revision from time to
            time.

     1.06   Security Deposit/Banker's Guarantee;

            You will at the time of acceptance of the Offer be requited to place
            with us a deposit of $3,091.20 equivalent to 3 months' Rent (at the
            discounted rate) and Service Charge ("Security Deposit") as security
            against any breach of the covenants, terms and conditions in the
            Tenancy.

            The Security Deposit may be in the form of cash and/or acceptable
            Banker's Guarantee in the form attached (effective from 01 May 2000
            to 31 December 2003) and/or such other form of security as we may in
            our absolute discretion permit or accept.

            The security Deposit must be maintained at the same sum throughout
            the Term and shall be repayable to you without interest or returned
            to you for cancellation, after the termination of the Term (by
            expiry or otherwise) or expiry of the Banker's Guarantee, as the
            case may be, subject to appropriate deductions or payment to us for
            damages or other sums due under the Tenancy.

            If the Rent at the discounted rate is increased to the normal rate
            or Service Charge is increased or any deductions are made from the
            Security Deposit, you arc to immediately pay the amount of such
            increase or make good the deductions so that the Security Deposit
            shall at all times be equal to 3 months' Rent and Service Charge.
<PAGE>

     1.07   Made of Payment:

            Except for the payment to be made with your letter of acceptance
            pursuant to clause 2 of this letter, during the Term, you shall pay
            Rent, Service Charge and CTST by Interbank GIRO or any other mode to
            be determined by us,

            Accordingly, you are to provide us with the duly completed GIRO
            authorization form enclosed herewith.

            However, pending finalisation for the GIRO arrangement, you shall
            pay Rent, Service Charge and GST as they fall due by cheque.

     1.08   Permitted Use:

            (a)  Subject to clause 1. 12 of this letter, you shall commence full
                 operation within four (4) months of the Commencement Date for
                 the purpose of storage and operation of transformer and
                 switchboards only and for no other purpose whatsoever ("the
                 Authorised Use").

            (b)  Thereafter, you shall maintain full and continuous operations
                 and use and occupy the whole of the Premises for the Authorised
                 Use.

            (c)  Subject to clauses (a) and (b) above, you shall use and occupy
                 at least sixty percent (60%) of the gross floor area of the
                 Premises for industrial activities and ancillary stores, and
                 use and occupy the remaining grow floor area, if any, for
                 offices, neutral areas, communal facilities and such other uses
                 may be approved in writing by us and the relevant government
                 and statutory authorities PROVIDIED THAT you shall not use and
                 occupy the Premises for the purpose of commercial office and
                 storage unrelated to the Authorised Use.

     1.09   Approvals

            The Tenancy is subject to approvals being obtained from the relevant
            government and Statutory authorities.

     1.10   Possession of Premises:

            (a)  Keys to the Premises will be given to you two (2) months prior
                 to the Commencement Date subject to due acceptance of the Offer
                 ("Possession Date").

            (b)  From the Possession Date until the Commencement Date, you shall
                 be deemed a licensee upon the same terms and conditions in the
                 Tenancy.
<PAGE>

            (c)  If you proceed with the Tenancy after the Commencement Date,
                 the licence fee payable from the Possession Date to the
                 Commencement Date shall be waived ("Rent-Free Period"). Should
                 you fail to so proceed, you shall:

                 (i)   remove everything installed by you;
                 (ii)  reinstate the Premises to its original state and
                       condition, and
                 (iii) pay us a sum equal to the prevailing market rent payable
                       for the period from the Possession Date up to the date
                       the installations are removed and reinstatement completed
                       to our satisfaction,

                 without prejudice to any other rights and remedies we may have
                 against you wider the Tenancy or at law.

     1.11   Preparation and Submission of Plans:

            (a)  No alteration, addition, improvement, erection, installation or
                 interference to or in the Premises or the fixtures and fittings
                 therein is permitted without Building Control Unit [BCU(JTC)]
                 prior written consent. Your attention is drawn to clauses 2.10
                 to 2.19 and 2.34 of the Memorandum of Tenancy.

            (b)  You will be required to prepare and submit floor layout plans
                 of your factory and plans of the air-conditioning works in
                 accordance with the terms of the tenancy and the 'Guide'
                 attached. It is important that you should proceed with the
                 preparation and submission of the plans in accordance with the
                 procedures set out in the said 'Guide'.

            (c)  Should there be alteration of existing automatic fire alarm and
                 sprinkler system installation, alteration plans shall be
                 submitted to Building Control Unit [BCU(JTC)] for approval on
                 fire safety aspects. All air-conditioning, fire alarm &
                 sprinkler system plans must be signed by a relevant
                 Professional Engineer, registered with the Professional
                 Engineers Board of Singapore.

            (d)  Upon due acceptance of the Offer, a copy of the floor and
                 elevation plans (transparencies) will be issued to you to
                 assist in the preparation of the plans requited herein.

            (e)  No work shall commence until the plans have been approved by
                 Building Control Unit [BCU(JTC)].

     1.12   Final Inspection:

            You shall ensure that final inspection by us of all installations is
            carried out and our approval of the same is obtained before any
            operations in the Premises may be commenced.
<PAGE>

     1.13   Special Conditions:

            1.   You shall comply and ensure compliance with the following
                 restrictions:

                 (a)  maximum loading capacity of the goods lifts in the
                      Building; and

                 (b)  maximum floor loading capacity of 12.50 kiloNewtons per
                      square metre of the Premises on the 1st storey of the
                      Building PROVIDED THAT any such permitted load shall be
                      evenly distributed.

                 We shall not be liable for any loss or damage that you may
                 suffer from any subsidence or cracking of the ground floor
                 slabs and aprons of the Building.

            2    The Offer is subject to Poh Hin Paper Box Co returning vacant
                 possession of the Promises by 30/04/2000

            3    If you are taking over the Premises In Its existing state and
                 condition, including oil the fixtures and fittings installed by
                 or belonging to Poh Hin Paper Box Co ("the Said Installations")
                 then:-

                 (a)  You shall accept the Premises including the Said
                      Installations in its condition existing at the
                      Commencement Date or the earlier acceptance of the keys to
                      the Premises by the Tenant, whichever is the earlier ('the
                      Control Date').

                 (b)  You are to immediately or within such period stipulated in
                      writing by us, at your own cost and expense, ensure:-

                      (i)    that the Said Installations have been approved in
                             writing by us and that plans on The Said
                             installations have been submitted to and approved
                             in writing by us;

                      (ii)   that the Said Installations comply fully with all
                             guidelines and requirements of the Building Control
                             Unit [BCU(JTC)] and other Authorities prevailing at
                             the Control Date;

                      (iii)  that such or all of the Said installations not
                             approved by us under (i) or which have failed to
                             comply with (ii) are demolished and removed,
                             subject to clauses 2.12, 2.13 and 2.14 of the
                             Memorandum of Tenancy; and

                 (c)  at the termination of the Term, by expiry or otherwise,
                      you shall remove the Said Installations, and reinstate the
                      Premises in accordance with clause 2.32 of the Memorandum
                      of Tenancy,
<PAGE>

          4    Qption for renewal of tenancy-
               -----------------------------

               (a)  You may within 3 months before the expiry of the Term make a
                    written request to us for a further term of tenancy.

               (b)  We may grant you a further term of tenancy of the Premises
                    upon mutual terms to be agreed between you and us subject to
                    the following:

                    (i)    there shall be no breach of your obligations at the
                    time you make your request for a further term;

                    (ii)   our determination of revised rent, having regard to
                    the market rent of the Premises at the time of granting the
                    further term, shall be final;

                    (iii)  we shall have absolute discretion to determine such
                    covenants, terms and conditions, but excluding a covenant
                    for renewal of tenancy; and

                    (iv)   there shall not be any breach of your obligations at
                    the expiry of the Term.


               5    You shall ensure that the operations of the transformers do
                    not affect the neighboring units' (inclusive of the upstairs
                    units) normal operations.

               6    You shall erect a wall separating units #01-07 and #01 -08
                    that conform to the relevant authorities' requirements for
                    the transformer room.

2.   Mode of Acceptance:

     The Offer shall lapse if we do not receive the following by 06 May 2000:-

     .    Duly signed letter of acceptance (in duplicate) of all the covenants,
          terms and conditions in the Tenancy in the, form enclosed at the
          Appendix. (Please date is required in the Appendix)

     .    Payment of the sum set out in clause 4,

     .    Duly completed GIRO authorization form.

3.   Please note that payments made prior to your giving us the other items
     listed above may be cleared by and credited by us upon receipt. However, if
     the said other items are not forthcoming from you within the time
     stipulated herein. the Offer shall lapse and there shall be no contract
     between you and us arising hereunder. Any payments received shall then be
     refunded to you without interest and you shall have no claim of whatsoever
     nature against
<PAGE>

4    The total amount payable is as follows:

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------
                                                               AMOUNT                             +3 % GST
----------------------------------------------------------------------------------------------------------------------
<S>                                                            <C>                                <C>
Rent:
----

Rent at $16.30 psm per month on 56,0 sqm for
period 01 July 2000 to 31 July 2000                            $912.80


Less:
-----

3% property tax rebate on rental value (01/07/2000             $ 27.38
to 30/06/2001)                                                 -------
                                                               $885.42

----------------------------------------------------------------------------------------------------------------------
Service Charge.-
--------------

Service Charge at $2.10 psm per
month on 56.0 sqm for period                                   $ 117.6        $1,003.02            $ 30.09
01 July 2000 to 31 July 2000                                   -------

----------------------------------------------------------------------------------------------------------------------
Deposit equivalent to three months'
rent and service charge (or Banker's
Guarantee provided in accordance with
sub-paragraph 1.06 above)                                                     $3,091.20

----------------------------------------------------------------------------------------------------------------------
Stamp fee payable on Letter of
Acceptance which will be stamped by
JTC on your behalf                                                            $  102.00

----------------------------------------------------------------------------------------------------------------------
        Sub-Total Payable                                                     $4,196.22            $330.09

----------------------------------------------------------------------------------------------------------------------
 Add: 3 % GST                                                                 $   30.09
 ---                                                                          ---------
----------------------------------------------------------------------------------------------------------------------
      Total Amount Payable                                                    $4,226.31
                                                                              ---------
----------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>

5    Rent-Free Period:

     As the Commencement Date will not be deferred, we advise you to accept the
     Offer as soon as possible and to collect the keys to the Premises on the
     scheduled date in order to maximize -the Rent-Free Period referred to in
     clause 1.10(c) of this letter.

6.   Variation to The Tenancy

     This letter and the Memorandum of Tenancy constitute the full terms and
     conditions governing the Offer and no terms or representation or otherwise,
     whether express or implied, shall form part of the Offer other than what is
     contained herein. Any variation, modification, amendment, deletion,
     addition or otherwise of the covenants, terms and conditions of the Offer
     shall not be enforceable unless agreed by both parties and reduced in
     writing by us.


7.   Car-Parking Scheme;

     (a)  The car park for Blk 1008 is currently managed by a Tenants' Committee
          and You will:

          (i)  have to contribute towards all the operational and management
               costs, if any, incurred in connection with the car parks,

          (ii) observe and be bound by all the rules and regulations governing
               the use and operation of the car park. A copy of the Tenant
               Committee's current rules and regulations is obtainable from the
               Tenants' Committee. You are required to contact:

                         Ms Susan Ng
                         Wilson Parking (S) Pte Ltd
                         32 Sultan Centre
                         Singapore 198480
                         Tel No - 2966600

          a member of the Committee, on your use of the car park.

     (b)  The Corporation shall not be liable for any loss, damage, injury,
          liabilities claim or action you may sustain or suffer in the use of
          the car park and the tenants shall fully indemnify the Corporation
          against any loss, claims, penalties, demands, and damage arising from
          the private management and operations of the car park by the tenants.
<PAGE>

8.   Application for Approvals, Utilities etc.

     Upon your acceptance of the covenants, terms and conditions of the Offer,
     you are advised to proceed expeditiously as follows:

     8.01 Preliminary Clearance:

          Comply with the requirements of the Chief Engineer (Central Building
          Plan Unit), Pollution Control Department and/or other departments
          pursuant to your application/s for preliminary clearance. (Please note
          that we have referred your application to the relevant department/s)

     8.02 Discharge of Trade Effluence:

          Complete the attached Application for Permission to Discharge Trade
          Effluent into Public Sewer and return the application form direct to
          the Head, Pollution Control Department, Ministry of Environment;
          Environment Building, 40 Scotts Road. Singapore 228231 (Telephone No.
          7327 733).

     8.03 Electricity:

          Engage a Registered electrical consultant or competent contractor to
          submit three sets of electrical single-line diagrams to and in
          accordance with the requirements of our Property Support Department
          (FSD), Customer Services Group, M East Zone Office for endorsement
          before on application is Made to the Power Supply Pte Ltd to open an
          account for electricity connection. Please contact our Pro" Support
          Department (PSD) at Blk 25 Kallang Avenue #05-01 Kallang Ruin
          Industrial Estate Singapore 339416 direct for their requirements.

     8.04 Water:

          Submit four copies of sketch plans, prepared by a licensed plumber,
          showing the section and layout of the plumbing, to our Building
          Control Unit [BCU(JTC)] for approval prior to the issue of a letter to
          Water Conservation Department, Public Utilities Board to assist you in
          your application for a water sub-meter.

     8.05 Telephone:

         Apply direct to Singapore Telecommunications Ltd for all connections.
<PAGE>

     8.06 Automatic Fire Alarm System (Incorporating Heat Detector)

          Engage a registered electrical consultant/professional engineer to
          submit two sets of fire alarm drawings, indicating the existing
          fixtures if any, the proposal modifications of the fn alarm and the
          layout of machinery, etc to and in accordance with the requirements of
          our Building Control Unit [BCU(JTC)]. Please contact our Building
          Control Unit (BCU(JTQ)] at 301 Jurong Town Hall. Road (3rd level)
          Singapore 609431 direct for further requirements.

     8.07 Factory Inspectorate

          Complete and return direct to Chief Inspector of Factories the
          attached Form, "Particulars to be submitted by occupiers or Intending
          Occupiers of Factories".


Yours faithfully


By: /s/ Gerard Lien
----------------------------------
GERARD LIEN
MARKEKTING & SALES DEPARTMENT
INDUSTRIAL PARKS DEVELOPMENT GROUP
JURONG TOWN CORPORTION
Attd

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.20
<SEQUENCE>11
<FILENAME>dex1020.txt
<DESCRIPTION>REAL ESTATE LEASE DATED SEPT 12, 2000
<TEXT>
<PAGE>

                                                                   EXHIBIT 10.20

TRIO-TECH
---------


22 September 2000                               [SAMP]    BY HAND
                                                          -------
Marketing & Sales Department
Jurong Town Corporation
The JTC Summit
8 Jurong Town Hal Road
Singapore 609434

Attn: Mss Jenny Lim

ACCEPTANCE OF OFFER OF TENANCY FOR THE PREMISES AT BLK 1008 TOA PAYOH NORTH #07-
17 TO #07-18 TOA PAYOH INDUSTRIAL ESTATE SINGAPORE 318996

1.   We refer to your letter of offer dated 12 September 2000 for the Tenancy
     and hereby confirm our acceptance of all the covenants, terms and
     conditions stipulated therein.

2.   We enclose herewith a cheque for the amount of S$6,015.37 and the Banker's
     Guarantee as security deposit as confirmation of our acceptance.

3.   In addition, we also enclose herewith a duly completed GIRO authorization
     form.


                                 By: /s/ Yong Siew Wai

--------------------------------------------------------------------------------

Name of authorised signatory  :  Mr. Yong Siew Wai
Designation                   :  President/CEO
For and on behalf of

TRIO-TECH INTERNATIONAL PTE LTD

In the presence of
                                 By:/s/ Betty Ang

--------------------------------------------------------------------------------

Name of witness               :  Ms. Betty Ang
NRIC No.                      :  S6945849A
<PAGE>

JTC(L)3601/2506 Temp
                                        DID: 8833427
12 September 2000                       FAX: 8855899

                                        Email: chenwan@jtc.gov.sgv
TRIO-TECH INTERNATIONAL PTE LTD                                 J T C
Blk 1008 Toa Payoh North
#03-09/18
Singapore 318996
                                    BY LUM
                                    ------
(Attn: Mr Yong Siew Wai)

Dear Sirs,

OFFER OF TENANCY FOR FLATTED FACTORY SPACE

1 .  We are pleased to offer a tenancy of the Premises subject to the following
     covenants, terms and conditions in this letter and in the annexed
     Memorandum of Tenancy ("the Offer"):

     1.01 Location:

     Pte Lot A19597(d), Blk 1008 ("the Building") Toa Payoh North #07-17 to
     #07-18, Toa Payoh Industrial Estate Singapore 318996 ("the Premises") as
     delineated and edged in red on the plan attached to the Offer.

     1.02 Term of Tenancy:

          3 years ("the Term") with effect from 1 December 2000 ("the
          Commencement Date").

     1.03 Tenancy Agreement:

          Upon due acceptance of the Offer in accordance with clause 2 of this
          letter, you shall have entered into a tenancy agreement with US ("the
          Tenancy") and will be bound by the covenants, terms and conditions
          thereof.

          In the event of any inconsistency or conflict between any covenant,
          term or condition of this letter and the Memorandum of Tenancy, the
          relevant covenant, term or condition in this letter shall prevail.

     1.04 Area:

          Approximately 400.90 square metres (subject to survey).
<PAGE>

                                       2
                                                           Jurong Town
                                                           Corporation

     1.05  Rent and Service Charge:

           Rent:
           -----

           (a)      Discounted rate of Dollars $11.54 per square metre per month
                    for so long as the Tenant shall occupy by way of tenancy an
                    aggregate floor area of 1000 square metres in the Building
                    or in the various flatted factories belonging to the
                    Landlord, and

          (b)       Normal rate of Dollars $11.90 per square metre per month in
                    the event that the said aggregate floor area occupied is at
                    any time reduced to below 1000 square metre (when the
                    discount shall be totally withdrawn) with effect from the
                    date of reduction in the said aggregate floor,

                    ("Rent" ) to be paid without demand and in advance without
                    deduction on the 1st day of each month of the year (i.e. 1st
                    of January, February, March, etc.). The next payment shall
                    be made on 1 January 2001.

                    Service charge:
                    ---------------

                    $2.10 per square metre per month, ("Service Charge") as
                    charges for services rendered by us, payable without demand
                    on the same date and in the same manner as the Rent, subject
                    to our revision from time to time.

     1.06  Security Deposit/Banker's Guarantee:

           You will at the time of acceptance of the Offer be required to place
           with us a deposit of Dollars $16,404.83 equivalent to 3 months' Rent
           (at the discounted rate) and Service Charge ("Security Deposit") as
           security against any breach of the covenants, terms and conditions in
           the Tenancy.

           The Security Deposit may be in the form of cash and/or acceptable
           Banker's Guarantee in the form attached (effective from 1 October
           2000 to 31 May 2004 ) and/or such other form of security as we may in
           our absolute discretion permit or accept.

           The Security Deposit must be maintained at the same sum throughout
           the Term and shall be repayable to you without interest or returned
           to you for cancellation, after the termination of the Term (by expiry
           or otherwise) or expiry of the Banker's Guarantee, as the case may
           be, subject to appropriate deductions or payment to us for damages or
           other sums due under the Tenancy.
<PAGE>

          If the Rent at the discounted rate is increased to the normal rate or
          Service Charge is increased or any deductions are made from the
          Security Deposit, you are to immediately pay the amount of such
          increase or make good the deductions so that the Security Deposit
          shall at all times be equal to 3 months' Rent and Service Charge.

1.07      Mode of Payment:

          Except for the payment to be made with your letter of acceptance
          pursuant to clause 2 of this letter, during the Term, you shall pay
          Rent, Service Charge and GST by Interbank GIRO or any other mode to be
          determined by us.

          [Note:Accordingly, you are to provide us with the duly completed GIRO
          -----
          authorization form enclosed herewith.

          # However, pending finalisation for the GIRO arrangement, you shall
          pay Rent, Service Charge and GST as they fall due by cheque.]

1.08      Permitted Use:

(a)         Subject to clause 1.12 of this letter, you shall commence full
            operations within four (4) months of the Commencement Date for the
            purpose of IC testing only and for no other purpose whatsoever ("the
            Authorised Use").

(b)         Thereafter, you shall maintain full and continuous operations and
            use and occupy the whole of the Premises for the Authorised Use.

(c)         Subject to clauses (a) and (b) above, you shall use and occupy at
            least sixty percent (60%) of the gross floor area of the Premises
            for industrial activities and ancillary stores, and use and occupy
            the remaining gross floor area, if any, for offices, neutral areas,
            communal facilities and such other uses as may be approved in
            writing by us and the relevant governmental and statutory
            authorities PROVIDED THAT you shall not use and occupy the Premises
            for the purpose of commercial office and storage unrelated to the
            Authorised Use.

1.09      Approvals

The Tenancy is subject to approvals being obtained from the relevant government
and statutory authorities.
<PAGE>

                                       4
                                                         Jurong Town Corporation

1.10 Possession of Premises:

(a)       Keys to the Premises will be given to you two (2) months prior to the
          Commencement Date subject to due acceptance of the Offer ("Possession
          Date").

(b)       From the Possession Date until the Commencement Date, you shall be
          deemed a licensee upon the same terms and conditions in the Tenancy.

(c)       if you proceed with the Tenancy after the Commencement Date, the
          licence fee payable from the Possession Date to the Commencement Date
          shall be waived ("Rent-Free Period"). Should you fail to so proceed,
          you shall:

               (i)    remove everything installed by you;
               (ii)   reinstate the Premises to its original state and
                      condition; and
               (iii)  pay us a sum equal to the prevailing market rent payable
                      for the period from the Possession Date up to the date the
                      installations are removed and reinstatement completed to
                      our satisfaction,

     without prejudice to any other rights and remedies we may have against you
     under the enancy or at law.

1.11 Preparation and Submission of Plans:

(a)       No alteration, addition, improvement, erection, installation or
          interference to or in the Premises or the fixtures and fittings
          therein is permitted without Building Control Unit [BCU(JTC)] prior
          written consent. Your attention is drawn to clauses 2.10 to 2.19 and
          2.34 of the Memorandum of Tenancy.

(b)       You will be required to prepare and submit floor layout plans of your
          factory and plans of the air-conditioning works in accordance with the
          terms of the tenancy and the 'Guide' attached. It is important that
          you should proceed with the preparation and submission of the plans in
          accordance with the procedures set out in the said 'Guide'.

(c)       Should there be alteration of existing automatic fire alarm and
          sprinkler system installation, alteration plans shall be submitted to
          Building Control Unit [BCU(JTC)] for approval on fire safety aspects.
          All air-conditioning, fire alarm & sprinkler system plans must be
          signed by a relevant Professional Engineer, registered with the
          Professional Engineers Board of Singapore.


<PAGE>

                                       5
                                                         Jurong Town Corporation

(d)     Upon due acceptance of the Offer, a copy of the floor and elevation
        plans (transparencies) will be issued to you to assist in the
        preparation of the plans required herein.

(e)     No work shall commence until the plans have been approved by Building
        Control Unit [BCU(JTC)].

1.12 Final inspection:

You shall ensure that final inspection by us of all installations is carried
out and our approval of the same is obtained before any operations in the
Premises may be commenced.

1.13  Special Conditions:

(1)            Normal (Ground & Non-ground) Floor Premises
               -------------------------------------------

        You shall comply and ensure compliance with the following restrictions:

        (a)    maximum loading capacity of the goods lifts in the Building; and

        (b)    maximum floor loading capacity of 10.00 kiloNewtons per square
               metre of the Premises on the 7th storey of the Building PROVIDED
               THAT any such permitted load shall be evenly distributed.

        We shall not be liable for any loss or damage that you may suffer from
        any subsidence or cracking of the ground floor slabs and aprons of the
        Building.

(2)  Option for renewal of tenancy
     -----------------------------

        (a)    You may within 3 months before the expiry of the Term make a
               written request to us for a further term of tenancy.

        (b)    We may grant you a further term of tenancy of the Premises upon
               mutual terms to be agreed between you and us subject to the
               following:

               (i)   there shall be no breach of your obligations at the time
                     you make your request for a further term;

               (ii)  our determination of revised rent, having regard to the
                     market rent of the Premises at the time of granting the
                     further term, shall be final;
<PAGE>

                              6
                                                         Jurong Town Corporation

               (iii)  we shall have absolute discretion to determine such
                      covenants, terms and conditions, but excluding a covenant
                      for renewal of tenancy; and

               (iv)   there shall not be any breach of your obligations at the
                      expiry of the Term.

2.   Mode of Acceptance:

          The Offer shall lapse if we do not receive the following by 26
          September 2000:-

          .    Duly signed letter of acceptance (in duplicate) of all the
               covenants, terms and conditions in the Tenancy in the form
               enclosed at the Appendix.
               (Please date as required in the Appendix)

          .    Payment of the sum set out in clause 4.

          .    Duly completed GIRO authorization form.

3.   Please note that payments made prior to your giving us the other items
     listed above may be cleared by and credited by us upon receipt. However, if
     the said other items are not forthcoming from you within the time
     stipulated herein, the Offer shall lapse and there shall be no contract
     between you and us arising hereunder. Any payments received shall then be
     refunded to you without interest and you shall have no claim of whatsoever
     nature against us.
<PAGE>

                                       7

                                                         Jurong Town Corporation

4.          The total amount payable is as follows:

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------
                                                  Amount                                  +3 % GST
--------------------------------------------------------------------------------------------------
<S>                                               <C>                   <C>               <C>
Rent at $11.54 psm per month on
400.90 sq m for the period 1 December
2000 to 31 December 2000                             $4,626.39
--------------------------------------------------------------------------------------------------
Less:
--------------------------------------------------------------------------------------------------
3% property tax rebate on rental value               $  138.79
                                                     ---------
                                                     $4,487.60
--------------------------------------------------------------------------------------------------
Service Charge at $2.10 psm per
month on400.90sq m for the period
1 December 2000 to 31 December 2000                  $  841.89          $ 5,329.49        $159.88
                                                     ---------
--------------------------------------------------------------------------------------------------
Deposit equivalent to three months'
rent and service charge (or Banker's
Guarantee provided in accordance with
sub-paragraph 1.06 above)                                               $16,404.83
--------------------------------------------------------------------------------------------------
Stamp fee payable on Letter of
Acceptance which will be stamped by
JTC on your behalf                                                      $   526.00
--------------------------------------------------------------------------------------------------
Sub-Total Payable                                                       $22,260.32        $159.88
--------------------------------------------------------------------------------------------------
Add: GST + 3%                                                           $   159.88
                                                                        ----------
--------------------------------------------------------------------------------------------------
Total Amount Payable                                                    $22,420.20
                                                                        ==========
--------------------------------------------------------------------------------------------------
</TABLE>

5.   Rent-Free Period:


     As the Commencement Date will not be deferred, we advise you to accept the
     Offer as soon as possible and to collect the keys to the Premises on the
     scheduled date in order to maximize the Rent-Free Period referred to in
     clause 1.10(c) of this letter.

6.   Variation to the Tenancy

     This letter and the Memorandum of Tenancy constitute the full terms and
     conditions governing the Offer and no terms or representation or otherwise,
     whether express or implied, shall form part of the Offer other than what is
     contained herein, Any variation, modification, amendment, deletion,
     addition or otherwise of the covenants, terms and conditions of the Offer
     shall not be enforceable unless agreed by both parties and reduced in
     writing by us.
<PAGE>

                                       8
                                                         Jurong Town Corporation

7.   Car-Parking Scheme:

     (a)  The car park for Blk 1008 Toa Payoh North is currently managed by a
          Tenants' Committee and you will:

          (i)    have to contribute towards all the operational and management
                 costs, if any, incurred in connection with the car parks;

          (ii)   observe and be bound by all the rules and regulations governing
                 the use and operation of the car park. A copy of the Tenant
                 Committee's current rules and regulations is obtainable from
                                                           ------------------
                 the Tenants' Committee. You are required to contact:
                 ---

                 Miss Susan Ng
                 Wilson Parking (S) Pte Ltd
                 32 Sultan Centre
                 Singapore 198480
                 TelNo:2966600

                 a member of the Committee, on your use of the car park.

     (b)  The Corporation shall not be liable for any loss, damage,
          injury, liabilities, claim or action you may sustain or
          suffer in the use of the car park and the tenants shall
          fully indemnify the Corporation against any loss, claims,
          penalties, demands, damage arising from the private
          management and operations of the car park by the tenants.

8.   Application for Approvals, Utilities etc.

     Upon your acceptance of the covenants, terms and conditions of the Offer,
     you are advised to proceed expeditiously as follows:

     8.01 Preliminary Clearance:

          Comply with the requirements of the Chief Engineer (Central Building
          Plan Unit), Pollution Control Department and/or other departments
          pursuant to your application/s for preliminary clearance. (Please note
          that we have referred your application to the relevant department/s)

     8.02 Discharge of Trade Effluence:

          Complete the attached Application for Permission to Discharge Trade
          Effluent into Public Sewer and return the application form direct to
          the Head, Pollution Control Department, Ministry of Environment,
          Environment Building, 40 Scotts Road. Singapore 228231 (Telephone No.
          7327733).
<PAGE>

                                       9

                                                   Jurong Town Corporation

     8.03 Electricity:

          Engage a registered electrical consultant or competent contractor to
          submit three sets of electrical single-line diagrams to and in
          accordance with the requirements of our Property Support Department
          (PSD), Customer Services Group, JTC East Zone Office for endorsement
          before an application is made to the Power Supply Pte Ltd to open an
          account for electricity connection. Please contact our Property
          Support Department (PSD) at Blk 25 Kallang Avenue #05-01 Kallang Basin
          Industrial Estate Singapore 339416 direct for their requirements.

     8.04 Water:

          Submit four copies of sketch plans, prepared by a licensed plumber,
          showing the section and layout of the plumbing, to our Building
          Control Unit [BCU(JTC)] for approval prior to the issue of a letter to
          Water Conservation Department, Public Utilities Board to assist you in
          your application for a water sub-meter.

     8.05 Telephone:

          Apply direct to Singapore Telecommunications Ltd for all connections.

     8.06 Automatic Fire Alarm System ( Incorporating Heat Detector)

          Engage a registered electrical consultant/professional engineer to
          submit two sets of fire alarm drawings, indicating the existing
          fixtures if any, the proposed modifications of the fire alarm and the
          layout of machinery, etc to and in accordance with the requirements of
          our Building Control Unit [BCU(JTC)]. Please contact our Building
          Control Unit [BCU(JTC)] at The JTC Summit, Customer Service Centre
          (1st level) 8 Jurong Town Hall Road Singapore 609434 direct for
          further requirements.
<PAGE>

                                      10

                                                   Jurong Town Corporation

     8.07 Factory Inspectorate

          Complete and return direct to Chief Inspector of Factories the
          attached form, "Particulars to be submitted by occupiers or Intending
          Occupiers of Factories".

Yours faithfully

By:/s/ Jenny Lim

JENNY LIM (Ms)
MARKETING & SALES DEPARTMENT
INDUSTRIAL PARKS DEVELOPMENT GROUP
JURONG TOWN CORPORATION

Encl

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.21
<SEQUENCE>12
<FILENAME>dex1021.txt
<DESCRIPTION>REAL ESTATE LEASE DATED 10/30/2000
<TEXT>
<PAGE>

                                                                   Exhibit 10.21

[LOGO]      TRIO-TECH
            INTERNATIONAL                                   LOS ANGELES
                                                            SINGAPORE
                                                            DUBLIN
                                                            PENANG
                                                            KUALA LUMPUR
                                                            BANGKOK

10 November 2000

Mr Teo Soon Siang                                    BY HAND
Marketing & Sales Department                         -------
Jurong Town Corporation
The JTC Summit
8 Jurong Town Hall Road
Singapore 609434

Dear Mr Teo Soon Siang


ACCEPTANCE OF OFFER OF TENANCY FOR THE PREMISES AT BILK 1008 TOA PAYOH NORTH
#07-01 TOA PAYOH INDUSTRIAL ESTATE SINGAPORE 318996

1.   We refer to your letter of offer dated 30 October 2000 for the Tenancy and
     hereby confirm our acceptance of all the covenants, terms and conditions
     stipulated therein.

2.   We enclose herewith a cheque for the amount of S$4831.02 and the Banker's
     Guarantee as security deposit as confirmation of our acceptance.

3.   In addition, we also enclose herewith a duly completed GIRO authorisation
     form.


                                            By: /s/ Lee Siew Kuan
-----------------------------------------------------------------------------
Name of authorised signatory    :           Mrs Lee Siew Kuan
Designation                     :           Director of Logistics
For and-On behalf of            :           Trio-Tech International Pte Ltd

In the presence of



                                            By: /s/ Betty Ang
-----------------------------------------------------------------------------
Name of witness                 :           Miss Betty Ang
NRIC No.                        :           S6945849A
<PAGE>

JTC(L)3601/2606 Temp 3
                                             DID: 8833427
                                             FAX:8855899
                                             Email: chenwan@jtc.gov.sg
30 October 2000                                                     JTC


TRIO-TECH INTERNATIONAL PTE LTD
Blk 1008 Toa Payoh North
#03-09/15
Singapore 318996
                                             BY LUM
                                             ------
(Attn: Ms Betty Ang)


Dear Sirs,

OFFER OF TENANCY FOR FLATTED FACTORY SPACE

1.   We are pleased to offer a tenancy of the Premises subject to the following
     covenants, terms and conditions in this letter and in the annexed
     Memorandum of Tenancy ("the Offer"):

     1.01  Location:

           Pte Lot A19597(f), Blk 1008 ("the Building") Toa Payoh North #07-01,
           Toa Payoh Industrial Estate Singapore 318996 ("the Premises") as
           delineated and edged in red on the plan attached to the Offer.

     1.02  Term of Tenancy:

           3 years ("the Term") with effect from 16 January 2001 ("the
           Commencement Date").

     1.03  Tenancy Agreement:

           Upon due acceptance of the Offer in accordance with clause 2 of this
           letter, you shall have   entered into a tenancy agreement with US
           ("the Tenancy") and will be bound by the covenants, terms and
           conditions thereof.

           In the event of any inconsistency or conflict between any covenant,
           term or condition of this letter and the Memorandum of Tenancy, the
           relevant covenant, term or condition in this letter shall prevail.

     1.04  Area:

           Approximately 322.00 square metres (subject to survey).
<PAGE>

                                              Jurong Town Corporation
     1.05 Rent and Service Charge:

          Rent:
          ----

          (a)   Discounted rate of Dollars $11.54 per square metre per month for
                so long as the Tenant shall occupy by way of tenancy an
                aggregate floor area of 1000 square metres in the Building or in
                the various flatted factories belonging to the Landlord, and

          (b)   Normal rate of Dollars $11.90 per square metre per month in the
                event that the said aggregate floor area occupied is at any time
                reduced to below 1000 square metre (when the discount shall be
                totally withdrawn) with effect from the date of reduction in the
                said aggregate floor,

          ("Rent") to be paid without demand and in advance without deduction
          on the 1st day of each month of the year (i.e. 1st of January,
          February, March, etc.). The next payment shall be made on 1 February
          2001.

          Service charge:
          ---------------

          $2.10 per square metre per month, ("Service Charge") as charges for
          services rendered by us, payable without demand on the same date and
          in the same manner as the Rent, subject to our revision from time to
          time.

     1.06 Security Deposit/Banker's Guarantee:

          You will at the time of acceptance of the Offer be required to place
          with us a deposit of Dollars $13,176.24 equivalent to 3 months' Rent
          (at the discounted rate) and Service Charge ("Security Deposit") as
          security against any breach of the covenants, terms and conditions in
          the Tenancy.

          The Security Deposit may be in the form of cash and/or acceptable
          Banker's Guarantee in the form attached (effective from 16 November
          2000 to 15 July 2004 ) and/or such other form of security as we may in
          our absolute discretion permit or accept.

          The Security Deposit must be maintained at the same sum throughout the
          Term and shall be repayable to you without interest or returned to you
          for cancellation, after the termination of the Term (by expiry or
          otherwise) or expiry of the Banker's Guarantee, as the case may be,
          subject to appropriate deductions or payment to us for damages or
          other sums due under the Tenancy.
<PAGE>

                                              Jurong Town Corporation

          If the Rent at the discounted rate is increased to the normal rate or
          Service Charge is increased or any deductions are made from the
          Security Deposit, you are to immediately pay the amount of such
          increase or make good the deductions so that the Security Deposit
          shall at all times be equal to 3 months' Rent and Service Charge.

     1.07 Mode of Payment:

          [Note: You have an existing account with us from which we will deduct
          -------
          the aforesaid payments. You are therefore not required to submit a
          duly completed GIRO form as part of the Mode of Acceptance herein
          unless you wish to have a separate GIRO account to meet the aforesaid
          payments.]

     1.08 Permitted Use:

          (a)    Subject to clause 1.12 of this letter, you shall commence full
                 operations within four (4) months of the Commencement Date for
                 the purpose of IC testing only and for no other purpose
                 whatsoever ("the Authorised Use").

          (b)    Thereafter, you shall maintain full and continuous operations
                 and use and occupy the whole of the Premises for the Authorised
                 Use.

          (c)    Subject to clauses (a) and (b) above, you shall use and occupy
                 at least sixty percent (60%) of the gross floor area of the
                 Premises for industrial activities and ancillary stores, and
                 use and occupy the remaining gross floor area, if any, for
                 offices, neutral areas, communal facilities and such other uses
                 as may be approved in writing by us and the relevant
                 governmental and statutory authorities PROVIDED THAT you shall
                 not use and occupy the Premises for the purpose of commercial
                 office and storage unrelated to the Authorised Use.

     1.09 Approvals

          The Tenancy is subject to approvals being obtained from the relevant
          government and statutory authorities.

     1.10 Possession of Premises:

          (a)    Keys to the Premises will be given to you two (2) months prior
                 to the Commencement Date subject to due acceptance of the Offer
                 ("Possession Date").

          (b)    From the Possession Date until the Commencement Date, you shall
                 be deemed a licensee upon the same terms and conditions in the
                 Tenancy.
<PAGE>

                                              Jurong Town Corporation

     (c)  if you proceed with the Tenancy after the Commencement Date, the
          licence fee payable from the Possession Date to the Commencement Date
          shall be waived ("Rent-Free Period"). Should you fail to so proceed,
          you shall

          (i)    remove everything installed by you;
          (ii)   reinstate the Premises to its original state and condition;
                 and
          (iii)  pay us a sum equal to the prevailing market rent payable for
                 the period from the Possession Date up to the date the
                 installations are removed and reinstatement completed to our
                 satisfaction,

          without prejudice to any other rights and remedies we may have against
          you under the Tenancy or at law.

1.11 Preparation and Submission of Plans:

     (a)  No alteration, addition, improvement, erection, installation or
          interference to or in the Premises or the fixtures and fittings
          therein is permitted without Building Control Unit [BCU(JTC)] prior
          written consent. Your attention is drawn to clauses 2.10 to 2.19 and
          2.34 of the Memorandum of Tenancy.

     (b)  You will be required to prepare and submit floor layout plans of your
          factory and plans of the air-conditioning works in accordance with the
          terms of the tenancy and the 'Guide' attached. It is important that
          you should proceed with the preparation and submission of the plans in
          accordance with the procedures set out in the said 'Guide.

     (c)  Should there be alteration of existing automatic fire alarm and
          sprinkler system installation, alteration plans shall be submitted to
          Building Control Unit [BCU(JTC)] for approval on fire safety aspects.
          All air-conditioning, fire alarm & sprinkler system plans must be
          signed by a relevant Professional Engineer, registered with the
          Professional Engineers Board of Singapore.

     (d)  Upon due acceptance of the Offer, a copy of the floor and elevation
          plans (transparencies) will be issued to you to assist in the
          preparation of the plans required herein.

     (e)  No work shall commence until the plans have been approved by Building
          Control Unit [BCU(JTC)].
<PAGE>

                                                   Jurong Town Corporation

     1.12  Final inspection:

     You shall ensure that final inspection by us of all installations is
     carried out and our approval of the same is obtained before any operations
     in the Premises may be commenced.

     1.13  Special Conditions:

     (1)  Normal (Ground & Non-ground) Floor Premises
          -------------------------------------------

          You shall comply and ensure compliance with the following
          restrictions:

          (a)  maximum loading capacity of the goods lifts in the Building; and

          (b)  maximum floor loading capacity of 10.00 kiloNewtons per square
               metre of the Premises on the 7th storey of the Building PROVIDED
               THAT any such permitted load shall be evenly distributed.

          We shall not be liable for any loss or damage that you may suffer from
          any subsidence or cracking of the ground floor slabs and aprons of the
          Building.

     (2)  Option for renewal of tenancy
          -----------------------------

          (a)  You may within 3 months before the expiry of the Term make a
               written requet to us for a further term of tenancy.

          (b)  We may grant you a further term of tenancy of the Premises upon
               mutual terms to be agreed between you and us subject to the
               following:

               (i)    there shall be no breach of your obligations at the you
                      make your request for a further term; time

               (ii)   our determination of revised rent, having regard to market
                      rent of the Premises at the time of the granting the
                      further term, shall be final;
               (iii)  we shall have absolute discretion to determine such
                      covenants, terms and conditions, but excluding a covenant
                      for renewal of tenancy; and
               (iv)   there shall not be any breach of your obligations expiry
                      of the Term.
<PAGE>

                                                   Jurong Town Corporation

2.  Mode of Acceptance:

    The Offer shall lapse if we do not receive the following by 13 November
    2000:-

    .  Duly signed letter of acceptance (in duplicate) of all the covenants,
       terms and conditions in the Tenancy in the form enclosed at the
       Appendix. (Please date as required in the Appendix)

    .  Payment of the sum set out in clause 4.

    .  Duly completed GIRO authorization form.

3.  Please note that payments made prior to your giving us the other items
    listed above may be cleared by and credited by us upon receipt. However, if
    the said other items are not forthcoming from you within the time stipulated
    herein, the Offer shall lapse and there shall be no contract between you and
    us arising hereunder. Any payments received shall then be refunded to you
    without interest and you shall have no claim of whatsoever nature against
    us.

4.  The total amount payable is as follows:

--------------------------------------------------------------------------------
                                            Amount                      +3 % GST
--------------------------------------------------------------------------------
Rent at $11.54 psm per month on
322.00 sq m for the period 16 January
2001 to 15 February 2001                   $3,715.88
--------------------------------------------------------------------------------
Less:
--------------------------------------------------------------------------------
3% property tax rebate on rental value     $  111.48
                                           ---------
                                           $3,604.40
--------------------------------------------------------------------------------
Service Charge at $2.10 psm per
month on 322.00 sq m for the period
16 January 2001 to 15 February 2001        $  676.20     $ 4,280.60      $128.42
                                           ---------
--------------------------------------------------------------------------------
Deposit equivalent to three months'
rent and service charge (or Banker's
Guarantee provided in accordance with
sub-paragraph 1.06 above)                                $13,176.24
--------------------------------------------------------------------------------
Stamp fee payable on Letter of
Acceptance which will be stamped by
JTC on your behalf                                       $   422.00
--------------------------------------------------------------------------------
Sub-Total Payable                                        $17,878.84      $128.42
--------------------------------------------------------------------------------
Add: GST + 3%                                            $   128.42
--------------------------------------------------------------------------------
Total Amount Payable                                     $18,007.26
--------------------------------------------------------------------------------
<PAGE>

                                                   Jurong Town Corporation

5.  Rent-Free Period:

    As the Commencement Date will not be deferred, we advise you to accept the
    Offer as soon as possible and to collect the keys to the Premises on the
    scheduled date in order to maximize the Rent-Free Period referred to in
    clause 1.10(c) of this letter.

6.  Variation to the Tenancy

    This letter and the Memorandum of Tenancy constitute the full terms and
    conditions governing the Offer and no terms or representation or otherwise,
    whether express or implied, shall form part of the Offer other than what is
    contained herein. Any variation, modification, amendment, deletion, addition
    or otherwise of the covenants, terms and conditions of the Offer shall not
    be enforceable unless agreed by both parties and reduced in writing by us.

7.  Car-Parking Scheme:
    (a)  The car park for Blk 1008 Toa Payoh North is currently managed by
         Wilson Parking (S) Pte Ltd and you will have to observe and be bound by
         all the rules and regulations governing the use and operation of the
         car park. You are requested to contact the following person on the use
         of the car park:

         Ms Susan Ng
         Wilson Parking (S) Pte Ltd
         32 Sultan Gate
         Singapore 198480
         Tel No:2966600

         a member of the Committee, on your use of the car park.

    (b)  The Corporation shall not be liable for any loss, damage, injury,
         liability, claim or action you may sustain or suffer in the use of the
         car park and the tenants shall fully indemnify the Corporation against
         any loss, claims, penalties, demands, damage arising from the private
         management and operations of the car park by the tenants.

8.  Application for Approvals, Utilities etc.

    Upon your acceptance of the covenants, terms and conditions of the Offer,
    you are advised to proceed expeditiously as follows:
<PAGE>

                                                   Jurong Town Corporation

8.01  Preliminary Clearance:

      Comply with the requirements of the Chief Engineer (Central Building Plan
      Unit), Pollution Control Department and/or other departments pursuant to
      your application/s for preliminary clearance. (Please note that we have
      referred your application to the relevant department/s)

8.02  Discharge of Trade Effluence:

      Complete the attached Application for Permission to Discharge Trade
      Effluent into Public Sewer and return the application form direct to the
      Head, Pollution Control Department, Ministry of Environment, Environment
      Building, 40 Scotts Road. Singapore 228231 (Telephone No. 7327733).

8.03  Electricity:

      Engage a registered electrical consultant or competent contractor to
      submit three sets of electrical single-line diagrams to and in accordance
      with the requirements of our Property Support Department (PSD), Customer
      Services Group, JTC East Zone Office for endorsement before an application
      is made to the Power Supply Pte Ltd to open an account for electricity
      connection. Please contact our Property Support Department (PSD) at Blk 25
      Kallang Avenue #05-01 Kallang Basin Industrial Estate Singapore 339416
      direct for their requirements.

8.04  Water:

      Submit four copies of sketch plans, prepared by a licensed plumber,
      showing the section and layout of the plumbing, to our Building Control
      Unit [BCU(JTC)] for approval prior to the issue of a letter to Water
      Conservation Department, Public Utilities Board to assist you in your
      application for a water sub-meter.

8.05  Telephone:

      Apply direct to Singapore Telecommunications Ltd for all connections.

8.06  Automatic Fire Alarm System ( Incorporating Heat Detector)

      Engage a registered electrical consultant/professional engineer to submit
      two sets of fire alarm drawings, indicating the existing fixtures if any,
      the proposed modifications of the fire alarm and the layout of machinery,
      etc to and in accordance with the requirements of our Building Control
      Unit [BCU(JTC)I. Please contact our Building Control Unit [BCU(JTC)] at
      The JTC Summit, Customer Service Centre (1st level) 8 Jurong Town Hall
      Road Singapore 609434 direct for further requirements.
<PAGE>

                                                   Jurong Town Corporation

8.07  Factory Inspectorate

      Complete and return direct to Chief Inspector of Factories the attached
      form, "Particulars to be submitted by occupiers or Intending Occupiers of
      Factories".


      Yours faithfully


      By: /s/ Jenny Lim

      JENNY LIM (Ms)
      MARKETING & SALES DEPARTMENT
      INDUSTRIAL PARKS DEVELOPMENT GROUP
      JURONG TOWN CORPORATION

      Encl

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-23.1
<SEQUENCE>13
<FILENAME>dex231.txt
<DESCRIPTION>INDEPENDENT AUDITORS CONSENT
<TEXT>
<PAGE>

                                                                    EXHIBIT 23.1

                         INDEPENDENT AUDITORS' CONSENT

We consent to the incorporation by reference in Registration Statement No. 333-
38082 on Form S-3 and No. 333-40102 on Form S-8 of Trio-Tech International of
our report dated September 7, 2001, appearing in this Annual Report on Form 10-K
of Trio-Tech International for the year ended June 30, 2001.

/s/ DELOITTE & TOUCHE LLP
DELOITTE & TOUCHE LLP

Los Angeles, California
September 17, 2001

</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
