Micro-Mechanics (Holdings) Ltd : Micro-Mechanics Net Profit Gains 21% To S$5.1 M In FY2013

Micro-Mechanics (Holdings) Ltd.

NEWS RELEASE

Micro-Mechanics Net Profit Gains 21% to S$5.1 M in FY2013

• GP margin in FY2013 expands to 49.1% as the Group boosts productivity and operational efficiency

• Proposes final dividend of 2 cents per share; brings total dividends for FY2013 to 3 cents per share

Singapore, 29 August 2013 - Micro-Mechanics (Holdings) Ltd. ("Micro-Mechanics" or the "Group") a manufacturer of high precision tools, parts and assemblies for high technology industries, has reported a

21% jump in net profit to S$5.1 million for its financial year ended 30 June 2013 ("FY2013").
The Group's stronger bottom line performance was achieved on the back of higher gross profit (GP) margin and its tight rein on expenses as revenue in FY2013 was relatively flat at S$39.1 million, compared to S$38.8 million in FY2012.
For its fourth quarter ended 30 June 2013 ("4Q13"), the Group posted revenue of S$10.8 million, an increase of 4.0% from 4Q12 and a sequential gain of 16.8% from 3Q13. The Group's net profit in 4Q13 also rose 13.2% year-on-year to S$1.5 million, its highest level since 3Q11.
The Board of Directors has recommended a final dividend of 2 cents per share (1-tier tax exempt) payable on 19 November 2013. This will bring total dividends for FY2013 to 3 cents per share, unchanged from FY2012. Since going public in 2003, the Group has distributed yearly dividends totaling 31.9 cents to shareholders.
CEO of Micro-Mechanics, Mr Chris Borch said, "The Group's GP margin expanded significantly to 49.1% from 46.3% in FY2012, fuelled mainly by our initiatives to improve productivity and operational efficiency. Our tight rein on expenses also contributed positively to our performance in FY2013 as overhead expenses remained relatively steady despite escalating cost pressures in many of the markets where we operate.
Our semiconductor tooling business, which accounted for 86.3% of Group revenue in FY2013, performed commendably on the back of positive sales growth and improved GP margin. While our Custom Machining
& Assembly (CMA) division had a difficult year, we are improving our unique recipe for repeatable, scalable and cost-effective machining and have seen encouraging results. At the end of FY2013, our USA factory reached a key R&D milestone with nearly 100 parts engineered for production on our new 24/7 Machining Line. In July 2013, one of our key CMA customers ranked Micro-Mechanics as its best supplier with a score of 95 out of 100 points, including perfect marks for quality and on-time delivery.
For FY2014, growing the top line will remain a key priority. Backed by our sound financial position, we will continue to focus on our customers and work to enhance the value that we bring to their business."
As at 30 June 2013, the Group had total assets of S$45.0 million, shareholders' equity of S$37.9 million, cash and cash equivalents of S$9.1 million and no bank borrowings.

MEDIA AND INVESTOR RELATIONS CONTACT O c t a n t C o n s u l t i n g | p h o n e ( 6 5 ) 6 2 9 6 3 5 8 3

Herman Phua | mobile [phone] | email [e-mail]
Lisa Heng | mobile [phone] | email [e-mail]

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MICRO-MECHANICS NET PROFIT GAINS 21% TO S$5.1 M IN FY2013

This news release is to be read in conjunction with the Group's financial statements posted on the SGX website on 29

August 2013.

About Micro-Mechanics

Micro-Mechanics designs, manufactures and markets high precision tools, parts and assemblies for the semiconductor, medical, aerospace and other high technology industries.

The Group serves a worldwide base of customers from six manufacturing facilities located in Singapore, Malaysia, China, Thailand, the Philippines and the USA. Together with its direct sales presence in Taiwan, Indonesia, and Europe, the Group's strategy is to relentlessly pursue product and operational improvement while providing its global customers with fast, effective and local support.

In addition to a market-leading range of precision tools, parts and consumable products used in the assembly and testing of semiconductors, the Group also manufactures precision parts and assemblies on a contract basis for tier-one equipment, aerospace, medical and other industries.

Micro-Mechanics has won wide recognition for its high standard of corporate governance and quality of disclosure, corporate transparency and communications with investors. It is a four time recipient of the Best Investor Relations Award (small cap category) at the Singapore Corporate Awards 2013, 2012, 2011 and 2010. The Group also won the Gold award for Best Managed Board (small cap category) at the Singapore Corporate Awards 2012. In addition, it has received six awards from the Securities Investors Association Singapore for its corporate transparency and governance practices, and was twice voted 'Best for Shareholders Rights and Equitable Treatment in Singapore' in the Asiamoney Corporate Governance Polls in 2009 and 2010.

For more information, please visit the Group's website at www.micro-mechanics.com/investor.htm

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