Micro-Mechanics (Holdings) Ltd : Micro-Mechanics Net Profit Soars 84% To S$2.2 M In 1Q14

NEWS RELEASE

Micro-Mechanics Net Profit Soars 84% to S$2.2 M in 1Q14

? Quarterly net profit reaches highest level since 1Q11

? Improved operational efficiency lifted GP margin to 51.3% in 1Q14

Singapore, 28 October 2013 - Micro-Mechanics (Holdings) Ltd. ("Micro-Mechanics" or the "Group") a manufacturer of high precision tools, parts and assemblies for high technology industries, started its new financial year on a strong note with net profit for the three months ended 30 September 2013 ("1Q14") growing to S$2.2 million.

This was an increase of 83.9% from S$1.2 million in 1Q13 and marked the Group's highest quarterly profit since 1Q11 (July to September 2010) when growth of global semiconductor sales began to slow down.
The sharp improvement in the Group's bottom line in 1Q14 was attained on a 12.0% increase in Group revenue to S$11.1 million, coupled with higher gross profit margin and a tight rein on its expense structure.
The Group's semiconductor tooling business, which serves customers involved in the assembly and testing of semiconductors, posted sales growth of 9.4% to S$9.4 million in 1Q14 to account for 85% of total revenue.
Sales of its Custom Machining & Assembly ("CMA") division, which mainly serves high technology capital equipment manufacturers, jumped 29.6% to S$1.6 million in 1Q14 as the Group benefited from increased orders following the shift to 24/7 Machining at its CMA factory in the USA.
CEO of Micro-Mechanics, Mr Chris Borch said, "During 1Q14, we continued to see promising results from the investments and energy we have put into improving the Group's sales and operational efficiency.
On top of increased sales, both our semiconductor tooling and CMA divisions recorded higher gross profit margin on the back of productivity gains. As a result, the Group's overall gross profit margin expanded to
51.3% during 1Q14 from 49.0% in 1Q13.
To counter the cost and pricing pressures that are typical of the semiconductor industry, we plan to work non-stop to improve our operational efficiency, cost structure and cycle time."
As at 30 September 2013, the Group maintained a sound financial position with total assets of S$46.6 million, shareholders' equity of S$39.6 million, cash and cash equivalents of S$11.2 million and no bank borrowings.

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

28 October 2013.

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MICRO-MECHANICS NET PROFIT SOARS 84% TO S$2.2 M IN 1Q14

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

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