25 Nov 2004

ENTRY OF SUB-SYSTEM MANUFACTURING AGREEMENT WITH SMART MODULAR TECHNOLOGIES SDN BHD. AND REGISTRATION OF EXCELPOINT MANUFACTURING (DONG GUAN) CO LTD

The Board of Directors of Excelpoint Technology Ltd (the "Company") is pleased to announce that its wholly owned subsidiary, Excelpoint Manufacturing Pte Ltd ("Excelpoint") has today entered into a 3-year sub-system manufacturing agreement (the "Agreement") with Smart Modular Technologies Sdn Bhd ("SMART"), an affiliate of Smart Modular Technologies Inc, a company incorporated in the United States of America.

Under the terms of the Agreement, Excelpoint will sub-system manufacture memory modules and communication products for SMART in Dongguan, the People's Republic of China ("PRC"). The products sub-system manufactured will be used in the networking and telecommunication industries. To ensure that the products are sub-system manufactured in accordance with its specifications, SMART will provide the equipment, machineries and technical know-how to Excelpoint.

The sub-system manufacturing activities will be housed in a three-storey tenanted factory building leased by Excelpoint, through its wholly owned subsidiary, Excelpoint Manufacturing (Dong Guan) Co Ltd ("Excelpoint Dong Guan"), which was registered in Dongguan, PRC on 15 November 2004. Excelpoint Dong Guan will have a paid up capital of HK$4,000,000 (S$826,400/-). Excelpoint Dong Guan is expected to invest up to HK$9.0 million in capital expenditure over the next three years in this project.

The factory will be constructed by the landlord in accordance with the needs of Excelpiont Dong Guan and will occupy an area of 3,200 sq metres. The construction of the factory premises is expected to be completed by the beginning of the first quarter of 2005 and sub-system manufacturing operations are targeted to commence in the same quarter.

The aforesaid transaction will be financed from internal funds. This project is not expected to have any material impact on the Group's net tangible assets per share nor earnings per share for the financial year ending 31 December 2004.

None of the Directors or the controlling shareholder of the Company has any interest, direct or indirect, in the aforesaid transaction, save for their shareholdings in the Company.

Attach herewith is the press release on the entry of the Agreement.

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