Semiconductor Distributor - WPG (TSE:3702) Announces Year 2005 Proforma Consolidated Financial Result : Net profit of TW$373 Million (Approximately US$11.7 Million) on Sales of TW$116.159 Billion (Approximately US$3.63 Billion)

Announcement Date：2006/4/25

Taipei, Taiwan

WPG, the largest distributor of semiconductor components in Asia, posted Year 2005 proforma consolidated financials: 5.1% gross profit margin and operating profit of TW$2.106 billion (approximately US$66 million) on sales of TW$116,159 billion (approximately US$3.63 billion). Regarding non-operating segment, Company made one-time inventory provision of TW$271 million in response to strengthened risk control policy and pursuit of synergy expediting, concluding proforma profit before tax of TW$710 million (approximately US$22.2 million). Company recorded profit after tax of TW$373 million (approximately US$11.7 million) and EPS TW$0.54 (see Table 1). Net value per share was TW$16.7.

Company believes one-time inventory provision in the fourth quarter of Year 2005, a move to expedite integration synergy and solidify asset risk control quality, is able to take a competent stance on future M&A project negotiation.

Company BOD meeting also approved its audited financial statements for the period of 09Nov-31Dec Year 2005 (note 1): Sales of TW$18.666 billion (approximately US$583 million) and loss after tax of TW$345 million (approximately US$10.8 million) primarily due to the said one-time inventory provision.

With respect to earnings distribution, Company BOD meeting approved to use capital reserve (note 2) to offset loss after tax of TW$345 million (approximately US$10.8 million), the required legal reserve and the special reserve. Aside from the aforesaid offsetting, TW$109 million is to be distributed to shareholders, or cash dividend of TW$0.16 per share (see Table 2). No earnings will be distributed to Company directors/supervisors and employees.

Note 1: WPG Holdings was incorporated on 09Nov, 2005 through share swap with World Peace Industrial Co., Ltd. and SAC Application Corporation.
Note 2: WPG Holdings?capital reserve as at 09Nov, 2005 was contributed by the undistributed earnings of World Peace Industrial Co., Ltd. and SAC Application Corporation.


Table 1 WPG Holdings Year 2005 Proforma Consolidated Financials (in brief)

Units：TWD000
Proforma Income Statement Proforma Balance Sheet (2005/1/1~2005/12/31) (2005/12/31)
Item Amount Item Amount
Net Sales 116,159,431 Current Assets39,698,996
Cost of Goods Sold 110,224,775 Funds & LT Investment 1,012,903
Gross Profit 5,934,656 Fixed Assets 1,520,350
Operating Expenses 3,828,949 Other Assets 518,484
Operating Profit 2,105,707 Total Assets 42,750,733
Non-op Expenses (1,395,517) Current Liabilities26,518,595
Profit Before Tax710,190 LT Liabilities 4,431,076
Tax 318,494 Other Liabilities 231,973
Acct. Principle Change 6,533 Total Liabilities31,181,644
Minority 12,638 Common Stock 6,932,020
Profit After tax372,525 Stockholders?Equity11,569,089
EPS(Note 3)0.54
Note 3：Based on common share number as at 31Dec05

Table 2 WPG Holdings Year 2005 Capital Reserve Appropriation Table

Units：TWD
Capital reserve ?undistributed earnings736,649,145
minus：loss after tax (344,857,186)
Capital reserve after loss offsetting 391,791,959
minus：10% legal reserve (37,252,426)
minus：special reserve (242,568,325)
Distributable capital reserve 111,971,208
minus：cash dividend to shareholder (109,312,320)
Undistributed earnings 2,658,888

IR contacts：Cliff Yuan/ Rita Chen：(02) 2706-8268 ext.5276 / 5275 ir@WPGholdings.com
Corporate website: www.WPGholdings.com