Dear Shareholders,"On behalf of the board of directors, I am pleased to present to Annual Report and the Audited Financial Statements of Asian Micro Holdings Limited and its subsidiaries for the financial year ended 30 June 2007."

Financial Highlights
FY2007 continued to be a difficult and challenging year for the Group. The Group recorded reduced turnover of S$17.88 million, or a 32% drop compared to FY2006. The Group's overall performance was further adversely affected following the merger of Maxtor and Seagate with full year impact recorded in the reporting period.

The Group's clean room grade packaging products manufacturing and trading of clean room supplies business activities also contributed lower revenue in the reporting period due to intense competition.

Fortunately, the sharp drop in revenue from its precision tray and media / disk cassettes recycling was partially mitigated by increase of revenue generated from the Group's plastics scrap recycling in Singapore and new customer base from its Thailand plant.

Net profit attributable to shareholders after taking into consideration of taxation and minority interest amounted to S$1.68 million as compared to S$2.08 million in last corresponding financial year.

Existing Business Overview
While the Group's Singapore and Thailand plants are able to expand its business activities and secure new customers for its precision cleaning of packaging trays and media/disk cassettes, the new orders are not sufficient to offset the loss in orders from its previous major customer, namely Maxtor Corp.

The Group will increase its effort to broaden its customer case through extensive marketing and at the same time, rationalise its operation to keep operating cost low.

With the increased interest in the recycling and recovery from plastics related waste, the market is expected to remain competitive. The Company will focus on increasing capacity utilisation and operational efficiencies in this segment.

The competition remains keen in the market for the Group's clean room grade packaging products manufacturing division. The higher oil price has meant higher cost for the resins used in the manufacturing. We will continue to monitor our cost and to improve efficiencies and will make necessary adjustments.

New Business Activity - Natural Gas Vehicle Conversion Centre
The Group has been exploring new business with higher growth potential. After extensive exploration, the Group had entered into a Joint Venture Investment Agreement with Mr. Piyawat and Ms. Acrcha, both Thai, for the setting up of natural gas vehicle ("NGV") conversion centres in Thailand. A joint venture company, S.O. NGV (Thailand) Co., Ltd. ("SO NGV") has been incorporated pursuant to the Agreement in early July 2007.

SO NGV has set up in total three conversion centres located at Wangnoi, Korat and Chiang Mai of Thailand within three months from July 2007 to meet the increasing demand of the conversion system in the region, whereby we convert diesel vehicles to run on pure natural gas or diesel supplemented with up to 50% natural gas.

In addition, the Company has also entered into a Memorandum of Understanding with a Malaysia registered company in September 2007 for a 30% stake holdings in the company for its existing natural gas vehicle conversion business in Kuala Lumpur and Johor Bahru, Malaysia.

The Company will also embark on an aggressive plan to import NGV related products, such as compressed natural gas ("CNG") engines, CNG gas cylinder into Thailand and Malaysia riding on the conversion business. It will also supply such products to other conversion centres. The Company has established relationships with CNG engines and NGV related components manufacturing companies in China to secure long-term supply and distributorships.

Rationale
In view of the strong demand for diesel and oil worldwide and stronger awareness on environmental protection, the Group views the investment as a strategic and timely expansion and diversification into a growing business, with fuel saving and elimination of black smoke emission from exhaust system of heavy-duty trucks and buses.

Thailand has the fastest growth rate in NGV conversions and the set-up of CNG refilling stations in the region. PTT Public Company Limited ("PTT"), a Thai National Gas Company Chairman's Message Dr. Wang Kai Yuen Chairman 12 September 2007 and also the certifying body for NGV conversion centres, is aggressively embarking on its strategy to reduce diesel consumption through its subsidies for CNG related activities and set up of refill gas stations.

We see tremendous opportunities for this sector and the Group intend to grow this oil and petrol related business into one of its major revenue streams in subsequent years.

Looking Ahead
The Group will aggressively seek growth opportunities in the oil and petrol industries, particularly in the setting up of more NGV conversion centres in Thailand. It is also the Group's plan to start NGV conversion business in Singapore and expand to a bigger scale in Malaysia.

We will continue to fine-tune our business strategies in line with market trends, and sharpen our focus on new businesses that would deliver sustainable value to our shareholders.

Appreciation
On behalf of the Board, I would like to thank all our shareholders for their continued loyalty to the Company.

We also acknowledge the support of our customers, bankers, business associates of our Company in the year 2007, and we are looking forward to your continued support to help us achieve a better 2008 and beyond.

Last, but not least, I would like to thank all staff and management for their dedicated service and teamwork in 2007.

Dr. Wang Kai Yuen
Chairman