How does the US economic recession affect SVI business?

SVI targets customers mainly in Scandinavian countries. Very few percent of our revenue gained from customers in the US. Therefore, the recession does not affect our business that much compared to others.

Does the increase of oil price affect SVI production and capacity? How will the Company cope with this situation?

The increase of oil price caused the higher cost of our transportation; therefore, we have to adjust the price of our products with customers in which will apply in the 2nd - 3rd quarter of 2008.

What is the current EMS market situation or factors that relate SVI business?

In 2006, over all EMS market is forecasted to grow compound annual growth rate (CAGR) of 10% over the next four year which is driven by 3 factors:

• Increased demand from wireline telecommunications equipment
• Non-traditional market started to accelerate outsourcing activities
• Infrastructure growth drive up electronics demand in Asia, particularly China and India.

Total outsource market for 2006 is at US$200 billion with ODM at US$80 billion and US$110 billion for EMS. Medical and Industrial still have very low penetration of 7% to 10%.