SPI Technologies Inc. Reports Record 1998

April 16, 1999 PSE CIRCULAR FOR BROKERS NO. 780-99 April 15, 1999 SPI TECHNOLOGIES INC . REPORTS RECORD 1998 Listed company SPI Technologies Inc (Philippine Stock Exchange, ticker symbol "SPI"), a leading exporter of information technology services, today filed with the SEC its audited consolidated financial statements for its fiscal year ended December 31, 1998 and reported record sales and earnings. Year-end sales advanced 85% to P865 million compared with P468 million in fiscal 1997. Net income before a special non-cash charge increased 34% to P186 million from P139 million in 1997. The 1997 consolidated financial statements were restated to reflect foreign currency translation adjustments related to two foreign subsidiaries. Revenues were restated from Pesos 458 million to Pesos 468 million, and Net Income from Pesos 130 million to Pesos 139 million. cdlex In commenting on SPI's performance, Ernest L. Cu, president and CEO, said, "We took several steps during the past two years to accelerate our growth rate, and we are pleased that our efforts were reflected in our financial results. 1998 was marked by strong growth across all our core business lines, i.e. General Conversion, Electronic Pre-Press, Litigation Support and Automated Mapping / Facilities Management. Our order backlog at the end of the year stands at its highest ever level." Mr. Cu explained that a major growth driver for SPI was the acquisition of the Electronic Pre-Press arm of Reed Elsevier in July 1997. The acquisition positioned SPI as a major player in the Electronic Pre-Press industry. Mr. Cu added that, in the past two years, management has taken steps to reposition the Company as a marketing driven provider of value added data conversion services. In 1998, SPI acquired Pacific Data Conversion Corporation (PDCC), a data conversion marketing company based in Eugene, Oregon. The acquisition gave SPI a strategic presence in the US. It also provided SPI access to all excellent production facility in China. SPI further invested in new marketing capabilities by opening offices in Germany and the US East Coast in 1999. 1999 also marks the Company's entry into a fifth business line, Software Services. The Company recently announced the formation of SPI Solutions Inc., a new subsidiary which will focus on offering Enterprise Resource Planning implementation services for both Philippine and overseas client as an implementation partner of SAP, the world's leading ERP software company. The move into Software Services is part of the Company's strategy to offer more value added information technology services which generate higher revenues per employee. The Company is also actively exploring Internet-related and e-commerce customer service opportunities, through acquisitions and partnerships, particularly in the US. "We believe that the Company's prospects in the years to come continue to be positive. Our strategy of moving up the technology ladder, combined with our expanded marketing coverage and financial strength, form the building blocks for our sustained growth," Mr. Cu added. LLjur SPI provides information technology services including (1) conversion of news, professional and technical information into electronic form for major Internet and online content providers, (2) conversion of legacy document collections into a standardized electronic form for use on corporate intranets or networks, (3) conversion of evidence related documents into a searchable CD-ROM format for corporations involved in major litigation, (4) electronic mapping and database building for utilities, and (5) software services. SPI is an ISO 9002 certified exporter whose clients are located largely in North America and Europe. Authenticated by: (SGD.) ERNEST L. CU President & CEO