On 23 May 2001, the Securities Industry Council ("SIC") gave Eddie Chng Weng Wah ("Chng") until 30 May 2001 to provide it with a written unconditional undertaking that he will comply with the SIC's direction to compensate Serial System shareholders as at the close of trading on 26 Feb 2001 prejudiced by Chng's failure to make a general offer for the Company required by Rule 33 of the Singapore Code on Take-overs and Mergers (the "Compensation"). (Please see press statement issued on 23 May 2001.)

2 The SIC has received Chng's written unconditional undertaking to comply fully with the SIC's direction. The SIC will set the time period for Chng to pay the Compensation and determine related issues and procedures, in consultation with an independent third party appointed by Chng to administer the Compensation scheme. Details of the Compensation will be announced when they are ready.

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