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									                                              SOLUTION ENGINEERING HOLDINGS BERHAD
                                                                    (Company No: 654575-P)

The Board of Directors of Solution Engineering Holdings Berhad ( "SEHB" or "the Company") is pleased to announce the
following unaudited condensed consolidated results for the half year ended 30 June 2005
which should be read in conjunction with the Group's financial statements for the financial year
ended 31 December 2004. These figures have not been audited.



CONDENSED CONSOLIDATED INCOME STATEMENT
FOR THE PERIOD FROM 1 JANUARY 2005 TO 30 JUNE 2005

                                                     Note                INDIVIDUAL QUARTER                                  CUMULATIVE QUARTER
                                                              1 Apr 05 to 30 Jun 05 1 Jan 04 to 30 Jun 04          1 Jan 05 to 30 Jun 05 1 Jan 04 to 30 Jun 04
                                                                  CURRENT           PRECEDING YEAR                      CURRENT          PRECEDING YEAR
                                                                  QUARTER           CORRESPONDING                         YEAR           CORRESPONDING
                                                                                         QUARTER                         TODATE           PERIOD TODATE
                                                                    RM'000                 RM'000                         RM'000                RM'000

REVENUE                                               A11             2,964                    1,231                      4,012                    1,231

COST OF SALES                                                        (1,888)                   (857)                      (2,338)                   (857)

GROSS PROFIT                                                          1,076                     373                       1,674                     373

OTHER OPERATING INCOME                                                 19                        8                         48                        8

ADMINISTRATIVE AND DISTRIBUTION EXPENSES                              (365)                    (173)                      (740)                     (173)

PROFIT FROM OPERATIONS                                                 729                      208                        982                      208

FINANCE COST                                                           (29)                     (9)                        (59)                      (9)

DEPRECIATION AND
AMORTISATION                                                           (52)                     (8)                       (110)                      (8)

PROFIT BEFORE TAX
 AND MINORITY INTEREST                                                 648                      190                        813                      190

INCOME TAX EXPENSES                                   B4               (20)                     (1)                        (20)                      (1)

PROFIT AFTER INCOME TAX                                                628                      189                        793                      189

MINORITY INTEREST                                                       0                        0                          0                        0



NET PROFIT ATTRIBUTABLE TO MEMBERS                    B1               628                      189                        793                      189



                               No of Shares ('000)                   92,522                   92,522                     92,522                    92,522



          GROSS EARNING PER SHARE (SEN)               B9              0.68                     0.20                        0.86                     0.20
            NET EARNING PER SHARE (SEN)               B9              0.68                     0.20                        0.86                     0.20
       DILLUTED EARNING PER SHARE (SEN)               B9              0.68                     0.20                        0.86                     0.20



SEHB was incorporated on 1 June 2004, and completed the acquisition of Solution Engineering Sdn Bhd ("SESB) during the quarter through an exchange of
shares. Subsequently, an Initial Public Offering (“IPO”) was completed that resulted in the official listing and quotation of the Company’s shares on the Bursa
Malaysia Securities Exchange Berhad (“Bursa Malaysia”) on 1st August 2005.

The Company’s investment in SESB is accounted for by the merger accounting principles. Therefore, the results above incorporate the results of SESB for the
entire current individual and cumulative quarter to date and its comparatives incorporate the results of SESB since 1 June 2004.
             SOLUTION ENGINEERING HOLDINGS BERHAD
                                     (Company No: 654575-P)

Condensed Consolidated Balance Sheet as at 30 June 2005

                                                         Unaudited         Proforma
                                               Note      30 Jun 2005      31 Dec 2004
                                                           RM'000           RM'000

Plant and Equipment                                               4,026            4,067

Intangible Assets                                                  339                  37

Current Assets
   Inventories                                                      429              389
   Trade receivables                                              6,975            5,169
   Other receivables                                                507              442
   Tax recoverable                                                    4                4
   Fixed deposits with licensed banks                             2,096            3,942
   Cash and bank balance                                          1,614              455
                                                                 11,625          10,401

Current Liabilities
   Trade payables                                                 1,764              934
   Other payable & Accruals                                       1,221               86
   Borrowings                                   B12                 629              258
   Dividend Payable                                                 928            2,428
   Provision for taxation                                            16               15

                                                                  4,558            3,721

Net Current Assets                                                7,067           6,680
                                                                 11,432          10,784


REPRESENTED BY :
   Share capital                                                  9,252            9,252
   Reserves                                                         779              (14)

Shareholders' Equity                                             10,031            9,238

NON-CURRNT LIABILITY
  Borrowings                                   B12                1,401            1,546

                                                                 11,432          10,784



                     No of Shares ('000)                         92,522          92,522

Net tangible assets per share (RM)                                0.105            0.099
                               SOLUTION ENGINEERING HOLDINGS BERHAD
                                                       (Company No: 654575-P)

Condensed Consolidated Cash Flow Statement for the half year ended 30 June 2005

                                                                                Unaudited
                                                                                 1 Jan 2005              1 Jan 2004
                                                                                     to                      to
                                                                                30 Jun 2005             30 Jun 2004
                                                                                  RM'000                  RM'000
CASHFLOWS FROM OPERATING ACTIVITIES

Profit before taxation                                                                          813                     190

Adjustment for :
    Depreciation of property, plant and equipment                                               110                        8
    Interest expense                                                                             59                        9
    Interest income                                                                             (33)                      (8)

     Operating profit before working capital changes                                            949                     200

Changes in working capital :

     Increase in inventories                                                                     (40)                   (304)
     Increase in receivable                                                                   (1,871)                 (7,226)
     Increase in payables                                                                      1,966                   2,270

Cash generated from operating activities                                                      1,004                   (5,061)

Interest paid                                                                                    (59)                     (9)
Tax paid                                                                                         (20)                      3

                                                                                                 (79)                     (6)

Net cash (used in ) /generated from operating activities                                        924                   (5,067)

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of property, plant and equipment                                                      (371)                  (1,257)
Interest income                                                                                  33                        8

Net cash generated from investing activities                                                   (338)                  (1,249)

CASH FLOWS FROM FINANCING ACTIVITIES

Dividend paid                                                                                 (1,500)                   -
Proceed from borrowing                                                                           226                    276
Proceed from issueing of new shares                                                              -                   10,252

Net cash generated from financing activities                                                  (1,274)                10,528

NET INCREASE/ (DECREASE ) IN CASH AND CASH EQUIVALENTS                                         (687)                  4,212
CASH AND CASH EQUIVALENT AT 1 JANUARY                                                         4,397                     -
CASH AND CASH EQUIVALENT AT 30 JUNE                                                           3,710                   4,212



Cash and cash equivalent as at 30 June comprise the following :
                                                                                 30/6/2005               30/6/2004
                                                                                  RM'000                  RM'000

Bank and cash balances                                                                        1,614                   1,330
Deposit with licensed bank                                                                    2,096                   2,882

                                                                                              3,710                   4,212
                                          SOLUTION ENGINEERING HOLDINGS BERHAD
                                                        (Company No: 654575-P)

Condensed Unaudited Consolidated Statement of Changes in Equity for the half year ended 30 June 2005




                                                    Non Distributable              Distributable
                                                Share                Share           Retained
Group                                          Capital             premium            profits              Total
                                               RM'000               RM'000           RM'000               RM'000

Balance as at 1 January 2005                                0                -                     (14)               (14)
                                                                                                                      -
Acquisition of subsidiary - 26 May 2005               9,252                  -                                      9,252
                                                                                                                      -
Net profit for the period                               -                    -                     793                793

At 30 June 2005                                       9,252                  -                     779             10,031
                            SOLUTION ENGINEERING HOLDINGS BERHAD
                                            (Company No: 654575-P)



A.    NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2005


A1.   Basis of preparation
      The unaudited interim financial report has been prepared in accordance with FRS 134 and should be read in conjunction
      with the SEHB and SESB's audited financial statement for the year ended 31 December 2004. The accounting policies and
      presentation adopted by the Group for the interim financial statements are consistent with those adopted for the audited
      financial statements for the year ended 31 December 2004.


A2.   Qualification of financial statements
      There were no audit qualifications on the audited financial statements for the company and it's subsidiary for the financial year
      ended 31 December 2004.


A3.   Nature and amount of exceptional and/or extraordinary items
      During the financial period todate, there were no items or events effecting the assets, liabilities, equity, net
      income or cash flows, that are unusual by reason of their nature, size or incidence.


A4.   Changes in estimates
      There were no material changes in the nature and amount of estimates reported in prior financial year that have a
      material effect in the financial period todate.


A5.   Plant and equipment
      Property, plant and equipment are stated at cost, which comprises the acquisition cost and any incidental cost arising from the
      acquisition less accumulated depreciation and impairment loss. No valuations have been done during the financial period todate.

A6.   Changes in the composition of the Group
      There were no changes in the composition of the Group during the period except as disclosed below:-

      Acquistion by SEHB of 100% equity interest in Solution Engineering Sdn Bhd ("SESB")
      On 26 May 2005, Solution Engineering Holdings Berhad acquired 100% equity interest in SESB for a total consideration
      of RM9,252,000 by issuing ordinary shares of RM92,520,000 of RM0.10 each.


A7.   Seasonality or cyclicality of interim operations
      The Group's operations were not affected by seasonal or cyclical factors during the financial period todate.


A8.   Issuance, cancellations, repurchases, resale and repayments of debt and equity securities
      There were no issuances, cancellations, repurchases, resale and repayments of debt for the financial period todate.

A9.   Capital commitment
      There is no material capital commitment.


A10. Contingent liabilities
     There were no material contingent liabilities.


A11. Segmental Information
     Segmental analysis is not presented as the Group is primarily involved in the development and supply of
     engineering equipments for education intitutions, principally in Malaysia.


A12. Dividends paid
     There were no dividends paid and proposed by the Board of Directors for the financial period todate.


A13. Material events subsequent to the end of the reporting period
     There were no significant events since the end of this current quarter up to the date of this announcement.
                                          SOLUTION ENGINEERING HOLDINGS BERHAD
                                                          (Company No: 654575-P)



B.    ADDITIONAL INFORMATION REQUIRED BY THE BURSA MALAYSIA SECURITIES BERHAD LISTING REQUIREMENTS


B1.   Review of performance

      Review of group performance for the second quarter ended 30 June 2005
      The Group recorded an unaudited revenue of RM2.96million and with unaudited profit before tax of RM648,000 for the second
      quarter ended 30 June 2005.

      Comparison of profit before taxation with the immediate preceding quarter

      Revenue for the current quarter increased by 182.8% from RM1.05million in the immediate preceding quarter to RM2.96million.
      Profit before taxation for the current quarter increased by 292.7% from RM165,000 in the immediate preceding quarter to
      RM648,000 mainly due to more deliveries and billings being made in this quarter.

B2.   Current year prospects
      Barring any unforeseen circumstances, the Directors anticipate that the performance of the Group will be satisfactory for the
      current financial year.


B3.   Profit forecast
      No profit forecast was announced hence there was no comparison between actual results and forecast.


B4.   Taxation
                                                                       INDIVIDUAL                CUMULATIVE
                                                                        QUARTER                    QUARTER
                                                                     ENDED 30 JUNE 05           ENDED 30 JUNE 05
                                                                         RM'000                     RM'000
      In respect of the current period taxation                             0                         20

      The subsidiary i.e. Solution Engineering Sdn Bhd was granted Pioneer Status under Section
      14A of the Promotion of Investments (Amendment) Act, 1986 for a period of five years from
      1 Jan 2005 to 31 Dec 2009. One (1) of the financial incentives being the Pioneer Status is a five (5) year
      exemption from Malaysia income tax from income derived from Multimedia Super Corridor related activities.
      Hence, these income tax expense is in respect of interest and rental income.


B5.   Profit on sale of unquoted investments and/or properties
      There were no disposal of unquoted investment and/or properties for the financial period todate.


B6.   Purchase or disposal of quoted securities
      There were no disposal of quoted securities for financial period todate.


B7.   Off balance sheet financial instruments
      There were no off balance sheet financial instruments for the financial period todate.


B8.   Material litigation
      The Group is not engaged in any material litigation and the Directors do not have any knowledge
      of any material proceeding pending or threatened against the Group.


B9.   Earnings per share
                                                                                         Individual                                   Cumulative
                                                                            Quarter                   Quarter             Quarter                  Quarter
                                                                             Ended                     Ended               Ended                    Ended
                                                                            30.06.05                  30.06.04            30.06.05                 30.06.04
      Earning per share (EPS)

      Net profit for the period (RM'000 )                                                 628                       189                 793                      189
      Weighted Average No of Shares ( '000 )                                           92,522                    92,522              92,522                   92,522
      Basic EPS ( sen )                                                                  0.68                      0.20                0.86                     0.20
      Net EPS (sen)                                                                      0.68                      0.20                0.86                     0.20
      Diluted EPS (sen)                                                                  0.68                      0.20                0.86                     0.20
B10. Corporate proposals
     There are no corporate proposals announced.


B11. Group borrowings
     Details of the Group's borrowings as at 30 June 2005 are as follows:-
                                                                         Short-Term         Long-Term               Total
            Secured :                                                      RM'000            RM'000                RM'000
            Term Loan                                                                 175            1,303                  1,478
            Hire Purchase                                                              93               98                    191
            Banker Acceptance                                                         100              -                      100
            Trust Receipt                                                             261              -                      261

                                                          Total :                     629            1,401                  2,030

B12. Utilization of Proceeds

     There was no proceeds raised during the financial period under review. The Group will only be listed on the MESDAQ Market
     tentatively on 1 August 2005.




BY ORDER OF THE BOARD
SOLUTION ENGINEERING HOLDINGS BERHAD

								
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