SM Summit Holdings Bhd. ( Introduction )

INTRODUCTION

BRIEF HISTORY OF SUMMIT GROUP (MALAYSIA)
The SM Summit Group is listed on the Kuala Lumpur Stock Exchange Second Board with effect from 1st June 1999 under the holding company, SM Summit Holdings Bhd.

The companies in SM Summit Group companies : -

	Principal Activities
Summit CD Manufacture (M) Sdn Bhd	Compact discs replication services
Summit Audio Industries (M) Sdn Bhd	Audio Cassette duplication services
Japantec Industries (M) Sdn Bhd	Manufacturing plastic casing - CD. Outer Box, Jewel Box
SM Digital Media Sdn Bhd	Trading of CD-Recordables ("CD-R")

Summit CD Industries (M) Sdn. Bhd. commence its business in 1992with the installation of one replication line and one printing line with a maximum capacity of 3.0 million pieces of compact disc (CD) per annum. It is proud to hold the record of being the first CD replication plant in Malaysia as certified by the Malaysia Books Of Record.

To date, its capacity stands at our output capability of 36 million pieces of CD per annum and printing capability of 5 colors silkscreen and 4 colors offset printing. The replication lines have the capability of producing various CD products such as Audio-CD, Video CD and CD-DOM.

The turnover of Summit CD Manufacture has grown from a mere RM 1.0 million in 1992 to over RM 30.0 million in the year 2000. To date, Summit CD is the largest legitimate CD manufacturing plant in Malaysia , with a customer base that includes all the major international record companies namely EMI, Sony, Warnes, BMG, and most of the local recording companies. Its Video CD customers include Berjaya HVN, Speedy Video whom have rights to titles owned by Warner, Columbia, Tristar and Walt Disney. Among the many CD-ROM titles that have been produced include Telekom Annual Report 1997, BBMB Sukom Smart Card, Lanmark Annual Report, UMNO Desawara.

Summit Audio Industries (M) Sdn Bhd was incorporated in 1998 to provide duplicating services for pre-recorded audiocassette tapes in Malaysia. The audio duplication business has grown from a turnover of a mere RM 0.1 million in 1988 to over RM 7.0 million for the current year 1999. Its customer base includes major recording companies such as Warner, Sony Music, BMG and local recording companies such as Warner, Sony Music, BMG and local recording companies such as Form Records, Hui Hvang and Mani Osai.

Our group also include another wholly owned Japantec Industries (M) Sdn Bhd, which produces C-sero and outer box audio cassette tape and Jewel Box for CD, CD-ROM and Video-CD. It sells its products mainly to oversea market such as USA, Europe, Middle East as well as serving the Malaysia local market.

Another company in the group is SM Digital Media (M) Sdn Bhd, a wholly owned subsidiary company which has a principal activity of trading in CD-Recordable. SM Digital Media is the exclusive agent in Malaysia for the CD-R brand name of "Data On".