MEDIA RELEASE - August 23, 2006

SCS Reports S$1.2M Profit For 2Q FY2006

Highlights:

• S$1.2M profit in 2Q FY2006 from S$33.3M loss in 2Q FY2005

• Third consecutive quarter of profitability

• Order book of S$269.3M at the close of 2Q FY2006

Singapore, August 3, 2006 – Main Board-listed Singapore Computer Systems Limited (SCS), a leading information and communications service provider in Asia, announced today that the Group has achieved a net profit of S$1.2 million for its second quarter ended June 30, 2006 (2Q FY2006), reversing a S$33.3 million net loss position in 2Q FY2005.

The Group achieved a net profit of S$1.2 million on a turnover of S$81.8 million for 2Q FY2006 compared to a net loss of S$33.3 million on a turnover of S$77.9 million, in the corresponding period last year. Cumulatively, the Group achieved a net profit of S$2.7 million for the first half of 2006 (1H FY2006), compared to a net loss of S$34.8 million in 1H FY2005.

“With a profitable first half, we are on track to achieve our target of full-year profitability. Although there is a seasonal drop in revenue in the second quarter of the year, we managed our costs and our projects well in order to deliver profits. Our priority for the second half is to exceed our first half performance. We will continue to grow our public and commercial sector businesses, and strengthen regional contributions to achieve our goal,” said Mr Tan Tong Hai, SCS’ President and Chief Executive Officer.

Financial Review

The Group registered S$81.8 million of revenue in 2Q FY2006, an increase of 5.1% compared with S$77.9 million of revenue in 2Q FY2005. This increase in revenue, coupled with better managed costs and better project management, resulted in a profitable 2Q FY2006.

Profit after tax for 2Q FY2006 totalled S$1.2 million, compared to a loss of S$33.3 million in 2Q FY2005. Cumulatively, the Group achieved a net profit of S$2.7 million 1H FY2006, compared to a net loss of S$34.8 million in 1H FY2005.

By business segment, both IT Business Solutions and IT Infrastructure were profitable in 2Q FY2006. The losses in 2Q FY2005 were due to allowances made for foreseeable project losses.

Revenue from both Singapore and regional operations increased, with revenue from Singapore operations increasing at a faster rate. SCS’ Indonesian subsidiary, PT SCS Astragraphia Technologies grew year-on-year and remains the largest contributor of regional revenue, contributing 83.3% of regional revenue in 2Q FY2006.

As at June 30, 2006, the Group had cash and cash equivalents amounting to S$28.9 million. The Group closed the quarter ended June 30, 2006 with an order book of S$269.3 million.

Outlook

The public sector continues to be one of the largest IT spending verticals in Asia/Pacific excluding Japan. IDC predicts a strong compound annual growth rate (CAGR) of 8.7% from 2006-2010 with expenditure to reach US$31.67 billion by 2010. [Source: IDC's Asia/Pacific (Excluding Japan) Public Sector IT Spending 2006-2010 Forecast, Doc #AP633104N, May 2006.] Though IT spending in the region is increasing, the IT sector remains competitive.

The Infocomm Development Authority of Singapore (IDA) announced in June 2006 the Intelligent Nation 2015 (iN2015) infocomm masterplan, which aims to increase the contribution of the infocomm sector to S$26 billion by 2015.

SCS will continue to leverage its market differentiation as the provider of Trusted Services, and pursue opportunities in the e-Government space. SCS will also focus on growing the commercial sector and regional contributions through enhanced customer and partner relationships.

Barring unforeseen circumstances, the Group is expected to be profitable in FY2006.