TEST RITE bags big orders from Safeway and CVS

Taipei, April 25, 2005 (CENS)--TEST RITE Group, Taiwan's leading trading firm, has recently received orders from U.S.-based chain stores Safeway and CVS, both U.S.-based chain stores engaged in grocery and specialty pharmacy operations, respectively.

The orders placed by Safeway are estimated at NT$120 million (US$3.53 million at US$1 = NT$34), which are believed to help boost the Test Rite's revenue for the year.

In the first quarter of the year, TEST RITE raked in NT$4.132 billion (US$121.53 million) in revenue, up 8% from the same quarter of last year. If based on the U.S. dollar, the growth rate should be 14.9%. During the period, the group gained after-tax profits of NT$188 million (US$5.53 million) or earnings per share (EPS) of NT$0.51 (US$0.015).

Yang Shu-yu, the group's vice president, noted that Safeway is a famous grocery chain store in the U.S. with more than 200 sales outlets in the country. Yang said that TEST RITE's stable revenue growth in the first quarter should be attributed to Safeway's large orders for stationery products placed earlier this year. Yang added that the group enjoyed stable revenue growth last year mainly because of US$5 million worth of orders from Wal-Mart, a U.S. leading supermarket chain.

TEST RITE is expected to score NT$18 billion (US$529.5 million) in revenue for this year, with projected after-tax profits of NT$820 million (US$24.12 million) or EPS of NT$2.2 (US$0.065).

B & Q International Co. and Hola Home Furnishings Co., the group's two reinvestments, also foresee stable growth this year. In the first quarter of the year, B & Q, a hardware chain store firm, gained revenue of NT$2.844 billion (US$83.65 million), up 14% from the corresponding figure of last year and attaining 106% of its financial projection for the period. As for pretax profits, the company witnessed a growth of 13% to NT$274 million (US$8.06 million), reaching 118% of its target.

B & Q projected to reach NT$11 billion (US$323.53 million) in revenue for the full year, with estimated EPS of NT$5.49 (US$0.16). To reinforce its strength in the market, the company is planning to add two more stores by the end of the year and then expand the number of its chain stores to 20.

Hola Home, a furnishings chain store, netted revenue of NT$770 million (US$22.65 million) in the first quarter, a sharp growth of 35.1% from a year earlier. During the same period, the company enjoyed pretax profits of NT$56 million (US$1.65 million) or EPS of NT$1.54 (US$0.045), a sharp rise of 38.2%.