Bangkok--10 Aug--JayDee Partners MPT reports Q2’07 performance, shipment volumes continue to maintain at near record levels even during the industry seasonally weakest quarter. Still record net loss due to impairment and asset write-off charges, and severance. Expects Q3’07 performance to significantly improve due to higher average selling prices and reducing cost after restructuring completed in Q2’07 Magnecomp Precision Technology Public Company Limited (MPT) announced Q2’07 suspension shipments of 91.3 million units, essentially flat from Q1’07. Q2’07 suspension sales declined to Baht 2,133.8 million from Q1’07 largely impacted by lower average selling prices and unfavorable foreign exchange translation. The Company recorded net loss of Baht. 797.5 million, which includes a Baht 510.9 million of provision for asset impairment and asset write off related to excess equipments, and severance. However, expects the Q3’07 performance to significantly improve due to increasing average selling prices with the better mix of new products and the significant reducing of cost structure and lower breakeven point after the Company’s restructuring completed in Q2’07 Mr. Steven Campbell, MPT’s Chief Executive Officer reported the results for the second quarter, MPT Q2’07 suspension shipments of 91.3 million suspensions were greater than the Company expected. Q2’07 shipments were essentially flat from Q1’07 despite being the industry’s seasonally weakest quarter and 23% higher than the 74.3 million suspensions shipped in Q2’06. However, Q2’07 suspension sales revenue declined to Baht 2,133.8 million from Q1’07 largely impacted by a decline in average selling prices and unfavorable impact on revenues when translating U.S. dollar denominated sales against a further strengthening of the Thai Baht. For Q2’07, the Company reported a net loss of Baht 797.5 million, or Baht 0.38 per share. The net loss includes a non-cash Baht 468.2 million of provision for asset impairment and asset write off related to equipments and tooling associated to older generation products. In addition, the Company has incurred Baht 42.7 million in severance costs as a result of its efforts to streamline its worldwide operations. Excluding impairment and asset write-off charges, and severance, the net loss for Q2’07 was Baht 286.6 million, or Baht 0.14 per share, compared to a net loss before charges of Baht 206.9 million, or Baht 0.10 per share for Q2’06. Commenting on the Company’s results, Mr. Steven Campbell, MPT’s Chief Executive Officer said, “Demand was stronger than expected during the second quarter despite a tough pricing environment in the industry. In particular, matured and EOL products experienced aggressive pricing declines which lowered our overall ASP.” "Following a comprehensive review of our business and the marketplace, we have taken further definitive actions to reduce expenses, streamline our operations worldwide to further reduce our cost structure. The primary objectives of these actions are to position the Company for a return to profitability from Q3’07 onwards and to establish a platform for long-term growth. As part of these strategic initiatives, we have reduced our worldwide workforce and further downsized our operations in China. We expect demand for our suspensions to grow during the second half as we ramp new 250GB/disk 3.5-inch and 120GB/disk 2.5-inch hard disk drive programs into high volumes. With a better mix of new products and the ceased shipment of end of life matured products, we expect pricing to stabilize and revenue to grow in Q3’07," added Mr. Campbell. The company is entering Q3’07 with record orders and expects higher shipments and improved results for the remainder of 2007. Based on current customer forecast, the Company expects shipments for Q3’07 to range between 95 million and 100 million units resulting in higher revenues and positive earnings.About Magnecomp Precision Technology Public Company Limited Headquartered in Ayutthaya, Thailand, Magnecomp Precision Technology Public Company Limited specializes in designing, developing and manufacturing precision suspension assemblies for the Hard Disk Drive industry with a number of subsidiaries specializing in precision stamping, chemical etching, and additive circuits to support its core business. MPT has manufacturing facilities in both China and Thailand, and a Research and Development Technology Center located in California, USA, in close proximity to its major US customers. For more information, please visit MPT’s website at www.MagnecompPrecision.com. For more information please contact: JayDee Partners Limited Sirirat Juntarapisut Tel: (66)2661-8803 Fax; (66)2661-8813 Click for photo release at www.thaipr.net