SINGAPORE, October 13, 2004 - Azeus Systems Holdings Ltd. ("Azeus"), a leading provider of IT consultancy services, today announced the launch of its initial public offer ("IPO") of 76 million shares at S$0.22 each. Azeus will be listed on the Main Board of the Singapore Exchange Securities Trading Limited ("SGX-ST").

Said Mr Lee Wan Lik, the Founder and Managing Director of Azeus, "Over the past 13 years, we have carved a sound reputation as a quality IT service provider due to our long track record of success in serving the Hong Kong government's IT outsourcing needs. We believe the continued growth in the market for the Hong Kong governments IT projects offers promising prospects for us.

Our listing on the SGX provides us with the funds to bolster our operations and further increase our market share of the Hong Kong public sector. More importantly, we believe a listing in Singapore enhances Azeus' regional profile and will put us on a better standing to venture into new overseas markets."

Expanding market share in the Hong Kong public sector

Since the start of operations in 1991, Azeus has pursued a strategy of focusing on the Hong Kong public sector and intends to continue broadening its footprint in this market in the coming years. The Hong Kong government announced earlier this year that it would press on with its e-government strategy and expand its IT outsourcing policy as part of its Digital 21 Strategy. As such, the market for Hong Kong government IT projects is estimated to rise from HK$1.4 billion in FY2004 to HK$1.9 billion in FY2005.

Azeus intends to capitalise on this continuing IT outsourcing trend by leveraging on its established track record of providing IT services to Hong Kong government. The Group has completed over 60 projects for more than 20 Hong Kong government departments, including the Intellectual Property Department, the Buildings Department, the Hong Kong Police Force and the Judiciary.

Azeus' assessment at SW-CMM Level 5 and appraisal at CMMI-SW Level 5 also enhance its competitive edge to capture opportunities in the public sector. These are the highest level of the models established by the Software Engineering Institute ("SEI") of Carnegie Mellon University and are strong endorsements of Azeus' technical competencies and commitment to quality. In addition to being the first company in Hong Kong to achieve the CMMI-Level 5 status, Azeus is one of only 30 companies worldwide to be assessed at that level (as published on the website of the SEI), alongside internationally renowned companies such as IBM, Infosys and Siemens.

"We believe we can grow our market share in the public sector, as the Hong Kong government observes stringent selection criteria and usually awards tenders to companies with international quality standards such as CMM. Our distinct competitive advantage is the track record that we have established with various government departments over the years. This has nurtured a high level of trust in Azeus, which is critical as it is not something that can be easily replicated," commented Mr Lee.

Expanding to private commercial sector and new geographical markets

While the Hong Kong public sector remains the primary focus for Azeus, the Group also plans to pursue opportunities in the commercial sector. Azeus' strong track record in the public sector provides it with a solid platform to take advantage of an uptrend in the growth of IT services spending in Asia to make further inroads into the commercial sector.

Besides Hong Kong, the Group is also looking to expand into new markets such as Japan and China. Driven by an increasing need to streamline operating costs, there is a growing trend among Japanese corporations to outsource their IT operations. To boost its ability to break into the Japanese IT outsourcing market, Azeus is considering joint ventures, or investing in a company with an established Japanese IT outsourcing business. Azeus may also set up a representative office in Japan to build a marketing presence.

Azeus' ability to capitalise profitably on the rising IT outsourcing opportunities is due to the seamless integration of its operations at Hong Kong, and its software development centres in Philippines and China. The lower operational costs of its offshore development centres allow the Group to offer high quality IT services and solutions at competitive prices.

Continual development of human resource to support growth

The strong team of committed and highly competent IT professionals at Azeus underpins the Group's continued success. To ensure consistency in delivering top quality IT services to customers, Azeus employs stringent criteria in hiring new IT professionals.

To support its organic growth, Azeus plans to expand its Philippines and China operations by adding more staff to about 180 by March 2005, from 133 staff presently. The Group also intends to set up a training centre in Hong Kong with a focus on software engineering, which will create another avenue to attract and employ talented and capable IT professionals.

Financial Highlights

For FY2004, Azeus recorded a 26.5% year-on-year jump in net profit and an admirable net profit margin of 37.5%. The Group's net profit grew at compound annual growth rate of 53% between FY2002 and FY2004. It also has a healthy order book of HK$76 million for FY2005 and FY2006 as at September 3, 2004.

DBS Bank Ltd is the Manager, Underwriter and Placement Agent for Azeus' Initial Public Offer.

The issue will close at 12 noon on October 20, 2004 and the shares are expected to commence trading at 9.00 am on October 22, 2004.

The Prospectus relating to the invitation (the "Invitation") of ordinary shares in Azeus Systems Holdings Ltd. (the "Invitation Shares") is available for collection during operating hours at any DBS Bank/POSB branch during the Invitation period and anyone wishing to acquire the Invitation Shares will need to make an application in the manner set out in the Prospectus.