FINANCIAL STATEMENT AND DIVIDEND ANNOUNCEMENT

FINANCIAL STATEMENT AND DIVIDEND ANNOUNCEMENT http://info.sgx.com/webcorannc.nsf/vwprint/f182d6477fc6ff5a48257213002d0647?opendocu... Page 1 of 1 31/10/2006 Print this page SingPost Group's unaudited results for the second quarter and half year ended 30 September 2006 * Financial Statement And Dividend Announcement * Asterisks denote mandatory information Name of Announcer * Company Registration No. Announcement submitted on behalf of Announcement is submitted with respect to * Announcement is submitted by * Designation * SINGAPORE POST LIMITED 199201623M SINGAPORE POST LIMITED SINGAPORE POST LIMITED Leong Chee Sian (Ms) Company Secretary Date & Time of Broadcast 31-Oct-2006 17:07:55 Announcement No. 00040 >> Announcement Details The details of the announcement start here... For the Financial Period Ended * 30-09-2006 Attachments: Q2FY0607SGXNET31Oct06.pdf Total size = 163K (2048K size limit recommended) Close Window

SINGAPORE POST LIMITED AND ITS SUBSIDIARIES SGXNET ANNOUNCEMENT UNAUDITED RESULTS FOR THE SECOND QUARTER AND HALF YEAR ENDED 30 SEPTEMBER 2006 1

PART I - INFORMATION REQUIRED FOR ANNOUNCEMENTS OF QUARTERLY (Q1, Q2 & Q3), HALF YEAR AND FULL YEAR RESULTS (1) (a)(i) Income statement for the Group, together with a comparative statement for the corresponding period of the immediately preceding financial year. FY2006/07 FY2005/06 FY2006/07 FY2005/06 2 nd Qtr 2 nd Qtr Variance 1 st Half 1 st Half Variance S$'000 S$'000 % S$'000 S$'000 % Revenue 106,589 103,008 3.5 211,642 199,822 5.9 Other gains (net) - Rental and property related income 5,100 4,469 14.1 9,894 8,845 11.9 - Miscellaneous 5,373 824 @ 6,176 2,148 187.5 Labour and related costs (28,502) (28,076) 1.5 (56,710) (54,092) 4.8 Volume related costs + (25,836) (24,513) 5.4 (50,619) (46,673) 8.5 Administrative and others (9,506) (8,875) 7.1 (18,173) (17,680) 2.8 Depreciation (6,370) (6,374) (0.1) (12,736) (12,794) (0.5) Selling expenses (2,272) (3,317) (31.5) (5,128) (5,440) (5.7) Finance expenses (2,776) (2,030) 36.7 (5,498) (4,032) 36.4 Total expenses (75,262) (73,185) 2.8 (148,864) (140,711) 5.8 Share of profit of associated company and joint ventures 2,394 2,243 6.7 3,765 4,073 (7.6) Profit before income tax 44,194 37,359 18.3 82,613 74,177 11.4 Income tax expense (7,920) (7,092) 11.7 (15,303) (14,322) 6.8 Total profit 36,274 30,267 19.8 67,310 59,855 12.5 Attributable to: Equity holders of the Company 36,131 30,144 19.9 67,064 59,610 12.5 Minority interest 143 123 16.3 246 245 0.4 36,274 30,267 19.8 67,310 59,855 12.5 Underlying Net Profit * 31,345 30,144 4.0 61,763 59,610 3.6 Operating Profit ** 44,301 36,497 21.4 83,726 72,727 15.1 Earnings per share for profit attributable to the equity holders of the Company during the period - basic 1.89 cents 1.58 cents 3.50 cents 3.13 cents - diluted 1.88 cents 1.58 cents 3.50 cents 3.12 cents Notes Certain comparatives have been restated to conform to current year s presentation. + Volume related costs comprise mainly of traffic and mail outsourcing expenses. * Underlying net profit is defined as profit after tax and minority interest, excluding gain on sale of properties. ** Operating profit for the purposes of paragraph 8 Review of the performance of the Group is defined as profit before interest, tax, exceptional items and share of profit of associated company and joint ventures. @ Denotes variance % exceeding 300%. 2

(1)(a)(ii) Other operating income and interest income 10,473 5,293 97.9 16,070 10,993 46.2 Interest on borrowings 2,800 2,031 37.9 5,596 4,025 39.0 Depreciation and amortisation 6,379 6,383 (0.1) 12,754 12,812 (0.5) Impairment of doubtful debts and bad debts written off 79 14 @ 87 124 (29.8) Foreign exchange gain 273 148 84.5 221 681 (67.5) Adjustments for overprovision of tax in respect of prior years - 451 N.M. 429 826 48.1 Gain/(loss) on sale of investments, properties, plant and equipment 4,776 (4) N.M. 5,321 (4) N.M. N.M. Denotes not meaningful. @ Denotes variance % exceeding 300%. 3

(1)(b)(i) Balance sheet (for the issuer and group), together with a comparative statement as at the end of the immediately preceding financial year. The Group The Company Sep-06 Mar-06 Sep-05 Sep-06 Mar-06 Sep-05 S$ 000 S$ 000 S$ 000 S$ 000 S$ 000 S$ 000 ASSETS Current assets Cash and cash equivalents 56,603 53,258 149,734 52,371 45,659 140,301 Trade and other receivables 55,940 52,346 49,027 43,325 43,447 41,334 Inventories 61 5 2 54 - - Other current assets 4,519 3,632 4,974 3,348 2,228 3,801 117,123 109,241 203,737 99,098 91,334 185,436 Non-current assets Trade and other receivables 584 504 1,159 3,340 3,260 3,915 Investments in associated company and joint ventures 86,862 87,120 83,945 83,372 83,372 83,372 Investments in subsidiaries - - - 12,105 12,105 12,105 Property, plant and equipment 499,079 513,436 524,671 495,494 509,379 520,822 Intangible asset 342 360 378 342 360 378 Other non-current assets 200 200 200 200 200 200 587,067 601,620 610,353 594,853 608,676 620,792 Total assets 704,190 710,861 814,090 693,951 700,010 806,228 LIABILITIES Current liabilities Trade and other payables 140,985 140,584 136,465 142,475 141,981 137,161 Current income tax liabilities 40,892 38,415 32,552 40,048 37,486 31,686 181,877 178,999 169,017 182,523 179,467 168,847 Non-current liabilities Borrowings 332,618 349,452 298,776 332,618 349,452 298,776 Derivative financial instruments 6,813 9,922 1,224 6,813 9,922 1,224 Deferred income tax liabilities 21,548 22,491 22,602 21,114 22,057 22,103 Deferred income 16 57 102 16 57 102 360,995 381,922 322,704 360,561 381,488 322,205 Total liabilities 542,872 560,921 491,721 543,084 560,955 491,052 NET ASSETS 161,318 149,940 322,369 150,867 139,055 315,176 EQUITY Capital and reserves attributable to the Company s equity holders Share capital 104,991 103,057 100,001 104,991 103,057 100,001 Other reserves 4,227 4,424 5,227 1,544 1,209 905 Retained earnings 48,637 39,003 213,976 44,332 34,789 214,270 157,855 146,484 319,204 150,867 139,055 315,176 Minority interest 3,463 3,456 3,165 - - - Total equity 161,318 149,940 322,369 150,867 139,055 315,176 As at 30 September 2006, the Group has capital and investment commitments amounting to S$4.0 million not provided for in the financial statements. 4

(1)(b)(ii) In relation to the aggregate amount of the group s borrowings and debt securities. Sep-06 Mar-06 Sep-05 S$ 000 S$ 000 S$ 000 Amount repayable in one year or less or on demand - - - Amount repayable after one year Bank term loan (unsecured) 39,900 59,880 - Bonds (unsecured) 292,718 289,572 298,776 332,618 349,452 298,776 (a) The bank term loan of principal amount S$60 million obtained on 6 March 2006 for the Group s general operational purposes was partially repaid as of September 2006. The current outstanding loan of principal amount S$40 million has a term of three years from 28 March 2006 and is repayable in full upon maturity of that term. Interest is charged at a floating rate pegged to the Singapore dollar swap offer rate prevailing for each short-term interest period plus a fixed margin. Interest is payable at the end of each interest period. (b) The Singapore Dollar unsecured bonds of principal amount S$300 million listed on the SGX-ST have a maturity period of 10 years from 11 April 2003 and a fixed interest rate of 3.13% per annum. Details of any collateral. Not applicable. 5

(1)(c) Cash flow statement (for the group), together with a comparative statement for the corresponding period of the immediately preceding financial year. The Group FY2006/07 FY2005/06 FY2006/07 FY2005/06 2 nd Qtr 2 nd Qtr 1 st Half 1 st Half S$'000 S$'000 S$'000 S$'000 Cash flows from operating activities Total profit 36,274 30,267 67,310 59,855 Adjustments for: Tax 7,920 7,092 15,303 14,322 Amortisation of franchise fees received (21) (23) (41) (46) Amortisation of licence fee 9 9 18 18 Depreciation of property, plant and equipment 6,370 6,374 12,736 12,794 (Gain) / loss on disposal of property, plant and equipment (4,776) 4 (5,321) 4 Interest expense 2,800 2,031 5,596 4,025 Interest income (275) (649) (620) (1,409) Share of profit of associated company and joint ventures (2,394) (2,243) (3,765) (4,073) Impairment of receivables 72-80 87 9,705 12,595 23,986 25,722 Operating cash flow before working capital changes 45,979 42,862 91,296 85,577 Changes in operating assets and liabilities Inventories (10) 184 (56) 16 Trade and other receivables (6,196) (5,966) (4,639) (12,462) Trade and other payables 12,168 2,420 1,809 2,336 Cash generated from operations 51,941 39,500 88,410 75,467 Income tax paid (13,769) (13,669) (13,769) (13,877) Net cash inflow from operating activities 38,172 25,831 74,641 61,590 Cash flows from investing activities Dividends received from associated company - - - 1,269 Dividends received from joint venture companies 3,600 7,500 3,600 7,500 Interest received 283 679 620 1,410 Investment in joint venture company (100) - (100) - Purchase of property, plant and equipment (528) (3,674) (2,332) (4,943) Proceeds from sale of property, plant and equipment 5,628 20 7,884 20 Net cash inflow from investing activities 8,883 4,525 9,672 5,256 Cash flows from financing activities Dividends paid to shareholders (57,430) (75,295) (57,430) (75,295) Dividends paid to a minority shareholder (240) - (240) - Interest paid (467) - (5,049) (3,355) Proceeds from issue of shares 729 1,167 1,751 2,490 Repayment of bank term loan (5,000) - (20,000) - Net cash outflow from financing activities (62,408) (74,128) (80,968) (76,160) Net (decrease)/increase in cash and cash equivalents held (15,353) (43,772) 3,345 (9,314) Cash and cash equivalents at beginning of financial period 71,956 193,506 53,258 159,048 Cash and cash equivalents at end of financial period 56,603 149,734 56,603 149,734 6

(1)(d)(i) Statement (for the issuer and group) of all changes in equity, together with a comparative statement for the corresponding period of the immediately preceding financial year. The Group Attributable to equity Minority Total holders of the Company interest equity Share Other Retained capital* reserves earnings S$ 000 S$ 000 S$ 000 S$ 000 S$ 000 Balance at 1 July 2006 104,178 4,006 36,441 3,314 147,939 Currency translation differences - (141) - 6 (135) Cash flow hedges - 229 - - 229 Net gains recognised directly in equity - 88-6 94 Net profit - - 36,131 143 36,274 Total recognised gains - 88 36,131 149 36,368 Dividend relating to FY2006/07 - - (23,935) - (23,935) Employee share option scheme: - Value of employee services - 217 - - 217 - Proceeds from shares issued 813 (84) - - 729 Balance at 30 September 2006 104,991 4,227 48,637 3,463 161,318 Balance at 1 July 2005 98,761 4,618 207,673 3,040 314,092 Currency translation differences - 652-2 654 Cash flow hedges - (170) - - (170) Net gains recognised directly in equity - 482-2 484 Net profit - - 30,144 123 30,267 Total recognised gains - 482 30,144 125 30,751 Dividend relating to FY2005/06 - - (23,841) - (23,841) Employee share option scheme: - Value of employee services - 200 - - 200 - Proceeds from shares issued 1,240 (73) - - 1,167 Balance at 30 September 2005 100,001 5,227 213,976 3,165 322,369 7

The Group Attributable to equity Minority Total holders of the Company interest equity Share Other Retained capital* reserves earnings S$ 000 S$ 000 S$ 000 S$ 000 S$ 000 Balance at 1 April 2006 103,057 4,424 39,003 3,456 149,940 Currency translation differences - (331) - 1 (330) Cash flow hedges - (201) - - (201) Net (losses)/gains recognised directly in equity - (532) - 1 (531) Net profit - - 67,064 246 67,310 Total recognised gains - (532) 67,064 247 66,779 Dividend relating to FY2005/06 - - (33,495) - (33,495) Dividend relating to FY2006/07 - - (23,935) - (23,935) Dividend to minority shareholder relating to FY2005/06 - - - (240) (240) Employee share option scheme: - Value of employee services - 518 - - 518 - Proceeds from shares issued 1,934 (183) - - 1,751 Balance at 30 September 2006 104,991 4,227 48,637 3,463 161,318 Balance at 1 April 2005 97,362 4,048 229,661 2,919 333,990 Currency translation differences - 1,172-1 1,173 Cash flow hedges - (170) - - (170) Net gains recognised directly in equity - 1,002-1 1,003 Net profit - - 59,610 245 59,855 Total recognised gains - 1,002 59,610 246 60,858 Dividend relating to FY2004/05 - - (51,454) - (51,454) Dividend relating to FY2005/06 - - (23,841) - (23,841) Employee share option scheme: - Value of employee services - 326 - - 326 - Proceeds from shares issued 2,639 (149) - - 2,490 Balance at 30 September 2005 100,001 5,227 213,976 3,165 322,369 8

The Company Share Other Retained Total capital* reserves earnings equity S$ 000 S$ 000 S$ 000 S$ 000 Balance at 1 July 2006 104,178 1,411 31,296 136,885 Net profit - - 36,971 36,971 Total recognised gains - - 36,971 36,971 Dividend relating to FY2006/07 - - (23,935) (23,935) Employee share option scheme: - Value of employee services - 217-217 - Proceeds from shares issued 813 (84) - 729 Balance at 30 September 2006 104,991 1,544 44,332 150,867 Balance at 1 July 2005 98,761 778 202,743 302,282 Net profit - - 35,368 35,368 Total recognised gains - - 35,368 35,368 Dividend relating to FY2005/06 - - (23,841) (23,841) Employee share option scheme: - Value of employee services - 200-200 - Proceeds from shares issued 1,240 (73) - 1,167 Balance at 30 September 2005 100,001 905 214,270 315,176 Balance at 1 April 2006 103,057 1,209 34,789 139,055 Net profit - - 66,973 66,973 Total recognised gains - - 66,973 66,973 Dividend relating to FY2005/06 - - (33,495) (33,495) Dividend relating to FY2006/07 - - (23,935) (23,935) Employee share option scheme: - Value of employee services - 518-518 - Proceeds from shares issued 1,934 (183) - 1,751 Balance at 30 September 2006 104,991 1,544 44,332 150,867 Balance at 1 April 2005 97,362 728 225,093 323,183 Net profit - - 64,472 64,472 Total recognised gains - - 64,472 64,472 Dividend relating to FY2004/05 - - (51,454) (51,454) Dividend relating to FY2005/06 - - (23,841) (23,841) Employee share option scheme: - Value of employee services - 326-326 - Proceeds from shares issued 2,639 (149) - 2,490 Balance at 30 September 2005 100,001 905 214,270 315,176 * Under the Companies (Amendment) Act 2006 effective 30 January 2006, the concepts of par value and authorised share capital are abolished. Included in share capital as at 30 September 2005 is share premium amounting to S$4,626,000. 9

(1)(d)(ii) Details of any changes in the company s share capital arising from rights issue, bonus issue, share buy-backs, exercise of share options or warrants, conversion of other issues of equity securities, issue of shares for cash or as consideration for acquisition or for any other purpose since the end of the previous period reported on. State also the number of shares that may be issued on conversion of all the outstanding convertibles as at the end of the current financial period reported on and as at the end of the corresponding period of the immediately preceding financial year. During the three months ended 30 September 2006, the Company issued 1,097,593 ordinary shares at prices ranging from S$0.547 to S$0.923 upon the exercise of options granted under the Singapore Post Share Option Scheme. As at 30 September 2006, there were unexercised options of 17,833,118 (30 September 2005 : 22,372,668) of unissued ordinary shares under the Singapore Post Share Option Scheme. (2) Whether the figures have been audited or reviewed and in accordance with which auditing standard or practice. The figures have been reviewed in accordance with Singapore Auditing Practice 11 Review of Interim Financial Information. (3) Where figures have been audited or reviewed, the auditors report (including any qualifications or emphasis of matter). The Board of Directors Singapore Post Limited 10 Eunos Road 8 Singapore Post Centre Singapore 408600 31 October 2006 Dear Sirs SINGAPORE POST LIMITED AND ITS SUBSIDIARIES REVIEW OF INTERIM FINANCIAL INFORMATION FOR THE SECOND QUARTER AND HALF YEAR ENDED 30 SEPTEMBER 2006 We have performed a review on certain interim financial information of Singapore Post Limited (the Company ) and its subsidiaries (the Group ) as at 30 September 2006 and for the second quarter and half year ended 30 September 2006. Such interim financial information has been prepared by the Company for announcement on the Singapore Exchange. 10

Appendix 7.2 of the Singapore Exchange Securities Trading Limited Listing Manual (the Listing Manual ) requires the preparation of interim financial information to be in compliance with the relevant provisions thereof. The accompanying interim financial information comprises the balance sheet of the Company and the consolidated balance sheet of the Group as at 30 September 2006, and the related income statements, changes in equity and consolidated cash flows for the second quarter and half year ended as set out in paragraph 1. The interim financial information is the responsibility of, and has been approved by the directors. Our responsibility is to issue a report solely for the use of the directors on the interim financial information based on our review. We conducted our review in accordance with the Singapore Statement of Auditing Practice 11, Review of Interim Financial Information. A review of interim financial information consists principally of applying analytical review procedures to financial data and making inquiries of, and having discussions with, persons responsible for financial and accounting matters. It is substantially less in scope than an audit in accordance with Singapore Standards on Auditing and does not provide assurance that we would become aware of any or all significant matters that might be identified in an audit. We have not performed an audit and, accordingly, we do not express an audit opinion. Based on our review, nothing has come to our attention that causes us to believe that there are any material modifications that need to be made to the accompanying interim financial information for it to be in accordance with Appendix 7.2 of the Listing Manual. Yours faithfully PricewaterhouseCoopers Certified Public Accountants Singapore (4) Whether the same accounting policies and methods of computation as in the issuer s most recently audited annual financial statements have been applied. The Group has applied the same accounting policies and methods of computation in the financial statements for the current reporting period compared with the audited financial statements for the financial year ended 31 March 2006. (5) If there are any changes in the accounting policies and methods of computation, including any required by an accounting standard, what has changed, as well as the reasons for, and the effect of the change. None. 11

(6) Earnings per ordinary share of the group for the current financial period reported on and the corresponding period of the immediately preceding financial year, after deducting any provision for preference dividends. The Group FY2006/07 FY2005/06 FY2006/07 FY2005/06 2 nd Qtr 2 nd Qtr 1 st Half 1 st Half Based on weighted average number of ordinary shares in issue 1.89 cents 1.58 cents 3.50 cents 3.13 cents On fully diluted basis 1.88 cents 1.58 cents 3.50 cents 3.12 cents (7) Net asset value (for the issuer and group) per ordinary share based on issued share capital of the issuer at the end of the current financial period reported on and immediately preceding financial year. The Group The Company Sep-06 Mar-06 Sep-05 Sep-06 Mar-06 Sep-05 Net asset value per ordinary share based on issued share capital of the Company at the end of the financial period (cents) 8.2 7.7 16.7 7.9 7.3 16.5 (8) Review of the performance of the Group. (8)(i) Financial Highlights Second Quarter FY2006/07 ended 30 September 2006 The Group s revenue grew 3.5% from S$103.0 million to S$106.6 million in the second quarter ended 30 September 2006. All business segments recorded improved performances: Mail revenue rose 1.7% from S$80.8 million to S$82.2 million, on higher contributions from domestic mail, international mail and hybrid mail. Logistics revenue was up 2.7% from S$15.5 million to S$15.9 million, on the back of increased contributions from Speedpost. Retail revenue grew 14.1% from S$12.3 million to S$14.0 million. Growing contributions from financial services, retail product revenue and vpost mail-order transactions offset the decline in bill presentment and agency services. Rental and property related income rose 14.1% from S$4.5 million to S$5.1 million. The Group continued to benefit from property yield enhancement initiatives. During the second quarter, the Group recorded a gain of S$4.8 million from the sale of a non-core property. 12

The Group continued to monitor cost increases closely. In the second quarter, total expenses increased 2.8% from S$73.2 million to S$75.3 million. Volume-related costs were higher in tandem with the increased business activities, rising 5.4% from S$24.5 million to S$25.8 million. Labour and related costs were slightly higher by 1.5% from S$28.1 million to S$28.5 million. Finance expenses rose 36.7% from S$2.0 million to S$2.8 million, due to higher interest rates and higher gearing. As a result of the good operating performance and gain from sale of property, the Group s operating profit grew 21.4% from S$36.5 million to S$44.3 million. Mail operating profit improved by 1.9% from S$31.4 million to S$32.0 million. Logistics operating profit rose 16.0% from S$2.1 million to S$2.4 million, due to an improvement in its contracts average margins. Retail operating profit increased by 67.7% from S$1.4 million to S$2.3 million, due to growing contributions of higher value financial services. Share of profit of associated company and joint ventures improved by 6.7% from S$2.2 million to S$2.4 million although the Spring JV continued to face pricing pressure and strong competition. For the second quarter of FY2006/07, the Group achieved an 19.9% growth in net profit from S$30.1 million to S$36.1 million. Excluding the gain from the sale of property, the Group s underlying net profit rose 4.0% from S$30.1 million to S$31.3 million. First Half FY2006/07 ended 30 September 2006 Revenue grew 5.9% from S$199.8 million to S$211.6 million in the first half of the financial year ended 30 September 2006. The Group benefited from improved contributions by all business segments Mail, Logistics and Retail. Rental and property related income rose 11.9% from S$8.8 million to S$9.9 million, due to property yield enhancement initiatives. During the first half, the Group disposed of two noncore properties, resulting in gains of S$5.3 million. This contributed to the increase in miscellaneous income from S$2.1 million to S$6.2 million. Total expenses were higher by 5.8% from S$140.7 million to S$148.9 million. Labour and related costs and volume-related costs were higher in tandem with the increased business activities. Finance expenses rose 36.4% from S$4.0 million to S$5.5 million, due to higher interest rates and higher gearing. The Group achieved operating profit growth of 15.1% from S$72.7 million to S$83.7 million for the first half, underpinned by the good operating performance and gains from the sale of properties. Share of profit of associated company and joint ventures was lower by 7.6% from S$4.1 million to S$3.8 million, due to pricing pressure and strong competition faced by the Spring JV. However, this was offset by higher recoveries of S$0.5 million from contracted services for Spring JV. For the first half of FY2006/07, the Group s net profit rose 12.5% from S$59.6 million to S$67.1 million. Excluding the gains from the sale of properties, underlying net profit increased 3.6% to S$61.8 million. 13

Balance Sheet The Group s total assets were lower at S$704.2 million as at 30 September 2006, compared to S$710.9 million as at 31 March 2006, due mainly to the sale of two non-core properties in the first half. Shareholders funds increased from S$146.5 million as at 31 March 2006 to S$157.9 million as at 30 September 2006. Total borrowings decreased by S$16.8 million from S$349.5 million to S$332.6 million, as the Group partially repaid the S$60 million term loan obtained in March 2006. Cash Flow The Group s cash flow generation remained robust. Net cash inflow from operating activities amounted to S$74.6 million in the first half, compared to S$61.6 million in the corresponding period last year. (8)(ii) Detailed Financial Analysis Revenue Revenue by segments: Revenue FY2006/07 FY2005/06 FY2006/07 FY2005/06 2 nd Qtr 2 nd Qtr Variance 1 st Half 1 st Half Variance S$ 000 S$ 000 % S$ 000 S$ 000 % Mail 82,180 80,817 1.7 164,566 159,011 3.5 Logistics 15,877 15,457 2.7 31,310 29,202 7.2 Retail 14,014 12,281 14.1 26,731 23,424 14.1 Inter-segment eliminations (5,482) (5,547) (1.2) (10,965) (11,815) (7.2) Total 106,589 103,008 3.5 211,642 199,822 5.9 Operating Profit Operating profit by segments: Operating Profit FY2006/07 FY2005/06 FY2006/07 FY2005/06 2 nd Qtr 2 nd Qtr Variance 1 st Half 1 st Half Variance S$ 000 S$ 000 % S$ 000 S$ 000 % Mail 32,025 31,433 1.9 64,570 62,119 3.9 Logistics 2,388 2,059 16.0 4,395 3,659 20.1 Retail 2,330 1,389 67.7 4,056 2,532 60.2 Others 7,558 1,616 @ 10,705 4,417 142.4 Total 44,301 36,497 21.4 83,726 72,727 15.1 @ Denotes variance % exceeding 300%. (9) Where a forecast or a prospect statement has been previously disclosed to shareholders, any variance between it and the actual results. In the SGXNET announcement for the first quarter ended 30 June 2006, it was stated that the Group was positive on the prospects of direct mail, international mail and Speedpost. The Group has continued to perform well during the second quarter. 14

(10) A commentary at the date of the announcement of the significant trends and competitive conditions of the industry in which the group operates and any known factors or events that may affect the group in the next reporting period and the next 12 months. In August 2006, the Info-communications Development Authority of Singapore issued a Consultation Paper on further liberalisation of the postal services sector when SingPost s exclusive licence for basic mail services (letters and postcards) expires on 31 March 2007. SingPost has submitted its response to the Paper. The Group believes it is well positioned to address the challenges of further deregulation of the postal services market. As part of its diversification strategy, the Group has focused on leveraging its retail and distribution network to offer higher value products and services, including financial services, to customers. The Group remains positive on the prospects of direct mail, international mail and Speedpost, and is actively pursuing and implementing initiatives to grow these business segments. The Group will continue to extend its regional reach with initiatives to roll out the hybrid mail and vpost businesses into the regional markets. (11) Dividends (11)(i) Current financial period reported on First quarter ended 30 June 2006 Interim dividend An interim quarterly dividend of 1.25 cents per ordinary share (tax exempt one-tier) in relation to the first quarter of FY2006/07 ended 30 June 2006 was declared on 24 July 2006 and paid on 31 August 2006. Second quarter ended 30 September 2006 Interim dividend In relation to the second quarter ended 30 September 2006, the Board of Directors has declared an interim dividend of 1.25 cents per ordinary share (tax exempt one-tier). The interim quarterly dividend of 1.25 cents per ordinary share will be paid on 30 November 2006. The transfer book and register of members of the Company will be closed on 17 November 2006 for the preparation of dividend warrants. Duly completed registrable transfers of the ordinary shares in the capital of the Company received by the Company s registrar up to 5.00pm on 16 November 2006 will be registered to determine members entitlements to the dividend. (11)(ii) Corresponding period of the immediately preceding financial year Interim dividend An interim quarterly dividend of 1.25 cents per ordinary share (tax exempt one-tier) in relation to the second quarter of FY2005/06 ended 30 September 2005 was declared on 28 October 2005 and paid on 30 November 2005. Special dividend A special dividend of 10 cents per ordinary share (tax exempt one-tier) was declared on 28 October 2005 and paid on 16 January 2006. 15

(12) If no dividend has been declared (recommended), a statement to that effect. Not applicable. PART II ADDITIONAL INFORMATION REQUIRED FOR QUARTERLY ANNOUNCEMENT (13) Interested Person Transactions During the second quarter and half year ended 30 September 2006, the following interested person transactions were entered into by the Group: Aggregate value of all interested person transactions during the financial period (excluding transactions less than S$100,000 and transactions conducted under shareholders mandate pursuant to Rule 920) Aggregate value of all interested person transactions conducted under shareholders mandate pursuant to Rule 920 (excluding transactions less than S$100,000) Sales FY2006/07 FY2005/06 FY2006/07 FY2005/06 2 nd Qtr 2 nd Qtr 2 nd Qtr 2 nd Qtr S$ 000 S$ 000 S$ 000 S$ 000 Singapore Airlines Limited and its associates - - 2,871* 1,166 Singapore Telecommunications Limited and its associates - - 556* 2,994 - - 3,427 4,160 Purchases Power Seraya Ltd and its associates - - 8,381 - SembCorp Industries Ltd and its associates - - - 590 Singapore Airlines Limited and its associates - - 594 758 Singapore Technologies Engineering Ltd and its associates - - - 470* Singapore Telecommunications Limited and its associates - - 992* 348* Temasek Capital (Private) Limited and its associates - - 671* - - - 10,638 2,166 Total interested person transactions - - 14,065 6,326 16

Aggregate value of all interested person transactions during the financial period (excluding transactions less than S$100,000 and transactions conducted under shareholders mandate pursuant to Rule 920) Aggregate value of all interested person transactions conducted under shareholders mandate pursuant to Rule 920 (excluding transactions less than S$100,000) Sales FY2006/07 FY2005/06 FY2006/07 FY2005/06 1 st Half 1 st Half 1 st Half 1 st Half S$ 000 S$ 000 S$ 000 S$ 000 Singapore Airlines Limited and its associates - 920 4,108* 1,166 Singapore Telecommunications Limited and its associates - - 15,160* 2,994-920 19,268 4,160 Purchases Aetos Security Management Private Limited and its associates - - 191 - Power Seraya Ltd and its associates - - 12,271* - SembCorp Industries Ltd and its associates - 5,700-590 Singapore Airlines Limited and its associates - - 594 758 Singapore Technologies Engineering Ltd and its associates - - - 470* Singapore Telecommunications Limited and its associates - 495 1,175* 348* Temasek Capital (Private) Limited and its associates - - 671* - - 6,195 14,902 2,166 Total interested person transactions - 7,115 34,170 6,326 Note All the transactions set out in the above tables were based on the Group s interested person transactions register. They were either based on contractual values for the duration of the contracts (which may vary from 3 months to 3 years) or based on actual transacted values during the period for open-ended contracts. * Include contracts of duration exceeding one year. 17

PART III CONFIRMATION BY THE BOARD PURSUANT TO RULE 705(4) OF THE LISTING MANUAL On behalf of the Board of Directors of the Company, we, the undersigned, hereby confirm to the best of our knowledge that nothing has come to the attention of the Board of Directors of the Company which may render the financial statements for the second quarter and half year ended 30 September 2006 to be false or misleading. On behalf of the Board of Directors MR LIM HO KEE Chairman MR LAU BOON TUAN Director Singapore 31 October 2006 18