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1 July 1999

Sun Microsystems Asia South appoints ECS Holdings as the Regional Authorised Distribution Centre

Singapore, 1st July 1999 - Sun Microsystems has appointed ECS Holdings Ltd (ECSH), a unit of NatSteel Electronics (NEL) as the Regional Authorised Distribution Center (ADC) for Singapore, Malaysia and Thailand.

The companies in the regional distribution network under ECSH are ECS Computers (Asia) Pte Ltd (ECS) in singapore, K.U.Sistems Sdn Bhd (KU) in Malaysia and The Value Systems Co. Ltd (Value) in Thailand. ECS Computers, KU and Value were originally known as Peak Product Distributors (PPD) and with today's announcement they will be officially called Sun Authorised Distribution Centers (ADC).

ECSH was formed as a holding company when NEL acquired ECS, KU and Value to aggressively expand its distribution network in South East Asia on 10th November, 1998. The company is jointly owned by NEL and the management team of ECSH.

"Sun's portfolio of systems now ranges from US$800 Javastations to US$1.8million mainframe-class Enterprise 10000 Servers, providing the most comprehensive computer-platform for the new Internet Computing era. Our plan is to establish a strong network of internet-savvy resellers and system-integrators that can bring Sun's '.com advantage' to as wide a market in each country as possible", said Mr George Lee, Product Sales Director for Sun Microsystems Asia South.

"The appointment of ECSH as Sun Asia South's Regional ADC for our award-winning Workgroup Servers and industry-leading Workstations is a strategic move on our part in establishing and nurturing that network of internet resellers and SIs, which ECSH is well-recognised for in this region", added Mr Lee. ECS is the ADC for Sun Workgroup Servers and Workstations in Singapore while KU and Value are ADCs for Workgroup Servers in Malaysia and Thailand respectively.

"ECS will definitely capture this window of opportunity and sustain the success that has been achieved since we were appointed as a Workgroup Server Distributor in Singapore more than a year ago. We now have over 20 Sun Workgroup Alliance Partners (SWAP) active in bringing Sun's unique .com advantage to our mutual customers", said Mr Tay eng Hoe, Managing Director of ECS.

"Our relationship with Sun could not come at a more opportune time", said Mr Foo Sen Chin, Managing Director of KU. "As Malaysian companies reaches out to not just customers within the country but also globally, Sun's leadership in both internet-computing and e-commerce willmean plenty of opportunities for KU's resellers and SIs to build robust total solutions for their customers," he added.

"Sun's strong association with the Internet has definitely helped in our channel recruitment drive and heightened the awareness of our marketing efforts," said Mr Khun Narong Intanate, President of Value. "We intend to combine this strength of Sun's with the intimate knowledge of the local Thai market that Value and our resellers bring to this agreement. This will be a win-win-win arrangement for Sun, Value and our resellers, and ultimately, our thai customers", concludes Mr Khun Narong.

ECSH in Singapore will be responsible for coordinating orders and shipments between the three countries. such a strategy of centralising the warehousing function through higher unit-quantity-per-order lowers costs and improves lead-times, therefore giving our customers in these 3 countries and enhanced value to their investments in Sun systems.

About Sun Microsystems
Since its inception in 1982, a singular vision, "The Network Is The Computer™" has propelled Sun Microsystems, Inc. ( NASDAQ: SUNW), to its position as a leading provider of high quality hardware, software and services for establishing enterprise-wide intranets and expanding the power of the Internet. With more than $11 billion in annual revenues, Sun can be found in more than 150 countries and on the World Wide Web at http://www.sun.com or visit our Asia South Web site at http://www.sun.com.sg Sun, the Sun logo, sun Microsystems, Java and PersonalJava are trademarks or registered trademarks of Sun microsystems, Inc. in the United States and in other countries.

About ECS Computers (Asia) Pte Ltd
Established in 1982, ECS Computers (Asia) Pte Ltd is a member of NatSteel Electronics. As one of the leading IT Value Added Distributors in Singapore and the Asia Pacific region, ECS offers products and solutions to the corporate market through strategic alliances with industry leading vendors. Total integrated solutions incorporating the best-of-breed products are offered through its wide and established channel of resellers and system integrators. ECS distributes a wide portfolio of leading-edge products which include Hewlett-Packard, Sun Microsystems, IBM, Apple, Lotus, Oracle, Netscape and Check Point. Education and consulting services on cross-platform integration and system security are also provided.

About K.U. Sistem Holdings Sdn Bhd
K.U. Sistem Holdings Sdn Bhd has three subsidiary companies, i.e. K.U. Sistem Sdn Bhd, Pericomp-Sistech Sdn Bhd and Astar Marketing Sdn Bhd in the marketing of computer products. K.U. sistem Sdn Bhd provides computer systems, hardware, software and services to business customers. Pericomp-SisTech and Astar Marketing distribute leading brands of computer products to about 800 dealers throughout Malaysia. The group's product portfolio includes Hewlett-Packard, IBM, Sun microsystems, Printronix, Canon, Lexmark, Apple, Cisco, Intel and Lotus.

About Value
Established in April 1998, The Value Systems Co., Ltd. only concentrates in the distribution of personal computer, PC server, peripherals, software, UNIX Workgroup server and NT workstation. Today the company represents 20 major brands for the Thai market which distributes through 1,000 dealers nationwide. In order to provide better and faster after-sales service to dealers and end users, the company currently has 4 service locations and expect to increase one more in 1999.

The Value Systems represents 3Com, Adobe, Apple, Cisco, compaq, Corel, D-Link, Hewlett-Packard, IDEA, Kodak, Microsoft, Microtek, NEC, Novell, Symantec, Sun, Silicon Graphics, SPC, Visio and ThaiOCR.