Further to the litigation disclosure on page 192 of ElectroTech Investments Limited's ("ElectroTech") Prospectus dated 27 April 2005, Unitech Tokyo Co., Ltd ("Unitech") has on 23 February 2006 instituted countersuit proceedings against Precico Electronics Sdn. Bhd. ("Precico Electronics"), a wholly owned subsidiary of ElectroTech for a total claim of Yen211,217,656 (approximately $2.96 million) plus interest at 6% per annum and legal cost. This claim is for consequential losses, development and rework costs arising from the alleged breach of contract by Precico Electronics.

The lawsuit instituted by Precico Electronics is still pending litigation.

Precico Electronics, in consultation with its Japanese solicitors, is of the opinion that the counterclaims of Unitech are rebuttable and there are valid grounds to defend the case. In view of this, the Directors are of the opinion that the above countersuit should not have any material financial impact to the Group. The Company will provide further updates, where appropriate, on the development of this matter.

The listing of the shares of ElectroTech Investments Group Limited on the Singapore Exchange Securities Trading Limited was sponsored by DBS Bank Ltd.