Business Strategy & Future Plans

Our business strategy and future plans for the growth and expansion of our businesses are described below:-

We plan to expand our production facilities

As at the Latest Practicable Date, we have seven dipping lines located at our Malaysian facilities and two dipping lines at our Thai facility. In addition, two new dipping lines in Malaysia are expected to be ready for use towards the end of 2006. We plan to upgrade our facilities in Malaysia by increasing the number of cleanrooms for laundry and packaging of our products and installing additional cleanroom plant and equipment. In relation to our Thai subsidiary, we intend to install an additional dipping line, increase the number of cleanrooms and upgrade our facilities by adding additional floor space to house additional plant and equipment. We also plan to expand and upgrade the production facilities of Riverstone Industrial Malaysia and Riverstone China.

We intend to continue our focus on product development

We are committed to producing cleanroom products that meet both the strict requirements of the cleanroom market and also the varying specifications of our customers. We intend to continue to focus on research and development and product development to ensure that our products meet the evolving and stringent requirements of the cleanroom industry.

We plan to expand the range of our products to include cleanroom nitrile gloves with better ESD properties. We also intend to develop gloves with lower content of ions which are used in extremely sensitive environments.

We intend to expand our range of packaging materials to include moisture barrier bags, static-shielding bags and ESD bags to better support our customers in various industries.

We intend to enhance our value-added services

We intend to maintain our long-standing relationship with our customers by providing more value-added services such as technical support and responsive after-sales services. For instance, we plan to provide more comprehensive, in-coming certification testing for customers on their cleanroom products.

To enhance our customers' quality control procedures, we intend to make available our current electronic reports on the quality of our products to a larger number of customers.

We also intend to extend the provision of our glove reconditioning services to a larger number of our customers.

We plan to enhance our production processes

We plan to invest in more advanced technology to enhance our production process. Through upgrading our existing production, laboratory-testing and research and development facilities, we believe that we would be able to keep abreast of industry trends and meet the evolving demands of our customers.

We plan to invest in information technology and management information systems to better manage our manufacturing processes and to improve the procurement of raw materials and the utilisation of resources for our business.

We intend to penetrate new industries, expand sales network and enhance brand awareness

Expansion into other industries

We plan to strengthen our market position by building relationships with existing customers in the HDD and semiconductor sectors within the electronics industry through joint efforts in product development, participating in exhibitions and publishing advertisements in trade publications. We also intend to extend our products to prospective customers in other industries such as flat panel display, medical device technology, biotechnology, pharmaceutical and aerospace industries through marketing efforts such as the development of sales channels through the appointment of sales agents who are familiar with such industries.

Geographical expansion

We currently have a network of international sales offices in Singapore, Malaysia, Thailand, the Philippines, the PRC and the US to market our products. We intend to penetrate new geographical markets by expanding our presence in China and penetrating new markets in Vietnam, India, Eastern Europe and South America by setting up offices close to potential customers in these places.

Building and leveraging on our brand name

We plan to leverage on our " RS Riverstone Resources" brand name to further increase our sales of cleanroom gloves to potential customers in the HDD and semiconductor sectors as well as other industries such as the flat panel display, medical device technology, biotechnology, pharmaceutical and aerospace industries. We plan to develop and/or market other cleanroom consumable products, such as cleanroom clothing and special wipes, in the HDD and semiconductor sectors as well as other industries.

To increase the brand awareness of our " RS Riverstone Resources" brand, we also intend to participate in exhibitions, advertise in trade publications and provide updated information on our products and services on our website.

We intend to grow our business through joint ventures and acquisitions

We intend to leverage on our international sales network to tap into cross-border business opportunities, penetrate into new markets and explore investment opportunities through acquisitions, investments, strategic alliances and/or joint ventures with suitable strategic partners. We will also explore opportunities to expand our manufacturing operations into other countries that will provide us with competitive advantages primarily in terms of servicing our customers' needs as well as other locational benefits.