"And the way selling is like the old TV media and this is way all push out by selling goods in the internet"

Board MainMain

New Shares 206.1m206.1m

Placing Shares 271.5m271.5m

Public Offer Shares 14.3m14.3m

Vendor Shares 79.7m79.7m

Total Number of Shares (post IPO) 368.2m368.2m

Price S$1.08S$1.08

NTA per share (Jun 06) S$0.08S$0.08

NTA per share (post-IPO) S$0.27S$0.27

PE fully diluted (2006) 1.95x1.95x

Offer Size S$308.7mS$308.7m

Market Cap (post-IPO) S$1.1bS$1.1b

Sponsor/ Bookrunner Credit Suisse, DBSCredit Suisse, DBS

Offer 4 Nov 06 (9am)4 Nov 06 (9am)

Close 8 Nov 06(9am)8 Nov 06(9am)

Result 9 Nov 069 Nov 06

Trading 10 Nov 06 (on a ?ready? basis)10 Nov 06 (on a ?ready? basis)

Expansion into

US

S$78.5m 40%

Expansion into

Japan

S$28.3m 10%

Expansion into

PRC

S$17.3m 10%

Expand Thailand

operations

S$15.7m 10%

Use of Proceeds

Others S$63.1m 30%

Background

? Integrated manufacturer and television home shopping retailer of coloured gemstone jewellery.Integrated manufacturer and television home shopping retailer of coloured gemstone jewellery.

? Operates jewellery manufacturing facilities in Chanthaburi, Thailand and owns two dedicated

jewellery home shopping channels in UK, GemsTV and GemsTV2.Operates jewellery manufacturing facilities in Chanthaburi, Thailand and owns two dedicated

jewellery home shopping channels in UK, GemsTV and GemsTV2.

? Sells handcrafted gemstone jewellery over the Internet. Suppliers of gemstones are from Brazil,

PRC, East Africa, India, Madagascar and Sri Lanka.Sells handcrafted gemstone jewellery over the Internet. Suppliers of gemstones are from Brazil,

PRC, East Africa, India, Madagascar and Sri Lanka.

? Recently signed an agreement with DirectTV Inc. to provide satellite carriage for GemsTV in US in

Financial Highlights

Profit and LossRecently signed an agreement with DirectTV Inc. to provide satellite carriage for GemsTV in US in

Financial Highlights

Profit and LossFinancial Highlights

Profit and Loss

(S$m) FY04 FY05 FY06

Revenue 22.5 61.6 216.0

% increase yoy n.a. 174% 251%

Gross Profit 9.7 22.1 112.1

Gross Margin (%) 43% 36% 52%

Net Profit (0.3) 8.4 45.2

Net Profit Margin (%) n.a. 14% 21%

 Balance Sheet

(S$m) FY04 FY05 FY06

Current Assets 16.6 38.6 84.0

Non-current Assets 2.6 13.3 23.5

Total Assets 19.2 51.9 107.5

Current Liabilities 5.1 31.8 47.4

Non-current Liabilities 0.2 5.7 2.7

Shareholders? Equity 13.9 21.9 57.4

Total Debt/Equity (x) n.a. 0.09 0.03

 Cash Flow

(S$m) FY04 FY05 FY06

Operating 1.7 7.0 43.2

Investing (0.4) 4.8 (3.2)

Net Inflow/(outflow) 0.2 6.6 12.0

Ending Cash & Cash

Equivalent

1.0 7.7 19.9

Business Prospects

Demand growth for Jewelry

According to Euromonitor, the US jewellery market will grow at a CAGR of 5.2% between 2005 and

2007 to reach US$57.1b.

For Japan, sales are forecasted to reach US$20.9b in 2007.

Growth in home shopping market in the US

Home shopping market is estimated to grow at a CAGR of 5.2% from 2005 to 2007 to reach

US$206.8b in 2007.

Competitive Strengths: Please refer to Prospectus (pages 72-75).Please refer to Prospectus (pages 72-75).

Risk Factors: Please refer to Prospectus (pages 17-33).

Note: Information contained in this fact sheet is extracted from Gems TV Holdings prospectus (dated 3 November

2006), which is subject to changes, and can be found at http://masnet.mas.gov.sg/opera/sdrprosp.nsfPlease refer to Prospectus (pages 17-33).

Note: Information contained in this fact sheet is extracted from Gems TV Holdings prospectus (dated 3 November

2006), which is subject to changes, and can be found at http://masnet.mas.gov.sg/opera/sdrprosp.nsf

Singapore Research Team

As of 6th Nov 2006, the analyst and his / her immediate family do not hold positions in the securities recommended in this report.

As of 6th Nov 2006, the analyst and his / her immediate family do not hold positions in the securities recommended in this report.