• iOne is an independent systems integrator specialising in telecommunications and control systems networking

• Deal will complement existing business and developments plans in the Philippines

SINGAPORE – 05 April 2010 – Teledata (Singapore) Limited 电传数据有限公司 ("Teledata" or the "Group"), a leading regional IT systems integrator and communications services company, is moving swiftly to expand its business in the region by taking over a Philippines-based systems integrator, iOne Resources, Inc, for US$3.6 million or S$5.05 million.

iOne Resources is a subsidiary of the Ayala Corporation based in the Philippines and is an independent systems integrator specialising in Telecommunications and Control Systems (SCADA) networking. Its principal activity includes the provision of outsourcing and consulting services in various disciplines of information technology, centering on networking and Microsoft products such as Windows NT, Microsoft Exchange and Microsoft SQL. Its services include project management, implementation and integration, software installation, maintenance and upgrade services, technical support and maintenance services, as well as network optimisation.

Teledata's latest proposed acquisition comes on the heels of its definitive agreement for a S$35 million equity line of credit with GEM Global Yield Fund and GEM Investment Advisors, Inc, signed in January this year. The proceeds from this credit facility are to fund merger and acquisition deals and provide for its working capital and capital expenditure.

Elaborating on its latest acquisition, Mr Christopher Pan, Chairman and CEO of Teledata, says, "With a S$35 million credit line from GEM Global, Teledata now has greater flexibility to capitalise on business opportunities generally and this latest acquisition of iOne Resources specifically. Teledata currently has a presence in the Philippines and this deal will further strengthen our foothold in this fast-growing potential market."

Against an improving information and communications technology ("ICT") landscape in the Philippines, Teledata plans to tap on the increased business opportunities through strategic mergers and acquisitions that can help the Group expand its portfolio of services and customer base. According to International Data Corporation ("IDC"), the total IT market spending in the Philippines is estimated to increase by 7.6% reaching $3.14 billion by the end of 2010. This equates to a 9.1% percent compounded annual growth rate (CAGR) by 2013. On the telecommunications front, spending is expected to record 7.7% growth in 2010, following the decline of 2.9% in year-end 2009.

Under the MOU signed with the vendors, Teledata will acquire 100% of iOne Resources with payment in three tranches – an initial payment of US$250,000 (S$350,000) in cash; a payment of US$2.0 million (S$2.8 million) through the issuance of a convertible bond in favour of the vendors; and the balance of approximately US$857,000 (S$1.20 million) to be satisfied by the issue of 24.0 million Teledata shares at an issue price of S$0.050.

The convertible bond will have zero coupon rate and a par value of US$2.0 million, with a maturity date falling on the second anniversary of the sales and purchase agreement and may be converted into shares in the Company at a price of S$0.10 per share.

On the earn-out payment, the vendors would be entitled to receive a further payment (based on an agreed formula) if iOne Resources’ latest audited net profit after tax exceeds US$420,000 in the first year. The earn-out will be satisfied by an issue of new shares to the vendors.

For the year ended 31 March 2009, iOne Resources reported a net profit of 12.27 million pesos (S$374,402).

Both parties have undertaken to enter into a definite agreement within 4 weeks from the execution of the MOU.

About Teledata (Singapore) Limited
Listed on the Main Board of the Singapore Exchange in 1994, Teledata is a leading IT systems integrator and communications services company, unique for the depth of its capabilities and the dedication of its people. Its people are experts in communications technology and excel at delivering customised communications services and solutions to its customers.

Founded in May 1976, Teledata has since grown to become a regional company with offices in 6 countries and customers throughout the Asia Pacific region. The Group’s clientele range from large enterprises and telecommunication carriers to small enterprises in varied industries, some of which have been the Group’s customers for over 30 years. To deliver best-of breed, advanced and flexible solutions, the Group partners world-class technology providers from around the world.