Tuesday, 17 October 2006

Please see important notice on last page Page 2 of 3

Global Testing

Beefing up management team

Global Testing has announced the appointment of Mr Paul Chien as Chairman

of wholly owned subsidiary GTC Taiwan.

Mr Paul Chien is an industry veteran with more than 25 years experience in the

semiconductor industry. Previously, he was Chairman and President of Vanguard

International Semiconductor Corp., a leading Taiwanese specialty IC foundry

service provider. Under his stewardship as Chairman since Mar 00, Mr Chien

successfully transformed Vanguard from a DRAM company to a primary

specialty IC foundry. Vanguard is a subsidiary of TSMC and is listed on the

Taiwan Stock Exchange.

SINGAPORE

Global Testing (GTC SP)

BUY

Current Price: S$0.24

Target Price: S$0.44

Jonathan Koh

�� (65) 6539 1026

jonathankoh@uobkayhian.com(65) 6539 1026

jonathankoh@uobkayhian.com

Sector Semicon

Bloomberg GTC SP

Reuters

Website

52-Wk Avg Daily Vol. ('000)

Market Cap (S$m)

(US$m)

Book NTA per Share (S$)

ROE (%)

Net Debt per Share (S$)

Results Due

Interim

Final

Regional Morning Notes

Tuesday, 17 October 2006

Page 3 of 3

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Global Testing (24 cents) - near complete retracement of rise from 19.5 cent low to 39 cent high causes stock to resume long decline but showing signs of recovery

After 7 weeks of finishing unchanged or lower, the second longest stretch since a year ago when it hit a record 19.5 cent low, the stock edged up last week after appearing to hold up at this year?s 22.5 cent low.

This low was first recorded last July prior to a rebound to the half way mark (29 cents) between 39 cents and 19.5 cents which came about quickly after it managed to move near the 38.2% recovery (27 cents) reaching 26.5 cents about 2 weeks earlier.

Failure to clear 29 cents brought out sellers but after a drop to 25.5 cents, it moved back briefly to 27.5 cents on Sep 6. Since then it was a long road down but somehow the counter managed to hold at 22.5 cents, which was tested for 6 days this month.

This protracted defence of 22.5 cents seemed to assure traders that another rebound to 27-29 cents is on the cards thus lifting the daily lows in the last 3 trading days to 23 and 23.5 cents and to 24 cents today.

Given the near 2 month decline from 29 cents on Aug 17 and the heavy volume of 37.3m shares on Oct 11 when it moved up from 23 cents to 24.5 cents, the stock should be able to break the 24-25 cent resistance and reach 27 cents this month.

Since the May plunge from 39 cents to 27.5 cents, the monthly trading range has been between a minimum 4.5 cents (last month) and 6 cents. So far this month it has moved only 2 cents between 22.5 cents and 24.5 cents.

If it repeats last month?s 4.5 cents range, which should not be a problem since it has just come out from a long 2 month fall, then 27 cents would be the first target and if the trading band widens to 6 cents we should see 28-29 cents.