TAI-SAW TECHNOLOGY CO.,LTD. STATEMENTS OF INCOME For the years ended December 31, 2005 and 2004 (In Thousands of NEW Taiwan dollars,Except Earning Per Share ) 2005 Amounts 2004 Amounts ％ 949,997 103.77% $ 34,547 NET sales ％ 775,011 101.01% 3.77% 7,718 1.01% 915,450 100.00% 767,293 100.00% Cost of sold 632,848 69.13% 540,477 70.44% Gross profit 282,602 30.87% 226,816 29.56% 21,450 43,239 43,244 2.34% 4.72% 4.72% 23,577 34,125 41,082 3.07% 4.45% 5.35% Total operating expenses 107,933 11.79% 98,784 12.87% Operating income 174,669 19.08% 128,032 16.69% 2,877 1,326 11,045 57 943 0.31% 0.14% 1.21% 0.01% 0.10% 1,775 0 0 819 2,300 0.23% 0.11% 0.30% 16,248 1.77% 4,894 0.64% 1,150 0 0 21,799 2,384 0.13% 0.00% 0.00% 2.38% 0.26% 1,434 4,413 2,745 13,102 1,593 0.19% 0.58% 0.36% 1.71% 0.21% 25,333 2.77% 23,287 3.03% 165,584 20,759 18.09% 2.27% 109,639 4,972 14.29% 0.65% 13.64% GROSS SALES $ SALES RETURES AND ALLOWANCES Operating expenses Sales and marketing expenses General and administrative expenses Research and development expenses Non-operating income Interest income Investment gain accounted for under the equity method,net Foreign exchange gain,net Rent income Other income Non-operating expense and losses Interest expenses Investment loss accounted for under the equity method,net Foreign exchange loss,net Loss on decline in market value and obsolescence of inventories Other losses Income before income tax Income tax expense Net income $ 144,825 15.82% $ 104,667 Basic earnings per share(after income tax) Diluted earnings per share(after income tax) $ 3.16 3.15 $ 2.28 2.28