**WELLS        EASTERN ASIA DISPLAYS (M) SDN. BHD.**

**Financial        Statements and Supplementary Data**

***for        the financial year ended 31 December 2006***

**Table        of Contents**

|                                                                                                                                   | Page   |
|----------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                   |   |
| Report                  of Independent Registered Public Accounting Firm                                                               | 1      |
|                                                                                                                                   |   |
| Balance                  Sheets as of 31 December 2006 and 2005                                                                        | 2      |
|                                                                                                                                   |   |
| Income                  Statements for the Years Ended 31 December 2006, 2005 and                  2004                                | 3      |
|                                                                                                                                   |   |
| Statements                  of Changes in Equity for the Years Ended 31 December 2006, 2005                  and                  2004 | 4      |
|                                                                                                                                   |   |
| Cash                  Flows Statements for the Years Ended 31 December 2006, 2005 and                  2004                            | 5      |
|                                                                                                                                   |   |
| Notes                  to Financial Statements.                                                                                        | 6-15   |
|                                                                                                                                   |   |
|                                                                                                                                   |   |

----

TABLE          OF CONTENTS

**To        The Members of **

**WELLS        EASTERN ASIA DISPLAYS (M) SDN. BHD.**

| **Horwath**                       |   |
|-----------------------------------|--------|
| Penang,                  Malaysia |   |
|                              |   |

----

TABLE            OF CONTENTS

**WELLS          EASTERN ASIA DISPLAYS (M) SDN. BHD.**

|  **BALANCE                  SHEETS** |
|-------------------------------------------|
|                                      |
|                                      |   |   |   | As                    of December 31, |
|                                      |   |   |   | 2006 |   | 2005 |
|                                      |   |   |   | USD |   | USD |
|                                      |   |   |   |   |   |   |
|                                      | ASSETS |   |   |   |
|                                      |   |   |   |   |   |   |
|                                      | Current                    Assets |   |   |   |
|                                      |   | Cash                    and cash equivalents | 2,115,164 |   | 285,467 |
|                                      |   | Trade                    accounts receivable | 0 |   | 22,801 |
|                                      |   | Trade                    accounts receivable, related party | 2,258,493 |   | 4,198,586 |
|                                      |   | Inventories | 727,742 |   | 1,650,066 |
|                                      |   | Prepaid                    and other current assets | 18,465 |   | 43,012 |
|                                      |   | Income                    taxes receivable | 37,859 |   | 0 |
|                                      |   |   |   |   |   |   |
|                                      | Total                    Current Assets | 5,157,723 |   | 6,199,932 |
|                                      |   |   |   |   |   |   |
|                                      | Property                    and equipment, net | 184,920 |   | 262,423 |
|                                      | Deferred                    tax assets | 0 |   | 25,618 |
|                                      |   |   |   |   |   |   |
|                                      | Total                    Assets | 5,342,643 |   | 6,487,973 |
|                                      |   |   |   |   |   |   |
|                                      | LIABILITIES                    AND SHAREHOLDERS' EQUITY |   |   |   |
|                                      |   |   |   |   |   |   |
|                                      | Current                    Liabilities |   |   |   |
|                                      |   | Trade                    accounts payable | 123,095 |   | 205,491 |
|                                      |   | Trade                    accounts payable, related party | 314,984 |   | 990,637 |
|                                      |   | Other                    accounts payable, related party | 427,316 |   | 790,837 |
|                                      |   | Accrued                    expenses and others | 188,704 |   | 292,615 |
|                                      |   | Bank                    borrowings | 1,377,602 |   | 1,361,905 |
|                                      |   | Income                    taxes payable | 0 |   | 49,495 |
|                                      |   |   |   |   |   |   |
|                                      | Total                    Current Liabilities | 2,431,701 |   | 3,690,980 |
|                                      |   |   |   |   |   |   |
|                                      | Stockholders'                    equity: |   |   |   |
|                                      |   | Common                    stock, RM1.00 |   |   |   |
|                                      |   | (equivalent                    to USD 0.2632) par value | 1,315,789 |   | 1,315,789 |
|                                      |   | (10,000,000                    shares authorized, |   |   |   |
|                                      |   | 5,000,000                    shares issued and outstanding 2006                    and 2005, respectively) |   |   |   |
|                                      |   |   |   |   |   |   |
|                                      |   | Exchange                    translation reserve | 185,927 |   | 0 |
|                                      |   | Retained                    earnings | 1,409,226 |   | 1,481,204 |
|                                      | Total                    Stockholders' Equity | 2,910,942 |   | 2,796,993 |
|                                      |   |   |   |   |
|                                      |  Total                  Liabilities and Stockholders'                  Equity                                 | 5,342,643 |   | 6,487,973  |
|                                      |   |   |   |   |

----

TABLE            OF CONTENTS

**WELLS            EASTERN ASIA DISPLAYS (M) SDN. BHD.**

|  **Income                Statements** |
|--------------------------------------------|
|                                       |   |   |   |
|                                       |   |   | For                  the Years Ended December 31, |
|                                       |   |   | 2006 |   | 2005 |   | 2004 |
|                                       |   |   | USD |   | USD |   | USD |
|                                       |   |   |   |   |   |   |   |
| REVENUE                                    |   |   |   |   |   |
|                                       | Net                  related party revenue | 6,278,848 |   | 16,549,707 |   | 19,319,539 |
|                                       | Net                  third party revenue | 4,210 |   | 38,697 |   | 503,134 |
|                                       |   |   |   |   |   |   |   |
|                                       | Net                  revenue | 6,283,058 |   | 16,588,404 |   | 19,822,673 |
|                                       |   |   |   |   |   |   |   |
| COST                  OF REVENUE           |   |   |   |   |   |
|                                       | Related                  party cost of revenue | 1,184,812 |   | 8,523,179 |   | 9,408,104 |
|                                       | Third                  party cost of revenue | 4,555,820 |   | 6,698,545 |   | 8,939,091 |
|                                       |   |   |   |   |   |   |   |
|                                       | Cost                  of revenue | 5,740,632 |   | 15,221,724 |   | 18,347,195 |
|                                       |   |   |   |   |   |   |   |
|                                       | Gross                  profit | 542,426 |   | 1,366,680 |   | 1,475,478 |
|                                       |   |   |   |   |   |   |   |
| OPERATING                  EXPENSE         |   |   |   |   |   |
|                                       | Selling,                  general and administrative | 295,556 |   | 566,814 |   | 476,353 |
|                                       | Research                  and development | 0 |   | 165,401 |   | 120,848 |
|                                       |   |   |   |   |   |   |   |
|                                       | Total                  operating expense | 295,556 |   | 732,215 |   | 597,201 |
|                                       |   |   |   |   |   |   |   |
|                                       | Profit                  from operations | 246,870 |   | 634,465 |   | 878,277 |
|                                       |   |   |   |   |   |   |   |
|                                       | Interest                  income | 7,699 |   | 6,481 |   | 3,044 |
|                                       | Interest                  expense | (105,338) |   | (183,644) |   | (95,511) |
|                                       | Other                  income | 49,427 |   | 77,774 |   | 21,348 |
|                                       | Loss                  on foreign exchange | (254,755) |   | 0 |   | 0 |
|                                       |   |   |   |   |   |   |   |
|                                       | (Loss)/Profit                  before income taxes | (56,097) |   | 535,076 |   | 807,158 |
|                                       |   |   |   |   |   |   |   |
|                                       | Tax                  expense | (15,881) |   | (71,978) |   | (90,837) |
|                                       |   |   |   |   |   |   |   |
|                                       | Net                  (loss)/profit | (71,978) |   | 463,098 |   | 716,321 |

----

TABLE            OF CONTENTS

**WELLS            EASTERN ASIA DISPLAYS (M) SDN. BHD.**

|  **Statements                Of Changes in Equity**                        |
|---------------------------------------------------------------------------------|
|                                                                            |   |   |   |   |   |   |   |   |
|                                                                            |   | Common                  Stock |   | Exchange |   |   |   |   |
|                                                                            |   |   |   |   |   | translation |   | Retained |   |   |
|                                                                            |   | Shares |   | Amount |   | reserve |   | earnings |   | Total |
|                                                                            |   |   |   | USD |   | USD |   | USD |   | USD |
|                                                                            |   |   |   |   |   |   |   |   |   |   |
| Balance                  at December 31, 2003                                   | 2,508,000 |   | 660,000 |   | 0 |   | 957,574 |   | 1,617,574 |
|                                                                            |   |   |   |   |   |   |   |   |   |   |
| Net                  profit for the year                                        | 0 |   | 0 |   | 0 |   | 716,321 |   | 716,321 |
|                                                                            |   |   |   |   |   |   |   |   |   |   |
| Issuance                  of bonus stock                                        | 2,492,000 |   | 655,789 |   | 0 |   | (655,789) |   | 0 |
|                                                                            |   |   |   |   |   |   |   |   |   |   |
| Balance                  at December 31, 2004                                   | 5,000,000 |   | 1,315,789 |   | 0 |   | 1,018,106 |   | 2,333,895 |
|                                                                            |   |   |   |   |   |   |   |   |   |   |
| Net                  profit for the year                                        | 0 |   | 0 |   | 0 |   | 463,098 |   | 463,098 |
|                                                                            |   |   |   |   |   |   |   |   |   |   |
| Balance                  at December 31, 2005                                   | 5,000,000 |   | 1,315,789 |   | 0 |   | 1,481,204 |   | 2,796,993 |
|                                                                            |   |   |   |   |   |   |   |   |   |   |
| Exchange                  translation differences recognised directly in equity | 0 |   | 0 |   | 185,927 |   | 0 |   | 185,927 |
|                                                                            |   |   |   |   |   |   |   |   |   |   |
| Net                  loss for the year                                          | 0 |   | 0 |   | 0 |   | (71,978) |   | (71,978) |
|                                                                            |   |   |   |   |   |   |   |   |   |   |
| Total                  recognised income and expenses                           | 0 |   | 0 |   | 185,927 |   | (71,978) |   | 113,949 |
|                                                                            |   |   |   |   |   |   |   |   |   |   |
| Balance                  at December 31, 2006                                   | 5,000,000 |   | 1,315,789 |   | 185,927 |   | 1,409,226 |   | 2,910,942 |

----

TABLE            OF CONTENTS

**WELLS            EASTERN ASIA DISPLAYS (M) SDN. BHD.**

|  **Cash                Flows Statements**                        |
|-----------------------------------------------------------------------|
|                                                                  |   |   |   |
|                                                                  |   |   | For                  the Years Ended December 31, |
|                                                                  |   |   | 2006 |   | 2005 |   | 2004 |
|                                                                  |   |   | USD |   | USD |   | USD |
| CASH                  FLOWS FROM OPERATING ACTIVITIES                 |   |   |   |   |   |
| Net                  (loss)/profit                                    | (71,978) |   | 463,098 |   | 716,321 |
|                                                                  |   |   |   |   |   |   |   |
| Adjustments                  for:-                                    |   |   |   |   |   |
| Depreciation                                                          | 63,628 |   | 78,793 |   | 78,955 |
| Loss                  on sale of property, plant and equipment        | 0 |   | 1,667 |   | 0 |
| Property,                  plant and equipment written-off            | 1,274 |   | 0 |   | 0 |
| Changes                  in net assets and liabilities                |   |   |   |   |   |
|                                                                  | Trade                  accounts receivable | 22,801 |   | 91,791 |   | (114,592) |
|                                                                  | Trade                  accounts receivable - related party | 1,940,093 |   | 3,005,322 |   | (2,813,946) |
|                                                                  | Inventories | 922,324 |   | 361,038 |   | (537,331) |
|                                                                  | Prepaid                  and other current assets | 24,547 |   | (21,673) |   | (7,019) |
|                                                                  | Income                  tax receivable | (37,859) |   | 0 |   | 0 |
|                                                                  | Deferred                  tax assets | 25,618 |   | (25,618) |   | 30,789 |
|                                                                  | Trade                  accounts payable | (82,396) |   | (1,000,515) |   | 661,612 |
|                                                                  | Trade                  accounts payable - related party | (675,653) |   | (1,596,866) |   | 167,471 |
|                                                                  | Accrued                  expenses and others | (467,432) |   | 674,449 |   | 178,554 |
|                                                                  | Income                  taxes payable | (49,495) |   | 37,899 |   | 1,201 |
| Net                  cash from/(used in) operating activities         | 1,615,472 |   | 2,069,385 |   | (1,637,985) |
|                                                                  |   |   |   |   |   |   |   |
| CASH                  FLOWS FROM INVESTING ACTIVITIES                 |   |   |   |   |   |
| Proceeds                  from sale of property, plant and equipment  | 30,835 |   | 5,789 |   | 0 |
| Purchase                  of property, plant and equipment            | (1,644) |   | (15,070) |   | (18,952) |
| Net                  cash from/(used in) investing activities         | 29,191 |   | (9,281) |   | (18,952) |
|                                                                  |   |   |   |   |   |   |   |
| CASH                  FLOW S FROM FINANCING ACTIVITIES                |   |   |   |   |   |
| Increase/(Decrease)                  in bank borrowings               | 15,697 |   | (2,042,864) |   | 1,531,085 |
| Net                  cash from/(used in) financing activities         | 15,697 |   | (2,042,864) |   | 1,531,085 |
|                                                                  |   |   |   |   |   |   |   |
| Net                  increase/(decrease) in cash and cash equivalents | 1,660,360 |   | 17,240 |   | (125,852) |
|                                                                  |   |   |   |   |   |   |   |
| Effect                  of exchange rate changes                      | 169,337 |   | 0 |   | 0 |
|                                                                  |   |   |   |   |   |   |   |
| Cash                  and cash equivalents brought forward            | 285,467 |   | 268,227 |   | 394,079 |
|                                                                  |   |   |   |   |   |   |   |
| Cash                  and cash equivalents carried forward            | 2,115,164 |   | 285,467 |   | 268,227 |
|                                                                  |   |   |   |   |   |   |   |
| **Supplemental                  cash flow information**               |   |   |   |   |   |
| Cash                  paid for interest                               | 105,338 |   | 183,644 |   | 95,511 |
| Cash                  paid for income tax                             | 77,492 |   | 59,697 |   | 58,847 |

----

TABLE            OF CONTENTS

**WELLS              EASTERN ASIA DISPLAYS (M) SDN. BHD.**

**Notes        To The Financial Statements**

**For        The Financial Year Ended December 31, 2006**

**1.**
**General        Information**

**2.**
**Summary        of Significant Accounting Policies**

**2.1**
**Basis        of Preparation of Financial Statements**

**2.2            **
**Property,            Plant and Equipment**

| Plant                  and machinery                    | 10-20% |
|---------------------------------------------------------|--------|
| Electrical                  installation and renovation | 10%    |
| Motor                  vehicles                         | 20%    |
| Office                  equipment                       | 20%    |
| Furniture                  and fittings                 | 10%    |
| Computer                                                | 10-20% |
| Factory                  tools and equipment            | 20%    |
| Mould                                                   | 10%    |

----

TABLE            OF CONTENTS

**WELLS            EASTERN ASIA DISPLAYS (M) SDN. BHD.**

**Notes        To The Financial Statements**

**For        The Financial Year Ended December 31, 2006**

**2.**
**Significant        Accounting Policies (**
**cont’d**
**)**

**2.3**
**Impairment        of Assets**

**2.4**
**Inventories**

**2.5**
**Receivables**

**2.6**
**Payables**

**2.7**
**Loans        and Borrowings**

----

TABLE            OF CONTENTS

**WELLS            EASTERN ASIA DISPLAYS (M) SDN. BHD.**

**Notes        To The Financial Statements**

**For        The Financial Year Ended December 31, 2006**

**2.**
**Significant        Accounting Policies (**
**cont’d**
**)**

**2.8**
**Provisions**

**2.9**
**Foreign        Currency Transactions and Translation**

**2.10**
**Share        Capital**

**2.11**
**Income        Recognition**

**2.12**
**Income        Taxes**

----

TABLE            OF CONTENTS

**WELLS            EASTERN ASIA DISPLAYS (M) SDN. BHD.**

**Notes        To The Financial Statements**

**For        The Financial Year Ended December 31, 2006**

**2.**
**Significant        Accounting Policies (**
**cont’d**
**)**

**2.12**
**Income        Taxes (cont’d)**

** **

**2.13**
**Research        and Development Expenditure**

**2.14**
**Employee        Benefits**

**Short-term        Employee Benefits**

**Defined        Contribution Plans**

**2.15**
**Cash        and Cash Equivalents**

----

TABLE            OF CONTENTS

**WELLS            EASTERN ASIA DISPLAYS (M) SDN. BHD.**

**Notes        To The Financial Statements**

**For        The Financial Year Ended December 31, 2006**

**2.**
**Significant        Accounting Policies (**
**cont’d**
**)**

**2.16**
**Financial        Instruments**

**Recognised        and Unrecognised**

**Fair        Values**

**2.17**
**Estimates**

**3.**
**Financial        Risk Management**

**Currency        Risk**

----

TABLE            OF CONTENTS

**WELLS            EASTERN ASIA DISPLAYS (M) SDN. BHD.**

**Notes        To The Financial Statements**

**For        The Financial Year Ended December 31, 2006**

**3.**
**Financial        Risk Management **
**(cont’d)**

**Interest        Rate Risk**

**Credit        Risk**

**Liquidity        and Cash Flow Risks**

**4.**
**Property        and Equipment**

|                                                                    | 2006      |   | 2005      |
|-------------------------------------------------------------------------|-----------|--------|-----------|
|                                                                    | USD       |   | USD       |
|                                                                    |      |   |      |
| Plant                  and machinery, factory tools and equipment       | 572,565   |   | 570,837   |
| Electrical                  installation and renovation                 | 15,013    |   | 13,952    |
| Motor                  vehicles                                         | 14,974    |   | 13,916    |
| Office                  equipment, furniture and fittings and computers | 34,553    |   | 44,776    |
|                                                                    |      |   |      |
| Total                                                                   | 637,105   |   | 643,481   |
| Less                  : Accumulated depreciation                        | (452,185) |   | (381,058) |
|                                                                    |      |   |      |
| Property                  and equipment, net                            | 184,920   |   | 262,423   |

----

TABLE            OF CONTENTS

**WELLS            EASTERN ASIA DISPLAYS (M) SDN. BHD.**

**Notes        To The Financial Statements**

**For        The Financial Year Ended December 31, 2006**

**5.**
**Inventories**

|                                            | 2006     |   | 2005                                                      |
|-------------------------------------------------|----------|--------|-----------------------------------------------------------|
|                                            | USD      |   | USD                                                       |
|                                            |     |   |                                                      |
| Raw                  materials                  | 586,548  |   |         1,417,906 |
| Work-in-progress                                | 163,548  |   | 157,848                                                   |
| Finished                  goods                 | 22,661   |   | 124,734                                                   |
| Goods-in-transit                                | 1,133    |   | 0                                                         |
|                                            |     |   |                                                      |
| Total                                           | 773,890  |   | 1,700,488                                                 |
| Inventory                  obsolescence reserve | (46,148) |   | (50,422)                                                  |
|                                            |     |   |                                                      |
|                                            | 727,742  |   | 1,650,066                                                 |

**6.**
**Prepaid        and Other Current Assets**

|                                  | 2006   |   | 2005   |
|---------------------------------------|--------|--------|--------|
|                                  | USD    |   | USD    |
|                                  |   |   |   |
| Sundry                  deposits      | 953    |   | 361    |
| Advance                  to suppliers | 974    |   | 34,624 |
| Prepaid                  expenses     | 15,481 |   | 7,629  |
| Other                                 | 1,057  |   | 398    |
|                                  |   |   |   |
| Total                                 | 18,465 |   | 43,012 |

**7.**
**Accrued        Expenses and Other**

|                               | 2006    |   | 2005    |
|------------------------------------|---------|--------|---------|
|                               | USD     |   | USD     |
|                               |    |   |    |
| Accrued                  expenses  | 47,981  |   | 4,762   |
| Employee                  payables | 0       |   | 73,824  |
| Other                  payables    | 52,346  |   | 139,466 |
| Provisions                         | 88,377  |   | 74,563  |
|                               |    |   |    |
| Total                              | 188,704 |   | 292,615 |

----

TABLE            OF CONTENTS

**WELLS            EASTERN ASIA DISPLAYS (M) SDN. BHD.**

**Notes        To The Financial Statements**

**For        The Financial Year Ended December 31, 2006**

**8.**
**Bank        Borrowings - Secured**

|                                          | 2006      |   | 2005      |
|-----------------------------------------------|-----------|--------|-----------|
|                                          | USD       |   | USD       |
|                                          |      |   |      |
| Banker                  acceptance I          | 434,376   |   | 239,683   |
| Banker                  acceptance II         | 0         |   | 352,381   |
| Banker                  acceptance III        | 0         |   | 401,852   |
| Banker                  acceptance IV         | 81,269    |   | 47,355    |
| Export                  credit refinancing I  | 379,442   |   | 160,317   |
| Export                  credit refinancing II | 482,515   |   | 160,317   |
|                                          | 1,377,602 |   | 1,361,905 |

| Facility                                      | Bank                                    | Maturity                               | Interest                       |
|-----------------------------------------------|-----------------------------------------|----------------------------------------|--------------------------------|
|                                          |                                    |                                   |                           |
| Banker                  acceptance I          | Affin                  Bank Berhad      | January                  - April 2007  | 3.75%                  - 3.80% |
|                                          |                                    |                                   |                           |
| Banker                  acceptance IV         | Malayan                  Banking Berhad | January                  2007          | 3.47%                          |
|                                          |                                    |                                   |                           |
| Export                  Credit Refinancing I  | Malayan                  Banking Berhad | January                  - April 2007  | 4.25%                          |
|                                          |                                    |                                   |                           |
| Export                  Credit Refinancing II | Southern                  Bank Berhad   | February                  - March 2007 | 4.25%                          |

**9.**
**Tax        Expense**

|                                                      | 2006     |   | 2005     |   | 2004   |
|-----------------------------------------------------------|----------|--------|----------|--------|--------|
|                                                      | USD      |   | USD      |   | USD    |
| Tax                  based on results for the year:       |     |   |     |   |   |
| Malaysian                  income tax                     | 1,379    |   | 97,596   |   | 60,281 |
| Deferred                  tax                             | 0        |   | (25,367) |   | 30,789 |
|                                                      | 1,379    |   | 72,229   |   | 91,070 |
| Tax                  (over)/underprovided in prior year:- |     |   |     |   |   |
| Malaysian                  income tax                     | (12,132) |   | 0        |   | (233)  |
| Deferred                  tax                             | 26,634   |   | (251)    |   | 0      |
|                                                      | 15,881   |   | 71,978   |   | 90,837 |

----

TABLE            OF CONTENTS

**WELLS            EASTERN ASIA DISPLAYS (M) SDN. BHD.**

**Notes        To The Financial Statements**

**For        The Financial Year Ended December 31, 2006**

**9.**
**Tax        Expense**
**        (cont’d)**

|                                                       | 2006    |   | 2005    |   | 2004    |
|------------------------------------------------------------|---------|--------|---------|--------|---------|
|                                                       | %       |   | %       |   | %       |
|                                                       |    |   |    |   |    |
|  Applicable                tax rate                   | (28.00) |   | 28.00   |   | 28.00   |
|  Non-deductible                expenses               | 8.77    |   | 1.75    |   | 0.46    |
|  Tax                exempt income from pioneer status | 0.00    |   | (15.88) |   | (17.18) |
|  Unrecognised                in deferred tax assets   | 21.57   |   | 0.00    |   | 0.00    |
|  Average                effective tax rate            | 2.34    |   | 13.87   |   | 11.28   |

**10.**
**Deferred        Tax Assets**

|                                                                                                                                                                                  | 2006     |   | 2005     |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------|--------|----------|
|                                                                                                                                                                                  | USD      |   | USD      |
|                                                                                                                                                                                  |     |   |     |
| Balance                  at 1 January                                                                                                                                                 | 25,618   |   | 0        |
| Deferred                  tax relating to origination and reversal of temporary                  differences                                                                          | 0        |   | 25,367   |
| Deferred                  tax - prior year                                                                                                                                            | (25,618) |   | 251      |
| Balance                  at 31 December                                                                                                                                               | 0        |   | 25,618   |
|                                                                                                                                                                                  |
| The                  deferred tax assets are in respect of the deductible/(taxable)                  temporary                  differences at December 31, 2006 and 2005 as follows: |
|                                                                                                                                                                                  | 2006     |   | 2005     |
|                                                                                                                                                                                  | USD      |   | USD      |
|                                                                                                                                                                                  |     |   |     |
| Basis                  difference in property and equipment                                                                                                                           | 0        |   | (35,710) |
| Inventory                  obsolescence reserve                                                                                                                                       | 0        |   | 14,193   |
| Accrued                  expenses and other                                                                                                                                           | 0        |   | 47,135   |
|                                                                                                                                                                                  | 0        |   | 25,618   |

----

TABLE            OF CONTENTS

**WELLS            EASTERN ASIA DISPLAYS (M) SDN. BHD.**

**Notes        To The Financial Statements**

**For        The Financial Year Ended December 31, 2006**

**11.**
**Significant        Transactions With Related Parties**

|                                                                                                 | 2006USD   |   | 2005USD    |   | 2004USD    |
|------------------------------------------------------------------------------------------------------|-----------|--------|------------|--------|------------|
| Sale                  of goods to Wells-Gardner Electronics Corporation *                            | 6,278,848 |   | 16,549,707 |   | 19,319,539 |
| Purchase                  of goods from Wells-Gardner Electronics Corporation *                      | 765,240   |   | 4,481,625  |   | 4,365,523  |
| Management                  fee charged by Eastech Electronics (M) Sdn. Bhd. **                      | 63,468    |   | 132,740    |   | 149,114    |
| Purchase                  of goods from Eastech Electronics (M) Sdn. Bhd. **                         | 419,572   |   | 4,041,554  |   | 5,042,581  |
| Rental                  of premises charged by Eastech Electronics (M) Sdn. Bhd.                  ** | 53,337    |   | 51,340     |   | 51,340     |

*A        substantial shareholder which holds 50% of the equity interest in the        Company.*

*A        substantial shareholder which holds 50% of the equity interest in the        Company.*

**12.**
**Significant        Development**

----

TABLE            OF CONTENTS