## Internal Control over Financial Reporting 

For the period ended June 30, 2010 

Internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements in accordance with Canadian GAAP. Management is responsible for establishing and maintaining adequate internal controls over financial reporting for the Company. 

The Company’s management, including the CEO and CFO, has evaluated the effectiveness of the internal controls over financial reporting. Based on this evaluation, management has concluded that internal controls over financial reporting were designed effectively as of June 30, 2010. 

As a result of this review it was determined that there were no changes in internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, the internal controls over financial reporting, except the internal control has been extended to include the subsidiaries located in Malaysia. During the second quarter of fiscal 2010, the assessment indentified the following material weakness: 

• The Company’s policies and procedures relating to the inventory control process at one of the Company’s operating subsidiaries were not followed. This did not have a material impact on the financial reporting. 

During the current period, the Company has re-designed the inventory control process and extensive training and monitoring have been performed to ensure adequate control procedures over timely inventory recording and counting are followed by operating subsidiaries. 

While the Company’s CEO and CFO believe that the Company’s internal controls over financial reporting provide a reasonable level of assurance that they are effective, they do not expect that the Company’s disclosure controls and procedures or internal control over financial reporting will prevent all errors and fraud. A control system, no matter how well conceived or operated, can only provide reasonable, not absolute, assurance that the objectives of the control system are met. 

