AZTECH AND TELEKOM R&D SIGN MOU FOR JOINT RESEARCH & DEVELOPMENT

Singapore, 19 June 2007 Singapore Stock Exchange Main Board Listed Aztech Systems Ltd ("Aztech"), a data and voice communications solutions provider announce today at CommunicAsia 2007 that it signed a Memorandum of Understanding (MOU) with Telekom Research & Development SDN BHD ("TMR&D"), a wholly owned subsidiary of Telekom Malaysia Berhad. Under the 5-year MOU, Aztech and TMR&D will work jointly to promote research & development, and collaboration activities through cooperative research, research contracts, training and industrial attachment, and consultancy.

Through this synergy, Aztech and TMR&D will conduct joint research & development in the area of Fiber To The Home Gateway, IPTV set-top box, and HomePlug Powerline products. Both companies will also dwell into the utilization and expansion of research facilities for Standard and Compliance Acceptance Tests. Thereafter, jointly promote and commercialize its joint R&D
products in Asia.

This alliance will combine the technical and marketing capabilities of both companies and
leverage off each other's core competencies. Aztech Systems capabilities in the areas of
broadband modems/routers and HomePlugs Powerline solutions will offer suitable solutions to TMR&D's technological focus and business requirements. The collaboration is also forged from the result of Aztech's brand reliability since establishing itself in Malaysia sixteen years ago, coupled with ongoing business relationships with Telekom Malaysia.

"Aztech's strength in its household brand name, product design and manufacturing capabilities positions this alliance to offer a wider range of products and solutions to the market." Said Aztech CEO and Chairman, Michael Mun.

Dr Shahruddin Muslimin, Chief Executive Officer of TMR&D added "This collaboration with Aztech will bring mutual benefits to both parties. Through this joint collaboration, TMR&D envisages being
the leading R&D organization and a recognized technology company in the region, and expects to speed up the process of commercializing its products and solutions while focusing on research and development efforts. For TMR&D, we are excited about this tie-up as it will harness our
commercialization capabilities in order to shorten the time to market of our products and solutions."

In 2005, Aztech was voted one of the top two brands in Malaysia for wireless products by readers of two leading IT magazines, Hardware Magazine and PC3. The brand was also voted Number 1 in Wireless Networking in Malaysia, according to a survey conducted by IDC for 3Q2005.

TMR&D on the other hand, has won several accolades in the past for it efforts. This year for examples its distributed access device platform was awarded The Most Innovative Award at the Invention, Innovation, and Technology Exhibition (ITEX 2007) held in Kuala Lumpur in May 2007.
The product also received a Gold Award under the communication section at the same event.

About Aztech Systems Ltd. ("Aztech")

Incorporated in 1986, and listed on the Main board of the Singapore Stock Exchange, Aztech Systems Ltd specializes in the design and manufacturing of voice and data communications solutions. Headquartered in Singapore, Aztech today has over 2,500 employees worldwide with strong R&D, design and manufacturing capabilities. Supported by its six sales offices in Singapore, Hong Kong, China, USA, Germany and Malaysia, the Company provides OEM/ODM, contract manufacturing and retail distribution business.

About Telekom Research & Development Sdn Bhd ("TMR&D")

Telekom Research & Development, a wholly owned subsidiary of TM, began its operation on 1st January 2001. It is at the forefront for research and development activities in TM. The company plays a leading role for new network and leading edge technologies through designing, and fabrication for telecommunications industries. The company's R&D activity covers the area of Basic Research, Applied Research and Experimental Development in Photonics, Microelectronics, Access and Core Network Technology, Software Applications and Multimedia and also Support System. For more information about TMR&D please visit their website at http://www.tmrnd.com.my