Chairman's Statement

Extracted from Annual Report 2007

Dear Valued Shareholders,
On behalf of the Board of Directors of Dreamgate Corporation Bhd. ("DCB"), it gives me great pleasure to present to you the Annual Report and Financial Statements of your Company and the Group for the financial year ended 31 December 2007.

Financial Highlghts

The Group continues to achieve strong growth in revenue and profits in the year ended 31 December 2007, as follows:

• Group revenue increased by 28% from RM215.38 million to RM276.31 million
• Profit before tax amounted to RM39.29 million, an 18% improvement over RM33.28 million achieved in the previous year
• Net profit increased by 22% from RM31.47 million last year to RM38.30 million in financial year 2007
• Earnings per share rose by 19% from 3.73 sen last year to 4.43 sen this year

Dividend

After due consideration of the financial position of the Group and future growth plans, the Board is recommending the payment of a first and final dividend, in respect of the fiscal year ended 31 December 2007, of 0.68 sen per ordinary share of 10 sen each which consists of 0.50 sen less 26% income tax and 0.18 sen tax exempt dividend.

Awards And Achievements

During the year, the Company was awarded the No. 2 position for the “KPMG/The Edge Shareholder Value Awards 2006 – Leisure Sector”. This is a testimony to our commitment to create value for shareholders.

The Company was also the recipient of the Platinum Award under 1st Top 50 Enterprise Awards Malaysia 2007 organised by the Young Entrepreneurs' Association of Malaysia. The award was given in recognition of the Group's outstanding achievements and exponential growth and contributions to the economy.

Corporate Development

On the corporate front, the year under review has indeed been eventful.

The Company obtained the approval of the Securities Commission to issue Commercial Papers and or Medium Term (“CP/MTN”) Notes of up to RM200 million. It also increased its paid up share capital by 579,905,200 shares of 10 sen each by way of an issue of 2 bonus shares for every 1 share. As at 31 December 2007, the paid up share capital of the Company was RM87,164,660 comprising 871,646,600 shares of 10 sen each.

Subsequent to the year end, the listing of the Company's shares was transferred from the MESDAQ Market to the Main Board of the Bursa Malaysia Securities Berhad on 31 January 2008. This marks a significant milestone for the Group on its journey to be a significant player in the gaming and leisure industry in the region.

Relevant information on other key developments is highlighted under “Review of Operations” and “Calendar of Events 2007” in this Annual Report.

Industry Trends And Development Prospects

The Asian gaming and leisure industry is expected to continue to attract significant investments particularly in Macau, Singapore and Philippines for ongoing and planned projects in the next few years. It is also very likely that there will be further liberalization of the gaming industry in other countries in the region in the near future.

In view of the foregoing, the Board is confident that the Group will continue to record positive results in the financial year ending 31 December 2008.

Technological advances in gaming hardware and software continues and the Group will ensure that adequate resources are made available to support research and development efforts.

Although the Group now has strong presence in several countries in the region, it will need to remain very focused and disciplined to ensure that it stays one step ahead of the competition. At the same time, the Group's success as a trusted partner and leader in technical support and management services has attracted requests for it to participate in many ventures including related hospitality projects. The Board will rigorously scrutinize and vet all new investment potentials in gaming and leisure industries and if viable, develop these ventures for future growth. Many of the Group's investments in the past year are now coming on-stream and are expected to contribute to the Group's growth.

Appreciation

Our success to-date has been made possible only through the sustained efforts and dedication of all the executives and staff of the Group and to them I extend the Board's gratitude and appreciation.

On behalf of the Board, I wish to thank our shareholders, customers, business partners, bankers and the authorities for their continued strong support, trust and confidence in us. I would also like to thank personally my fellow Board members for their invaluable advice and support.

Finally, I wish to place on record our appreciation to Mr. Chng Hee Kok, our Independent Non-Executive Director, who resigned on 30 July 2007, for his contribution to the Company during his tenure of service.

Mr. Ooi Teng Chew
Independent Non-Executive Chairman
22 April 2008
Penang

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