On behalf of the Board of Directors of Crescendo Corporation Berhad, I am pleased to present to you the Annual Report and Audited Financial Statements for the financial year ended 31 January 2005.

DIVIDEND
The Board is pleased to recommend for the financial year ended 31 January 2005 a final dividen of 4.0 sen per share, less 28% tax (2004: 3.5 sen per share, less 28% tax), making a total dividen of 7 sen per share, less 28% tax (2004: 6 sen per share, less 28% tax).

CORPORATE DEVELOPMENTS

1. At an extraordinary General Meeting ("EGM") held on 6 January 2005, the shareholders of the comapny approved the acquisitions by Panoramic Industrial Developement Sdn Bhd ("PID"), a wholly owned subsidiary of the company, up to 341.8827 acres of land pursuant to a conditional Development Agreement and option to Purchase Agreement with Bandar Nusajaya Development Sdn Bhd ("BNDSB) (formerly known as Prolink Development Sdn Bhd), a wholly owned subsidiary of UEM World Berhad. The said land will be developed into an industrial park known as Nusa Cemerlang Industrial Park.
   
   The acquisitions are in line with the Group's expansion plan for its core business activity of property developement. The proposed Nusa Cemerlang Industrial Park will be developed from financial year 2006 onwards and is expected to contribute positively to the medium and long term profitability of the Group.
   
   Both the Developement Agreement and option to Purchase Agreement will become unconditional upon fulfillment of all Conditions Precedent.

2. On 24 March 2005 PID further entered into a conditional Sale and Purchase Agreement with BNDSB to acquire 40.61 acres of land adjacent to Nusa Cemerlang from 341.8827 acres to 382.4927 acres.
   
   Currently the completion of the Sale and Purchase Agreement is pending the fulfillment of Conditions Precendent.
   

REVIEW OF BUSINESS ACTIVITIES

Industrial Property Development

The industrial property operation has recorded revenue of RM46.1 million in the financial year under review as compared to RM26.1 million in the previous financial year. This represents 76.6% increase in revenue of RM20.0 million arising mainly from the sales of detached factories.

Industrial property operation is expected to remain as an important segment to the Group in the financial year 2006.

Residential And Commercial Development

The residential property operation recorded revenue of RM11.0 million in the financial year under review as compared to RM13.3 million in the previous financial year. This represents a decrease in revenue of RM2.3 million. The decrease in revenue is mainly due to the lower volume of sales.

The profit margin for the residential property sector improved from 13.5% in the financial year 2004 to 14.5% in the financial year 2005 due to higher sales of residential and commercial properties with higher profit margin.

We expect the residential and commercial development operation to perform better in the financial year 2006 and will become the main contributor to the Group's profit.

Construction

The construction operation recorded a decrease in PBT from RM2.9 million in the financial year 2004 to RM3.6 million in the financial year 2005.

The lower PBT margin for construction operations is due to lower sales and higher overhead costs.

The Group is actively sourcing for new contracts.

Manufacture of Concrete Products

The manufacture of concrete products operation recorded revenue of RM17.9 million in the financial year under review as compared to RM6.5 million in the previous financial year. This represents an increase in revenue of RM11.4 million or 175.4%. The increase in revenue is mainly due to the higher demand of culvert pipes and ready-mixed concrete products.

We expect the manufacture of concrete products operation to perform better with the activation of the proposed Taman Cemerlang Utama and Nusa Cemerlang Industrial Park project.

DEVELOPMENT PROSPECTS

Despite the slow down in the economy, the property market looks promising due to the low interest rate regimes and ample liquidity in the banking system which provides property buyers easy access to affordable financing. Furthermore Johor Bahru is also expected to benefit from the spill over effect from the recently awarded Integrated Resort projects in Singapore. Based on the above, we expect the property and construction sector to benefit therefrom and its performance improved.

For the financial year 2006, the Group will be constructing double storey terrace houses in Desa Cemerlang and semi-detached factories in Taman Perindustrian Cemerlang. The completion of the interchange at Desa Cemerlang will further enchance the attractivess of the already of the already well accepted residential garden and industrial park.

In the medium to long term, the Group will develop the newly acquired landbank, the proposed Taman Cemerlang Utama, which is expected to generate a strong cash inflow for the next 12 to 15 years. The Group expects to launch affordable double storey link houses in the initial phases.

Taman Dato' Chellam, a mixed development project under a joint venture with Chellam Investments Sdn Bhd which is ready for immediate developement, is expected to enchance the Group's earning capacity.

The Group expects to have good demand from both local and foreign investors as well as industrialists for the soon to be developed Nusa Cemerlang Industrial Park. This new development project is strategically located close to Port of Tanjung Pelepas with exposure and access from Linkedua Expressway and network of major highways linking Johor Bahru, Pasir Gudang and Senai Airport. Foreign investors and industrialist, especially those from Singapore,will be interested in investing in the industrial properties of this project as a result of the increasing attractiveness of Malaysia as a destination for foreign direct investment. This project is expected to contribute positively to medium and long term profitability of the Group.

As competition gets tougher, the challenge for the industry will be to manage the escalating cost of building materials and shortage of selected materials in order to maintain the cost efficiency of existing and future projects. To minimize the reliance on foreign labour and in line with the Group's objective to make the construction operation more cost effective, mechanisation using system formworks and precast technology are being investigated by its construction arm.

Based on the above factors and barring any unforeseen circumstances, the Board expects the Group's performance to be satisfactory for the financial year ending 31 January 2006.

APPRECIATION

On behalf of the Board, I wish to express my appreciation to the Management and Staff for their loyal and dedicated service and to various government authorities and agencies, bankers, customers and business associates for their co-operation and continued support.

Finally, I wish to thank my fellow Board members for their support and the shareholders for their confidence in the Board and Management of the Group.

Datuk Haji Mohd. Zamani Bin Samah
Chairman
Johor Bahru, Johor

28 June 2005