Meets Challenge of SOX 404 Audit of Internal Controls Early, Announces Release Date for First Quarter Financial Results

VANCOUVER, CANADA -- April 4, 2007 -- Nam Tai Electronics, Inc. (“Nam Tai” or the “Company”) (NYSE Symbol: NTE) today announced that in filing its annual report with the US Securities and Exchange Commission (“SEC”) for its fiscal year ended December 31, 2006, it has met a key requirement of the Sarbanes-Oxley Act of 2002 (“SOX”) earlier than mandated by current rules of the SEC. This requirement, imposed under Section 404(b) of SOX, compels the vast majority of companies having securities publicly traded in the United States to obtain from, and include in their annual reports filed with the SEC, their independent auditors’ attestation relating to the assessment of the company’s internal controls over financial reporting provided by the company’s management. Under Nam Tai’s SEC-filer classification as an “accelerated filer” under the SEC’s rules, Nam Tai was not required by current SEC rules to obtain and include in its annual report its independent auditor’s attestation on Nam Tai’s internal controls over financial reporting until the Company’s fiscal year ending December 31, 2007. However, Nam Tai met the challenges entailed in order to receive such attestation early by engaging its independent registered public accounting firm to conduct an audit of its internal controls over financial reporting as of December 31, 2006 and including its auditor’s resulting attestation report on management’s assessment of the Company’s internal controls over financial reporting in its 2006 annual report filed with the SEC on March 19, 2007.

 

The Sarbanes-Oxley Act of 2002, also known as the Public Company Accounting Reform and Investor Protection Act of 2002, and commonly called SOX or Sarbox, is a United States federal law passed in response to a number of major corporate and accounting scandals that came to light early in the new millennium, including those affecting Enron, Tyco International and Peregrine Systems. These scandals resulted in a decline of public trust in accounting and reporting practices. The legislation is wide ranging and establishes new or enhanced standards for all U.S. public company boards, management, and public accounting firms. The Act contains 11 titles, or sections, ranging from additional Corporate Board responsibilities to criminal penalties, and requires the SEC to implement requirements to comply with the new law.

 

One of the sections of SOX that the SEC is to implement is Section 404. Section 404(a) of SOX requires that each public company required to file reports with the SEC has its annual report contain an internal control report stating the responsibility of management for establishing and maintaining an adequate internal control structure and procedures for financial reporting, and containing an assessment of the effectiveness of the internal control structure and procedures of the SEC filer for financial reporting. In addition, Section 404(b) requires the inclusion in the annual report of a related attestation from the public company’s independent auditors.

 

The annual report for 2006 fiscal years is the first annual report in which the majority of foreign companies having securities traded in the United States (called “foreign private issuers” by the US securities laws) must comply with the disclosure requirements of Section 404(a). Foreign private issuers that are in Nam Tai’s accelerated-filer category or larger are required to include their management's report on internal control in their 2006 annual reports. Although the SEC initially imposed a similar timetable for foreign private issuers in Nam Tai’s SEC filers with respect to the Section 404(b) independent auditor attestation requirement, in August 2006 the SEC extended the deadline for foreign private issuers that, like Nam Tai, are so-called “accelerated filers” under the SEC’s rules, to include the independent auditor's attestation in annual reports for fiscal years ending on or after July 15, 2007. This meant in Nam Tai’s case that its fiscal year ending December 31, 2007 would be the first year that Nam Tai would be required to include in its annual report, to be filed in 2008, its independent auditor’s attestation on the assessment by Nam Tai’s management on the Company’s internal control over financial reporting.

 

Although qualifying for the extension, when it was announced officially in August 2006 Nam Tai was already at such an advanced stage of preparation for compliance with the internal control reporting requirements, including the audit report requirement, that it chose to include both the management assessment and auditor attestation reports on internal control in its annual report for its fiscal year ended December 31, 2006.

First Quarter Results and Analyst Conference Call

Nam Tai will release its unaudited first quarter results for the period ended March 31, 2007 on Monday, April 30, 2007 at 7:00 a.m. Eastern Time.

 

Nam Tai will hold a conference call on Monday, April 30, 2007 at 8:00 a.m. Eastern Time for analysts to discuss the first quarter 2007 results with management. Shareholders, media, and interested investors are invited to listen to the live conference over the internet by going to www.namtai.com and clicking on the conference call link (under events) or over the phone by dialing (612) 332-0718 just prior to its start time. Analysts who wish to receive the toll free dial-in number for this conference call are invited to contact the investor relations office at 1-800-661-8831 no later than 5:00 pm. Eastern Time on Friday, April 27, 2007. Users will be asked to register with the conference call operator.

Annual Meeting of Shareholder

The Company will hold its Annual Meeting of Shareholders at 11:30 a.m. (ET) on Friday, June 8, 2007 at The Peninsula New York, Tribeca Room, 3rd Floor, 700 Fifth Avenue at 55th St, New York, NY. The record date for voting is April 25, 2007.

Dividend Reminder

The record date for the first quarter dividend of $0.21 per share is March 31, 2007 and the payment date is on or before April 21, 2007.

 

About Nam Tai Electronics, Inc.

 

We are an electronics manufacturing and design services provider to a select group of the world’s leading OEMs of telecommunications and consumer electronic products. Through our electronics manufacturing services operations, we manufacture electronic components and subassemblies, including LCD panels, LCD modules, RF modules, DAB modules, FPC subassemblies and image sensors modules and PCBAs for headsets containing Bluetooth wireless technology. These components are used in numerous electronic products, including mobile phones, laptop computers, digital cameras, electronic toys, handheld video game devices, and entertainment devices. We also manufacture finished products, including mobile phone accessories, home entertainment products and educational products. We assist our OEM customers in the design and development of their products and furnish full turnkey manufacturing services that utilize advanced manufacturing processes and production technologies.

Nam Tai has two Hong Kong listed subsidiaries, Nam Tai Electronic & Electrical Products Limited (“NTEEP”) and J.I.C. Technology Company Limited (“JIC”). Interested investors may go to the website of The Stock Exchange of Hong Kong at www.hkex.com.hk to obtain the information. The stock codes of NTEEP and JIC in The Stock Exchange of Hong Kong are 2633 and 987, respectively. Investors are reminded to exercise caution when assessing such information and not to deal with the shares of the Company based solely on such information.