Increases Production Capacity of LCD Modules for Cordless Phones

VANCOUVER, CANADA -- June 5, 2006 -- Nam Tai Electronics, Inc. (“Nam Tai” or the “Company”) (NYSE Symbol: NTE) announced that it has increased the production capacity of LCD modules for cordless phones by 25% to cope with increasing customer orders and demand in its high-tech key component sub-assemblies business.

In addition to LCD modules for cellular phones, the Company is very pleased to see the strong demand for LCD modules for cordless phones. There has been an increase in the applications of LCD modules for devices like cordless phones, MP3 players, medical and industrial devices, electronic instruments and car audio equipment, and Nam Tai believes it is well-equipped to capture these additional business opportunities to sustain the continuous growth of its key component sub-assemblies business.

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 sub-assemblies, including LCD panels, LCD modules, RF modules, FPC sub-assemblies and image sensors modules. These components are used in numerous electronic products, including cellular phones, laptop computers, digital cameras, copiers, fax machines, electronic toys, handheld video game devices and microwave ovens. We also manufacture finished products, including cellular phones, palm-sized PCs, personal digital assistants, electronic dictionaries, calculators, digital camera accessories and BluetoothTM wireless headset accessory for use with cellular phones.

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 upon reliance on such information.