Announces Investment in Vertical Integration of FPC Business

VANCOUVER, CANADA -- April 3, 2006 -- Nam Tai Electronics, Inc. (“Nam Tai” or the “Company”) (NYSE Symbol: NTE) today announced its expansion plan for the vertical integration of its flexible printed circuit (“FPC”) business by moving upstream to commence FPC unit manufacturing.

In order to support its existing fast-growing FPC subassembly business, Nam Tai has recently started to make investments in FPC unit manufacturing after obtaining the local PRC government’s approval over environmental regulations. FPC unit manufacturing involves the etching of a copper printed circuit onto a flexible plastic film and assisting customers in the design of the circuit layout. The first phase of investment for this project amounts to approximately $30 million, which includes the acquisition of machinery, building of new production lines, consultancy fee, administration fee and other miscellaneous expenses.

Backed by technical support from its existing FPC subassembly customers and Japanese technical consultants, Nam Tai believes that it will be able to attain the requisite FPC manufacturing know-how in a timely manner. It is expected that the trial production of FPC unit manufacturing will commence at the end of the third quarter of 2006.

The Company is pleased to announce its latest strategic move into the niche FPC industry by enhancing the vertical integration of its FPC business, which the Company believes possesses enormous business potential. As the application of FPC is very extensive, it can be used in compact consumer electronic products such as cellular phones, digital cameras, infotainment products, gaming devices and other handheld telecommunication devices. With the combination of its existing FPC subassembly capability and FPC unit manufacturing, the Company believes that it will be able to assist customers to respond quickly to market changes. In addition, this vertical integration will give Nam Tai and its customers synergy benefits by reducing transportation and packaging costs, minimizing wastage, avoiding other logistics delays and shortening lead-time. As a result, the Company believes that this vertical integration will not only increase its profitability, but will also strengthen its competitiveness by forming a “chain store” that enables the Company to better provide integrated and quality services to customers.

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, DAB modules, FPC sub-assemblies and image sensors modules and PCBA for BluetoothTM headsets. These components are used in numerous electronic products, including cellular phones, laptop computers, digital cameras, electronic toys, handheld video game devices, entertainment devices and microwave ovens. We also manufacture finished products, including cellular phones in semi-knocked down, or SKD, form, mobile phone accessories and educational products.

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.