VANCOUVER, CANADA -- March 27, 2006 -- Nam Tai Electronics, Inc. (“Nam Tai” or the “Company”) (NYSE Symbol: NTE) today provided an update on its acquisition of approximately 1.3 million square feet of land for future expansion.
The Company has recently entered into an official agreement with the Guangming Hi-Tech Industrial Park (“Industrial Park”), Shenzhen, PRC, for purchasing the new piece of land which is more than double the size of the land of the existing facilities. Completion of the land transfer is expected to be on or before the autumn of 2006.
In accordance with the original time table, the Company will commence its construction of new manufacturing facilities on the site by the end of 2006. It is expected that the first phase of construction will be completed in the summer of 2008 and the second phase of construction will be completed in the summer of 2010. The projected capital expenditures for the first phase of investment are over $150 million, including construction of the new facility as well as the purchase of machinery and productions lines.
“We are very excited to see that our factory expansion plan is on schedule. We believe the addition of these manufacturing facilities will be able to meet the Company’s growth needs until 2015,” said Mr. M.K. Koo, Chairman of Nam Tai. “This new project marks a key milestone in our future expansion, which also shows our long-term commitment to keep abreast of the rapid growth in the high-end electronic industry. Most importantly, it is in line with our business growth strategy to strengthen the Company’s prospects and generate even better long-term returns to our shareholders.”
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.