VANCOUVER, CANADA -- March 20, 2006 -- Nam Tai Electronics, Inc. (“Nam Tai” or the “Company”) (NYSE Symbol: NTE) announced that it has raised the production capacity of its Surface Mount Technology (“SMT”) production lines to cope with its further expansion of its high-tech and fast-growing key component sub-assemblies business.
To respond to increasing customer orders for key components sub-assemblies, Nam Tai has further invested approximately $3.4 million to equip three additional SMT production lines. The production capacity of SMT has increased from 910,000,000 resistor capacitor chips per month to 1,055,000,000 resistor capacitor chips per month.
“We are very pleased to see increasing demand of the high-tech key component sub-assemblies of telecommunication products, which is currently our main focus,” said Mr. M.K. Koo, Chairman of Nam Tai. “With our ongoing enhancement of our production capacity, we are well equipped to continuously gain market share in the key component sub-assemblies business and achieve earnings growth.”
Disposal of Hong Kong Office
The Company has entered into a sale and purchase agreement to dispose of its unoccupied office space in Hong Kong for approximately $20 million on March 9, 2006. As completion will be on April 20, 2006, the expected gain of approximately $10 million will be reflected as other income in the Company’s Q2/06 results.
First Quarter Dividends
The Company will pay the first quarter dividend of $0.38 per share on or before April 21, 2006 to all shareholders of record at the close of business on March 31, 2006.
Annual General Meeting
The Company will hold its Annual Shareholders' Meeting at 11:30 a.m. (ET) on Friday, June 9, 2006 at The Peninsula New York, Tribeca Room, 3rd Fl, 700 Fifth Avenue at 55th St, New York, NY. The record date for voting is April 21, 2006.
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.