VANCOUVER, CANADA -- October 1, 2001 -- Nam Tai Electronics, Inc. (“Nam Tai” or the “Company”) (NASDAQ/NM Symbol: NTAI and NTAIW; CBOE Symbol: QNA) today announced that its Board of Directors has approved a stock repurchase program to buy-back up to an aggregate of two million common shares in the open market from time to time at prevailing market prices.
After the recent terrible tragedy in US and the collapse of the World Trade Centre in New York, the stock market experienced great pressure and share prices fluctuated severely. Nam Tai shares were no exception, also being impacted and becoming undervalued. Accordingly, the Board of Directors decided to implement a repurchase program that is expected to continue for a three month period, unless extended or shortened by the Board of Directors, in accordance with SEC Rule 10b-18 and the announcement from the SEC after the emergency in New York relaxing the rules for repurchase programs. The Company plans to use existing cash balances to finance the repurchases. Based on June 30, 2001 cash on hand of $31.4 million and book value per share of $15.46 the Company believes that the current market price does not adequately reflect the long term potential of the Company. Nam Tai does not expect the repurchase program will impair its ability to expand its business through internal growth and acquisitions. According to the current sales information, the sales of the Company still enjoy slight growth compared with the year of 2000 and the Company has confidence it can show profitable results at the end of this year.
The record date for the third quarter dividend of $0.10 per share is September 30, 2001 and the payment date is October 21, 2001.
Nam Tai Electronics, Inc. is an electronics design and manufacturing service provider to some of the world’s leading original equipment manufacturers. Nam Tai manufactures telecommunication products, palm-sized PCs, personal digital assistants, linguistic products, calculators and various components including LCD modules for cellular phones, lithium ion rechargeable battery packs, transformers and LCD panels. The Company utilises advanced production technologies such as chip on board (COB), chip on glass (COG), surface mount technology (SMT), ball grid array (BGA), tape automated bonding (TAB), and outer lead bonding (OLB) technologies. Further information is available on Nam Tai’s website at www.namtai.com.