VANCOUVER, CANADA -- March 19, 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 500,000 common shares in the open market from time to time at prevailing market prices.
The repurchase program is expected to continue for a three month period in accordance with SEC Rule 10b-18, unless extended or shortened by the Board of Directors. The Company plans to use existing cash balances to finance the repurchases. Based on year end cash on hand of $59 million and book value per share of $15.77, as well as a favorable sales and earnings outlook for 2001 and 2002, 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.
Chief Marketing Officer Increases Ownership in Nam Tai
During the last month Mr. Murakami, Nam Tai’s Chief Marketing Officer, exercised employee stock options and purchased 21,000 common shares. He now holds 667,155 common shares representing 6.3% of the outstanding common shares. The Company also noted that during the last month other employees exercised employee stock options and sold approximately 90,000 common shares. The employee options, which had an expiration date of March 16, 2001, were issued in 1998 with an exercise price of $10.50.
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, smart card readers 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 web-site at www.namtai.com.