New Investment in TCL Group

VANCOUVER, CANADA -- October 1, 2002 -- Nam Tai Electronics, Inc. (“Nam Tai” or the “Company”) (NASDAQ/NM Symbol: NTAI and NTAIW) announced that following yesterday’s exciting announcement of a huge return from its investment in Huizhou TCL Mobile Communication Company Limited (“TCL Mobile”), from which Nam Tai has realized a huge profit of about 15 times return while retaining a 3.033% indirect interest in TCL Mobile, Nam Tai is now so happy to be invited by TCL Group to have a closer relationship with each other and has decided to make a new investment in another TCL subsidiary company, TCL International Holdings Limited (“TCL International”), which is a Hong Kong publicly listed company.

At the invitation of TCL Group, Nam Tai has agreed to subscribe for approximately $5 million of convertible bond notes to be issued by TCL International (“CB Note”). The term of the CB Note is three years with interest of 3% per annum. The CB Note is convertible into shares of TCL International at the conversion price of approximately $0.33 per share. The closing price of TCL International on 30th September 2002 was approximately $0.29 per share. This is the third investment by Nam Tai in TCL Group. Before this investment, Nam Tai invested $2 million for 4.5% of TCL Mobile (from which Nam Tai has realized a huge profit from the sale of 1.467%) and $12 million for a 6% equity interest in TCL Corporation, the ultimate holding company of TCL Group. Seeing the huge return on its investment in TCL Mobile, Nam Tai expects profitable returns from its other investments in TCL Group, including this new investment of approximately $5 million.

TCL International, a Hong Kong publicly listed company (Hang Seng Index Code No. 1070), is a prominent industry leader in the design, manufacture and sales of a wide range of household appliances in the PRC and overseas markets. Riding on the success of the mainstream businesses of multi-media consumer electronics products, TCL International is expanding into the arenas of information technology and communication products, including PCs, mobile handsets, Internet access devices and a range of value-added services. With an extensive nationwide sales network, top quality products, comprehensive after-sale services and strong research and development capabilities, TCL is regarded as one of the most reputable and valuable brand names in the PRC and it has been the best selling TV brand in the PRC since 2001. For more information visit the TCL International website at www.tclhk.com.

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, transformers and LCD panels. The Company utilises advanced production technologies such as chip on board (COB), chip on glass (COG), chip on film (COF), 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.

This press release contains forward-looking statements that are uncertain including statements that assume the successful completion of the subscription in the CB Note and the statements expressing an expectation of profitable returns from its investments in the TCL Group. The profitability of Nam Tai’s investments in the TCL Group is risky and depends upon the success of the TCL Group’s businesses, stock market conditions in Hong Kong and China, and general economic conditions. Factors that might cause differences in this and the other forward looking statements, include, but are not limited to, those discussed in the Company’s reports filed with the Securities and Exchange Commission from time to time, such as the factors set forth in Item 1 “Description of Business – Risk factors” in the Company’s Annual Report on Form 20-F for the year ended December 31, 2001.