VANCOUVER, CANADA -- April 22, 2002 -- Nam Tai Electronics, Inc. (“Nam Tai” or the “Company”) (NASDAQ/NM Symbol: NTAI and NTAIW) today announced the successful completion of its 6% equity interest investment in TCL Holdings Corporation Ltd. (“TCL Holdings”), the parent Company of the TCL Group. Gold Peak Industries, a Hong Kong listed company, also acquired a 6% equity interest in TCL Holdings. Nam Tai is also pleased it successfully introduced Toshiba Corporation and Sumitomo Corporation to the TCL Holdings investment opportunity. Both companies have also invested in TCL Holdings.
Nam Tai is pleased to announce that Mr. Ming Kown Koo, a Director of Nam Tai, was elected as one of TCL Holdings’ executive directors. Nam Tai indicated that it is honored to be able to support TCL Holdings to broaden its shareholder base.
Following its indirect 5% equity investment in Huizhou TCL Mobile Communication Ltd., a very successful and aggressive mobile phone manufacturer in PRC (most likely the dominant player in PRC at present), the investment in TCL Holdings and Mr. Koo’s appointment as an executive director of TCL Holdings solidifies the relationship between Nam Tai and TCL. Both parties are looking forward to supporting each other to develop more consumer products business and contribute more to the shareholders of both companies.
Nam Tai to transfer its interest in BPC (Shenzhen) Co., Ltd. to Toshiba Corporation
Nam Tai entered into a Memorandum of Understanding with Toshiba Corporation to discontinue their joint venture to produce lithium ion rechargeable battery packs for cellular phones. The joint venture business will end on May 1, 2002 and Toshiba Corporation will reacquire Nam Tai’s entire interest in the joint venture company, BPC (Shenzhen) Co., Ltd. (“BPC”), at cost. Nam Tai Electronic & Electrical Products Limited, a wholly-owned subsidiary of Nam Tai, and Toshiba Battery Co., Ltd. established the joint venture in March 2000 to manufacture lithium ion battery packs for the China cellular phone market.
Following Toshiba Battery’s sale to Sanyo of its nickel metal hydride battery business and a general reorganization of the battery business in the Toshiba Group, the Company and Toshiba mutually agreed that continuing with the joint venture would not be in their best interests considering the expected downward trend in demand for lithium ion battery packs.
Nam Tai expressed its appreciation for Toshiba’s support during the BPC joint venture and Toshiba’s willingness to protect Nam Tai against a declining battery pack market by repurchasing Nam Tai’s investment in BPC. The Company noted that Toshiba’s consideration of Nam Tai’s interests reflects a solid 20 year relationship and that it looks forward to cooperating with Toshiba on other ventures in the near future.
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), 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.