VANCOUVER, CANADA -- July 28, 2003 -- Nam Tai Electronics, Inc. (“Nam Tai” or the “Company”) (NYSE Symbol: NTE; CBOE Symbol: QNA) today announced that its subsidiary J.I.C. Technology Company Limited (“J.I.C.”) (HKSE Stock code: 987), a leading Hong Kong LCD panels manufacturer disposed of its transformer business in June 2003. It also announced that its software development subsidiary, Namtek Software Development Company Limited (“Namtek”), is expanding and established a new office in Tokyo, Japan in the second quarter 2003.
The profit margin of the transformer business is low and added value is limited, which is due to its lower-end technology and labour intensive nature. Therefore, J.I.C. decided to dispose of its transformer business and focus on the LCD panels business, which was the primary target business of Nam Tai’s acquisition in 2000.
In addition to the offices in Shenzhen, PRC and Shanghai, PRC, Namtek opened an office in Tokyo in second quarter 2003 and intends to further expand its sales and marketing team in Japan and to upgrade its software development capability by recruiting more sales people and software engineers locally. Namtek is a software application provider specialising in embedded software applications for digital consumer electronics products, especially in the Japanese market. With the new office in Japan, the Company believes that it will further enhance its software development services for its Japanese clients and seize more business opportunities arising in the software market in Asia.
About Nam Tai Electronics, Inc.
We are an electronics manufacturing and design services provider to original equipment manufacturers of telecommunications and consumer electronic products. Through the electronics manufacturing services operations, we manufacture electronic components and subassemblies, including LCD panels, LCD modules, and radio frequency 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 and digital camera accessories for use with cellular phones. Further information is available at www.namtai.com.
Certain statements in this press release are "forward-looking statements" within the meaning of U.S. federal securities laws, including that the Company believes that it will further enhance its software development services for its Japanese clients and seize more business opportunities arising in software market in Asia. Nam Tai intends that these statements be covered by the safe harbors created under these laws. These forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from future results expressed or implied by the forward-looking statements. Many of these factors are beyond Nam Tai's ability to control or predict. Given these uncertainties, readers are cautioned not to place undue reliance on the forward-looking statements, which only speak as of the date of this press release. Nam Tai does not undertake any obligation to release publicly any revisions to these forward-looking statements to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.