VANCOUVER, CANADA -- May 5, 2003 -- Nam Tai Electronics, Inc. (“Nam Tai” or the “Company”) (NYSE Symbol: NTE; CBOE Symbol: QNA) today announced it has invested $4.2 million for a new flexible printed circuit (“FPC”) sub-assembly line. Historically, Nam Tai purchased finished FPC sub-assemblies from outside vendors to assemble LCD modules, PDAs and other products for its customers. With the installation of this new FPC sub-assembly line, the Company can penetrate into the FPC market and can produce its own FPC sub-assemblies at customers’ specifications in-house. Hence, the Company can provide a broader range of services to customers and believes it can reduce their costs. The Company also believes that the new production line will further enhance the manufacturing capability of the Company for products such as LCD modules, RF modules, PDAs and cellular phones.
“It is exciting to witness the ongoing advancement of Nam Tai’s manufacturing capabilities,” said Mr. Tadao Murakami, Nam Tai’s Chairman. “We already have COG and COF production lines. With this new FPC sub-assembly line, we are now positioned to pursue new business opportunities.”
About Nam Tai
We are an electronics manufacturing and design services provider to original equipment manufacturers of telecommunications and consumer electronic products. Through our electronics manufacturing services operations, we manufacture electronic components and subassemblies, including LCD panels, transformers, LCD modules and radio frequency modules. These components are used in numerous electronic products, including cellular phones, laptop computers, digital cameras, copiers, fax machines, handheld gaming devices and microwave ovens. We also manufacture finished products, including cordless 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.
Except for the historical information contained herein, matters discussed in this press release are forward-looking statements. For example, the Company’s expectation of penetrating the FPC market is a forward-looking statement that is uncertain and depends on its ability to provide new FPC manufacturing processes and solutions that compare favorably on the basis of cost, time to introduction, and performance with in-house capabilities of OEMs and competitive third-party suppliers. Nam Tai’s belief that it can reduce its customers’ costs by producing FPC modules itself is also a forward-looking statement that is uncertain and depends on Nam Tai’s ability to overcome potential problems it may encounter in implementing the new production line and achieving component reliability and the high quality expected by Nam Tai and required by its customers. Other factors that might cause differences in these and 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 3 “Key Information – Risk Factors” in the Company’s Annual Report on Form 20-F for the year ended December 31, 2002.