VANCOUVER, CANADA -- March 10, 2003 -- Nam Tai Electronics, Inc. (“Nam Tai” or the “Company”) (NYSE Symbol: NTE; CBOE Symbol: QNA) today announced that JCT Wireless Technology Company Limited (“JCT”), a wholly owned subsidiary of Alpha Star Investment Limited (“Alpha Star”), has won an outsourcing production contract to produce 1 million cellular phones in semi-knocked down (“SKD”) form for its client in the PRC. SKD cellular phones are semi-finished products that include most of the functioning components and circuitry used in the finished cellular phone. OEM's frequently take delivery of cellular phones in SKD form so that they can customize the final units for specific customer end markets. These cellular phones are to be delivered to JCT's customer at its requests over a period of 9 months from August 2003, with production of the cellular phones starting in July 2003. Nam Tai holds a 25% equity interest in Alpha Star.
Besides providing support for the manufacturing of LCD modules and RF modules to JCT, Nam Tai has agreed to support JCT in fulfilling the mentioned order of 1 million cellular phones in SKD form by providing assembling services to JCT.
“We are pleased that JCT has secured this outsourcing contract. This is good news for Nam Tai to manufacture cellular phones in SKD form for JCT's client. This demonstrates trust and acceptance of Nam Tai’s expertise and manufacturing ability,” said Mr. Tadao Murakami, Chairman of Nam Tai. “Outsourcing the production of cellular phones is a global trend that we expect to increase in the long term as OEMs seek ways to reduce their capital investments and react quicker to market conditions.”
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, electronic toys and microwave ovens. We also manufacture finished products, including cordless phones, palm-sized PC’s, 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 contain forward-looking statements. For example, the statement regarding Nam Tai supporting JCT in fulfilling the order of 1 million cellular phones in SKD form by providing assembling services is a forward looking statement that depends upon JCT completing the product design of the cellular phones in a manner satisfactory to JCT's client, JCT’s client fulfilling its order commitments and our ability to manufacture all of JCT's orders in the quantities requested, including that we commence mass production of the cellular phones by the end of July 2003. Similarly the statement regarding our expectations regarding the increase in the outsourcing of the production of cellular phones is a forward looking statement that is dependent on prevailing economic conditions and the continuance of the trend of OEMs to outsource their production. Other factors that might cause differences in these and the other forward looking statements, include 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.