VANCOUVER, CANADA -- September 6, 2005 -- Nam Tai Electronics, Inc. (“Nam Tai” or the “Company”) (NYSE Symbol: NTE) today announced that it signed a letter of intent with The People’s Government of Baoan District, Shenzhen, PRC, to purchase approximately 1.3 million square feet of land for future expansion and which is more than double the space of the land of the existing facilities.
The land is located in the Guangming Hi-Tech Industrial Park, approximately 20 minutes driving distance from the existing facilities of the Company. This industrial park is being developed by the national government for high technology manufacturing and includes a five star hotel, electricity and water infrastructure and highway access to the Shenzhen airport and Hong Kong.
It is anticipated that the government will deliver the land to the Company by the summer of 2006, after completing its development of the park. The Company plans to commence construction of a new facility on the site before the end of 2006 with the first phase to be completed in the summer of 2008, followed by a second phase to be completed in the summer of 2010. The Company intends to use the new facility as its PRC headquarters and also for increased manufacturing capacity. The additional space is expected to meet the Company’s growth needs until 2015.
The Company expects to make capital expenditures of over US$150 million through the end of 2007 for construction of the new facility as well as the purchase of machinery and production lines to replace those currently used in the Company’s existing facilities. The capital investment for this expansion project will be financed internally from the cash on hand and profit from operations. With this expansion, Nam Tai believes it can better serve customers and produce more box-built and bigger size high tech products.
“We are most grateful for the strong support from the local government. Nam Tai’s growth over the past several years has fueled the need to acquire additional land for future growth and expansion. We believe that this site will provide us with sufficient capacity for expansion in line with our current strategic plans,” said Mr. Joseph Li, Chief Executive Officer of Nam Tai. “In view of the growing demand for high-end electronic products and promising prospects in the industry, we believe our investment in this expansion project will help strengthen the Company’s prospects for future growth.”
About Nam Tai Electronics, Inc.
We are an electronics manufacturing and design services provider to a select group of the world’s leading OEMs of telecommunications and consumer electronic products. Through our electronics manufacturing services operations, we manufacture electronic components and sub-assemblies, including LCD panels, LCD modules, RF modules, FPC sub-assemblies and image sensors 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, digital camera accessories and
BluetoothTM wireless headset accessory for use with cellular phones.
Nam Tai has two Hong Kong listed subsidiaries, Nam Tai Electronic & Electrical Products Limited (“NTEEP”) and J.I.C. Technology Company Limited (“JIC”). Interested investors may go to the website of The Stock Exchange of Hong Kong at www.hkex.com.hk to obtain more information on these companies. The stock code of NTEEP and JIC in The Stock Exchange of Hong Kong are 2633 and 987, respectively. Investors are reminded to exercise caution when assessing such information and not to deal in shares of the Company based solely upon reliance on such information.