Enhances SMT Production Capacity for Increasing Orders

VANCOUVER, CANADA -- July 18, 2005 -- Nam Tai Electronics, Inc. (“Nam Tai” or the “Company”) (NYSE Symbol: NTE) announced that it has further raised the production capacity of its Surface Mount Technology (“SMT”) production lines to cope with increasing customer orders and demand for cellular phone accessories and gaming devices.

In addition to the investment in two additional SMT production lines made earlier this year, Nam Tai has further invested $3.1 million to equip three additional SMT production lines to further grow its business. Taking into account the new production lines, the production capacity of Nam Tai’s SMT production lines has increased from 790,000,000 resistor capacitor chips per month to 910,000,000 resistor capacitor chips per month.

“To reinforce its competitiveness in the market and satisfy its customers’ increasing demands, Nam Tai is committed to continuously enhancing its production capacity and capability,” said Mr. Joseph Li, Chief Executive Officer of Nam Tai. “As we enter the third quarter of 2005, we are experiencing promising growth in view of the number of orders on hand. With our new production lines, we believe that we are well equipped to capture more business opportunities arising in the global electronic industry.”

Second Quarter Dividends

The Company will pay the second quarter dividend of $0.33 per share on or before July 21, 2005 to all shareholders of record at the close of business on June 30, 2005.

Second Quarter Results and Analysts Conference Call
The Company will release its unaudited second quarter results for the period ended June 30, 2005 on Monday, August 1, 2005 at 9:00 a.m. Eastern Time. An analyst conference call will be held on Monday, August 1, 2005 at 10:00 a.m. Eastern Time for analysts to discuss the second quarter results with management. Analysts who wish to receive the toll free dial-in number for this conference call are invited to contact the Investor Relations Office at 1-800-661-8831 no later than 6:00 p.m. Eastern Time on Friday, July 29, 2005. Shareholders, media, and interested investors may listen to the live conference call over the Internet by going to www.namtai.com and clicking on the conference call link or over the phone by dialing (612) 332-0932 just prior to its start time. Users will be asked to register with the conference call operator.

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 Bluetooth TM 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 the information. 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 with the shares of the Company based solely upon reliance on such information.