Divestiture of Canadian Subsidiary July 23, 1999 --
Nam Tai announced the sale of Nam Tai Electronics (Canada) Ltd. ("NT
Canada") to its management staff. This decision was made following the
relocation of Mr. Koo, Senior Executive Officer, from Vancouver to Hong Kong
to provide strategic support for Nam Tai's expansion of new and existing
business in the Far East. NT Canada provided investor relations and
regulatory compliance services to the parent Company from its office in
Vancouver, British Columbia, Canada. NT Canada, now no longer a subsidiary
of Nam Tai, will be renamed Pan Pacific I.R. Ltd. by its new owners, and
will continue to provide similar services to Nam Tai and other companies.
Shenzhen Namtek Shows Profit and Expansion
Shenzhen Namtek Co., Ltd. ("Namtek"), a Nam Tai subsidiary established in
December 1995, announced its first year of profitable operations. (Namtek
broke even in fiscal 1997, and experienced losses in the first two start-up
years.) Located in Shekou China, Namtek employs approximately 22 software
engineers and provides the facilities and expertise to assist in new product
research and development, offering its customers program design for
microprocessors, enhanced software design and development services, and
strengthening the Company's ODM capabilities. Since its establishment
Namtek has built a reputation for on time delivery of quality software with
a price advantage relative to competitors based in Japan and Taiwan. As a
result of an increasing number of customers and orders, Namtek will move in
August to a new larger 4,300 sqft. office, fully equipped with auditorium
meeting rooms, an advanced PDS telecommunication system, and satellite
communication systems and increase the number of software engineers to 35
before the end of 1999.
Zastron's Sales Triple
Zastron Plastic & Metal Products (Shenzhen) Ltd. ("Zastron"), a Nam Tai
subsidiary established in 1992, announced that sales have almost tripled
(excluding sales to the Nam Tai Group) compared to the same period last year
and profits have shown similar improvements. Zastron, located in the same
campus as Nam Tai's main factory, is principally engaged in silk screening
metal and PVC products, many of which are used in products manufactured by
the Company's manufacturing subsidiary. Zastron also provides silk
screening of products for other unrelated companies. With the assistance of
Nam Tai, Zastron has successfully expanded its customer base beyond Nam Tai
demonstrating its viability as an independent contributor to Nam Tai's
results.
Second Quarter Results Release Date
Nam Tai announced it will report its second quarter results for the period
ended June 30, 1999 before the market opens on Monday, August 9, 1999.
The Company will hold an analysts-only conference call on Monday, August 9,
1999 at 12:00 noon Eastern Time for analysts to discuss the second quarter
results with management. Analysts who wish to receive the dial-in number
for this conference call are invited to contact Investor Relations at
1-800-661-8831 no later than Friday, August 6, 1999 at 6:00 p.m. Eastern
Time.
Shareholders, investors and other interested individuals are invited to
listen to the live conference call by dialing (612)-332-0819 just prior to
its start time of 12:00 noon Eastern Time on Monday, August 9, 1999. Callers
will be asked to register with the conference call operator.
Analyst Trip to Hong Kong and China visiting the facilities of Nam Tai
Electronics, Inc., Deswell Industries Inc. and Bonso Electronic
International Inc.
The Company will be hosting a trip to Hong Kong and Shenzhen China to visit
the facilities of Nam Tai, Deswell Industries Inc.(NASDAQ/NM Symbol: DSWL),
and Bonso Electronic International Inc. (NASDAQ/NM Symbol: BNSO and BNSOW).
The trip is scheduled for August 15th to 20th, 1999. Interested analysts
and investors are encouraged to contact the Company for further details
about attending the trip.
Nam Tai Electronics, Inc. is a consumer electronics design and manufacturing
service provider to some of the world's leading original equipment
manufacturers. Products manufactured by Nam Tai include palm-sized PC's,
personal organizers, personal digital assistants, linguistic products,
calculators, smart card readers and various components which are used in
telecommunication products, electronic toys, and household appliances. The
Company utilizes advanced production technologies such as chip on board
("COB"), chip on glass ("COG"), surface mount technology ("SMT"), tape
automated bonding ("TAB") and outer lead bonding ("OLB") technologies and
anistropic conductive film ("ACF") heat seal technology. Further information
is available from Nam Tai's web site at www.namtai.com.
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