[NAM TAI LOGO] NEWS RELEASE
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REPRESENTED BY PAN PACIFIC I.R. LTD. CONTACT: Lorne Waldman
1790 - 999 WEST HASTINGS STREET President
VANCOUVER, BC, CANADA V6C 2W2 E-MAIL: shareholder@namtai.com
TEL:(604) 669-7800 FAX: (604) 669-7816 WEB: www.namtai.com
TOLL FREE TEL/FAX: 1-800-661-8831
NAM TAI ELECTRONICS, INC.
Announces Merger of NTEEP and Namtek
VANCOUVER, CANADA - April 11, 2005 -- Nam Tai Electronics, Inc. ("Nam Tai" or
the "Company") (NYSE Symbol: NTE) today announced the merger of its two
subsidiaries, Nam Tai Electronic & Electrical Products Limited ("NTEEP") (HKSE
Stock Code: 2633) and Namtek Software Development Company Limited ("Namtek").
NTEEP has entered into a sales and purchase agreement with Nam Tai and Asano
Company for the acquisition of 80% and 20% interests in Namtek, respectively.
The total consideration for the acquisition, which amounts to approximately
$26.7million, will be satisfied by issuance of 81,670,588 new shares of NTEEP to
Nam Tai and Asano Company (65,336,470 new shares to Nam Tai and 16,334,118 new
shares to Asano Company) at approximately $0.327 (HK$2.55) per share. Upon
completion of the acquisition, the shareholding interest of Nam Tai in NTEEP
will increase from 71.25% to 72.06%. Completion is expected to be on or before
the end of May 2005.
"This strategic move represents a significant step in implementing the Company's
development strategies. We believe the merger of NTEEP and Namtek will enable
the Company to simplify its corporate structure, strengthen its management team,
which will in turn support its continuous growth." commented Mr. Joseph Li,
Chief Executive Officer of Nam Tai. "Integration of NTEEP's manufacturing
capability with Namtek's software development capability will result in
significant competitive advantages. By sharing resources, the two operations
will also able to achieve higher operational efficiency, capabilities,
profitablities and scalabilities."
Namtek is a total solution provider offering a wide range of services on
software development, data processing and compression and electronic hardware
design and development, specializing in digital dictionaries and car navigation
systems. It will become a wholly owned subsidiary of NTEEP after the acquisition
is completed.
First Quarter Results and Analysts Conference Call
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The Company will release its unaudited first quarter results for the period
ended March 31, 2005 on Tuesday, May 3, 2005 at 9:00 a.m. Eastern Time. An
analyst conference call will be held on Tuesday, May 3, 2005 at 10:00 a.m.
Eastern Time for analysts to discuss the first 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 Monday, May 2, 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 (651) 291-0900 just prior to its start time. Users
will be asked to register with the conference call operator.
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About Nam Tai Electronics, Inc.
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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 on reliance of such information. The
results of NTEEP and JIC only represent a part of the results of the Company and
there are GAAP differences in the financial statements of NTEEP and JIC, when
compared with the financial statements of the Company. Furthermore, different
subsidiaries of the Company may have a different peak season during a year.
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