Lite-On Technology Acquire Full Stake in Lite-On Automotive

Taipei, March 24, 2006 (CENS)--To further integrate group resources for the aggressive development of its automotive electronics business, Lite-On Technology Corp. recently announced that it has acquired a 100% stake in Lite-On Automotive Corp. through a share swap.

To make the acquisition, Lite-On Technology issued more than 26, 000 new shares to swap for shares in Lite-On Automotive at the ratio of one Lite-On Technology share for 1.7 shares of Lite-On Automotive. The automotive company, established in 1979, is a leading maker of vehicle security systems, cruise control modules, tire-pressure monitoring systems (TPMS), and other automotive electronics products. Lite-On Technology originally held a 17.52% stake in Lite-On Automotive. The acquisition is scheduled to be completed by the end of August.

With Lite-On Technology's light-emitting diodes (LED), Lite-On IT Corp.'s optical-disc drives and players, Actron Technology Corp.'s rectifier diodes, and Lite-On Automotive's various products, the total annual production value of the Lite-On Group is expected to reach about NT$20 billion (US$615.38 million at US$1: NT$32.5) this year, making it the largest automotive-electronics player on the island.

With the acquisition, a senior official of Lite-On Technology said, Lite-On Technology is expected to effectively and rapidly integrate.

Lite-On Group has been the most active unit among local electronics conglomerates in developing an automotive-electronics business. Lite-On IT recently set up an automotive-application business division and has so far recruited about 60 R&D staff members for the new operation.

Lite-On IT's automotive-application division has two sub-divisions, including one for car computers and one for automotive optical-disc drives. The division's first automotive-application product is expected to be available on the market in the third quarter of this year.

Actron Technology is currently the world's second-largest supplier of rectifier diodes for automobile alternators.

Lite-On Technology, the group flagship company, reportedly plans to cooperate with Yulon Group, the largest automobile-manufacturing conglomerate in Taiwan, in developing LED auto-lamp applications.

In addition, Silitech Technology Co., Lite-On Technology's reinvested subsidiary, also concentrates on automotive switches and automotive LEDs.