USI Announces to acquire motherboard division of ABIT computer

Issued on : 2006/1/25
TAIPEI, TAIWAN, JANUARY 25, 2006 – Universal Scientific Industrial Co., Ltd. (USI) (TSE: 2350.TW), a leading global company in the Design and Manufacturing Services (DMS) industry, today announced that it will start up a new subsidiary company to acquire the motherboard division of ABIT Computer Corporation, subject to a definitive agreement signed by the both parties. ABIT Computer is a leading supplier of high-performance motherboards and PC peripherals.

Under the terms of the agreement, USI will pay a total of 350 million New Taiwan Dollars in cash and 20 million preferred shares of USI’s newly established subsidiary company for ABIT’s motherboard brand “ABIT”, as well as all the patents, products, business and task force related to the motherboard. Currently, as a brand leader in the mid- to high-end motherboard segment, ABIT’s annual motherboard shipment is approximately 2 million to 2.5 million units. Integrating the strengths of the two companies’ motherboard business, USI expects its annual motherboard shipment to increase to more than 10 million units in the future.

ABIT, as a leading brand and developer in the high-end motherboard segment, sells and markets its branded motherboard products to the markets in Asia, Europe and America, and has been successfully capturing various emerging markets including China, India and Russia. Coupling with USI’s world-class capability of product design, manufacturing, quality control and global service network, the merger is expected to be in favor of a synergy due to the combination of ABIT’s well-developed brand and channel deployment. USI, also with the integration of the two companies’ R&D ability and resources, is able to provide its global customers with wider range of product portfolios.

“ABIT has good brand image and well-developed channel strategy but we still rely on other suppliers for product manufacturing and global service network, which brings up certain limitation to us on quality and lead-time control,” said Jason Hsu, Executive Vice President, ABIT Computer Corporation. “The strength of USI’s global service network, world-class product design and manufacturing, and outstanding quality control capability will definitely enable the ABIT-branded motherboard products to grow perpetually in the global market and go into the next level.”

“USI has been consistently dedicated on increasing its market share and achieving economy of scale by focusing on several major product lines in the future,” said C.Y. Wei, President of USI. “Motherboards are one of USI’s main product lines and we are confident that the acquisition provides an opportunity for USI to benefit from ABIT’s outstanding brand image and well-developed channels in Asian, American and European markets in order to expand USI’s share in the motherboard market and become one of the tier one motherboard suppliers in the world.
About USI

Universal Scientific Industries Co., Ltd, established in 1976, is a global leading DMS (ODM/EMS) company.

USI not only provides manufacturing service, but also aggressively cultivates R&D talents, and persistently invests on the development of Handheld Devices, Wireless Networking Products, Car Electronics, Storage, Industrial PC, Server, Work Station and their Motherboard.

Combining its advanced SiP techniques, USI has built its unique competitive edge to provide customers time-to-market, high quality, and high value-added and most cost competitive total services.

USI Spokesperson
Brian Shih
Vice President & Chief Financial Officer & Spokesperson
Tel: 886-49-2350876
For further information, please contact