MP3 Decoder

Namtek announced the successful development of MP3 decoder. This follows one year of in-house research and development activities during which it successfully developed a middleware for MP3 decoder. The completed demo board will help Nam Tai demonstrate to its customers its ability to integrate MP3 technology into a variety of hand held consumer electronic devices.

MP3 is music compression technology that allows users to download CD-quality music from the internet, and is changing the way music is sold and delivered to customers. Eventually, Nam Tai would like to integrate MP3 functionality into a variety of hand-held electronic products for its customers including PDA's and Palm-sized PC's.

G.729 Digital Audio Compression/Decompression Technology

Namtek implemented the compression (encoder) and decompression (decoder) technology specified in the G.729A, on PC and NEC 32bit RISC CPU. Nam Tai foresees future requirements on this technology for speaking dictionary type products.

The G.729 is a digital audio compression/decompression technology for transmission and storage. G.729, also referred to as CS-ACELP, was adopted by the ITU as a standard in 1995.

As G.729 can compress speech to a relatively low bit rate (8kbps) with similar quality of 32kbps ADPCM, with moderate delay and processing requirements, G.729 has become a popular choice in many applications that embraced ADPCM in the past. Applications such as teleconferencing, visual telephony, voice over Internet, cellular phones and other wireless applications, where quality, delay, and bandwidth are important, will benefit immediately from this technology. G.729 is also used for speech recording applications such as digital speech recorder and telephone answering machine.

G.729 is now more than ever on its way to become the worldwide standard for the telephone industry. The inter-operability has the advantage of eliminating the need for transcoding. The signal quality is thus preserved and maximized. It is foreseen that soon all multimedia systems will be made compatible with G.729.

Electro Luminescent Panels, Touch Panels, and Flexible Printed Circuits

Zastron announced the successful development of three new technologies. First is Electro Luminescent (EL) Panels used as LCD back-lighting for LCD modules, notebook computers, games, electronic dictionaries, LCD watches, and many other uses. Second, it has successfully developed a touch panel, which can be incorporated into PDA products, home appliances, and other products. Third is the development of double-edged flexible printed circuits: new precise wire products. These advanced technologies were developed as Zastron received requests from its customers to increase its emphasis on higher technology products.

Zastron reports that its customer orders continue to increase, including orders for its newly developed technologies. Located on the same campus as Nam Tai's main factory, Zastron is principally engaged in silk screening metal and PVC products, many of which are used by the Company's principal manufacturing subsidiary. Zastron also produces products for a respected list of unrelated companies including General Electric International, Inc. and Shunde Whirlpool Electrical Appliance Company Limited of China.

Nam Tai Electronics, Inc. is a consumer electronics design and manufacturing service provider to some of the world's leading original equipment manufacturers. Nam Tai manufactures telecommunication products, palm-sized PC's, personal digital assistants, linguistic products, calculators, smart card readers and various components including LCD modules and, in the near future, rechargeable lithium ion battery packs which are used in cellular phones, laptop computers, 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 .

Except for the historical information contained herein, matters discussed in this press release are forward-looking statements. For example, the Company's expectations for the new technology is uncertain and dependant upon many factors including its ability to successfully commercialize its research and development work in a timely manner and other new competing technology developments. Other factors that might cause differences in this and the other forward looking statements, include, but are not limited to, those discussed in the Company's reports filed with the Securities and Exchange Commission from time to time, such as the factors set forth in Item 1 "Description of Business -- Risk Factors" in the Company's Annual Report on Form 20-F for the years ended December 31, 1998.

SOURCE: Nam Tai Electronics, Inc.