June 29, 2000

Taipei - - Acer, Taiwan's foremost computer manufacturer, develops a small industrial park in Zhongshan, die PRC's Guandong province as its only manufacturing base on the China Mainland, a corporate spokesman announced in Taipei.

Acer already selected that site of 360.000 square meters about three years ago and intends to develop it over a period of five years into the company's largest overseas manufacturing base.

Acers wants to access the China Mainland market from that base and utilize the advantage of lower costs in China. However, the Taiwan factories of Acer will still concentrate on making high value added products.

At this time, there is only one factory operating on the selected site, and it is shared by Acer and its subsidiary AOpen, which started manufacturing data cards, motherboards, CD drives and basis personal computers in the midst of 1999, and later expanding into turning out complete PCs.