July 18, 2000

Taipei - - Asustek Computer Inc,. Will start production of motherboards in China during the 4th qurter of 2000, the company said in a press announcement. Despite this relocation of manufacturing capacity, prices of the firm's motherboards will increase in the second half of this year because of price hikes of raw materials.

Production volume in China will be no less than 300.000 units, the same as Giga-Byte Technology Co., another Taiwan competitor that has set up shop on the mainland.

The Asustek Groups overall investment strategy includes using it's own brand name to penetrate the PRC market. In addition the manufacture of printed circuit boards, computer cases and swithcing power supplis, the firm regards it's new production of mothers as an important development in China.