June 26, 2001

The Legend Group of Mainland China will expand into the European market with a new brand of high-end notebook computers designed and manufactured by First International Computer of Taiwan, but to be sold under Legend's QDI brand, the economic press in Taipei reported.

By selecting Europe over the Asia Pacific market as the first step of its globalization strive, the Chinese company hopes to shake off the image of being a company that serves Asia only.

The QDI notebooks are planned to be rolled out in Europe before September this year.

As reported, First International is Legend's main designer and manufacturer at the moment with an understanding that for the benefit of receiving the majority of orders from Legend, FIC will not manufacturer for other Mainland brands. Furthermore, FIC will assist Legend's own notebook production operation and cooperate on development.

Legend's other Taiwan contract manufacturers include Compal and Mitac.

In China, Legend leads all other brands by selling 110,000 notebook computers last year and expects to sell about 250,00 units this year.

Industry insiders in Taipei say that Legend's approach in Europe will not likely be easy. Others, including big brand names from Taiwan have failed in the past, as they underestimated the efforts and expenses involved to

Establish a marketing network, building sales channels and establishing nationwide customer service and repair centers. Furthermore, all of Legend's notebook technology comes from Taiwan, the company lacks own R&D, production and component supply chain logistics, all of which companies like Acer have many more years of experience, including building worldwide brand recognition, whereas Legend's only advantage is its large home base to work from, analysts say