(Hong Kong – Aug 19, 2004) – Solomon Systech Limited (“Solomon Systech” / the “Group”) (SEHK: 2878), a leading flat panel display integrated circuit (“IC”) product company, today announced the opening of its Singapore Technology Center (“SnpTC”) at Nanyang Polytechnic (“NYP”) of Singapore – the Group’s first research and development (“R&D”) center outside Greater China. The opening ceremony at NYP was officiated by Mr. Teo Ming Kian, the Chairman of the Singapore Economic Development Board (“EDB”).

Mr. Humphrey Leung, Managing Director of Solomon Systech, said at the official opening ceremony, “Solomon Systech is a fast-growing IC product company in the region. With our competence in technology development and global marketing position, we have established a leadership role in mobile display IC industry with over US$110 million sales revenue in the first 6 months of 2004. Today, I am proud to see the formation of our IC Technology Center in Singapore, which marks the start of another major technology contributor to the Group as well as to the industry. The SnpTC will specialise in R&D of Intellectual Property (“IP”) and IC development for mobile multimedia applications.”

Mr. Leung continued, “Our plan is to invest initially around US$4 to $5 million annually in the next two years in SnpTC, which covers building up a talented workforce, equipping hardware and software design tools and also other costs of development. Meanwhile, our SnpTC, which is set up under Singapore’s ICommunity Initiative (Integrated Circuit Community Initiative hosted at Nanyang Polytechnic), will also leverage on the support from NYP including facilities, infrastructure, equipments and software for the IC development.”

Established in 1999, Solomon Systech specialises in the design, development and sales of proprietary IC solutions on a worldwide basis under its own brand name. As a knowledge-based company led by highly experienced management, Solomon Systech is a leading global player in the cellular phone display IC sector, shipping more than 65 million display ICs in the first half of 2004, with majority being used for mobile applications. According to Gartner’s forecast in June 2004, global shipments of cellular phones for 2004 are expected to exceed 600 million units. The Group believes, on average, one out of six cellular phones is using its proprietary display ICs.

Mr. Teo, Chairman of EDB and guest-of-honour at the opening ceremony, said, “Solomon Systech is a major fabless IC design company in Greater China, and I warmly welcome their setting up in Singapore today. As one of the world’s leading independent provider of display IC drivers, Solomon Systech’s presence here also complements our strategy to develop a strong supporting base for the advanced displays industry.

“They have found value in ICommunity, the first community-based IC design incubator that offers fabless companies a plug-and-play environment – shortening their time-to-market and giving them a competitive edge. Solomon Systech’s presence here will also further add to the integration of our already-established semiconductor manufacturing industry.”

Mr. Leung concluded: “NYP is the designated institution in Singapore for research into the development of advanced ICs and is the logical research partner for Solomon Systech as we carve our global expansion strategy to propel ourselves to the forefront of research and development in IC solutions through innovation, intelligence and integration. We believe our SnpTC will benefit immensely from Singapore’s talented workforce, the Government’s support to technology development in providing R&D infrastructure and environment, and also the geographical advantages in being close to our regional customers and the market place.

“With Solomon Systech’s successful technology and business system, plus our professional design team in the SnpTC, which has an average of over 10 years IC design experience from hi-tech companies and multinational corporations, and the support of NYP, we are equipped with the most essential components to grow SnpTC in developing more sophisticated IP and IC solutions. Last but not least, I would like to express my sincere appreciation for the extensive support from the Economic Development Board and ICommunity hosted by NYP.”

The ICommunity is a hub of collaborative partners, with representation from design software, manufacturing, intellectual property (IP) management to marketing and funding sectors.

Hosted in Nanyang Polytechnic, the core initiative of this hub is to create a holistic and supportive environment to incubate fabless IC Design companies through the provision of market insights, professional training & development, facilitating the creation & management of IP, manufacturing expertise, marketing and funding support. Besides serving as a launch pad for indigenous IC design start-ups to commence operations, ICommunity also targets to attract new start-ups from the region to incorporate in Singapore.

For more information, please contact Tel: (65) 6550 0407, Fax: (65) 6459 3174 or Email: nyp_registry@nyp.gov.