Press Release     
                                                 Dec 14th, 2007
PTTC and make a new product purchase agreement,
they will cooperate to get into the LED Backlight and lighting applications market.

    Polytronics Technology Corporation (hereafter referred as PTTC) and Denki Kagaku Kogyo Kabushiki Kaisha (hereafter referred as DENKA) formally sign a new product purchase agreement for thermally conductive foil substrate on Dec. 14th, 2007. PTTC and DENKA will combine strength from both parties to get into the LED backlight and lighting applications market, and further promote the long-term cooperation in R&D, production and marketing.

    The R&D teams from both companies have joined for more than one year to develop high-performance thermally conductive foil substrate (FS). The sample is now being verified by DENKA and near the trial-run stage, and the final product will be applied to new generation of LED backlight and lighting applications. Both companies sense that the LED backlight market is close to maturity, and the demand for thermally conductive foil substrate will be urgent day by day as the facing issue of high-temperature arises.

    According to the new purchase agreement, PTTC will be responsible for manufacturing and selling the product in Taiwan and China in representation of DENKA, as well as providing technical services to the end users; DENKA shall have the rights to distribute and sell the new products in Japan and Korea, and be responsible for supplying certain materials necessary for manufacture. It is expected that this cooperation will make a significant contribution in sales revenue and profit for both companies.

    DENKA has already engaged in thermally conductive material for about 20 years and is one of the leading manufacturers in the industry with its well-respected high quality product. This cooperation also means that the technological strength of PTTC has already been affirmed. With this strategic alliance, PTTC wishes to efficiently combine the low-cost manufacturing ability of its own with the high-quality assurance and marketing strength from DENKA, then the new product not only can contribute to the domestic LCD industry in Taiwan, but also penetrate into Japan and Korea market with the assistance of DENKA.