Casio Enters LCD Business Alliance with HannStar Display Corporation of Taiwan

Casio Enters LCD Business Alliance with HannStar Display Corporation of Taiwan

Tokyo, August 31, 2005 — Casio Computer Co., Ltd., and HannStar Display Corporation signed a business cooperation agreement today. The contract between the two firms created an alliance under which Casio will provide its Hyper Amorphous Silicon TFT-LCD (HAST-LCD) technology to HannStar, and in return, be granted priority in the purchase of HAST-LCDs produced by HannStar. In recent years, there has been remarkable growth in the demand for small and medium-sized LCDs, due to the popularization of cellular phones, digital cameras and other digital products. Casio has developed its specialized business for small and medium-sized LCDs over a number of years. It has earned a solid position as a manufacturer of small and medium-sized LCDs, building a 40% share of the LCD market for digital cameras. This dominant share is a testimony to the quality of Casio’s HAST-LCDs, which offer superior energy-saving performance combined with high resolution and brilliance for a beautiful picture. However, with the production base for this product, Kochi Casio Co., Ltd., already working at full capacity, Casio has urgently sought to expand its preliminary processing capacity in order to further increase production. To date, HannStar has developed its business by focusing on large TFT-LCDs. However, it has been preparing for full-scale participation in the small and medium-sized TFT-LCD market, which is expected to continue to grow. Today’s alliance agreement represents the fulfillment of Casio’s search for a partner to facilitate the expansion of its preliminary processing capacity. It also meets HannStar’s need for a partner to help it enter the small and medium-sized LCD market, while using its existing production lines. Casio will provide HannStar with the preliminary processing technology for the TFT array to adhesion processes. Casio will also purchase the TFT pre-processed circuit boards produced by HannStar, and finish them for cellular phone, digital camera and other applications. HannStar will refit its existing preliminary processing lines (550 mm by 650 mm) in Yangmei, Taiwan to accommodate Casio’s technology. HannStar is planning to start full-scale mass production in the first half of fiscal 2007. The two companies plan to continue this cooperative relationship into the future, in order to meet the needs of the ever-expanding small and medium-sized LCD market.

HAST (Hyper Amorphous Silicon TFT) Based on technology development including multi-pin slim LSIs, and the utilization of Casio’s own low-resistance circuit material, a TFT-LCD has been created that realizes high resolution and high aperture ratio, rivaling polysilicon. The production line utilizes conventional amorphous silicon TFT-LCD manufacturing equipment, which means no large-scale capital investment is necessary. Moreover, it offers stable production rates, yields, and quality. Overview of HannStar Name: HannStar Display Corporation Chairman & CEO: Yu-Chi Chiao Headquarters: Yangmei, Taoyuan, Taiwan Established: June 1998 Paid in capital: 58.0 billion Taiwan dollars Net Sales: 38.7 billion Taiwan dollars (fiscal year ended December 2004) Employees: 5,001 (as of June 2005) Business: Manufacturing and sales of TFT-LCDs (NT$1 = ¥3.39, as of August 30, 2005)

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