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Press Release

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20th March 2000, British Columbia, Canada

Nam Tai Electronics, Inc. Announces New Telecom Business Developments

Nam Tai Electronics, Inc. today announced recent new business developments for its subsidiary Namtai Telecom (Hong Kong) Company Ltd.

1.    CT1/CT1+  Cordless Phones for Europe
The Company has successfully finalized the development of NTP 2000 (a new 900 MHz cordless phone model) and obtained type approval in Germany.  Orders for this new model were received from Metro MGE Einkauf GmbH  ("Metro") for the German market.  Metro is Europe's largest telephone distribution company.  Orders were also received from Master S.P.A. of Italy; however, type approval for Italy is still in process.

The Company also confirmed that it continues decreasing its inventory of  finished goods for Daewoo Electronics Deutschland GmbH, and the outstanding balance will be shipped out within two months to totally resolve the inventory build-up of these products.

2.    Family Radio System

The Company has received initial orders from Korean company Headline Electronics Co., Ltd. for 177,000 Family Radio System ("FRS") units  to be sold in the North American market to RadioShack, a Division of Tandy Corporation and Midland Consumer Radio Ltd.  One million units  for Radioshack and 600,000 units for Midland order forecasts for one year have been received.

3.    Digitally Enhanced Cordless Telephones ("DECT")
The Company has finalized cosmetic designs for two DECT models and orders have been received from Master S.P.A. in Italy.

DECT License from Philips
The Company paid a license fee to Philips Electronic Building Elements Industries (Taiwan) Ltd. ("Philips'') and obtained the DECT license. The license is used by Nam Tai to develop its own DECT products using Time Division Multiple Access ("TDMA'') technology. Philips provided Nam Tai with the core software for DECT allowing Nam Tai to develop its own DECT with its own man-machine interface. Philips provided Nam Tai with the software package and demonstration boards which allow Nam Tai to develop DECT.

Nam Tai Electronics, Inc. is an electronics design and manufacturing service provider to some of the world's leading original equipment manufacturers. Nam Tai manufactures telecommunication products, palm-sized PC's, personal digital assistants, linguistic products, calculators, smart card readers and various components including LCD modules for cellular phones and lithium ion rechargeable battery packs which are used in cellular phones, laptop computers, electronic toys and household appliances. It has also developed the ability to integrate MP3 functionality into hand-held electronic products. The Company utilises advanced production technologies such as chip on board ("COB''), chip on glass ("COG''), surface mount technology ("SMT''), tape automated bonding ("TAB'') and outer lead bonding ("OLB'') technologies and anistropic conductive film ("ACF'') heat seal technology.

Further Information

Web:	http://www.namtai.com

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