Arasor and ZTE Corporation Form $300million Joint Venture for Laser Displays Arasor Internat ional Limited (ASX: ARR) has entered into a USD$300M Joint Venture wi th ZTE Corporat ion (HKSE:0763) to develop and manufacture laser display appl icat ions for the global marketplace. Arasor and ZTE have established the joint venture to commercial ize a wide range of laser based display products for appl icat ion in televisions, projectors and mobi le displays including cel lular phones, PDA’s and notebooks. Arasor wi l l own 51% of the JV. Arasor achieves 3 key mi lestones with this JV: 1) large scale external funding for laser development and product ion 2) channel to market with one of the wor lds largest handset providers 3) extensive and scalable manufactur ing capacity Under Phase 1 of this Joint Venture to run f rom 2008 to 2010, the China Development Bank wi l l provide f inancing up to USD$300M. Product ion is expected to commence in H2, 2008 ramping up over t ime to produce 6mil l ion laser sources and 2.4mi l l ion light engines for cel lular phones per annum. Planning for Phase 2 of the JV to run f rom 2011-2012 has commenced and wi ll be based upon key benchmarks achieved dur ing Phase 1. “This joint venture wi l l leverage the combinat ion of ZTE’s global reach, Arasor ’s core laser display technologies, and the f inancial st rength of the China Development Bank to propel the acceptance of state of the ar t laser display appl icat ions on a wor ld wide basis. This JV wi l l provide ZTE wi th a key compet i t ive advantage in commercial izing the products” said Yong Yu, Senior Vice President of ZTE. Dr . Simon Cao, CEO of Arasor , states “ I am very excited about this joint venture and bel ieve that it wi l l accelerate the deployment of laser based display appl icat ions, star t ing wi th televisions and projectors and eventual ly to all forms of cel lular phones. Fur ther , par tner ing with ZTE and the China Development Bank wi l l provide al l of the necessary commercial and f inancial suppor t requi red to complete the supply chain and ensure the accelerated penet rat ion of laser displays into the global markets. As the largest provider of mobile handsets in china, ZTE make the per fect cornerstone customer for the JV. The investment of USD$300M plus technology, people and other resources is a massive demonst rat ion of the commi tment of ZTE and the China Development Bank to secur ing the next generat ion of the consumer elect ronics indust ry. I t is also a val idat ion of Arasor ’s propr ietary opt ical chip technology. The potent ial growth that we envision f rom these appl icat ions can be a company t ransforming event for Arasor ” he concluded. Laser technology wi l l be at the hear t of next generat ion display l ight sources that wi l l provide consumers with a ful l range of benef its including access to enhanced spect rum of colors, signi f icant ly lower power consumpt ion, larger range of screen sizes and overall product cost savings. The Arasor /ZTE joint venture, which wi l l commence formal operat ions in Q1 2008, wi l l be the f irst ent i ty in the wor ld solely dedicated to the global deployment of appl icat ions based on laser display technology. The manufactur ing wi l l occur at Arasor , ZTE and JV faci l it ies in China. The laser source for these display appl icat ions wi l l ut il ize the company’s innovat ive opto-elect ronic chip. Each source wil l require a set of 3 chips represent ing the pr imary colors of red, green and blue. The f inancial impact of the Arasor /ZTE joint venture is in addit ion to Arasor ’s cur rent 2008 forecast and the market wi l l be updated as the joint venture operat ions are f inalized. About Arasor Internat ional Limi ted Arasor Internat ional Limited (ASX: ARR) develops and markets opt ical chips, components, modules and subsystems to capitalize on the emergence of new appl icat ions for photonic technologies. Under the leadership of one of the st rongest management and engineer ing teams in the optoelect ronics indust ry today, Arasor aims to establ ish i tself as a leading opt ical solut ions company serving Chinese and global systems vendors in the wireless and network t ranspor t indust r ies. Arasor ’s wor ldwide headquar ters are located in Mountain View, Cal ifornia, USA with operat ions in Guangzhou & Shanghai, China; Sydney and Canber ra, Aust ral ia ; Banglaore, India and Yokohama, Japan. For addit ional informat ion: www.arasor .net . About ZTE ZTE is a leading global provider of telecommunicat ions equipment and network solut ions. ZTE's product range is the most complete in the wor ld, cover ing vir tual ly every sector of the wireline, wireless, terminal and service markets. ZTE is also China's largest l isted telecoms manufacturer with shares publicly t raded on both Hong Kong Stock Exchange and Shenzhen Stock Exchange. The company had sales of RMB23bi l l ion in 2006 and approcimately 40,000 employees. For addit ional informat ion: www.zte.com.cn For fur ther informat ion please telephone: Scot t Wi lkie Vice President (Aust ral ia) + 61 400 118 100 Mike Hong General Manager of Wi reless Solut ions + 1 650 314 1757 Viv Hardy 0411 208 951 Cal l idus (Publ ic Relat ions
