Ann: XPED PARTNER WITH COMPAL ELECTRONICS, page-29

Arcadyan and Compal came together in 2006.

Taiwan, 2006/08/30

Arcadyan announces the consolidation with Compal Electronics Inc. for a win-win prospect



Compal Electronics, Inc. (the “Compal”) will acquire shares of Arcadyan Technology Co. from Accton Technology Co., the transaction was 26,596,610 shares, with total cost of NT$ 984 million and NT$ 37 per share, respectively. The share purchase will be completed between the end of the third quarter and the beginning of the fourth quarter, 2006.
Specialized in wireless broadband and multimedia telecom technologies, Arcadyan's products are manufactured by Accton, the Mother Company and Compal. It’s a great benefit from Compal's sufficient production and manufacturing capability. Frank Kuo, executive VP and spokesperson of Accton, said that Compal's purchase of Arcadyan shares will help Arcadyan expand its market to major PC OEM and enlarge Arcadyan's economy of scale further. Arcadyan's current customer base comes from the top end of the market pyramid, which includes telecom service providers.

As recognized as a RD-orientated company, Arcadyan takes advantage of the consolidation with a solid alliance for strategic integration between RD resource and manufacturing, which may help Arcadyan become a world-class networking total solution provider and the sales growth in the upcoming future.

Compal states “the consolidation of Arcadyan's networking technology capability and Compal's mass manufacturing experience will enhance New Arcadyan to diversify its customer base and strengthen market competitiveness. Also, Compal will extend its business to Digital Multi-Media Home Application and Dual-mode phone, as it is expected the networking technology would be employed broadly in consumer appliance device.”

There will be no difference to all Arcadyan customers except obtaining better service of product integrations, technology innovations and logistics. HY Lee, president of Arcadyan, said, “Arcadyan is an aggressive company with tremendous growth of sales revenue and technology innovation in the past 3 years. The perfect union will not only reinforce our advantages to increase market share, but also improve our production and manufacturing capability to fulfill our commitments to our business associates and partners. We believe the fruitful results will be visible in the foreseeable future.”

Taken from Arcadyan website in 2006.