Advantech to Merge With BCM Embedded Computer by June End

Taipei, June 25, 2008 (CENS)--To accelerate the development of dual-branding strategy, Advantech Co., one of Taiwan's major manufacturers of industrial computers, will merge with BCM Embedded Computer Inc. through its fully-owned Advantech Fund A by the end of June.

Advantech Fund A has a 50% stake in BCM which focuses on distribution of industrial motherboards. In mid-June, Advantech director board passed a proposal to increase investment of NT$200 million (US$6.6 million at US$1:NT$30.3) in Advantech Fund A to take controlling stake in BCM, which will become Advantech's distribution unit after the merger. Advantech will continue to engage in M&As at home and abroad, with the effect of the M&A to show sometime in 2009.

Being Taiwan's largest ePlatform service provider, Advantech registered NT$2.971 billion (US$98.05 million) in after-tax earnings last year, and will distribute NT$4.5 (US$0.148) in per-share dividend this year, including NT$4 (US$0.132) in cash and NT$0.5 (US$0.016) in stock.

Concentrating on own branded business, Advantech will try to achieve economy of scale by acquiring specialized orders. To that end, the company has brought onboard C.H. Wang, former president of Quanta Computer Inc., as an independent director by taking advantage of his management experience to expand DMS (design manufacturing service) operations.

To raise its sales growth, Advantech will focus on streamlining product lines and DMS as pivotal development strategies, stating that it would continue to upgrade product quality to vie for DMS customers to expand its DMS presence worldwide.

An institutional investor estimated Advantech will see sales reach NT$13.563 billion (US$447.62 million) this year. Based on such sales projection, the company will be able to achieve per-share earnings between NT$5.5 (US$0.181) and NT$6 (US$0.198) in 2008.