Mobiletron to sell convertible bonds to GIC

Taipei, June 17, 2003 (CENS)--Taiwan's Mobiletron Electronics Co., Ltd. Recently announced that it would give a board seat to the Government of Singapore Investment Corporation (GIC) in order to accelerate its globalization and dilute its image as a family-run enterprise.

Mobiletron president Tsai Yu-ching said that in addition to globalizing its electric hand tool and automobile ignition part operations, Mobiletron has been diversifying into new product lines, such as car security systems.

According to Tsai, GIC is one of the world's leading fund management firms. The company was established in 1981 to manage Singapore's reserves and currently administers over US$100 billion in assets. GIC invests these funds all over the world in assets such as equities, fixed income and money market instruments, real estate and special investments.

Tsai said that Mobiletron would let GIC subscribe US$25 million of an upcoming issue of US$30 million of Euro-Convertible Bonds (ECBs). According to its agreement with Mobiletron, GIC will be able to convert the ECBs into a 15% or so stake in the Taiwanese company after one year.

Tsai said that since GIC targets its investments in privately held firms, the Singapore firm will hold its board seat in Mobiletron under a personal rather than corporate name. GIC has never occupied a board seat in a publicly listed company in Taiwan, according to Tsai.

According to industry sources said, GIC has also signed an agreement with Taiwan Hon Chuan Enterprise Co., Ltd., a leading packaging material and machinery maker, to inject US$14 million in Hon Chuan's new plant construction project in mainland China.

GIC's investment will help Mobiletron change its image as a family-run enterprise and help the firm evolve as an international player, Tsai said.

Mobiletron has been aggressively diversifying its product lines into high-tech and high-margin auto electronic parts. The company has begun marketing an automobile multimedia display system through its American subsidiary Media View and is planning to utilize the technology of other subsidiaries to develop tire pressure monitor systems, high-resolution mini cameras and other auto safety and security products.

Tsai said that Mobiletron's auto electronic business department would eventually shift its focus to auto safety/security systems and later advance into optoelectronic fields.

Established in 1982, Mobiletron is one of the world's most comprehensive suppliers of automotive ignition modules and alternator components including voltage regulators, rectifiers and diodes, as well as a major supplier of electric hand tools. The company supplies over 1,000 auto ignition parts used in nearly every kind of car and light truck in the world. Mobiletron is currently capitalized at about US$24.8 million and has over 1,000 employees worldwide.