AIM to Funnel NT$600M Into Diversifying Product Lines

Taipei, May 29, 2006 (CENS)--Advanced International Multitech Co. (AIM), one of Taiwan' s leading golf club and head makers, is planning to funnel NT$600 million into (US$17.65 million at US$1 = NT$34) expanding its production lines to include golf balls and other sporting goods made of carbon-fiber composite materials.

Cheng His-kun, AIM' s chairman, disclosed that the company, in compliance with the government' s policy of diversifying manufacturing in Taiwan, has recently spent NT$300 (US$8.82 million) to set up a plant in southern Taiwan to produce golf balls. The projected plant, with an initial production volume of 10 million dozens of golf balls per year, is scheduled to officially begin operations in August of this year.

AIM is reportedly to have already obtained manufacturing techniques for golf balls from long-term client Taylor Made, a U.S.-based international golf brand. It is believed that Taylor Made has promised to place orders with AIM for golf balls worth US$60 million in the near future.

To get involved in making carbon-fiber products, AIM recently pumped US$1 million into a newly established local company that focuses on the production of carbon-fiber sporting goods, including baseball bats, tennis rackets, and hockey sticks. Other than golf items, AIM is also good at manufacturing bicycle frames, and has a group of stable clients for the cycling products, so, the joint venture will include the production of bicycle frames as well.

The new company is currently establishing a plant in Shanghai, mainland China, which is slated to start operating in the third quarter of this year. After the operation of the plant begins, it is forecast to generate revenues of NT$200 million (US$5.88 million) from producing bicycle frames in 2007.

Last year AIM boasted an earnings per share (EPS) of NT$6.63 (US$0.2), and plans to mete out NT$4.6 (US$0.14) per share as dividends to its shareholders. Of the dividends per share, NT$4.1 (US$0.12) will be paid in cash, and NT$0.5 (US$0.015) will be paid as stock. This year the company is expected to see its EPS remain at a high level of NT$6-7 (US$0.18-0.21).

Status Quo of AIM Operations Unit: NT$100M
Items	Production base	Estimated revenue for 2006	Estimated revenue for 2007
Golf clubs & heads	Shenzhen of China, Vietnam	70	80
Golf balls	Taiwan	--	About 12.8
Carbon-fiber products	Taiwan, Shanghai of China	--	--