July, 2004 Beginning of SFD Announcement of New Proprietary Color Technology From Tianma: TIANMA MICROELECTRONICS CO., LTD

Copyright ⓒ 2004 Tianma Microelectronics Tianma Microelectronics FSD ANNOUNCEMENT Tianma – SFD ANNOUNCEMENT July 23, Tianma Microelectronics, mainland China’s largest LCD manufacturer, held an open meeting for introduction of “SFD-series” (super-fast display) color STN modules, Tianma’s proprietary technology. According to the company’s president Ruiling Lui, such LCD modules are now available in three sizes – 1.5-inch, 1.85-inch and 5.7-inch. Volume production for SFD‘s will begin sometime this quarter, said Mr. Liu, adding that the CSTN display segment should achieve 50% of the company’s total revenues this year. Tianma’s chairman Quangquan Wu and president Ruiling Lui

Copyright ⓒ 2004 Tianma Microelectronics Tianma Microelectronics Tianma – SFD ANNOUNCEMENT During the press conference, Tianma’s Chairman, Mr. Wu Guangquan, and Tianma’s General Manager, Mr. Liu Ruilin, both expressed their belief that the SFD Modules would bring their customers new competitive advantages and replace current TFT LCD offerings. “As a high-tech company that attaches great importance to innovation in LCD and LCM technologies, Tianma is extremely proud to further CSTN LCD technology by launching SFD modules, which display the fastest moving images in the world,” said Mr. Wu. “Recently, the prices of electronics have gone up while margins have dropped, placing a lot of pressure on manufacturers. We believe that the only sustainable solution is the introduction of new technologies, like SFD modules, which bring customers and end consumers greater benefits. By doing so, these modules will transform the TFT LCD market and the greater LCD industry.” July 23, 2004, Shenzhen, China - Shenzhen Tianma Microelectronics Co., Ltd. announced the launch of its Super Fast Display (SFD) Flying Dragon Series of Color Display Modules today at a press conference in the Wuzhou Guest House in Shenzhen. The SFD modules boast the fastest moving displays of any CSTN modules in the world and can be used in many different multimedia products, including mobile phones, media players, automotive displays, digital home appliances and security apparatus. They share practically the same display quality as TFT modules, but with lower production costs, shorter lead times and less power consumption. FULL ARTICLE ON ANNOUNCEMENT

Copyright ⓒ 2004 Tianma Microelectronics Tianma Microelectronics Tianma – SFD ANNOUNCEMENT The SFD Flying Dragon Series of Color Display Modules allow CSTN LCD screens to display clear, fast moving images up to 30ftps/frame, flying in the face of conventional wisdom that holds that CSTN LCD screens will always have afterimages. SFD modules also enjoy high data-reaction rates with high contrasts and low image flicker. These capabilities are particularly valuable for electronics like mobile phones, which fulfill an increasing array of functions that require fast, color screens. Today, mobile phones often double as digital cameras, digital video recorders and video game consoles. Tianma’s SFD modules, beyond having lower production costs and power consumption than TFT LCD modules, can also be produced in a shorter amount of time, allowing Tianma to meet the needs of its customers better in a fast-changing market. Tianma is one of China’s top display module suppliers for mobile phones, producing 200,000 square meters of LCD and 50 million LCMs annually. It also possesses some of the most advanced CSTN manufacturing facilities in the world, able manufacture precision products down to 8μm trace spacing gaps. “Rising demand for PCs, mobile phones, digital home appliances and portable music players have driven sales for electronic components like LCDs,” added Mr. Liu. “SFD modules feature low costs and low power consumption with faster data response speeds and a clear display. They have the fastest display of moving images of any CSTN LCD ever. Their introduction is a huge step forward both for Tianma and for the whole LCD industry.” (continued)

Copyright ⓒ 2004 Tianma Microelectronics Tianma Microelectronics Tianma – SFD ANNOUNCEMENT Its “Tianma Liquid Crystal Engineering Technology Research and Development Center”, endorsed by the Guangdong Provincial Scientific and Technology Commission, houses a group of R&D experts specializing in Physics, Chemistry, Electronics, Semiconductors and Computer Science. As a market leader that is dedicated to innovation, Tianma contributes to and supports the Guangdong Economy and Trade Committee’s plans to continue Guangdong’s domestic leadership in the electronics components industry, further Guangdong’s international capabilities in electronics components and establish the province as a national manufacturing base by Tianma’s manufacturing capabilities and innovative products, like SFD modules, are the direct result of its investment in R&D, a necessity in Shenzhen’s rapidly developing high-tech market. Tianma’s R&D force boasts more than 20 years of experience in LCD, LCM and display screen innovation. (continued)

Copyright ⓒ 2004 Tianma Microelectronics Tianma Microelectronics IMAGES FROM TIANMA’S ANNOUCEMENT MEETING