Skyworth Digital Holdings Limited (“Skyworth”, and collectively with its subsidiaries, the “Group”)announced in a press conference held in the evening of 7 April 2008 at its production plant in Shiyan, Shenzhen, that it had forged a strategic alliance with LG Display Co., Ltd.  (“LG Display”) one of the world most significant thin-film transistor liquid crystal display (“LCD)” manufacturers and suppliers. In summary, (a) Skyworth acquired an equity stake in LG Display’s LCD module factory; (b) both parties entered into an agreement in the press conference to form a display technology research and development joint venture (“R&D JV”); and (c) Skyworth will build a large scale LCD television (“TV”) production plant in the location opposite to the LCD module factory of LG Display.

       Mr. Zhang Xue Bin, Executive Chairman and CEO of Skyworth, Mr. Yang Dongwen, Executive Director and President of PRC TV Business Unit, Mr. Eddie Yeo, Executive Vice President and Head of TV Business Unit of LG Display and others attended the press conference.

                         Skyworth moves upstream to LCD modules

       At the press conference, Skyworth and LG Display announced that they reached an agreement on 17 January 2008. Under the agreement, Skyworth agreed to acquire a minority equity stake in LG Display Guangzhou Co. Ltd (“LGD Guangzhou”), a wholly owned subsidiary of LG Display which owns and operates a LCD module plant in Guangzhou Economic and Technology Development Zone in Guangdong Province of the PRC. This production facility will become a significant LCD module production base in the PRC.

      The role played by LCD TVs in the PRC TV market is increasingly important. Based on the market analysis, the volume of LCD TVs in the PRC market reached 10 million units in 2007 and it will keep growing at over 50% volume to more than 15.5 million units in 2008. It has become a major stream of TVs, especially in the first and second tier cities in the PRC, and PRC LCD TV manufacturers have been relying on imported panels. Therefore, the demand for LCD panels is the key barrier against a TV manufacturer’s development. This time Skyworth directly enters into an international and first class LCD module business by equity participation will resolve the problem of PRC TV manufactures being lacking of core components, resolve the problem of Skyworth in sourcing of LCD panels and enable Skyworth to enjoy the benefits resulting from the integration.

      Zhang Xuebin, Executive Chairman and CEO of Skyworth said, “This is the best choice for PRC TV manufacturers to move upstream to LCD module industry in an efficient and technological risk free way. It resolves PRC TV manufacturers the problem in respect of enterprise development and raw material, improves the efficiency of complementary businesses, reduces all parties operating costs. This is also the best choice for cooperation between foreign and domestic manufacturers for future development.”

     Eddie Yeo, Executive Vice President and Head of TV Business unit of LG Display said, “PRC is the most important strategic market for LG. LG Display’s prudent decision to cooperate with Skyworth was made after study of the TV manufacturers in the PRC. Skyworth is the strongest and most sound TV manufacturer in the PRC. Its powerful market operating ability and core technology in TV manufacturing can provide the development of LGD Guangzhou with a general steady market and leads for technology.”