ECS Acquires Uniwill Computer

Mumbai, July 25, 2006 "� Elitegroup Computer Systems, Inc. (ECS), a global leading motherboard maker, has announced that it will acquire the professional notebook maker Uniwill Computer Co., Ltd. via a share swap. This is the second consecutive acquisition made by ECS after recently acquiring the desktop PC unit of Tatung at the beginning of 2006.

Details of the acquisition at this time include the following: two shares of Uniwill will be swapped for one ECS share. The completion date will be on Dec. 1, 2006, according to ECS's statement filed to the Taiwan Stock Exchange. ECS will issue 184,930,000 new shares with a per-share price of NT$19.05 to complete the Uniwill acquisition. The acquisition will integrate manufacturing capabilities of the notebook, desktop PC and motherboard lines.

Uniwill has been an established company for many years and has accumulated many competitive advantages such as strong R&D experience in the ODM/OEM notebook market, solid production engineering ability, and good relationships with ODM/OEM clients. Uniwill's operating performance in 2005 was good, with sales revenue and volume in 2005 reaching NT$26.8 billion and over 18,000K units respectively.

ECS is a world leading first-tier motherboard maker. The main product lines are motherboards, graphic cards, desktop PCs, and notebook PCs. ECS not only dramatically enhances its global market share of ODM notebook PCs, but also improves its efficiency and effectiveness running operations with this collaborative relationship. Consequently, there are several potential advantages in ECS acquiring Uniwill that include operations management, product design ability, component manufacturing ability, and logistics. M. T. Chen, President of ECS, said that the company's integration of Uniwill's OEM/ODM, R&D and management capabilities will help ECS enhance its business scale and increase its market share in the worldwide PC industry.

After the acquisition, ECS will become a company with more than 400 R&D team members for notebook PC design and will scale volume up to 3 million sets per year. ECS will be firmly positioned as one of the top 5 notebook manufacturers in the world through expansion of sales volume, increased OEM/ODM client base, and reduced procurement and manufacturing costs.

About ECS

The Elitegroup Computer Systems (ECS) has been a pioneer in designing and manufacturing computer motherboards since 1987. It was the first motherboard maker in Taiwan to be listed on the Taiwan Stock Exchange in 1994. Today, the motherboard maker also designs and manufactures notebook PCs and desktop PCs for ODM/OEM clients and distributors worldwide. Headquartered in Taiwan with operations in North America, Europe and the Pacific Rim, ECS also has ISO 9001: 2000 and ISO 14001 certified manufacturing facilities in China with over 3-million pcs of motherboard and 400-thousand sets of PC systems monthly capacity. For more information, please visit ECS at www.ecs.com.tw.

Media Contact: M.Dayanand EXL Public Relations, Email: daya@exlpr.com

Kate Yeh Elitegroup Computer Systems Email: kate.yeh@ecs.com.tw