HONG KONG, Oct. 1, 2003 (PRIMEZONE) -- Highway Holdings Limited (Nasdaq:HIHO) today announced the signing of a cooperative agreement with Taiwan-based Sinai Technology Co., Ltd., whereby Highway Holdings will gain technical support and training to manufacture products incorporating liquid crystal displays, primarily monitors and televisions, for the German market.
Under terms of the agreement, Highway Holdings said its target is to purchase up to 2,500 units of monitor and television kits on a monthly basis from Sinai Technology beginning in February 2004, with final assembly and production to be completed at its manufacturing facilities in Shenzhen province of The People's Republic of China. Additional terms were not disclosed.
The company added that these consumer products are intended to be sold under the "Kienzle" brand by Kienzle AG, a recently established European marketing company that has licensed the Kienzle brand name from Highway Holdings. The Kienzle name is a highly recognized brand in Germany with a history of over 180 years.
"The cooperative agreement with Sinai Technologies allows Highway Holdings the opportunity to expand its manufacturing capabilities in a growing and dynamic electronic consumer products market with minimal costs," said Roland Kohl, president and chief executive officer.
"Since Kienzle has an established reputation for quality manufacturing, our strategy of capitalizing on its name recognizes the importance of continuing this tradition and actually producing many of the new products sold under the Kienzle brand name," Kohl added.
About Highway Holdings:
Highway Holdings produces a wide variety of high-quality metal parts and components for blue chip original equipment manufacturers. It also manufactures clocks and clock movements for sale under the company's own Kienzle Uhren brand name, as well as for unaffiliated clock companies. Additionally, Highway Holdings manufactures finished products, including single-use and 35mm cameras and other products. The company is headquartered in Hong Kong and operates manufacturing facilities both in Shenzhen province of the People's Republic of China and in Bulgaria.
Except for the historical information contained herein, the matters discussed in this press release, including, but not limited to, the ability of both companies to manufacture and assemble consumer electronic products incorporating liquid crystal display panels and the anticipated opportunities for the liquid crystal display products in Germany, are forward-looking statements which involve risks and uncertainties, including but not limited to economic, competitive, governmental, political and technological factors affecting the company's revenues, operations, markets, products and prices, the affect of SARS in China and in the company's other markets, and other factors discussed in the company's various filings with the Securities and Exchange Commission, including without limitation the company's periodic and annual reports on Form 20-F.