HONG KONG, Dec. 17, 2003 (PRIMEZONE) -- Highway Holdings Limited (Nasdaq:HIHO) today announced it has signed a contract for a two-year period with OSRAM, a subsidiary of Siemens AG (NYSE:SI), to manufacture metal casings for fluorescent lamp electronic ballasts produced by OSRAM's factories worldwide.
This order represents an estimated sales value of approximately $7.4 million over a two-year period based upon OSRAM's utilization last year. Additional terms were not disclosed.
Highway Holdings also said it has received manufacturing contracts valued in excess of $800,000 from the German household appliance company Miele & Cie. KG. The orders from Miele consist of a new tooling order for a new project and an add-on contract for certain appliance components. Additional terms were not disclosed.
"Over the past several months, we have focused considerable attention on leveraging the company's reputation and manufacturing capabilities to generate increased revenues and higher margins by producing more customized and sophisticated components, subassemblies and complete assemblies for large-scale global customers. The contracts from OSRAM and Miele highlight that our strategy is working well, and we look forward to generating additional business of this caliber," said Roland Kohl, chairman and chief executive officer.
Headquartered in Munich, OSRAM, a subsidiary of Siemens AG, is one of the largest lighting manufacturers in the world.
Established in 1899 and based in Gutersloh, Germany, Miele is an international manufacturer of high-end domestic appliances.
About Highway Holdings:
Highway Holdings produces a wide variety of high-quality products for blue chip original equipment manufacturers from simple parts and components to sub-assemblies and finished products. It also manufactures clocks, clock movements and watches for sale under the company's own Kienzle Uhren brand name, as well as for unaffiliated companies. Additionally, Highway Holdings manufactures or produces other finished products, including single-use and 35mm cameras and certain electronic products. Highway Holdings is headquartered in Hong Kong and operates manufacturing facilities both in Shenzhen province of the People's Republic of China.
Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements which involve risks and uncertainties, including but not limited to the expected output requirements for metal casing from OSRAM and various economic, competitive, governmental, political and technological factors affecting the company's revenues, operations, markets, products and prices, and other factors discussed in the company's various filings with the Securities and Exchange Commission, including without limitation the Registration Statement on Form F-1, as amended (Registration No. 333-05980), and the company's annual reports on Form 20-F.