HONG KONG, Jan. 3, 2005 (PRIMEZONE) -- Highway Holdings Limited (Nasdaq:HIHO) today said it has commenced original equipment manufacturing production of light fixtures for OSRAM GmbH, a subsidiary of Siemens AG (NYSE:SI), under terms of a previously announced agreement valued at approximately $3.7 million. The company reiterated that the lighting products now being manufactured for OSRAM under this contract represent an entirely new business line for Highway Holdings. The company believes that this agreement is the beginning of a long-term manufacturing arrangement for the finished products in an original equipment manufacturing capacity.
"After resolving certain engineering issues and installing new manufacturing equipment on order that had delayed the operation, we are now in full-production and have commenced shipping light fixtures to OSRAM. We look forward to continued manufacturing momentum and long-term success," said Roland Kohl, president and chief executive officer of Highway Holdings.
Headquartered in Munich, OSRAM, a subsidiary of Siemens AG, is one of the largest lighting manufacturers in the world.
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 market potential for OSRAM's lighting fixtures 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 and the company's annual reports on Form 20-F.