HONG KONG, July 12, 2005 (PRIMEZONE) -- Highway Holdings Limited (Nasdaq:HIHO) today announced that its board of directors has declared an annual cash dividend of $0.20 per share on the company's common stock. The dividend will be paid August 15, 2005, to shareholders of record on July 28, 2005.
It is the company's policy to pay dividends when the company's financial conditions permit. As announced on June 30, 2005, Highway Holdings completed the sale of its rights to use the Kienzle trademark in all markets, other than for clocks and watches, to a German marketing organization. The purchase price for the non-clock and watch rights for the Kienzle trademark was $1.0 million in cash. The sale of these rights will be booked in the company's fiscal first quarter ended June 30, 2005. In addition, as part of the sale of the non-clock and watch rights to the Kienzle trademark, Kienzle AG also repurchased Highway Holdings' equity interest in Kienzle AG for 100,000 euro (approximately $121,000). This investment had previously been written off in fiscal 2004.
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 cameras and certain electronic products. Highway Holdings is headquartered in Hong Kong and operates manufacturing facilities 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 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 company's annual reports on Form 20-F.