CenDyne Receives Major Investment from Test Rite.

Business Editors

SANTA ANA, Calif.--(BUSINESS WIRE)--Aug. 20, 2002

Investment Will Help CenDyne Meet Demand for Optical Storage

Products, Launch Wireless and Networking Lines, and Establish

Worldwide Organization

CenDyne, Inc., the leading optical storage and PC peripherals products company in the U.S. retail channel, today announced that it has created a joint venture investment involving a cash infusion and worldwide logistics infrastructure support by Test Rite, Inc. based in Taipei, Taiwan. In addition, CenDyne is expecting to finalize an agreement with its financial institutions for an increase in its credit line of approximately $30 million U.S. The investment will continue CenDyne's tremendous growth in the PC market and expand operations overseas.

"We have strong financial performance and solid alliances within the U.S. retail channel and with the world's leading optical drive manufacturers," said Mo Vahdati, CEO, CenDyne, Inc. "Now, with our expanded financial resources, we are strategically positioned for growth worldwide."

CenDyne will be rapidly entering the wireless, networking, digital imaging and other high-growth technology categories that will be in high demand by consumers worldwide. To support international product sales, CenDyne will open branch offices in China, Japan, Taiwan, Europe and South America in 2003.

Test Rite will provide CenDyne with support and services to propel the company's worldwide growth, including logistical support, state-of-the-art Web-based purchasing and procurement software, access to advanced new industrial design technology, and international purchasing support. In addition to CenDyne, Test Rite has invested in several prominent companies, including B&Q, the leading do-it-yourself home improvement stores in Taiwan.

"Test Rite's strategic alliance with CenDyne brings us its company's value in terms of a solid customer base and successful product strategy in the information technology field which is new and promising to Test Rite," said Tony Ho, the Chairman of Test Rite Group. "Being the international purchasing organization and consolidating the sales network with CenDyne, Test Rite is expecting its future success in IT products trading business, which benefits from huge cost savings in purchasing and a strong global sales network. CenDyne is also gaining market penetration via Test Rite's strength in North America. Basically, I deem it a `three-win' approach."

CenDyne ranked number one in market share for total CD-RW drives sold in the U.S. for the year to date, according to NPD Techworld's May 2002 data.

According to Edward Meadows, president, CenDyne, "In overall recordable optical sales, which include recordable DVD drives along with CD-RW drives, CenDyne would also be ranked as number one in market share. We have made remarkable strides toward our goal of building a leading brand name since our founding in 1999."

Since its inception, CenDyne has been increasing sales at an internal rate exceeding 80 percent per year to an estimated $50 million for its 2002 fiscal year, which ended June 2002. Such rapid growth can in part be attributed to its extremely strong partnerships with manufacturers that are ranked first or second worldwide in their product categories. CenDyne's technology partners include Pioneer and Ricoh in DVD recordable drives, Ritek in Media, Lite-On and Verbatim in CD-RW drives, and Pioneer and Lite-On in DVD-ROM drives.

With the investment, CenDyne will work to fulfill the increasing demand for the company's line of award-winning products with its existing retail, reseller and distribution partners and to establish new relationships worldwide. CenDyne already has solid alliances with its nationally recognized retail partners that sell the company's products to consumer and business users throughout the U.S. CenDyne's current retail partners include BJ's Wholesale Club, Circuit City, Costco, Fry's Electronics, MicroCenter Superstores, OfficeMax, Sam's Club and Staples, as well as Web retailing giants Amazon.com, Buy.com and RadioShack.com. CenDyne has also been able to reach smaller resellers through its alliance with Ingram Micro.

To expand business and meet growing consumer demand, CenDyne is also establishing significant alliances with other industry leaders. Most notably, in 2001 CenDyne acquired the exclusive Verbatim license rights for optical products with the Verbatim brand name in North and South America. Verbatim, a Mitsubishi Chemical subsidiary, is one of the world's leading media companies in both brand recognition and market share.

CenDyne has consistently lead the U.S. market with the introduction of advanced optical technologies, and has received numerous industry awards and accolades for its products, including CRN's Ultimate PC Award in 2002 and CNET's Editors' Choice award. Also in the last 10 months, CenDyne's CD-RW drives have consistently ranked among PC World's Top 10. Further testament to the company's success is its ranking by Entrepreneur Magazine and Dun & Bradstreet as number four on the companies' 2001 list of "America's Hot 100 Fastest-Growing New Businesses."

About Test Rite

Test Rite Group (2908TT Bloomber), Taiwan's largest trading conglomerate with over 27 overseas offices worldwide, is pacing its robust growth not only in trading but also in emerging home center retail business, which is renowned by B&Q Taiwan, its successful joint venture with KingFisher from Europe since 1996. Test Rite was ranked by Forbes (Oct. 29, 2001) as one of "The 200 Best Small Companies" in the world. Test Rite has been successful to serve its major customers including Wal-Mart, Staples, Home Depot, Stanley and Sears in North America, and Gemex and KingFisher in Europe over the past two decades.

About CenDyne, Inc.

Located in Santa Ana, Calif., CenDyne markets and sells computer peripherals through retail and online outlets including: Amazon.com, American TV, Army & Air Force Exchange Service, Buy.com, BJ Wholesales, Circuit City, Costco, Fry's Electronics, Hastings, Ingram Micro, Micro Center, Nebraska Furniture Mart, NEXCOM (Navy Exchange), Office Max, RadioShack.com, Sam's Clubs and Staples. The company has received numerous accolades and industry awards for its outstanding products that provide a great value for consumers. For more information, please go to the company's Web site at www.cendyne.com or call the company at 714/556-1020.