Cornea Technology Announces Acquisition of KDS Korea; Flat-Panel Display Provider Will Leverage Manufacturing Facilities to Fuel Its Growing Business.

Business Editors

SEOUL, South Korea--(BUSINESS WIRE)--March 11, 2003

Cornea Technology, the parent company of leading U.S. flat-panel display manufacturer, Cornea Systems, today announced the acquisition of KDS Korea. Cornea Technology will leverage certain strategic assets of the company to increase the quality and volume production of its TFT-LCD and LCD TV displays.

A major producer of display technologies in Asia, KDS Korea possesses a state-of-the-art, fully automated manufacturing facility, capable of producing 150,000 LCD displays per month. The acquisition of this facility will enable Cornea Technology to deliver higher quality display systems to its customers more quickly and at a lower price. Cornea Technology will also be able to service larger, global accounts that require sizeable quantities of products, delivered at a rapid pace.

S.S. Shin, the current president of Cornea Technology, will expand his role in the company by also serving as the president of KDS Korea. Songchul Choi, former vice president of Hydis, a display manufacturer and subsidiary of Hyundai, has been appointed as the COO of KDS Korea. With upper management appointments already in place, Cornea Technology is poised to deploy KDS Korea's resources immediately.

"The global demand for Cornea Technology's cutting-edge flat-panel display solutions has been growing steadily, underscoring the value and reliability we provide to our customers," said S. S. Shin, president of Cornea Technology and KDS Korea. "The acquisition of KDS Korea will allow us to expand our already growing business and raise the bar on the quality and innovation customers come to expect of our TFT-LCD and plasma displays."

Cornea Technology distributes its products worldwide via several global subsidiaries, all of which will benefit from the acquisition. Cornea Systems, the U.S. subsidiary of Cornea Technology, will now posses a competitive advantage due to its ability to bring the latest in display innovation and technology to market more rapidly and at a lower cost.

"The primary focus of Cornea Systems is its customers -- we want to provide them with high-performance, affordable monitors that they can rely on. Cornea Technology's new relationship with KDS Korea will enable us to exceed our customers' expectations and stay ahead of the market by providing next-generation products to customers' desktops, today," said Young Yoo, general manager of Cornea Systems.

Cornea Technology's acquisition of KDS Korea, valued at $60 million, was approved by the Korea District Court on Feb. 6, 2003. Cornea Technology is the largest private investor in KDS Korea, holding 20 percent of its shares. As part of the new relationship, Cornea Technology will engage in discussions with KDS USA to resolve the legal rights and liabilities related to its affiliation with KDS Korea.

About Cornea Systems

Headquartered in San Jose, Calif., Cornea Systems is a privately owned subsidiary of Cornea Technology, a leading manufacturer of TFT-LCD and plasma displays, located in Seoul, Korea. With innovative style and unmatched quality, Cornea Systems delivers the future of display technologies to today's desktop at an exceptional price. Cornea Systems maintains sales and support offices in Japan, Germany and the United States. For more information on Cornea Systems, visit the company's Web site at http://www.corneasystems.com or call 800/681-6155.