Nam Tai Electronics expands, invests.

Nam Tai Electronics, Inc. (Hong Kong, China, www.namtai.com) announced that its wholly owned subsidiary, Shenzhen Namtek Co., Ltd. (Shenzhen, China) is expanding and has established a new office in Shanghai, China. Namtek has leased approximately 4,518 sq. ft. of office space in Shanghai and has already recruited engineers in Shanghai. The company plans to expand its engineering team in Shanghai by recruiting more engineers locally.

Nam Tai has also announced that, following an announcement of a return from its investment in Huizhou TCL Mobile Communication Co. Ltd. (Guangdong, China, www.tclmobile.com), the company has decided to make a new investment in another TCL subsidiary company, TCL International Holdings Ltd., which is a publicly listed company in Hong Kong.

At the invitation of TCL Group, Nam Tai has agreed to subscribe for approximately $5 million of convertible bond notes to be issued by TCL International. The term of the CB note is three years with interest of 3 percent per annum. The CB note is convertible into shares of TCL International at the conversion price of approximately $0.33 per share.

This is the third investment by Nam Tai in TCL Group. Before this investment, Nam Tai invested $2 million for 4.5 percent of TCL Mobile and $12 million for a 6 percent equity interest in TCL Corp.