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HONG KONG--(BUSINESS WIRE)--June 29, 1995--Semi-Tech (Global) Company Limited announces today that its subsidiary, Akai Electric Co., Ltd. of Japan ("Akai") has entered into agreements to acquire up to 81% of the total issued capital of Kong Wah Holdings Limited ("Kong Wah"), a Bermuda incorporated company listed on the Hong Kong Stock Exchange. Under the agreements, Akai is to subscribe 700,000,000 new shares at a price of HK$0.80 per share and contemporaneous to the subscription, Akai is to make a General Offer to all the shareholders of Kong Wah at an offer price of HK$1.20 per share for up to a total number of 1,082 million shares, as Prime Time Holdings Ltd. ("PT"), the current 60% controlling shareholder of Kong Wah has agreed to retain a 19% share interest after the completion of the transaction. Board control will pass to Akai. PT also agrees not to dispose of its remaining holding for a period of two years without Akai's consent.

Commenting on this acquisition by Akai, Mr. James Henry Ting, Group Chief Executive of Semi-Tech said: "Akai is extremely strong in technology. Because of the high Yen value, Akai's traditional production base is not cost competitive. Kong Wah is the largest manufacturer in consumer electronics based in Southern China. Its production costs base is highly competitive. Together, it would be a great fit. Akai can tap into Kong Wah's production base to lower its production cost. Kong Wah should benefit from Akai's technological strength and additional business throughput from Akai. Furthermore, with Kong Wah's China base, Akai should be able to further penetrate the China market."

Commenting on the same acquisition by Akai, Mr. T. Nakano, Senior Managing Director of Akai said: "Akai has known Kong Wah for many years. In fact, our staff collaborated with Kong Wah in color TV and audio projects. With our technological strength and our experience in quality control, Kong Wah will in fact benefit greatly from this transaction. Furthermore, we are also committing over HK$500 million to expand Kong Wah's capital base.

Semi-Tech is a Bermuda corporation whose ordinary shares are listed on The Stock Exchange of Hong Kong Limited under the symbol 448. The ordinary shares of Semi-Tech are also traded in the over-the- counter market in the United States through a sponsored ADR program under the symbol SITGY. Semi-Tech owns a 55% share interest in Akai Electric Co., Ltd. and a 27% share interest in Sansui Electric Co., Ltd. Akai is a Japan public company whose shares are listed on the First Sections of the Tokyo Stock Exchange, the Osaka Securities Exchange and the Nagoya Stock Exchange, Code Number: 6802. Akai also owns a 17.5% share interest in Sansui. Sansui is a Japan public company whose shares are listed on the First Sections of the Tokyo Stock Exchange and the Osaka Securities Exchange, Code Number: 6793.

CONTACT: Semi-Tech (Global) Company Limited

Clara Loh, 852/2524 1043 Hong Kong

Fax No. 852/2845 3558 Hong Kong
COPYRIGHT 1995 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1995, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Publication:Business Wire
Date:Jun 29, 1995

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