E Ink Holdings and CPT Cooperate to Expand eReader and Tablet Markets

TAOYUAN and HSINCHU, Taiwan, July 19, 2011 /PRNewswire/ -- Chunghwa Picture Tubes, Ltd. (TAIEX: 2475; "CPT") and E Ink Holdings Inc. (TAIEX: 8069; "E Ink") jointly announced today that each of their board of directors had passed a resolution, enabling E Ink to make an investment into CPT with a view to strengthen their collaboration in technology and in production capacity. Through this investment and cooperation, both companies expect to further expand electronic paper and FFS (Fringe Field Switching) panel business. The strategic alliance will further solidify their existing leadership position in eReader, tablets and other mobile devices markets.

The investment will be a total of NT$1.5 billion in the form of unsecured convertible bonds issued through private placement in Taiwan. The conversion price will be at NT$3.25 per share. This issue, expected to be completed by the end of July this year, is for a period of 3 years.

This investment enables the expansion of panel production capacity and exchange of related technological information between the two companies. This investment is also aimed at improving the utilization of CPT's production lines and enabling them to focus on higher-end value-added products.

"This cooperation will strengthen E Ink's capacity to meet the demand of the fast-growing eReader market while CPT can better utilize their 6th-gen fab," says E Ink's Chairman Scott Liu. "More importantly this strategic alliance will expand the relevant markets for both companies."

The co-operation is expected to result in an integrated supply chain. CPT will also manufacture FFS LCD displays, thereby expanding Hydis' FFS manufacturing capacity. FFS technology based LCD are the market share leaders in displays for tablets and other mobile devices, just as E Ink's dual pigment ePaper technology is the market share leader for eReader displays. E Ink's investment will secure a steady supply of display panels for both its EPD and FFS business.

About E Ink Holdings

Founded in 1992 by Taiwan's leading papermaking and printing group, YFY (1907.TW), E Ink Holdings Inc. "E Ink" (8069.TW) is the pioneer of the TFT and ePaper business in Taiwan. Its corporate philosophy aims to deliver revolutionary products, user experiences, and environmental benefits through advanced technology development. This vision has led to its continuous investments in the field of ePaper displays as well as its 2008 acquisition of Hydis Technologies, the manufacturer of FFS displays, the world's best wide viewing angle LCDs, and its 2009 acquisition of E Ink Corp., the worldwide leader in ePaper products. Listed in Taiwan's OTC market and the Luxembourg market, E Ink is now the world's largest supplier of displays to the eReader market. For more information, please visit www.eink.com.

About CPT

CPT was established in 1971. Based on a strong and core foundation in display technologies and with many years of CRT, CDT, and TFT experiences, CPT continuously develops new and better quality products and services. While keeping a close eye on market needs, CPT has successfully led an efficient transformation and expansion of its manufacturing capabilities. This includes both the effective adjustment of its product mix, as well as the production of high-added-value display panels. At present, CPT is focused on the development of small and medium sized TFT-LCD products for the niche and touch panel markets in order to strictly control inventory and efficiently improve profitability. For more detailed information, please refer to the official website of CPT at www.cptt.com.tw.

SOURCE E Ink Holdings