ASUSTek and Advantech Announce Strategic Alliance

ASUSTeK and Advantech announce that the two companies will enter a strategic alliance through a share swap. ASUSTek and Advantech will collaborate on new product developments, manufacturing, and quality, and set up a joint venture (tentatively AdvanSus) to pursue new business opportunities in industrial computing. The strategic alliance is expected to impact both companies' long-term developments. Combining their respective complimentary core competences, ASUSTek and Advantech say they will exert their efforts together to develop the highly potential Industrial computing segments, address the customer needs, and create shareholders' value.

According to the companies, ASUSTeK and Advantech will contribute dedicated talents and resources to the new joint venture, which will enter the highly potential markets such as industrial computing's Design & Manufacturing Service (D&MS), industrial mobile, industrial motherboard, and industrial server segments. The joint venture is expected to start operation from mid 2006.

Mr. KC Liu, Chief Executive Officer, Advantech, states that "The vision for Advantech to ally with ASUSTeK is to leverage ASUSTeK's expertise in quality, R&D and cost control, which will take the low-volume, high-customization, and service-driven industrial computing to the next level. The alliance will enter the industrial computing's Design & Manufacturing Service (D&MS), industrial mobile, industrial motherboard, and industrial server segments. The long-term goal is that ASUSTek and Advantech, the two global brands, will enhance each other's leading positions in the commercial computing and industrial computing areas.”

He added, “In addition to the complimentary technologies, ASUSTek and Advantech are very similar in management philosophy and company culture. I believe this is key to the success of the alliance. I consider Mr. Shih's leadership consistent with the level-five leader as described in my favorite book, Good to Great. I am very confident in the long-term development of this strategic alliance under the leadership of Mr. Shih."



www.asus.com

www.advantech.com