Comtech Group Enters Into New Supplier Agreement With Broadcom
January 19 2005 - 8:00AM
PR Newswire (US)
Comtech Group Enters Into New Supplier Agreement With Broadcom ~
The Company Secures a Purchase Order From Lenovo ~ SHENZHEN, China,
Jan. 19 /PRNewswire-FirstCall/ -- Comtech Group, Inc. (OTC:COMT.OB)
(BULLETIN BOARD: COMT.OB) , a leading module design solutions
provider in China focused on the mobile handset and telecom
equipment industries, today announced that it has entered into a
new supplier agreement with Broadcom Corporation (NASDAQ:BRCM), a
leading provider of highly integrated silicon solutions enabling
broadband communications. Partnered with Broadcom, Comtech will
include that company's technology and chipsets in the development
of module solutions being supplied to Comtech's telecom equipment
and mobile handset OEM customers in China. In addition, Comtech
plans to include Broadcom's technology and chipsets in its
solutions to consumer electronics OEMs, designed into products such
as set-top boxes, digital televisions, entertainment centers,
wireless networks, VoIP products, storage networks, among others.
"Broadcom is a leading enabler of broadband, datacom and wireless
technologies," said Jeffrey Kang, Chairman and President of Comtech
Group. "We are very excited about our new relationship with
Broadcom. Being partnered with Broadcom will allow Comtech to
broaden our product lines, extend our reach into new markets and
enhance our competitive advantage. China's demand for electronic
products, such as mobile phones, PCs and DVD players, has
significantly increased, further boosting the need for
semiconductor-related devices." According to IC Insights, the
Chinese integrated circuit industry will increase from US$19.2
billion in 2003 to US$61.9 billion in 2008, representing a compound
annual growth rate of 26.4%. China's share of the worldwide
integrated circuit market is expected to increase from 13.7% in
2003 to 23.5% in 2008. Separately, the new partnership with
Broadcom has already helped Comtech secure a purchase order from
Lenovo Group Limited, which acquired IBM's personal computing
division in December 2004. Specifically, Comtech will provide
Lenovo with an Ethernet solution that incorporates Broadcom's
chipsets. About Comtech Comtech Group, Inc. is a gateway to the
high-growth technology market in China. The Company is a module
design solutions provider in China, focused on the mobile handset
and telecom equipment industries. The Company designs solutions for
mobile device products, including liquid crystal display (LCD)
modules, camera modules, persistent storage modules, input/output
modules, sound system and power supply modules. In the telecom
equipment industry Comtech targets optical solutions, data
communication solutions, public switched telephone network (PSTN)
switching and wireless base stations. Safe Harbor Statement This
press release includes certain statements that are not descriptions
of historical facts, but are forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities and Exchange Act of 1934. These forward
looking statements may include the description of our plans and
objectives for future operations, assumptions underlying such plans
and objectives and other forward looking terminology such as "may,"
"expects," "believes," "anticipates," "intends," "expects,"
"projects," or similar terms, variations of such terms or the
negative of such terms. Such information is based upon various
assumptions made by, and expectations of, our management that were
reasonable when made but may prove to be incorrect. All of such
assumptions are inherently subject to significant economic and
competitive uncertainties and contingencies beyond our control and
upon assumptions with respect to the future business decisions
which are subject to change. Accordingly, there can be no assurance
that actual results will meet expectations and actual results may
vary (perhaps materially) from certain of the results anticipated
herein. DATASOURCE: Comtech Group, Inc. CONTACT: in Asia Pacific,
Hope Ni, Chief Financial Officer, ; or in North America, Jason Golz
of Financial Dynamics, +1-415-439-4532, or , for Comtech Group,
Inc. Web site: http://www.comtech.com.cn/
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